Subsidiary Ledgers Do All of the Following Except

question 106

Multiple Choice

Subsidiary ledgers do all of the following except:

• A) Remove excessive detail from the general ledger.
• B) Provide up-to-date information on customer or other specific account balances.
• C) Aid in error identification for individual accounts.
• D) Help with division of labor (recordkeeping tasks).
• E) Eliminate the need for individual postings to the customer or supplier accounts.

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Definitions:

Financial Statements

Documents that present the financial activities and condition of a business, including the balance sheet, income statement, statement of cash flows, and statement of changes in equity.

Liabilities

Financial obligations owed by a business to others, such as loans, accounts payable, mortgages, and other debts.

Local Bank

A financial institution that operates within a limited geographic area, typically providing banking services to individuals and businesses in its community.

Retained Earnings

The portion of a company's profits not distributed to shareholders as dividends but retained for reinvestment in the business or to pay debt.