Which of the Following Are Advantages of Maintaining a Subsidiary

question 49

Multiple Choice

Which of the following are advantages of maintaining a subsidiary ledger for depreciable assets?
I. It provides information for the preparation of income tax returns.
II. It provides information concerning servicing of the assets.
III. It provides information for internal control over assets.
IV. It provides information to support insurance claims in the event of loss from theft or accident.

• A) I, II and III only
• B) I, II and IV only
• C) II and IV only
• D) I, II, III and IV

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Definitions:

Maximize Profits

The process of adjusting production and sales strategies to achieve the highest possible financial gain.

Sales Revenue

The total amount of money generated from the sale of goods or services before any costs or expenses are subtracted.

Economic Behavior

The actions and decisions that individuals and groups make with regard to the allocation of resources and the consumption of goods and services.

Revising Theories

The process of critically evaluating and updating theoretical frameworks based on new evidence or insights, to refine and improve their explanatory power.