Which of the Following Would Not Normally Use a Subsidiary

question 44

Multiple Choice

Which of the following would not normally use a subsidiary ledger and control account system?

• A) Plant and equipment
• B) Trade creditors
• C) Mortgage
• D) Accounts receivable

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Definitions:

Corporate Governance

The system of rules, practices, and processes by which a company is directed and controlled, focusing on balancing the interests of stakeholders.

CEO's Ability

Refers to the skills, experience, and leadership qualities that a Chief Executive Officer possesses in managing and guiding a company.

Agency Costs

Expenses that arise from conflicts of interest between management of a company and its shareholders, including costs related to monitoring and aligning interests.

Underinvestment

Underinvestment occurs when a company or individual invests less than what is necessary to achieve optimal growth or returns.