Subsidiary Ledgers in a Manual Accounting System Have Three Main

question 8

Multiple Choice

Subsidiary ledgers in a manual accounting system have three main advantages. Which of the following is not one of those advantages?

• A) They dramatically reduce the occurrence of bad debts.
• B) They remove a mass of detail from the general ledger.
• C) They allow a division of labour in maintaining the general and subsidiary ledgers.
• D) They improve internal control through the reconciliation of the control account with the subsidiary ledger.

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Definitions:

Retrograde Amnesia

A loss of memory-access to events that occurred, or information that was learned, before an injury or the onset of a disease.

Korsakoff's Syndrome

A chronic memory disorder caused by severe deficiency of thiamine (vitamin B1), often associated with alcoholism, characterized by short-term memory loss and confabulation.

Declarative Memory

A type of long-term memory that involves the ability to recall factual information, such as events, words, and concepts.

Short-Term Memory

The component of memory where small amounts of information can be stored for a short period of time, typically seconds to minutes.