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:

Effects On Other Parts

The impact that changes or actions in one segment or component have on other segments or components within a system or organization.

Proceeds From Sales

The total amount of money received by a company from selling goods, services, or assets.

Opportunity Costs

The cost of foregoing the next best alternative when making a decision. It represents the benefits an individual, investor, or business misses out on when choosing one alternative over another.

Fixed Costs

Expenses that do not change with the level of goods or services produced over the short term.