Which of the Following Statements About Control Accounts Is Incorrect

question 43

Multiple Choice

Which of the following statements about control accounts is incorrect?

• A) they provide summarised data.
• B) they are included in the subsidiary ledger.
• C) they apply the normal rules of debit and credit.
• D) they are included in the trial balance.

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Definitions:

Unrealized Gains/Losses

Financial gains or losses on investments or assets that have not yet been sold or converted into cash.

Equity Method

An accounting technique used to record investments in other companies, where the investment's value is adjusted for the investor’s share of the investee's profits or losses.

Investee Earnings

Represents the portion of profits or losses from investments in other entities that the investing company includes in its own financial statements.

Voting Common Stock

A type of equity security that grants its holders the right to vote on corporate policies and the election of the board of directors.