Customers' Individual Accounts Are Included in a Subsidiary Ledger Referred

question 80

Multiple Choice

Customers' individual accounts are included in a subsidiary ledger referred to as the

• A) accounts payable ledger.
• B) controlling ledger.
• C) miscellaneous ledger.
• D) accounts receivable ledger.
• E) general ledger.

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Definitions:

Parmalat

An Italian dairy and food corporation that became famous for a massive corporate fraud and bankruptcy scandal in 2003.

WorldCom

A telecommunications company that was involved in one of the largest accounting fraud scandals in history, leading to its bankruptcy in 2002.

Volcker Rule

Part of the Dodd-Frank Wall Street Reform and Consumer Protection Act that restricts U.S. banks from making certain kinds of speculative investments that do not benefit their customers.

Proprietary Trading

When a firm trades stocks, bonds, currencies, commodities, derivatives, or other financial instruments with its own money, rather than its clients' money, for its own profit.