A Subsidiary Ledger That Contains a Separate Account for Each

question 18

Multiple Choice

A subsidiary ledger that contains a separate account for each supplier (creditor) to the company is a(n) :

• A) Controlling account.
• B) Accounts receivable ledger.
• C) Accounts payable ledger.
• D) General ledger.
• E) Special journal.

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Definitions:

Premium

The amount paid for a product or service above its nominal value, often related to insurance or bonds.

Discount

A reduction from the usual cost of something, or the amount by which an asset's book value is reduced for accounting purposes.

Inception Date

The date on which an agreement, contract, or financial instrument becomes effective.

Forward Contract

A forward contract is a customized contract between two parties to buy or sell an asset at a specified price on a future date.