For Which of the Following Would a Subsidiary Ledger and Control

question 17

Multiple Choice

For which of the following would a subsidiary ledger and control account system not normally be used?

• A) Plant and equipment
• B) Bank loan
• C) Inventory
• D) Accounts receivable

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Definitions:

Fixed Assets

Long-term tangible assets that are used in the operations of a business and are not expected to be converted to cash in the short term.

Pledged Receivables

Assets owed to a company that have been used as collateral for a loan or other financial agreement.

Loan Collateral

Security that a borrower offers a lender to secure a loan.

Uncollected Accounts

Accounts receivable that have not yet been paid by customers, representing outstanding debts owed to a business.