Which of the Following Statements Is True

question 54

Multiple Choice

Which of the following statements is true?

• A) There is double entry recording in a subsidiary ledger.
• B) A business with three credit customers would need to set up an accounts receivable subsidiary ledger.
• C) With a manual accounting system, where there is a control account and a subsidiary ledger for debtors, transactions for debtors must be recorded twice.
• D) Every business needs to set up special journals for returns transactions.

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Definitions:

Monetary Policy

Actions taken by a central bank, currency board, or other regulatory authorities to control the supply of money and interest rates in a country, aiming at managing economic growth and stabilizing the currency.

National Industrial Recovery Act

A 1933 U.S. legislation aimed at boosting economic growth by reducing unemployment and increasing purchasing power through regulations on wages, prices, and working hours.

Fixed Prices

Prices that do not change in response to market conditions.

Corporate Taxes

Government levies placed on the earnings or profits of businesses.