Which of the following is incorrect regarding subsidiary ledger? a. The accounts receivable ledger is a common subsidiary ledger b. An advantage of the subsidiary ledger is that it permits a division of labor in posting c. The purchases ledger is a common subsidiary ledger for creditor accounts d. A subsidiary ledger is a group of accounts with common characteristics

Which of the following is incorrect regarding subsidiary ledger? a. The accounts receivable ledger is a common subsidiary ledger b. An advantage of the subsidiary ledger is that it permits a division of labor in posting c. The purchases ledger is a common subsidiary ledger for creditor accounts d. A subsidiary ledger is a group of accounts with common characteristics

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter7: Accounting Information Systems

Section: Chapter Questions

Problem 2TP: Why would a company use a subsidiary ledger for its Accounts Receivable?

See similar textbooks

Similar questions

A subsidiary ledger that contains a separate account for each supplier (creditor) to the company is the a. Controlling account. b. Accounts payable ledger. c. Accounts receivable ledger. d. General ledger. e. Special journal.
A subsidiary ledger is used for accounts receivable and accounts payable. Thus, transactions that are made “on account” are posted to the individual customer or creditor accounts.a. Why do companies use subsidiary ledgers for accounts payable and accounts receivable?b. Identify another account that could benefit from using a subsidiary ledger.
The Vendor Ledgers report displays the :Select one A. Accounts receivable control account B. Accounts Payable subsidiary ledger C. Accounts receivable subsidiary ledger D. Accounts Payable control account
When dealing with receivables, give an example of a subsidiary account.
Which of the following statements is true? A. There are fewer subsidiary accounts than control accounts B. The number of control accounts must always equal to the number of subsidiary accounts C. The amounts in the subsidiary ledgers must at all times be equal to the total related general ledger account. D. Subsidiary accounts are usually maintained for accounts receivable, accounts payable, notes receivable and notes payable.
Which one of the following statements is true? a. When a company uses a subsidiary ledger, the balance in the control account, Accounts Receivable, shows only the amount the company expects to collect from the accounts receivable, net of any expected uncollectible accounts. b. An accounts receivable subsidiary ledger represents amounts due to vendors and suppliers. c. The balance in the control account, Accounts Receivable, should be equal to the sum of the balances in the subsidiary ledger for accounts receivable. d. A subsidiary ledger takes the place of the control account for some companies.
A subsidiary ledger that contains a separate account for each supplier (creditor) to the company is the:
How payables ledger works with double entry accounting
Explain the relationship between the balance in the account payable general ledger control account and accounts payable subsidiary ledger.
How a General Ledger Works With Double-Entry Accounting
Are purchasing and receiving functions separate from invoiceprocessing, accounts payable, and general ledger functions?
Which of the following forms cannot be customized? Select one: A. Estimate B. Sales Receipt C. Credit memo D. Invoice