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 асcount. D. Subsidiary accounts are usually maintained for accounts receivable, accounts payable, notes receivable and notes payable.

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 асcount. D. Subsidiary accounts are usually maintained for accounts receivable, accounts payable, notes receivable and notes payable.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter7: Accounting Information Systems

Section: Chapter Questions

Problem 19MC: The sum of all the accounts in the accounts receivable subsidiary ledger should ________. A. equal...

See similar textbooks

Similar questions

What is the purpose of subsidiary ledgers? Select one: a. Provide supporting details on groups of accounts b. Provide credit balances only c. Provide supporting details on individual accounts d. Provide debit balances only
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.
2 Cullumber Company's chart of accounts includes the following selected accounts. W S 101 Cash 112 Accounts Receivable Inventory Owner's Capital 120 301 Apr. 1 4 5 X On April 1, the accounts receivable ledger of Cullumber Company showed the following balances: Morrow $1,500, Rose $1,160, Jennings Co. $2,930, and Dent $2,050. The April transactions involving the receipt of cash were as follows. 8 10 11 23 29 # 3 E с D The owner, T. Cullumber, invested additional cash in the business $7,160. 54 401 Received check for payment of account from Dent less 2% cash discount. Received payment in full for $955 from Jennings Co for invoice no. 307. Made cash sales of merchandise totaling $7,200. The cost of the merchandise sold was $4,320. Received payment in full for $610 from Morrow for invoice no. 309. Received cash refund from a supplier for damaged merchandise $760. Received payment in full for $1,065 from Jennings Co. for invoice no. 310. Received check for payment of account from Rose (no…
Why would a company use a subsidiary ledger for its Accounts Receivable?
In the revenue cycle, the most significant accounts typically include revenue and accounts receivable. (T/F)
The sum of all the accounts in the accounts receivable subsidiary ledger should ________. A. equal the accounts receivable account balance in the general ledger before posting any amounts B. equal the accounts payable account balance in the general ledger before posting any amounts C. equal the accounts receivable account balance in the general ledger after posting all amounts D. equal the cash account balance in the general ledger after posting all amounts
The Sum of all the accounts in the accounts receivable subsidiary ledger should?
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.
Discuss, using practical example the effect of prepayment figures on the preparation of a financial statement? Suggest Four reasons why there might be difference between the balance on the receivable ledger control account and the total list of the list of accounts receivable ledger balances.? Discuss, using practical example how revenue expenditure should not be capitalized ?
5. TRUE OR FALSE. If assignment of receivables is made under a notification basis, the company, the assignor records any collection from its client ahead of the financing institution.
Define the ECL model for accounts receivable. How does it differ from the CECL model?
Explain the relationship between the balance in the account payable general ledger control account and accounts payable subsidiary ledger.