Asked by Alyssa Cansler on May 19, 2024
Verified
The balance of a control account in the general ledger
A) must always be zero.
B) must equal the amount of total assets.
C) is always greater than the composite balance of individual accounts in a related subsidiary ledger.
D) must equal the composite balance of individual accounts in a related subsidiary ledger.
Control Account Balance
Refers to the total balance in a general ledger account that summarizes the balances of subsidiary ledger accounts.
Subsidiary Ledger
A ledger containing the details to support a summary line item in the General Ledger, such as accounts receivable or accounts payable.
General Ledger
A comprehensive set of accounts that records all financial transactions of a business and is used to prepare financial statements.
- Understand the relationship and reconciliation between control accounts and subsidiary ledgers.
Verified Answer
Learning Objectives
- Understand the relationship and reconciliation between control accounts and subsidiary ledgers.
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