A subsidiary ledger
A) Includes transactions not covered by special journals
B) Is a listing of all of the accounts of a business
C) Is a listing of individual accounts with a common characteristic
D) Is a listing of all accounts with balances
E) Is a listing of all special journals

Question

Quizplus · Accepted Answer

A subsidiary ledger is a type of accounting ledger that contains detailed sub-accounts for specific balance sheet and income statement accounts. These sub-accounts provide more detailed information about the transactions that make up the balance in the main account. Subsidiary ledgers are typically used for accounts with many individual transactions, such as accounts receivable or accounts payable, and are organized based on a common characteristic such as customer name or vendor name. Therefore, choice C is the correct answer as it defines the characteristic of a subsidiary ledger.

A Subsidiary Ledger