A subsidiary account for temporary investments:
A)is the account reported on the balance sheet.
B)contains the details of each individual investment.
C)is the summary account of all of the investments.
D)is where the dividend and income revenue from the investment is recorded.

Question

Quizplus · Accepted Answer

A subsidiary account for temporary investments would contain the details of each individual investment, such as the name of the investment, the amount invested, the date of the investment, and the expected return. This level of detail is necessary to properly manage and track the performance of each individual investment. The subsidiary account would not be reported on the balance sheet, as it is a detailed account that supports a summary account (such as the temporary investments account on the balance sheet). The dividend and income revenue from the investment would be recorded in a separate revenue account.

A Subsidiary Account for Temporary Investments