When the sum of all entries in the subsidiary ledger equals the balance in the corresponding general ledger account,it is assumed that
A)the recording processes were accurate.
B)all source documents were recorded.
C)adjusting entries are not required.
D)no errors exist in the subsidiary ledger.

Question

Quizplus · Accepted Answer

When the sum of all entries in the subsidiary ledger equals the balance in the corresponding general ledger account, it indicates that the recording processes were accurate, and all transactions were correctly recorded in both the subsidiary ledger and the general ledger. This provides assurance to the management that their financial statements accurately represent the financial position and performance of their business.

When the Sum of All Entries in the Subsidiary Ledger