Which of the following statements about subsidiary ledgers is most accurate?
A) The subsidiary ledger accounts will never equal the control account in the general ledger.
B) The accounts receivable subsidiary ledger is a book of accounts that provides supporting detail for Accounts Receivable.
C) The subsidiary ledger accounts will equal the amount in the Sales account.
D) All of these answers are correct.

Question

Quizplus · Accepted Answer

A subsidiary ledger is a group of accounts with a common characteristic that support a controlling account in the general ledger. The purpose of subsidiary ledgers is to provide detailed information about the transactions that make up the balances in the controlling account. For example, the accounts receivable subsidiary ledger provides details about each customer's transactions that make up the balance in the Accounts Receivable controlling account in the general ledger. While the balance in the subsidiary ledger will equal the balance in the controlling account, it is possible for there to be timing differences or errors that can result in temporary differences in the balances. Option A is incorrect as the subsidiary ledger account and control account should match. Option C is incorrect as the subsidiary ledger may have transactions that do not necessarily relate to sales. Option D is incorrect as option A is wrong.

Which of the Following Statements About Subsidiary Ledgers Is Most