Subsidiary ledgers
A) are used only for Accounts Payable and Accounts Receivable
B) may be used for various general ledger accounts
C) may be used only for the cash account
D) are never used for more than four accounts

Question

Quizplus · Accepted Answer

Subsidiary ledgers are used to track transaction details for specific accounts such as inventory, accounts receivable, or accounts payable. These ledgers can be used for various general ledger accounts, not just for cash. There is no limit to the number of accounts that can have a subsidiary ledger.

Subsidiary Ledgers