A subsidiary account is:
A)prohibited by GAAP.
B)a separate account maintained internally for billing purposes.
C)used for tax purposes to enable calculation of taxable income.
D)used only for computing the accounts receivable turnover.

Question

Quizplus · Accepted Answer

For billing and collection purposes,a company will keep a separate accounts receivable account (called a subsidiary account)for each customer.

A Subsidiary Account Is