When the sum of all entries in the subsidiary ledger equals the amount in the corresponding general ledger account,it is assumed that (select all that apply)
A)the recording and posting processes are accurate.
B)all of the transaction cycles have been completed.
C)since the ledgers are in balance,adjusting entries are not required.
D)no errors exist in the subsidiary ledger and corresponding general ledger account.

Question

Quizplus · Accepted Answer

The fact that the sum of all entries in the subsidiary ledger equals the amount in the corresponding general ledger account indicates that the recording and posting processes are accurate, and no errors exist in the subsidiary ledger and corresponding general ledger account. However, it does not necessarily mean that all of the transaction cycles have been completed or that adjusting entries are not required.

When the Sum of All Entries in the Subsidiary Ledger