Which of the following are advantages of maintaining a subsidiary ledger for depreciable assets?
I. It provides information for the preparation of income tax returns.
II. It provides information concerning servicing of the assets.
III. It provides information for internal control over assets.
IV. It provides information to support insurance claims in the event of loss from theft or accident.

Question

Quizplus · Accepted Answer

Maintaining a subsidiary ledger for depreciable assets provides various advantages such as providing information for income tax returns, servicing of assets, internal control over assets, and support for insurance claims in case of loss due to theft or accident. Therefore, all the given options (I, II, III, and IV) are advantages of maintaining a subsidiary ledger for depreciable assets.

Which of the Following Are Advantages of Maintaining a Subsidiary