Question

Question 17 Mark this question Which of the following scenarios would use a purchases subsidiary ledger?

Maybelle wants to know which customers have been late on their payments.

Trudy wants to know which suppliers have raised their prices in the past year.

John wants to identify his top 20 customers.

Ann Marie wants to determine whether to extend more credit to a customer.

Question 6 Mark this question Charlie's order of shoes is the freight at the manufacturer's warehouse in Hong Kong, and he has agreed to the FOB shipping point method.

Who owns the freight when the shoes are at the Hong Kong loading docks, ready to be shipped to New York?

The shipping company

Charlie’s customer

Charlie

The supplier

Answer 1

17. The correct answer to this question will be option (b) Trudy wants to know which suppliers have raised their prices in the past year. It is because purchases subsidiary ledger is used to track purchase data and if Trudy wants to know about the suppliers then that information is related to purchase and so she would use purchases subsidiary ledger. The other options are not correct because they are all related to customers and for that sales subsidiary ledger is required.

6. The correct answer to this question will be option (c) Charlie. If it is FOB shipping point, the buyer will shoulder the freight. So, the answer is Charlie(who is the buyer).