Question

4. Which of the following statements is false? Select one: The balance in the control account...

4. Which of the following statements is false?

Select one:

The balance in the control account must always equal the total of the subsidiary ledger.

When a subsidiary ledger and a control account are used, each journal entry that affects accounts receivable must be posted twice.

A subsidiary ledger is a group of accounts that provides details about a control account in the general ledger.

A subsidiary ledger includes supporting detail to the general ledger.

5. Trade receivables

Select one:

include employee advances.

can be accounts receivable or notes receivable.

do not result from the operations of the business.

occur when two companies trade or exchange notes receivables.

Homework Answers

Answer #1

Part 4)OPTION B------ When a subsidiary ledger and control account are used , each journal entry that affects accounts receivable must be posted twice.

Above statement is False. Subsidiary ledger is a group of accounts of same nature, for eg- all accounts receivable of company is maintained in subsidiary ledger.

Part 5)OPTION B ---- can be accounts receivable or notes receivable

Trade receivable occurs when company renders services or sells good to customers. Hence it includes accounts receivable or notes receivable

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