Question

True or False

A. The subsidiary ledger bills the customer for the goods or services received.

B. The chart of accounts presents accounts in the general subsidiary and managerial ledgers in a color-coded graphical presentation.

C. Managerial accounting books are the internal records used for the day-to-day management of the business.\

D. The general ledger and chart of accounts are critical in enabling companies to develop meaningful budgets.

Answer 1

A. True: A subsidiary ledger contains the details to support a general ledger control account. For instance, the subsidiary ledger for accounts receivable contains the information for each of the company's credit sales to customers, each customer's remittance, return of merchandise, discounts, and so on

B. False: The chart of accounts presents accounts in the general subsidiary and managerial ledgers not in a color coded graphical presentation.

C. True: Managerial accounting books are the internal records used the by management for taking key decisions,and determine whether the plans were accurate or not.

D. True: The general ledger and chart of accounts are critical in enabling companies to develop meaningful budgets. As there are huge no of transactions and it becomes very difficult to make decision on the basis of this.