Asked by Derek Timmer on Jul 15, 2024
Verified
A subsidiary ledger frees the general ledger from details of
A) individual balances.
B) external transactions.
C) internal transactions.
D) the control account.
Subsidiary Ledger
A detailed ledger that provides a breakdown of individual transactions affecting a specific general ledger account, facilitating in-depth analysis and reconciliation.
General Ledger
A comprehensive record of all financial transactions over the life of a company.
Individual Balances
The amounts recorded in separate accounts representing various assets, liabilities, or equity of an individual or entity.
- Attain knowledge regarding the use and importance of a general ledger as well as subsidiary ledgers.
Verified Answer
AS
Alexandra SevostyanovaJul 15, 2024
Final Answer :
A
Explanation :
A subsidiary ledger contains details of individual balances for specific accounts, such as accounts receivable or accounts payable. By keeping this information in a separate ledger, the general ledger is freed from having to record and track all of these individual balances, making it easier to manage the overall financial picture of the company.
Learning Objectives
- Attain knowledge regarding the use and importance of a general ledger as well as subsidiary ledgers.