General Ledger & Subsidiary Ledgers Quiz
1. Which of the following records contains a complete summary of all a business's financial accounts?
Accounts Receivable Subsidiary Ledger
General Ledger
General Journal
Accounts Payable Subsidiary Ledger
2. What type of account in the General Ledger summarizes the detailed balances found in a Subsidiary Ledger?
Nominal Account
Contra Account
Control Account
Equity Account
3. If a business wants to see how much money a specific customer owes, where is the best place to look?
Accounts Receivable Subsidiary Ledger
Accounts Receivable Control Account in the GL
The Trial Balance
Accounts Payable Subsidiary Ledger
4. Which statement is TRUE regarding the total of all individual balances in an Accounts Payable Subsidiary Ledger?
It must equal total business revenues.
It must equal the Accounts Receivable Control account balance.
It must equal the Accounts Payable Control account balance in the GL.
It must equal zero at the end of every day.
5. What is a primary operational benefit of using Subsidiary Ledgers?
They eliminate the need for a General Ledger.
They keep the General Ledger free of excessive details and clutter.
They guarantee that financial statements are created faster automatically.
They convert single-entry transactions into double-entry transactions.
6. Which financial report is prepared directly from the balances found in the General Ledger?
The Vendor Invoice Log
The Customer Mailing List
The Trial Balance
The Daily Inventory Purchase Log
7. An Inventory Subsidiary Ledger tracks which of the following?
The total cash available in the bank account
Individual stock item names, quantities, and specific item costs
Amounts owed to specific manufacturing suppliers
The historical depreciation of office buildings
8. If the total of an Accounts Receivable Subsidiary Ledger is $4,500, but the GL Control Account shows $4,200, what does this indicate?
The business made an extra $300 profit.
A transaction was posted or calculated incorrectly in at least one record book.
This is normal behavior, and the books are perfectly fine.
The customer accounts have expired.
9. Which of these accounts is most likely to act as a Control Account in the General Ledger?
Rent Expense
Owner's Capital
Accounts Receivable
Service Revenue
10. True or False: Every single individual credit transaction with a customer must be listed as its own separate line-item balance on the main Balance Sheet.
True
False
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