The total of the accounts payable subsidiary ledger is equal to:
A)The balance in the general ledger purchases account
B)The balance in the general ledger accounts receivable account
C)The total amount the company owes to those provided inventory to the company
D)The total amount of the liabilities in the general ledger

Question

Quizplus · Accepted Answer

The accounts payable subsidiary ledger is a detailed record of individual accounts that shows the amounts owed to each supplier. Therefore, the total of the accounts payable subsidiary ledger represents the total amount the company owes to those who provided inventory or services to the company, making choice C the correct answer. The balance in the general ledger purchases account (choice A) represents the total amount of purchases made by the company, not the total amount owed to suppliers. The balance in the general ledger accounts receivable account (choice B) represents the total amount owed to the company by its customers, not the total amount the company owes to suppliers. The total amount of liabilities in the general ledger (choice D) includes accounts payable, but it also includes other types of liabilities. Therefore, it doesn't specifically represent the total of the accounts payable subsidiary ledger.

The Total of the Accounts Payable Subsidiary Ledger Is Equal