Subsidiary ledgers
A) are used only for Accounts Payable and Accounts Receivable
B) may be used for various ledger accounts
C) may be used for only for the Cash account
D) are never used for more than four accounts

Question

Quizplus · Accepted Answer

Subsidiary ledgers can be used for various ledger accounts, not just Accounts Payable and Accounts Receivable. For example, a company could have a subsidiary ledger for inventory, which would track individual inventory items and their respective balances. There is no limit to the number of accounts that can be tracked in a subsidiary ledger.

Subsidiary Ledgers