An accounts payable ledger:
A)Contains an account for each credit customer.
B)Lists the balances of selected accounts that are added to show the total amount of the significant long-term creditors outstanding.
C)Is a book of original entry designed and used for recording only a specified type of transaction.
D)Contains the financial statement accounts of a business.
E)Contains a separate account for each creditor (supplier)to the company.

Question

Quizplus · Accepted Answer

An accounts payable ledger contains a separate account for each creditor or supplier to the company. It tracks the amounts owed to each supplier and is used for monitoring and managing the company's outstanding payables. Options A, B, C, and D do not accurately describe the purpose or content of an accounts payable ledger.

An Accounts Payable Ledger