The Accounts Payable controlling account:
A)Is not included in a company's chart of accounts.
B)Stores the transaction data of individual supplies.
C)Reduces the number of entries in the general journals.
D)Equals the sum of all balances of supplier accounts.
E)Increases the number of columns in the journals.

Question

Quizplus · Accepted Answer

The Accounts Payable controlling account is a general ledger account that keeps track of all outstanding invoices and payments to suppliers. It represents the sum of all balances owed to suppliers, hence Option D is the correct answer. Option A is incorrect as the Accounts Payable controlling account is a standard account included in the company's chart of accounts. Option B is incorrect as individual transactions related to supplies would be recorded in the Accounts Payable subsidiary ledger. Option C is incorrect as the creation of an Accounts Payable controlling account doesn't reduce the number of general journal entries required. Lastly, Option E is incorrect as the number of columns in the journals would not be affected by the creation of an Accounts Payable controlling account.

The Accounts Payable Controlling Account