The total of the individual account balances in the accounts receivable master file equals the:
A) total sales for the period.
B) balance of the accounts receivable account in the general ledger.
C) total sales less the total cash received for the period.
D) balance of the sales account in the general ledger.

Question

Quizplus · Accepted Answer

The accounts receivable master file is a subsidiary ledger that contains detailed information on all accounts receivable owed to the company. The balance in this file should match the balance of the accounts receivable account in the general ledger, which represents the total amount of money owed to the company by its customers. Therefore, the correct answer is B - the total of the individual account balances should equal the balance of the accounts receivable account in the general ledger. The other options are incorrect because they do not necessarily have any relation to the accounts receivable master file or its contents.

The Total of the Individual Account Balances in the Accounts