A control account ________.
A) does not appear on the balance sheet
B) has a balance that equals the sum of the balances in a group of related accounts in a subsidiary ledger
C) is equivalent to a contra account and represents the offsetting nature of debits and credits on a firm's financial statements
D) holds individual accounts that support a general ledger account

Question

Quizplus · Accepted Answer

A control account is a general ledger account that summarizes and controls the balances of a group of related accounts in a subsidiary ledger. The balance of the control account equals the total of the balances of the sub-ledger accounts. Therefore, choice B is the correct answer. Choices A, C, and D are incorrect because they do not accurately describe the nature of a control account.

A Control Account ________