The main reason for using control accounts and subsidiary ledgers is:
A) to separate the accounting tasks between employees.
B) to enable more timely and efficient processing.
C) to allow the manual system to be more easily computerised.
D) to reduce the number of mistakes in the recording process.

Question

Quizplus · Accepted Answer

Control accounts and subsidiary ledgers enable more timely and efficient processing by allowing transactions to be recorded in more detail and then summarized in the control account. This allows for more accurate and efficient reporting and analysis of financial information.

The Main Reason for Using Control Accounts and Subsidiary Ledgers