The use of an Accounts Payable controlling account:
A) Reduces the number of accounts in the subsidiary ledger.
B) Reduces the total number of accounts maintained.
C) Reduces the number of entries in the general journals.
D) Reduces the number of accounts in the general ledger.
E) Increases the number of columns in the journals.

Question

Quizplus · Accepted Answer

The use of an Accounts Payable controlling account helps reduce the number of accounts in the general ledger by summarizing all the transactions from the accounts payable subsidiary ledger. This way, only one account needs to be maintained in the general ledger, which simplifies accounting processes and financial reporting.

The Use of an Accounts Payable Controlling Account