The basic purpose of a subsidiary ledger is to:
A)Provide a chronological record of all business transactions.
B)Provide details about the individual items comprising the balance of a general ledger account.
C)Enable accountants to prepare financial statements.
D)Provide persons outside of the organization with detailed information about the company's operations.

Question

Quizplus · Accepted Answer

A subsidiary ledger provides detailed information about the individual items that make up the balance of a general ledger account. This allows accountants to track specific transactions and make adjustments as necessary. It does not provide a chronological record of all business transactions, enable the preparation of financial statements on its own, or provide information to persons outside of the organization.

The Basic Purpose of a Subsidiary Ledger Is To