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Which statement about subsidiary ledger is most accurate

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The accounts receivable subsidiary ledger is a book of accounts that provides supporting detail for Accounts Receivable.
User Liga
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Answer: A subsidiary ledger account is a group of accounts in the sense that when these group of accounts are closely observed, the total combined balance equals that of a specific general ledger account.

Step-by-step explanation:

The subsidiary ledger contains details of a specific general ledger. It acts as an intermediary set of account that connect to the general ledger. Examples of subsidiary (sub) ledger account are account payable ledger, account receivable ledger, fixed assets ledger, inventory ledgers and purchases ledger. Auditors can trace transactions from a subsidiary ledger account to a specific general ledger account and also to the financial statement to be assured that proper transactions of accounts are taken and recorded.

User Santosh Khalse
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