Question

Which of the following is NOT a common subsidiary ledger?

A. Inventory subsidiary ledger
B. Accounts payable subsidiary ledger
C. Accounts receivable subsidiary ledger
D. Cost of goods sold subsidiary ledge

Answer 1

The correct answer is D. Cost of goods sold subsidiary ledger.

Step-by-step explanation:

A subsidiary ledger is a detailed record of accounts that supports a general ledger account. It helps in maintaining detailed information about specific groups of similar accounts. The inventory subsidiary ledger keeps track of individual inventory items and their quantities and values. The accounts payable subsidiary ledger records detailed information about the company's outstanding debts to suppliers. The accounts receivable subsidiary ledger tracks detailed information about a company's customers and their outstanding balances.

While all three of these ledgers listed are common subsidiary ledgers, the cost of goods sold subsidiary ledger is not a commonly used subsidiary ledger. Cost of goods sold is a expense account recorded in the general ledger and does not typically require a subsidiary ledger.