Question

AB Control is a local business whose employees stay often at the Bay Inn, so AB's sets up an account with the hotel's accounting personnel. This account would be part of the hotel's: ?

1) city ledger
2) guest ledger
3) general ledger

Answer 1

The account AB Control sets up with the Bay Inn would be part of the hotel's city ledger, which is for non-guests with credit arrangements.

Step-by-step explanation:

When AB Control sets up an account with Bay Inn's accounting personnel, the account would be part of the hotel's city ledger. The city ledger includes accounts of non-guests who have established credit with the hotel, often reflecting businesses or agencies that have frequent guests staying at the hotel.

This is in contrast to the guest ledger, which includes the accounts of current guests, and the general ledger, which is a complete record of all the financial transactions of the hotel.

The account that AB Control sets up with the Bay Inn would be part of the hotel's city ledger.

The city ledger is a collection of accounts for local businesses or organizations that have a regular relationship with the hotel. It keeps track of charges, payments, and any outstanding balances for these accounts.

By having an account in the city ledger, AB Control can easily manage their expenses and payments at the Bay Inn.