Question

Subsidiary Ledgers allows one to track activity by _____________.

a. Date
b. Account Type
c. Transaction Amount
d. All of the Above

Answer 1

Subsidiary ledgers allow tracking by account type, detailing individual transactions within a general ledger. They provide crucial information for managing finances in business.

Step-by-step explanation:

Subsidiary ledgers allow one to track activity by Account Type. These ledgers provide a detailed look into individual accounts that make up a consolidated general ledger. For example, while the general ledger might provide a total for all accounts receivable, the subsidiary ledger for accounts receivable would show detailed information for each customer's transactions. This makes subsidiary ledgers crucial for businesses that need to keep detailed records for individual accounts, thereby facilitating better tracking and management of financial transactions.