Question

For what reason might keeping an accounts payable subsidiary ledger be unnecessary for a business? A. if the business is very small B. if the business processes invoices for payment. C. if the business pays only on account D. if the business has more customers then vendors

Answer 1

A. if the business is very small

Step-by-step explanation:

Subsidiary ledgers are maintained to support the entries in the main ledger. They give more details of the individual items in the main ledger.

They are usually used when a company has large sales volumes to make sure transactions are accurate.

However in small businesses there no need for subsidiary ledger in a small company.

Accounts payable subsidiary ledger shows details of amounts owed to suppliers by a business.

When the business is very small there will be no need for this.