which of the following is not an advantage of a subsidiary ledger course hero

The following is not an advantage of subsidary ledger :Puts greater detail in the general ledger.Reason : In fact subsidary ledger frees the general ledger of a great amount of detail.Otherwise the Trial Balance would be cluttered with thousands various accounts of accounts receivable and accounts payable. Next Previous View Answer ►

Full Answer

What is the advantage of using a subsidiary ledger?

Why is it important to limit access to a subsidiary ledger?

What are subsidiary ledgers?

What is a general ledger?

About this website

What is the advantage of using a subsidiary ledger?

One advantage of using a subsidiary ledger includes the detailed information maintained in the subsidiary ledger. Each vendor listed in the accounts payable ledger includes detailed transaction information. The ledger includes each invoice, the date received, the dollar amount and every payment mailed to the vendor.

Why is it important to limit access to a subsidiary ledger?

The other employees lack the ability to see the details of accounts contained in the subsidiary ledger. This allows the company to maintain confidentiality regarding customer or vendor accounts.

What are subsidiary ledgers?

Companies incorporate several types of subsidiary ledgers in their accounting systems. Common subsidiary ledgers include an accounts receivable ledger and an accounts payable ledger. An accounts receivable ledger includes individual accounts that apply to each individual customer. Each credit sale is recorded in the specific customer account along with each payment. Each customer account includes a current balance. The current balances for all customers add up to the total accounts receivable balance. The accounts payable ledger includes individual accounts for each vendor. Each invoice received and every payment made is recorded for each specific vendor account. Each vendor account includes a current balance. The current balances for all vendors add up to the total accounts payable balance.

What is a general ledger?

A general ledger contains the balances from every account the company uses for financial recording and forms the central location for reporting financial transactions. Subsidiary ledgers contain detailed information from selected accounts.

What is the advantage of using a subsidiary ledger?

One advantage of using a subsidiary ledger includes the detailed information maintained in the subsidiary ledger. Each vendor listed in the accounts payable ledger includes detailed transaction information. The ledger includes each invoice, the date received, the dollar amount and every payment mailed to the vendor.

Why is it important to limit access to a subsidiary ledger?

The other employees lack the ability to see the details of accounts contained in the subsidiary ledger. This allows the company to maintain confidentiality regarding customer or vendor accounts.

What are subsidiary ledgers?

Companies incorporate several types of subsidiary ledgers in their accounting systems. Common subsidiary ledgers include an accounts receivable ledger and an accounts payable ledger. An accounts receivable ledger includes individual accounts that apply to each individual customer. Each credit sale is recorded in the specific customer account along with each payment. Each customer account includes a current balance. The current balances for all customers add up to the total accounts receivable balance. The accounts payable ledger includes individual accounts for each vendor. Each invoice received and every payment made is recorded for each specific vendor account. Each vendor account includes a current balance. The current balances for all vendors add up to the total accounts payable balance.

What is a general ledger?

A general ledger contains the balances from every account the company uses for financial recording and forms the central location for reporting financial transactions. Subsidiary ledgers contain detailed information from selected accounts.