5 When there are a large number of individual accounts with

5. When there are a large number of individual accounts with a common characteristic, it is common to place them in a. creditors ledger b.subsidiary ledger c. accounts payable ledger d. accounts receivable ledger 6. The income statement in which the total of all expenses is deducted from the total of all revenues is termed the a. multi-step form b. single-step form c. account form d. report form 7. The objectives of control over inventory are. a. safeguarding the inventory from damage or theft b. reporting inventory in the financial statements c. using proper inventory cost method d. both a and b.

Solution

Answer 5-b. subsidiary ledger Subsidiary Ledger - is a special or supporting ledger that gives more information about individual accounts than general ledger. Creditors Ledger - is a type of subsidiary ledger that gives details about the suppliers of the company along with amount owed by the company to them and details. Accounts Payable Ledger - is a type of subsidiary ledger that provides information about the transactions done and amounts owed to the each supplier from which purchases are made on credit. Accounts Receivable Ledger - is a type of subsidiary ledger that provides information about the transactions done and amounts owed by the each debtor from which sales are made on credit. Answer 6 -b. single-step form Single Step Income Statement - is a simple form of Income Statement that uses one subtraction. The sum of all expenses are deducted from the sum of all revenues to arrive at Net Income or Loss. Multiple Step Income Statement - it uses the multiple subtractions and additions in computing the Net income or Net Loss of the company. Account Form and report Form are the format of Income Statement, not types of Income Statement. Answer 7 -d. both a & b. The primary objectives of control of inventory are: 1. Safeguarding the inventory from damage or theft - To take the steps so that there will be minimal damage or theft or no damage or theft to reduce the loss to the company. 2. Reporting the inventory in financial statements .