Question

Subsidiary accounts are __________.

posted directly on the financial statements

used to post transactions to specific areas

entered in the main accounts

created externally

Answers

GPT-4o mini
Subsidiary accounts are **used to post transactions to specific areas**.

They provide detailed information supporting the balances in the general ledger, such as accounts receivable or accounts payable. Each subsidiary account corresponds to a specific category or customer, allowing for more granular tracking and reporting of transactions.

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