Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

2. Transaction Analysis

Journal Entries: Debits and Credits

Financial Accounting

2. Transaction Analysis

Journal Entries: Debits and Credits

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which term describes an account in a general ledger that summarizes all accounts in a subsidiary ledger?

Personal account

Control account

Contra account

Nominal account

Previous problemNext problem

Verified step by step guidance

Understand the concept of a subsidiary ledger: A subsidiary ledger is a detailed ledger that contains individual accounts for a specific category, such as accounts receivable or accounts payable.

Learn the purpose of a general ledger: The general ledger is the main ledger that summarizes all financial transactions of a company, including totals from subsidiary ledgers.

Define a control account: A control account is an account in the general ledger that summarizes the total balances of all individual accounts in a subsidiary ledger. For example, the accounts receivable control account in the general ledger represents the total of all individual customer accounts in the accounts receivable subsidiary ledger.

Differentiate between the given terms: A personal account refers to accounts related to individuals or entities, a contra account offsets another account (e.g., accumulated depreciation), and a nominal account is temporary and closed at the end of the accounting period (e.g., revenue or expense accounts). None of these terms summarize subsidiary ledger accounts.

Conclude that the correct term for an account in the general ledger summarizing all accounts in a subsidiary ledger is 'Control account.'