CIMA BA3 · Chapter 5 · Question 1 of 10
What is the main purpose of a receivables ledger control account?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) To provide an arithmetical check on the accuracy of the individual customer accounts in the receivables ledger
Explanation
The control account summarises all postings to the receivables ledger in total. Comparing its balance with the total of the individual customer balances helps detect errors and fraud. Individual invoices are recorded in the sales day book and customer accounts.
More Receivables and payables control accounts MCQs
- Q3The following information relates to a business's receivables for the year: opening balance $28,400; credit sales $196,500; cash sales…
- Q4A payables ledger control account had an opening credit balance of $19,700. During the year credit purchases were $143,200, payments to…
- Q5A receivables ledger control account shows a balance of $31,450, but the list of individual customer balances totals $30,980…
- Q6A business both buys from and sells to another company. It agrees to set off the amount owed to it by that company against the amount it…
- Q7Which of the following errors would cause a difference between the balance on the payables ledger control account and the total of the…