CIMA BA3 · Chapter 5 · Question 10 of 10
The receivables ledger control account agrees with the total of the list of customer balances. Which of the following is true?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) There may still be errors, such as a receipt posted to the wrong customer's account
Explanation
Agreement does not prove that the ledger is correct. Errors that affect both records equally, or that only move amounts between individual customer accounts, are not revealed by the reconciliation.
More Receivables and payables control accounts MCQs
- Q2Which of the following items would NOT appear in the receivables ledger control account?
- 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…