ICAEW AF · Chapter 6 · Question 6 of 9
Which of the following is a main purpose of maintaining a receivables control account?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) To provide a check on the arithmetical accuracy of the individual customer accounts in the receivables ledger
Explanation
The control account summarises in total the entries made in the individual customer accounts. Comparing its balance with the total of the list of individual balances helps to detect and locate errors, gives a quick total figure for receivables, and supports internal control by separating duties. Individual accounts are still needed to know what each customer owes.
More Control accounts MCQs
- Q8A business's receivables control account shows a balance of £41,370, while the list of individual customer balances totals £40,170…
- Q9A business keeps its individual customer accounts as memorandum records outside the double entry system. Where is the double entry for…
- Q1The following information relates to a business's receivables for the year: Opening balance £28,400 Credit sales £196,500 Cash sales…
- Q2Which of the following would be recorded in the receivables control account?
- Q3Information about a business's trade payables for the year: opening balance £19,250; credit purchases £143,800; payments to suppliers…