Control Account Terminologies - SS1 Accounting Past Questions and Answers - page 1
1
What is a control account?
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A
A summary account in a company's general ledger
B
A detailed account in a company's general ledger
C
An account used for personal expenses
D
An account used for tax purposes
2
What is the purpose of a trial balance?
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A
To list the balances of all the accounts in the general ledger
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B
To ensure that the total debits equal the total credits
C
To track specific transactions and balances
D
To reconcile the balances in the control account
3
What is the difference between a debit and a credit?
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A
Debits increase assets and expenses, while credits increase liabilities, equity, and revenue
B
Debits increase liabilities, equity, and revenue, while credits increase assets and expenses
C
Debits and credits have the same effect on the general ledger
D
Debits and credits are used for tax purposes only
4
What is the process of comparing the balances in the control account to the balances in the sub-accounts to ensure they match?
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A
Trial balance
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B
Reconciliation
C
General ledger
D
Sub-accounting
5
What is the purpose of a control account?
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A
To provide a high-level overview of the company's financial position
B
To track specific transactions and balances
C
To reconcile the balances in the general ledger
D
To list the balances of all the accounts in the sub-ledger
6
Define a control account and explain its purpose.
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7
What is the difference between a positive balance and a negative balance in an account?
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