Features of Control Account - SS1 Accounting Past Questions and Answers - page 1
Which of the following is a feature of a control account?
Summarizes unrelated accounts
Provides multiple points of reference
Decreases accuracy of financial records
Facilitates confusion in financial reporting
How does a control account enhance accuracy?
By summarizing data from multiple sources into one account
By making manual calculations easier
By reducing the number of accounts in an organization
By increasing the risk of errors and inconsistencies
What is one benefit of using a control account?
It increases the need for manual calculations
It reduces the efficiency of financial record-keeping
It makes it easier to analyze and interpret financial data
It facilitates errors and inconsistencies in financial reporting
How does a control account improve efficiency?
By increasing the need for manual calculations
By reducing the accuracy of financial records
By summarizing data from multiple sources into one account
By increasing the number of accounts in an organization
What is the main purpose of a control account?
To summarize and represent the activity and balances of a group of related accounts
To track advertising expenses
To record employee salaries
To purchase inventory
What is one feature of a control account?
One feature of a control account is that it provides a summarized view of the activity and balances of a group of related accounts.
How can a control account improve financial management?
A control account can improve financial management by enhancing accuracy, facilitating analysis, improving efficiency, and providing a single point of reference for related accounts.