Reasons For Subsidiary Books - SS1 Accounting Past Questions and Answers - page 1

1

What is the main reason for using subsidiary books in accounting?

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A

To reduce the number of entries in the general ledger

B

To increase accuracy in recording transactions

C

To simplify financial reporting 

D

To reduce paper waste

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2

What is the benefit of organizing financial transactions into subsidiary books? 

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A

It reduces the need for a general ledger 

 

B

It allows for better analysis of financial data

C

It simplifies financial reporting 

D

It improves efficiency in recording transactions

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3

How do subsidiary books help businesses in financial planning? 

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A

By reducing paper waste 

B

By organizing transactions according to their nature 

C

By simplifying financial reporting 

D

By identifying patterns and trends in financial data

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4

Which of the following is NOT a reason for using subsidiary books?

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A

To improve accuracy in recording transactions 

B

To organize financial transactions according to their nature 

C

To simplify the general ledger 

D

To reduce the number of accounts in the chart of accounts

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5

How do subsidiary books help to simplify the general ledger?

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A

By reducing the number of accounts in the chart of accounts 

B

By categorizing transactions into specific books 

C

By providing a more detailed method of recording transactions d) By improving accuracy in recording transactions

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6

Mention one benefit of using subsidiary books. 

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7

Why do businesses use subsidiary books?

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