Question 20
Control AccountsThe balance on a purchases ledger control account represents the
- A.present amount that a business owes its suppliers at date
- B.total credit available to the business at the end of the year to be utilized in future
- C.total credit the business enjoyed for the particular year from its suppliers
- D.total credit owed the business by its customers.
Show the answer and explanation
Answer: A (present amount that a business owes its suppliers at date)
Explanation
The purchases ledger control balance is the total owed to credit suppliers at that date.