Question 40
Control AccountsWhich of the following is not the purpose of control account?
- A.Check on errors of addition
- B.Locate errors
- C.Locate missing figures
- D.Monitor the cash book
Show the answer and explanation
Answer: D (Monitor the cash book)
Explanation
Control accounts check the arithmetic of the debtors' and creditors' ledgers, help locate errors and find missing figures. They are not used to monitor the cash book.