The balance on a firm’s creditors control account at the end of an accounting period should equal . . .
Select ONE answer:
- the total amount which the firm paid to its creditors during the period.
- the firm’s total purchases for the period.
- the total of its list of creditors outstanding at the end of the period.
- the cost of the firm’s sales for the period.
Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 3
- Not correct
- Not correct
- Correct – The primary purpose of a creditors’ control account is to act as a ‘control’ over the creditor ledger. The control mechanism is to compare the sum of the balances on the individual creditors’ accounts with the balance on the creditor control account.
- Not correct
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