Day: February 28, 2020

The balance on a firm’s creditors control account at the end of an accounting period should equal . . .

Select ONE answer:

1. the total amount which the firm paid to its creditors during the period.
2. the firm’s total purchases for the period.
3. the total of its list of creditors outstanding at the end of the period.
4. 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

1. Not correct
2. Not correct
3. 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.
4. Not correct

 

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