FA – May 2012 – L1 – SA – Q17 – Control Accounts

Identifying an advantage not associated with control accounts.

Question

The advantages of Control Accounts do NOT include:

A. Locating errors
B. Facilitating the extraction of trial balance
C. Detecting fraud
D. Checking on the accuracy of ledger entries
E. Discouraging adherence to double entry principle

Answer

E
Explanation:
Control accounts help detect errors, facilitate trial balance preparation, and check the accuracy of ledger entries. However, they do not discourage the double-entry principle; rather, they work within its framework. Therefore, the correct answer is option E.

Tags: Control Accounts, Error Detection, Trial Balance
Level: Level 1

Topic: Control Accounts
Series: MAY 2012

Uploader: Theophilus