• 1 Marks

FA – May 2014 – L1 – SA – Q7 – Control Accounts

Identifies a feature that is not characteristic of control accounts.

Which of the following is NOT a feature of a control account?
A. It is maintained by the financial controller
B. It is used to check arithmetical accuracy of the ledger to which it relates
C. The ledger to which it relates is known as self-financing
D. It contains the total of entries in individual accounts
E. The entries therein appear on the same side as they do in the individual accounts

A

Explanation:
The correct answer is A because control accounts are typically maintained within the accounting records rather than exclusively by the financial controller. They serve as a summary of individual ledger accounts and help verify the arithmetic accuracy of the financial records by providing a total balance for accounts such as trade receivables and payables.

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