• 1 Marks

FA – Nov 2020 – L1 – SA – Q6 – Control Accounts

Identifies a feature that does not describe a control account.

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 helps in the detection of fraud and error.
E. The entries therein appear on the same side as they do in the individual accounts.

C. The ledger to which it relates is known as self-financing.

Explanation:
Control accounts are used to summarize and verify the accuracy of entries in other ledgers, especially to detect errors or fraud. They are not “self-financing” ledgers, which is not a relevant feature of control accounts. The other options correctly describe key features of control accounts.

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