MI – May 2022 – L1 – SA – Q6 – Control Accounts

Identifying the summary account used for recording totals of transactions.

Question

A summary account, where entries are made from the totals of transactions for a period, is called:

A. Cost ledgers
B. Control accounts
C. Costing profit or loss accounts
D. Overhead accounts
E. Interlocking accounts

Answer

Answer: B. Control accounts

Explanation:
Control accounts are summary accounts used to consolidate the total of similar individual transactions for easier reporting and reconciliation with subsidiary ledgers. They help in tracking the overall financial status without going into the details of individual transactions.

Tags: Control Accounts, Summary Accounts
Level: Level 1

Topic: Control Accounts
Series: MAY 2022

Uploader: Kwame Aikins