Companies May Have Thousands of Customers and Thousands of Accounts

Multiple Choice

Companies may have thousands of customers and thousands of accounts receivable. How do companies use subsidiary accounts to manage their accounts receivable?

A) Subsidiary accounts are used for each subsidiary a company owns.
B) It establishes a subsidiary account page for each customer. Totals for all these pages must equal
The control account contained in the company's general ledger.
C) It establishes a subsidiary account for each customer that result in a separate balance sheet and
Income statement for each customer.
D) Companies record the transactions they have with each individual customer as if no other customers exist.