4.2 Control accounts

• Control accounts summarize transactions in other accounts, while other accounts record individual transactions
• What do control accounts summarize in accounting records?

  Transactions in other accounts
• Control accounts provide an overview of transactions, while other accounts contain the detailed individual transactions.
• Match the feature of control accounts with its description:

  Balancing Figure ↔️ Must match the total in individual accounts

  Transactions Summarized ↔️ Provides an overview of transactions
• Control accounts summarize transactions in other accounts, while other accounts record individual transactions.
• Control accounts are used to record individual debit and credit entries.

  False
• Control accounts summarize transactions in other accounts, while other accounts record individual transactions.
• Control accounts are used for day-to-day bookkeeping.

  False
• Control accounts summarize transactions recorded in other accounts, such as the Sales Ledger and Purchase
• What does the balancing figure in a control account represent?

  Total of individual accounts
• To reconcile control accounts, businesses must adjust the control account to match the total of individual accounts
• Control accounts can help detect fraudulent activity in accounting records.


  True
• How do control accounts verify the accuracy of accounting records?

  By summarizing individual transactions
• The balancing figure in a control account must match the total of individual accounts.


  True
• Control accounts summarize transactions in other accounts, while individual accounts record individual transactions
• What is the purpose of control accounts in accounting verification?

  Verify the accuracy of records
• Control accounts have a balancing figure that must match the totals of the individual accounts.


  True
• Control accounts are used for day-to-day bookkeeping.

  False
• What is the significance of the balancing figure in control accounts?

  Verifies accuracy of records
• What is the primary purpose of the balancing figure in control accounts?

  Verify the accuracy of records
• Control accounts are used for day-to-day bookkeeping.

  False
• What is the balancing figure in control accounts designed to match?

  Total in individual accounts
• How do control accounts contribute to the verification of accounting records?

  Summarize individual transactions
• What is the purpose of the balancing figure in control accounts?

  Verify the accuracy of records
• What is the purpose of control accounts?

  Verify accuracy of records
• Control accounts are used for day-to-day bookkeeping.

  False
• Steps for reconciling control accounts

  1️⃣ Obtain control account balance

  2️⃣ Identify any differences

  3️⃣ Investigate the differences

  4️⃣ Adjust the control account
• What is one key benefit of using control accounts?

  Accuracy verification
• Control accounts summarize transactions from sources such as the Sales Ledger, Purchase Ledger, and Cash Book
• Control accounts summarize individual transactions from the Sales Ledger and Purchase Ledger
• What should businesses do after identifying differences in control accounts?

  Investigate and correct them