Special general ledger controls over such billed amounts that are not yet due (until their effective dates) typically are used for administering the billing function; these special controls may be…

Question

Options

• Amemoranda
• Bbills
• Cletters
• Dpremiums

• A
  72% (26)
• B
  8% (3)
• C
  3% (1)
• D
  17% (6)

Explanation

Memoranda (option A) are special general ledger control accounts used to record billed amounts that have been invoiced but are not yet due because their effective dates haven't arrived - they act as placeholder entries that hold the billing in suspense until it becomes an actual receivable.

B (bills) is incorrect because "bills" refers to the invoices themselves, not the administrative control mechanism in the ledger. C (letters) has no defined accounting control function in this context - it's simply a distractor with no technical meaning here. D (premiums) is incorrect because premiums describe the actual charged amounts (common in insurance), not the ledger control system used to manage their timing.

Memory tip: Think of memoranda as "sticky notes" in the general ledger - they remind the system that a billed amount exists but isn't actionable yet. Just like an office memo flags something for later, a memorandum control flags a charge that's been issued but isn't due until a future effective date.

No community discussion yet for this question.