Control Accounts

Question 1

Name and explain the advantages of control accounts

Answer 1

• Proof of the ARITHMETICAL ACCURACYof entries in the ledger
• Provide immediate TOTALS for the trial balance
• Enables the DRAFT FINAL ACCOUNTS to be prepared quickly
• Saves time in FINDING ERRORS
• Helps REDUCE FRAUD by providing an internal check on the ledgers
• Improves MANAGEMENT control and decisions
• Provide a check on DATA input in a computerised system