Skip to content

ACCA Applied Knowledge · Financial Accounting · Payables account reconciliations

Which of the following is a reason why a payables ledger control account reconciliation is performed?

A payables control account reconciliation is performed to detect errors in the ledger or control account and to give assurance that the trade payables figure is reliable. It does not replace supplier statement reconciliations or measure payment timing.

  1. ATo confirm that suppliers have been paid within the agreed credit period
  2. BTo help detect errors in the payables ledger and control account and give assurance that the payables figure is reliableCorrect
  3. CTo replace the need for supplier statement reconciliations
  4. DTo calculate the discount received for early settlement

Explanation

The reconciliation compares the control account with the total of individual balances, detecting errors and supporting reliability of the payables figure in the financial statements. It does not replace supplier statement reconciliations, which check against the supplier's own records, and it does not measure payment timing or discounts.

Did you get it right without looking?

One question tells you little. A timed set on Payables account reconciliations shows your real accuracy, how long you take and where you lose marks.

Practise Payables account reconciliationsFree diagnostic mock

More Payables account reconciliations questions