The Michael Company has an accounts receivable account in its general ledger, and it also maintains a subsidiary ledger that contains an individual account for each of its customers who buys merchandise on credit. Which of the following statements about the general ledger account is not true?

A) The general ledger account is also called a contra account.
B) The balance of the general ledger account should agree with the total of all of the accounts in the subsidiary ledger.
C) The general ledger account is called a permanent account.
D) The general ledger account is properly referred to as a control account.


A

Business

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