Propex Corporation uses a voucher register and does not record invoices in a subsidiary ledger. Propex will probably benefit most from the additional cost of maintaining an accounts payable subsidiary ledger if
a. There are usually invoices in an unmatched invoice file.
b. Vendors' requests for confirmation of receivables often go unanswered for several months until paid invoices can be reviewed.
c. Partial payments to vendors are continuously made in the ordinary course of business.
d. It is difficult to reconcile vendors' monthly statements.
Answer: C
CPA Exam
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