Key Benefits of Control Accounts

Steps:

• Define control accounts as summary ledgers for subsidiary details like debtors/creditors.
• Identify core benefits: error detection via reconciliation and ledger simplification by avoiding detailed postings.
• Assume statements: 1 (details individual accounts—false benefit), 2 (reduces posting time—partial but not primary), 3 (detects errors), 4 (simplifies general ledger).
• Match: 3 and 4 align with error checking and efficiency; others do not.

Why C is correct:

• Control accounts enable quick error spotting through balancing subsidiary totals against controls, and reduce general ledger bulk per accounting standards.

Why the others are wrong:

• A includes 1 and 2, which misstate benefits (1 provides summaries, not details; 2 is minor).
• B includes 1, an inaccurate benefit.
• D includes 2, not a primary advantage.

Final answer: C