CONTROL ACCOUNT Meaning and
Definition
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A control account is a financial term used to define an account within a general ledger that summarizes the balances from a related group of subsidiary accounts. It acts as a mechanism to efficiently organize and monitor financial transactions.
Typically, a control account is established when there are numerous subsidiary accounts that share a common characteristic or purpose. The control account provides a concise overview of the combined balances of these subsidiary accounts, simplifying the management and analysis of financial data.
Control accounts are particularly useful in complex accounting systems where multiple subsidiary accounts exist for tracking various aspects, such as accounts receivable, accounts payable, inventory, or fixed assets. Instead of reviewing each individual account, financial stakeholders can refer to the control account to get an aggregated view of the related accounts.
These control accounts serve as a means of internal control, allowing businesses to identify any discrepancies or errors that may arise from the subsidiary accounts. By comparing the balances of the control account with the total of its subsidiary accounts, organizations can quickly ascertain whether their financial records are accurate and in balance.
Control accounts are crucial for financial reporting, audit trails, and ensuring the integrity of an organization's financial statements. They aid in the simplification of the accounting process, enhance efficiency, streamline analysis, and provide a way to monitor transactions accurately and comprehensively.
Common Misspellings for CONTROL ACCOUNT
- xontrol account
- vontrol account
- fontrol account
- dontrol account
- cintrol account
- ckntrol account
- clntrol account
- cpntrol account
- c0ntrol account
- c9ntrol account
- cobtrol account
- comtrol account
- cojtrol account
- cohtrol account
- conrrol account
- confrol account
- congrol account
- conyrol account
- con6rol account
Etymology of CONTROL ACCOUNT
The word "control" has its origins in the Latin word "contrarotulus", which means "a counter-roll or tally". In Old French, it evolved into "contrerole", which later became "control" in Middle English.
The word "account" comes from the Latin word "computare", meaning "to reckon or calculate". It passed through Old French as "acompter" before becoming "account" in Middle English.
In the context of accounting, the term "control account" emerged to denote a summarized or aggregate account that allows for the monitoring, reconciliation, and control of subsidiary or detailed accounts. The combination of "control" and "account" captures the essence of these central accounts, which serve as a control mechanism or check on the accuracy and completeness of the supporting accounts.
Similar spelling words for CONTROL ACCOUNT
- control stick,
- control panel,
- control board,
- control system,
- control character,
- control surface,
- control room,
- control freak,
- contract out,
- control circuit,
- control function,
- control grid,
- control experiment,
- control center,
- control condition,
- control tower,
- control operation,
- control stock.
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