A subsidiary ledger is best defined as?

A subsidiary ledger is best understood as an additional set of ledger accounts that provides detailed information about individual debtors or creditors. This is essential for businesses that need to track specific transactions for these accounts separately from the general ledger, which contains summary-level information for the entire organization.

For instance, if a company has numerous customers, the accounts receivable subsidiary ledger will include detailed accounts for each customer, outlining individual balances and transaction histories. This allows for a more granular view of receivables, helping accountants manage and track the specifics of each outstanding invoice.

The primary function of a subsidiary ledger is to enhance the level of detail that can be accounted for without cluttering the main general ledger, which must remain concise. This structure not only improves financial reporting but also aids in reconciling totals with the main accounts.

In contrast, the other choices refer to concepts that do not accurately capture the essence of a subsidiary ledger. A record of company revenue typically pertains to income statements and revenue recognition, a summary report of all accounts points towards the general ledger's purpose, and a detailed list of expense accounts refers specifically to expense tracking without the breadth of debtors or creditors that a subsidiary ledger encompasses.