Which of the following reports provides information about which customers owe money to a business?

• A. Trial Balance
• B. Income Statement
• C. Bank Reconciliation Statement
• D. Accounts Receivable Subsidiary Ledger

Answer: (D)

Verified step by step guidance

1. Understand the purpose of each report mentioned in the problem: The Trial Balance summarizes all ledger accounts to ensure debits equal credits. The Income Statement shows the company's revenues and expenses over a period. The Bank Reconciliation Statement reconciles the company's bank account balance with the bank's records. The Accounts Receivable Subsidiary Ledger tracks individual customer balances.
2. Identify the specific requirement of the question: The report needed must provide detailed information about which customers owe money to the business.
3. Recognize that the Accounts Receivable Subsidiary Ledger is designed to track amounts owed by individual customers, making it the correct report for this purpose.
4. Eliminate the other options: The Trial Balance, Income Statement, and Bank Reconciliation Statement do not provide customer-specific details about outstanding balances.
5. Conclude that the Accounts Receivable Subsidiary Ledger is the correct answer because it provides detailed information about each customer’s outstanding balance owed to the business.