If a transaction is completely omitted from the books of accounts, will it affect the agreement of a trial balance?

Related Mcqs:

1. A few errors committed in Ahhiwalia’s books of account are given below. State which errors would affect the Trial Balance.

   (a). Sales of `950 to Ram completely omitted from books of account
   (b). Purchases of `720 from Shyam entered in the purchases journal as `700
   (c). Purchases Journal is overcast by `1,000
   (d). Sales returns journal is undercast by `200
   (e) Amount paid to Agarwal wrongly posted to the debit to Mittal’s account
   (f) Bank overdraft shown under debit column in the Trial Balance
   (g) Sales of `500 to Sadiq entered in sales journal as sales to Mushtaq
   (h) Wages paid for installation of machinery debited to wages account

   A. a, c and g
   B. c, d and f
   C. c, d, e and h
   D. c, d, f and h

2. Which of the following will affect the agreement of a trial balance?

   A. Complete omission of a transaction
   B. Partial omission of a transaction
   C. Error of principle
   D. Compensating errors

3. Debit balance = Credit balance in a trial balance indicates that:

   A. No error in recording transactions
   B. No error in posting entries to ledger accounts
   C. Account balances are correct
   D. Mathematically Capital+Liabilities=Assets

4. Which of the following account with normal balance is shown at the debit side of a trial balance?

   A. Rent income account
   B. Creditors account
   C. Unearned income account
   D. Cash account

5. Which of the following account with normal balance is shown at the credit side of a trial balance?

   A. Cash account
   B. Bank account
   C. Equipment account
   D. Accrued expenses account

6. Which of the following errors affects the agreement of a Trial Balance?

   A. Mistake in balancing an account
   B. Omitting to record a transaction entirely in the subsidiary books
   C. Recording of a wrong entry in the subsidiary books
   D. Posting an entry on the correct side but in the wrong account

7. A systematic way to maintain the books of accounts is called_________?

   A. Accountancy
   B. Economics
   C. Book Keeping
   D. Auditing

8. On scrutiny of a firm‘s books of accounts, it was observed that the following errors have occurred in the previous years but have not yet been rectified.

   i. Depreciation for 2011-2012- 7,000 understated
   ii. Accrued expenses as at March 31, 2013 – 10,000 understated
   The impact of this on the reported net income for the year ending March 31, 2013 is

   A. 7,000 Overstated
   B. 10,000 Overstated
   C. 17,000 Understated
   D. 17,000 Overstated

9. Every business transaction affects at least ________ accounts?

   A. One
   B. Two
   C. Three
   D. Infinite

10. The real accounts are accounts of Assets, liabilities and ___________?

    A. Expenses
    B. Revenues
    C. Capital
    D. Drawing