________ is the common base for preparing a trial balance?

Related Mcqs:

1. Which of the following is known as the base for preparing trial balance?

   A. Journal
   B. Cash account
   C. Ledger account
   D. Balance sheet

2. 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

3. 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

4. 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

5. Trial balance is prepared to check accuracy of_______________?

   A. Ledger accounts balances
   B. Balance sheet balances
   C. Income statement balances
   D. Cash flow statement balances

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

   A. Yes
   B. No
   C. Transactions can’t be omitted
   D. none of these

7. Which of the following is true about a trial balance?

   A. It lists down the balances of accounts
   B. It lists down the balances of a balance sheet
   C. It is a kind of financial statement
   D. It is not a part of accounting cycle

8. 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

9. If unexpired insurance appears in the Trial Balance, it should be:

   A. Credited to the Profit & Loss Account
   B. Debited to the Profit & Loss Account
   C. Shown on the liabilities side of the Balance Sheet
   D. Shown on the assets side of the Balance Sheet

10. Closing stock appearing in the Trial Balance is shown in:

    A. Trading A/c and Balance Sheet
    B. Profit and Loss A/c
    C. Balance Sheet only
    D. Trading A/c only