Closing stock in the Trial Balance implies that______________?

Related Mcqs:

1. While finalizing the current year‘s accounts, the company realized that an error was made in the calculation of closing stock of the previous year. In the previous year, closing stock was valued more by 50,000. As a result

   A. Previous year‘s profit is overstated and current year‘s profit is also overstated.
   B. Previous year‘s profit is understated and current year‘s profit is overstated.
   C. Previous year‘s profit is overstated and current year‘s profit is understated.
   D. There will be no impact on the profit of either the previous year or the current year.

2. 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

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. Find the value of opening stock from the following data. Purchases 1,50,000, Closing stock 30,000 Sales 2,20,000, Gross profit 40,000.

   A. 50,000
   B. 55,000
   C. 60,000
   D. 65,000

5. 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

6. 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

7. Which of the following is the closing balance of a ledger account?

   A. Balance c/d
   B. Balance b/d
   C. Balance e/d
   D. Balance f/c

8. The closing balance of a petty cash book is a / an___________?

   A. Liability
   B. Gain
   C. Assets
   D. Loss

9. The closing balance of petty cash book is considered as_________?

   A. Liability
   B. Asset
   C. Expenses
   D. Income

10. Closing stock is generally valued at______________?

    A. Cost Price
    B. Market Price
    C. Cost price or Market price whichever is higher
    D. Cost price or Market price whichever is lower