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

Related Mcqs:

1. If debit balances = credit balances, trial balance only shows or check the ____________ and it does not indicate that no errors were made during recording and posting.

   A. Arithmetic accuracy
   B. Errors of commission
   C. Omissions of economic events
   D. Understatements of balances

2. 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

3. 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

4. If credit side of a bank account is greater than the debit side, it indicates which of the following?

   A. Bank overdraft
   B. Cash at bank
   C. Bank balance
   D. Current Asset

5. If debit side of a bank account is greater than credit side it indicates which of the following?

   A. Cash at bank
   B. Bank understatement
   C. Bank overdraft
   D. Balance overstatement

6. If debit balance is greater than creadit balance then the account blance will be__________?

   A. Credit balance
   B. Debit and credit balance
   C. Cash balance
   D. Debit balance

7. A credit balance in cash book indicates?

   A. Bank balance
   B. Cash at bank
   C. Bank overdraft
   D. Bank underdraft

8. Debit balance as per bank pass book mean_____________?

   A. Surplus cash
   B. Bank Overdraft
   C. Terms deposits with bank
   D. None of these

9. Credit memo or credit note No. is entered in which of the following journal?

   A. General journal
   B. Cash journal
   C. Purchase journal
   D. Sales return day book

10. Credit balance as per Cash Book mean____________?

    A. Surplus cash
    B. Bank overdraft
    C. Terms deposits with bank
    D. None of these