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.

Related Mcqs:

1. 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

2. 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

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. 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

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. Debit note is the basis for recording a transaction in which of the following journals?

   A. General journal
   B. Cash journal
   C. Purchase journal
   D. Purchase return journal

8. 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

9. 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

10. 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