Depreciation appearing in the Trial Balance should be?

Related Mcqs:

1. Depreciation Account appearing in the Trial Balance is shown in:

   A. Profit and Loss A/c
   B. Trading A/c
   C. Deducted from the concerned assets A/c
   D. Shown on the liability side

2. Which of the following statements is true with regard to written down value method of depreciation?
   i. The rate at which the asset is written off reduces year after year
   ii. The amount of depreciation provided reduces from year to year
   iii. The rate of depreciation as well as the amount of depreciation reduce year after year
   iv. The value of the asset gets reduced to zero over a period of time

   A. Only (i) above
   B. Only (ii) above
   C. Both (i) and (ii) above
   D. (i),(ii) and (iii) above

3. 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

4. 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

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 true with respect to providing depreciation under diminishing balance method?

   A. The amount of depreciation keeps increasing every year while the rate of depreciation keeps decreasing
   B. The amount of depreciation and the rate of depreciation decrease every year
   C. The amount of depreciation decreases while the rate of depreciation remains the same
   D. The amount of depreciation and the rate of depreciation increases every year

8. 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

9. 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

10. Trial balance is commonly prepared?

    A. Frequently during the year
    B. At the end of an accounting period
    C. At the end of a month
    D. At the end of a year