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. 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. The accounting process of gradually converting the unexpired cost of fixed assets into expenses over a series of accounting periods is_________?

   A. Depreciation
   B. Physical deterioration of the asset
   C. Decrease in market value of the asset
   D. Valuation of an asset at a point of time

5. Tax deducted at source appears in the Balance Sheet

   A. On the assets side under current assets
   B. On the assets side under loans and advances
   C. On the liabilities side under current liabilities
   D. On the liabilities side under provisions

6. A cash deposit made by business appears on the bank statement as _______ balance?

   A. Debit
   B. Credit
   C. Expenses
   D. Liability

7. 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

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

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

9. Which of the following statements is correct about Trial Balance?

   A. The Trial Balance is prepared after preparing the Profit and Loss Account
   B. The Trial Balance shows only balances of Assets and Liabilities
   C. The Trial Balance shows only nominal account balances
   D. The Trial Balance has no statutory importance from the point of view of law

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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