Trial balance is prepared to check accuracy of_______________?

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. 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

3. 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

4. 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

5. 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

6. ________ is the common base for preparing a trial balance?

   A. Ledger accounts
   B. General Journal
   C. Specialized journals
   D. Balance sheet

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

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

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 will affect the agreement of a trial balance?

   A. Complete omission of a transaction
   B. Partial omission of a transaction
   C. Error of principle
   D. Compensating errors

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