Trial balance is prepared to check accuracy of
A) Ledger accounts balancesRIGHT ANSWER!!!
B) Balance sheet balancesWRONG ANSWER
C) Income statement balances WRONG ANSWER
D) Cash flow statement balancesWRONG ANSWER
If a transaction is completely omitted from the books of accounts, will it affect the agreement of a trial balance?
A) YesWRONG ANSWER
B) NoRIGHT ANSWER!!!
C) Transactions can't be omittedWRONG ANSWER
________ is the common base for preparing a trial balance
A) Ledger accountsRIGHT ANSWER!!!
B) General JournalWRONG ANSWER
C) Specialized journalsWRONG ANSWER
D) Balance sheetWRONG ANSWER
Which of the following is true about a trial balance?
A) It lists down the balances of accounts RIGHT ANSWER!!!
B) It lists down the balances of a balance sheetWRONG ANSWER
C) It is a kind of financial statementWRONG ANSWER
D) It is not a part of accounting cycle WRONG ANSWER
Debit balance = Credit balance in a trial balance indicates that
A) No error in recording transactionsWRONG ANSWER
B) No error in posting entries to ledger accountsWRONG ANSWER
C) Account balances are correctWRONG ANSWER
D) Mathematically Capital+Liabilities=AssetsRIGHT ANSWER!!!
Trial balance is commonly prepared
A) Frequently during the yearWRONG ANSWER
B) At the end of an accounting periodRIGHT ANSWER!!!
C) At the end of a monthWRONG ANSWER
D) At the end of a yearWRONG ANSWER
Which of the following will affect the agreement of a trial balance?
A) Complete omission of a transactionWRONG ANSWER
B) Partial omission of a transactionRIGHT ANSWER!!!
C) Error of principleWRONG ANSWER
D) Compensating errorsWRONG ANSWER
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 accuracyRIGHT ANSWER!!!
B) Errors of commissionWRONG ANSWER
C) Omissions of economic eventsWRONG ANSWER
D) Understatements of balancesWRONG ANSWER
Which of the following account with normal balance is shown at the debit side of a trial balance?
A) Rent income accountWRONG ANSWER
B) Creditors accountWRONG ANSWER
C) Unearned income accountWRONG ANSWER
D) Cash accountRIGHT ANSWER!!!
Which of the following account with normal balance is shown at the credit side of a trial balance?
A) Cash accountWRONG ANSWER
B) Bank accountWRONG ANSWER
C) Equipment accountWRONG ANSWER
D) Accrued expenses accountRIGHT ANSWER!!!
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