Accounting Mcqs

Page No. 68

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.


aArithmetic accuracy


bErrors of commission


cOmissions of economic events


dUnderstatements of balances


View Answer Arithmetic accuracy

Which of the following will affect the agreement of a trial balance?


aComplete omission of a transaction


bPartial omission of a transaction


cError of principle


dCompensating errors



Trial balance is commonly prepared?


aFrequently during the year


bAt the end of an accounting period


cAt the end of a month


dAt the end of a year



Debit balance = Credit balance in a trial balance indicates that:


aNo error in recording transactions


bNo error in posting entries to ledger accounts


cAccount balances are correct


dMathematically Capital+Liabilities=Assets



Which of the following is true about a trial balance?


aIt lists down the balances of accounts


bIt lists down the balances of a balance sheet


cIt is a kind of financial statement


dIt is not a part of accounting cycle



________ is the common base for preparing a trial balance?


aLedger accounts


bGeneral Journal


cSpecialized journals


dBalance sheet


View Answer Ledger accounts

If a transaction is completely omitted from the books of accounts, will it affect the agreement of a trial balance?


aYes


bNo


cTransactions can’t be omitted


dnone of these


View Answer No

Trial balance is prepared to check accuracy of_______________?


aLedger accounts balances


bBalance sheet balances


cIncome statement balances


dCash flow statement balances



A sale of Rs. 50.000 to A was entered as a sale to B. This is an example of____________?


aError of omission


bError of commission


cCompensating error


dError of principle


View Answer Error of commission

The systems of accounting are _____________?


aTwo


bThree


cFive


dSix


View Answer Two

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