Trial Balance MCQs

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MCQs 1 To 10

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1. The type of account with a normal credit balance is?

(a) An asset

(b) An expense

(d) Revenue

Correct! Wrong!

2. Which one of the following account would usually have a debit balance?

(a) Account Payable

(b) Cash

(d) Bank Loan

Correct! Wrong!

3. Which account has usually debit balance?

(a) Owner Equity

(b) Purchase

(d) Discount received

Correct! Wrong!

4. A Trial balance which shows equal totals for both debit and credit columns?

(a) Shows that there must be more than one error within the bookkeeping system

(b) Shows that the bookkeeping system is free of errors

(d) Shows that there is only one error within the bookkeeping system

Correct! Wrong!

5. Which of the following accounts normally has credit balance?

(a) Wages Outstanding

(b) Motor vehicles

(d) Return Inwards

Correct! Wrong!

6. Why does a business prepare a Trial Balance?

(a) To calculate the profit and loss

(b) To check the cash and bank balance

(d) To show the financial position

Correct! Wrong!

7. Is it true that the trial balance totals should agree?

(a) Yes, always

(b) No, because it is not a balance sheet

(d) No, there are sometimes good reasons why they differ

Correct! Wrong!

8. The arithmetical accuracy of books of account is verified through?

(a) Journal

(b) Trial Balance

(d) None of the given options

Correct! Wrong!

9. Ahmed gives a cash discount of 40 to a customer. The discount is credited to the discounts allowed account. The effect of recording the discount in this way is that profit will be?

(a) Understated by 80

(b) Overstated by 80

(d) Understated by 40

Correct! Wrong!

10. A Trial balance is a?

(a) Real account

(b) Nominal account

(d) None

Correct! Wrong!

Trial Balance (1-10)

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MCQs 11 To 20

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11. The equality of debits and credits is tested periodically by preparing a?

(a) Income Statement

(b) General Journal

(d) Balance Sheet

Correct! Wrong!

12. Which of the following best describes a Trial balance?

(a) Shows all the entries in the books

(b) It is a list of total / balances of books

(d) It is a special account

Correct! Wrong!

13. Preparation of Trial Balance helps to deduction of?

(a) Error of Principle

(b) Clerical Errors

(d) Compensating Errors

Correct! Wrong!

14. For which of the following accounts is the normal balance a debit?

(a) Rent Payable

(b) Unearned Rent Revenue

(d) Prepaid Rent

Correct! Wrong!

15. The Trial balance?

(a) Is formal financial statement

(b) Is used to prove that there are no errors in the journal or ledger

(d) Provide a listing of the balance of each account in active use

Correct! Wrong!

16. Types of trial balance are?

(a) 1

(b) 2

(d) 4

Correct! Wrong!

17. Which one of the following could not be classified as revenue?

(a) Goods sold for cash

(b) Sales on credit

(d) Income from the sale of fixed assets

Correct! Wrong!

18. Which most important reason for producing a trial balance prior to preparing the final accounting is?

(a) It confirms the accuracy of the ledger accounts

(b) It provides all the figures necessary to prepare the final accounts

(d) It enables the accountant to calculate any adjustments required

Correct! Wrong!

19. Suspense account in the trial balance is entered in the?

(a) Trading A/c

(b) Profit and loss A/c

(d) Income statement

Correct! Wrong!

20. Wages paid to workers for the installation of new Machinery should be debited to?

(a) Wages Account

(b) Machinery Account

(d) FOH

Correct! Wrong!

Trial Balance (11-20)

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Related Exams

Principles of Accounting

Accounting Examples

Accounting Exercises

Accounting Questions

Accounting Workbook

References

Mukharji, A., & Hanif, M. (2003). Financial Accounting (Vol. 1). New Delhi: Tata McGraw-Hill Publishing Co.

Narayanswami, R. (2008). Financial Accounting: A Managerial Perspective. (3rd, Ed.) New Delhi: Prentice Hall of India.

Ramchandran, N., & Kakani, R. K. (2007). Financial Accounting for Management. (2nd, Ed.) New Delhi: Tata McGraw Hill.

3 Comments

iHerb Code on October 19, 2022 at 2:40 am

Very useful question
Reply
Hans on August 28, 2021 at 12:43 pm

I want to know the answers of above questions.
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Trial Balance MCQs

MCQs 1 To 10

Click The Option and See Result

1. The type of account with a normal credit balance is?

2. Which one of the following account would usually have a debit balance?

3. Which account has usually debit balance?

4. A Trial balance which shows equal totals for both debit and credit columns?

5. Which of the following accounts normally has credit balance?

6. Why does a business prepare a Trial Balance?

7. Is it true that the trial balance totals should agree?

8. The arithmetical accuracy of books of account is verified through?

9. Ahmed gives a cash discount of 40 to a customer. The discount is credited to the discounts allowed account. The effect of recording the discount in this way is that profit will be?

10. A Trial balance is a?

MCQs 11 To 20

Click The Option and See Result

11. The equality of debits and credits is tested periodically by preparing a?

12. Which of the following best describes a Trial balance?

13. Preparation of Trial Balance helps to deduction of?

14. For which of the following accounts is the normal balance a debit?

15. The Trial balance?

16. Types of trial balance are?

17. Which one of the following could not be classified as revenue?

18. Which most important reason for producing a trial balance prior to preparing the final accounting is?

19. Suspense account in the trial balance is entered in the?

20. Wages paid to workers for the installation of new Machinery should be debited to?

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