Trial balance MCQs
Multiple Choice Questions and Answers
For BCOM, MCOM, CMA Intermediate and Junior Accountant Exam
In this page, you will get Trial Balance MCQs Multiple Choice Questions and Answers which are useful for BCOM, MCOM, UKPSC Assistant Accountant Exam and Various Professional Exams Like CA/CMA and CS.
We update this page frequently to add new questions.
Trial Balance – Meaning, Objectives and Features
After posting the accounts in the Ledger, a statement is prepared to show separately the debit and credit balances and to check the arithmetic accuracy of the accounts of a certain period such a statement is known as the Trial Balance.
The agreement of a Trial balance ensures arithmetical accuracy only. A concern can prepare Trial balance at any time, but its preparation as on the closing date of an accounting year is compulsory.
According to M.S. Gosav “Trial balance is a statement containing the balances of all ledger accounts, as at any given date, arranged in the form of debit and credit columns placed side by side and prepared with the object of checking the arithmetical accuracy of ledger postings”.
1. A trial balance is a
a) Personal Account
b) Real account
c) Nominal
account.
d) Statement of
Ledger balance
Ans: d) Statement
of Ledger balance
2. Trial balance is prepared to check
a) The arithmetical
accuracy of books
b) The honesty of
the management
c) Accuracy
of the book-keeper
d) Financial
position
Ans: a) The
arithmetical accuracy of books
3. A trial balance facilitates the preparation
of:
a) Trading Account
Only
b) Profit
& Loss a/c only
c) Balance
Sheet only
d) Final
accounts
Ans: d) Final
accounts
4. Trial balance is prepared on the basis
of:
a) Journal
b) Ledger
balances
c) Trading
account
d) Profit
& Loss account
Ans: b) Ledger
balances
5. Which of the following is a method of
preparation of trial balance?
a) Total
Method
b) Balance
Method
c) Compound
Method
d) All
of the above
Ans: d) All
of the above
6. Which of the following errors affects
trial balance?
a) Errors of
omissions in journal.
b) Errors of
commission.
c) Compensating
errors.
d) Errors of
principles.
Ans: b) Errors
of commission.
7. Which of the following errors will not
affect the trial balance?
a) Wrong balancing
of an account.
b) Writing an
amount in the wrong account but on the correct side.
c) Wrong totalling
of an account.
d) Writing
wrong account balance in the trial balance.
Ans: b) Writing
an amount in the wrong account but on the correct side.
8. Which of the following generally is not
shown in trial balance?
a) Opening stock
b) Closing
stock
c) Cash in
hand
d) Furniture
Ans: b) Closing
stock
9. A suspense account is used to rectify
those errors:
a) Which affect the
trial balance.
b) Which do
not affect the trial balance.
c) Which are
caused by a wrong application of principles.
d) Which are
caused by a complete omission of transactions.
Ans: a) Which
affect the trial balance.
10. Which of the following errors is
disclosed by trial balance?
a) Error of
principle.
b) Wrong
amount posted in ledger account.
c) Non-recording
of a transaction in the books of original entry.
d) Errors of
omission.
Ans: b) Wrong
amount posted in ledger account.
11. Which of the following is correct about
an agreed trial balance?
a) Compensating errors
affect the trial balance.
b) Errors of
principle are rectified using suspense account.
c) Compensating
errors will cause a difference in trial balance.
d) Only one
sided errors affect the trial balance.
Ans: d) Only
one sided errors affect the trial balance.
12. Which of the following statement is
true?
a) Error of
recording is subsidiary books does not affect trial balance.
b) Error in totalling
of subsidiary book does not affect trial balance.
c) A trial
balance is a part of the journal and ledger.
d) Agreement
of a trial balance is a conclusive proof that all the transactions have been
recorded.
Ans: a) Error
of recording is subsidiary books does not affect trial balance.
13. Which of the following statement is
false?
a) Trial
balance is a statement which is drawn on a particular date.
b) Closing
stock does not appear in the trial balance unless otherwise purchase is
adjusted.
c) All
expenses will appear in the credit column of the trial balance.
d) Balance of
ledger accounts are shown in the trial balance.
Ans: c) All
expenses will appear in the credit column of the trial balance.
14. Which of the following statement is
false?
a) All
rectification entries are passed through Journal Proper.
b) A suspense
account is created when the total of a trial balance do not agree.
c) The trial
balance is a prima facie evidence of the accuracy of the book-keeping.
d) Trial
balance can agree despite errors.
Ans: c) The
trial balance is a prima facie evidence of the accuracy of the book-keeping.
15. Which of the following is correct about
an agreed trial balance?
a) All expenses are
debited in trial balance.
b) All incomes
are credited in trial balance.
c) Assets are
debited and liabilities are credited in trial balance.
d) All of the
above.
Ans: d) All
of the above.
16. A purchase returns of Rs. 100 to Ram, if
entered in the sales book would affect:
a) Ram’s account.
b) Purchase
returns account.
c) Purchases
returns account and sales account.
d) Sales
account and purchases account.
Ans: c) Purchases
returns account and sales account.
17. Which of the following is an error of
principles?
a) Wages paid on
installations of machinery is debited to wages account.
b) Rent paid
to B is debited to B’s Account.
c) Repairing
expenses of machinery added with machinery.
d) All of the
above.
Ans: d) All
of the above.
18. Which of the following
has credit balance?
a) Capital
b) Bank overdraft
c) Profit from branch
d) All of the
above
Ans: d) All
of the above
19. Which of the following is an error of
commission?
a) Wrong totalling
of subsidiary books.
b) Posting the
same amount on wrong side.
c) Posting
the wrong amount in ledger.
d) All of the
above
Ans: d) All
of the above
20. Errors of duplication are an example of:
a) Errors of
omission
b) Errors of
commission
c) Compensating
errors
d) Errors of
principles
Ans: b) Errors
of commission
21. Which of the following errors are
disclosed by trial balance?
a) Omission to post
an amount into ledger.
b) Omission to
post an account in trial balance.
c) Wrong
totalling of ledger account.
d) All of the
above.
Ans: d) All
of the above.
22. Which of the following errors are not
disclosed by trial balance?
a) Wrong totalling
of subsidiary books.
b) Posting of
amount on the wrong side of ledger.
c) Posting of
wrong amount in two accounts.
d) Capital
expenditure shown as revenue expenditure.
Ans: d) Capital
expenditure shown as revenue expenditure.
23. Indicate which of the following errors
will cause the trial balance to be out of balance:
a) A debit to an
incorrect expenses account.
b) A credit to an
expenses account instead of credit to an income account.
c) A credit to
an asset account instead of debit to a liability account.
d) A
credit to an income account instead of a credit to an expenses account.
Ans:
c) A credit to an asset account instead of debit to a liability account.
24. Which of the following statement is
correct?
a) Repairs to
machinery affect machinery account.
b) Wages on
the erection of machinery does not affect machinery account.
c) Debiting
rent paid on buildings to building account is an error of principle.
d) A purchase
of goods for Rs. 50,000 from Ram omitted to be recorded affects only Ram’s
account.
Ans: c) Debiting
rent paid on buildings to building account is an error of principle.
25. Which of the following statement is
false?
a) Errors of
omission arise due to complete omission of the transaction in the books or
omission of posting to the ledger.
b) Under or
overcast of a subsidiary book is an example of error of commission.
c) All errors
are rectified by means of journal entries.
d) Double
sided compensating errors are possible.
Ans: c) All errors are rectified by means of journal entries.
You Can also Download Financial Accounting MCQs which includes Trail Balance MCQs from here.
***
Post a Comment
Kindly give your valuable feedback to improve this website.