Trial Balance and Rectification of Errors MCQs
Financial Accounting MCQs
Multiple Choice Questions and Answers
1. A trial balance is a
a)
Personal Account
b)
Real account
c)
Nominal account.
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
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
4. Trial balance is prepared on the
basis of:
a)
Journal
b)
Ledger balances
c)
Trading account
d)
Profit & Loss account
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
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.
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 totaling of an account.
d)
Writing wrong account balance in the trial
balance.
8. Which of the following generally is
not shown in trial balance?
a)
Opening stock
b)
Closing stock
c)
Cash in hand
d)
Furniture
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.
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.
a)
b) Errors of omission.
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. True
12. Which of the following statement
is true?
a)
Error of recording is subsidiary books
does not affect trial balance.
b)
Error in totaling 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.
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.
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.
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.
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.
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.
18. Which of the
following has credit balance?
a)
Capital
b)
Bank overdraft
c)
Profit from branch
d)
All of the above
19. Which of the following is an error
of commission?
a)
Wrong totaling of subsidiary books.
b)
Posting the same amount on wrong side.
c)
Posting the wrong amount in ledger.
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
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.
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.
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.
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.
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.
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