Trial Balance (1-10)

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

(a) An asset

(b) An expense

(c) Drawing

(d) Revenue

Correct! Wrong!

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

(a) Account Payable

(b) Cash

(c) Owner Equity

(d) Bank Loan

Correct! Wrong!

3. Which account has usually debit balance?

(a) Owner Equity

(b) Purchase

(c) Purchase returns

(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

(c) Shows that the arithmetic is correct, but errors may still be present in the bookkeeping system

(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

(c) Prepaid Rent

(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

(c) To check the arithmetical accuracy of the ledgers

(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

(c) Yes, except where the trial balance is extracted at the year end

(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

(c) Ledger

(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

(c) Correct

(d) Understated by 40

Correct! Wrong!

10. A Trial balance is a?

(a) Real account

(b) Nominal account

(c) Personal account

(d) None

Correct! Wrong!

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?

Search