MCQ'S on Trial Balance (Accountancy)

Trial Balance MCQs

1. Trial balance is used to check the accuracy of

A) Balance sheet balances

B) Ledger accounts balances

C) Cash flow statement balances

D) Income statement balances

Answer: B

2. In the books of account if a transaction is completely deleted, will it affect the trial balance?

A) No

B) Yes

C) A transaction cannot be omitted

Answer: A

3. What is used in preparing trial balance?

A) Specialized Journals

B) Balance Sheet

C) Ledger Accounts

D) General Journal

Answer: C

4. What is the trial balance used?

A) It is a financial statement

B) It records balances of a balance sheet

C) It doesn’t contribute to the accounting cycle

D) It records balances of accounts

Answer: D

5. When debit balance is equal to credit balance then the trial balance means

A) Account balances are correct

B) Mathematically Capital+Liabilities=Assets

C) No mistake in recording transactions

D) No mistake in posting entries to ledger accounts

Answer: B

6. When is trial balance prepared?

A) At the end of an accounting period

B) At the end of a year

C) Frequently during the year

D) At the end of a month

Answer: A

7. Which items influence the trial balance agreement?

A) Deposit in transit

B) Compensating errors

C) Complete omission of a transaction

D) Partial omission of a transaction

Answer: D

8. When credit balances = debit balances, the trial balance check and shows ____________ . It also indicates that there were no errors made during posting and recording and posting.

A) Understatements of Balances

B) Errors of Commission

C) Arithmetic Accuracy

D) Omissions of Economic Events

Answer: C

9. Which of the following account with normal balance is shown at the debit side of a trial balance?

A) Creditors account

B) Unearned income account

C) Rent income account

D) Cash account

Answer: D

10. In trial balance, which accounts with normal balance is recorded at the credit side?

A) Bank account

B) Equipment account

C) Cash account

D) Accrued expenses account

Answer ; D 

11.  Which of the following errors are not disclosed by Trial balance 

A) Compensating errors 

B) posting to the wrong account

C) twice entry in the ledger 

D) All of the above.

Answer : D

12. Which of the following is correct order 

A) Ledger-> Journal - >Trial Balance 

B) Journal -> Ledger -> Trial Balance 

C) Both A & B are possible 

D) NOTA 

Answer : B

13. There are ...types of trial balance 

A) 4

B) 3

C) 2

D) NOTA 

Answer :B 

14. Suspense account in the trial balance is entered in 

A) Balance sheet 

B) Cash book

C) statement sheet

D) NOTA

Answer : A

15. Which errors are deduced by trial balance

A) incorrect amount entered in Journal

B) Errors of complete omissions

C) Errors or principle

D) Clerical errors 

Answer :- D

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