Trial Balance and Rectification of Errors Test 15

Result

Trial Balance and Rectification of Errors Test 15

Score
-
out of -
Rank
-
out of -

TIME Taken - -

SHARING IS CARING

If our Website helped you a little, then kindly spread our voice using Social Networks. Spread our word to your readers, friends, teachers, students & all those close ones who deserve to know what you know now.

Weekly Quiz Competition

Question 1
1 / -0

An agreement of the trial balance does not prove that __________________.

A
all transactions have been correctly analyzed and recorded in the proper accounts

B
all transactions have been recorded in the books of original entry

C
both (A) & (B)

D
none of above

Solution

Agreement of trial balance just proves that the proper posting of recorded transaction is done and books of account are arithmetically correct. But it does not prove that all transactions are correctly analyzed as there are chances of other kind of errors like error of principle or error of complete omission. In such situation, trial balance will not be affected but the errors are prevailing in the books of account.
Question 2
1 / -0

Balance appearing on the credit side of the trial balance is _________.

A
a gain

B
a revenue

C
a liability

D
all of these

Solution

There are certain rules for the different type of account i.e personal a/c, real a/c and nominal a/c. On the basis of these rules, all expenses, losses and assets are debited and all revenue, gains and liabilities are to be credited.
Question 3
1 / -0

Which of the following is the objective of trial balance?

A
To ascertain the geometrical accuracy of the ledger accounts.

B
To help in locating errors.

C
To help in the preparation of the accounting report.

D
None of the above

Solution

The trial balance is prepared to fulfill the following objectives:
1. To ascertain the arithmetical accuracy of the ledger accounts.
2. To help in locating errors.
3. To help in the preparation of the financial statements.
Question 4
1 / -0

_________ are the errors committed by persons responsible for recording and maintaining accounts of a business firm in the course of accounting process.

A
Marketing error

B
Accounting errors

C
Planning error

D
All of the above

Solution

Errors are those which are happened while recording the transaction in the books of account unintentionally. As recording of transactions are done by the junior accountant, there are chances of having the errors. Errors in accounting are classified as:
1) Error of principle
2) Error of Omission
3) Error of Commission
4) Compensating error
Question 5
1 / -0

A mistake in the casting of subsidiary books is __________.

A
Errors of commission

B
Errors of principle

C
Compensating errors

D
Errors of omission

Solution

Error of commission is that where the amount is wrongly posted or amount is posted in a wrong account. Mistake in the casting of subsidiary books is also an error of commission. For example, sales day book total is carried forward as Rs.45600 instead of Rs.46500. It is an under casting of sales day book.
Question 6
1 / -0

Which of the following errors will not affect the agreement of trial balance?

A
Errors of Complete Omission

B
Compensatory Errors

C
Error of principle

D
All of the above

Solution

Error of complete omission, error of principle and compensating error cannot be disclosed from the trial balance as these are double sided error.
Trial balance will not have any affect due to such type of error.
Question 7
1 / -0

If accountant does not post the journal entry in journal, it will be classified as __________.

A
error of principle

B
error of commission

C
compensating errors

D
error of complete omission

Solution

When a complete accounting transaction is missed out in recording , it is an example of error of complete omission. For example, sales of $$Rs.6500$$ on credit to Ram is not at all recorded in the books of account. It is an error of complete omission. There will be no affect on trial balance due to such error.
Question 8
1 / -0

_______ is opened to rectify the entries in the next accounting period which involves nominal accounts.

A
Memorandum Adjustment Account

B
Profit & Loss Adjustment Account

C
Capital Adjustment Account

D
Suspense Account

Solution

Ideally , all errors have to be rectified before finalization of accounts. If the errors are not identified than these errors need to be transferred to suspense account. In the next financial year all such rectification need to be passed through profit & loss adjustment account if such entries of nominal account.
Question 9
1 / -0

Which of the following error can be disclosed by trial balance?

A
Error of principle.

B
Error in balancing.

C
Duplicating error.

D
All of the above.

Solution

Error of principle and duplication error cannot be disclosed from the trial balance as these are double-sided error. In both types of error, the trial balance will not have any effect.

Error of balancing will surely affect the trial balance as its a single side error. For example, sales day book total of Rs. 5460 is posted in sales ledger as Rs.5640.
Question 10
1 / -0

Compensating errors do not affect the agreement of __________.

A
trial balance

B
cash flow statement

C
fund flow statement

D
none of the above

Solution

When an error is compensated by another error by nullify the amount of difference, it is said to be a compensating error. Due to these error, there will no affect on trial balance.

User

Question Analysis

Correct -
Wrong -
Skipped -

My Perfomance

Score
-
out of -
Rank
-
out of -

Re-Attempt Weekly Quiz Competition

Trial Balance and Rectification of Errors Test 15

Result

Trial Balance and Rectification of Errors Test 15

Score

-

Rank

-

SHARING IS CARING

Question 1

all transactions have been correctly analyzed and recorded in the proper accounts

all transactions have been recorded in the books of original entry

both (A) & (B)

none of above

Solution

Question 2

a gain

a revenue

a liability

all of these

Solution

Question 3

To ascertain the geometrical accuracy of the ledger accounts.

To help in locating errors.

To help in the preparation of the accounting report.

None of the above

Solution

Question 4

Marketing error

Accounting errors

Planning error

All of the above

Solution

Question 5

Errors of commission

Errors of principle

Compensating errors

Errors of omission

Solution

Question 6

Errors of Complete Omission

Compensatory Errors

Error of principle

All of the above

Solution

Question 7

error of principle

error of commission

compensating errors

error of complete omission

Solution

Question 8

Memorandum Adjustment Account

Profit & Loss Adjustment Account

Capital Adjustment Account

Suspense Account

Solution

Question 9

Error of principle.

Error in balancing.

Duplicating error.

All of the above.

Solution

Question 10

trial balance

cash flow statement

fund flow statement

none of the above

Solution

User

Question Analysis

My Perfomance

Score

-

Rank

-

Results Announcement on: coming Monday

Stay Tuned: We’ll update you on your result via email or SMS.