Trial Balance and Rectification of Errors Test 20

Result

Trial Balance and Rectification of Errors Test 20

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

What is UNCOMMON in trial balance?

A
Balances of personal, real and nominal account are shown

B
Closing stock appears in trial balance

C
Statement of assets and liabilities

D
Both b & c

Solution

What is uncommon in the trial balance is closing stock appears in the trial balance and statement of assets and liabilities. The trial balance has balances of personal, nominal and real accounts.
Question 2
1 / -0

Office was renovated and renovation charges were Rs. 5000. They were put in purchase book account. It is

A
Error of complete omission

B
Error of principle

C
Error of commission

D
All of the above

Solution

Renovation charges on office is a capital expenditure therefore, it should be debited to Building a/c and credited to Cash a/c.
Here, capital expenditure is recorded a revenue expenditure therefore, it is an error of principle.
Question 3
1 / -0

The factor which distinguishes an error from fraud and other irregularity is _________.

A
whether it is a dollar amount or a process

B
Intent

C
materiality

D
whether it is a caused by the auditor or the client.

Solution

Errors are defined as the errors done while doing the accounting without any intention. These has happened due to either ignorance or lack of accounting knowledge.
Frauds are always done with an intention of doing something wrong.
Hence, intent is the factor which distinguish the error and fraud.
Question 4
1 / -0

The feature of errors of principle

A
affect trial balance

B
affect profit and loss account

C
Both a and b

D
None of the above

Solution

Under Error of principle, revenue expense classified as capital and vice versa. Therefore, it affect profit and loss account by not recording the necessary expense to the profit and loss account.
Question 5
1 / -0

Which of the following statements is correct in relation to a trial balance?

A
It shows the financial position of a business.

B
All the balances in the trial balance will be summarized on the business balance sheet.

C
It is a list of balances and forms the starting point for the preparation of the business accounts.

D
None of the above.

Solution

It is a list of balances and forms the starting point for the preparation of the business accounts.
Question 6
1 / -0

Which of the following will disturb the balancing of the trial balance?

A
Error in adding up a book of prime entry

B
Entering an acquisition of an asset, on credit terms, in the Purchases Day Book

C
Posting to an asset account instead of an expenditure account

D
Entering a wrong amount in a book of prime entry
Question 7
1 / -0

If the totals of two columns of trial balance are equal it means _________.

A
ledger posting is correct

B
no outstanding debit

C
no outstanding credit

D
all of the above

Solution

Accounting is based on the dual aspect concept where for every debit there will be a credit. Hence both the sides i.e. debit and credit are always have equal amounts.
Trial balance is prepared to check that posting of all the transactions is done properly. if the total of two columns of trial balance are equal, it means that posting is done for all the transactions and books are arithmetically correct.
Question 8
1 / -0

Which of the following account(s) will be affected, while rectifying the error of a purchase return of Rs.200 to Mr. A entered in sales book instead of purchase return book?

A
A's account only

B
Sales account only

C
Purchase returns account and sales account

D
Purchases account only

Solution

In accordance to the above transaction, the following will be the entries:

Wrong Entry:
Mr. A's a/c Dr. 200
To Sales a/c 200

Correct Entry:
Mr. A's a/c Dr. 200
To Purchase Return a/c 200

Rectification Entry:
Sales a/c Dr. 200
To Purchase Return a/c 200

Here, both sales and purchase return a/c will be affected while rectifying the above error. Hence, C is the correct option.
Question 9
1 / -0

Trial balance proves only the __________ accuracy of ledger posting.

A
debit values

B
accounting

C
arithmetical

D
credit values

Solution

Trial balance is prepared to check that posting of all the transactions is done properly. if the total of two columns of trial balance are equal, it means that posting is done for all the transactions and books are arithmetically correct.
Question 10
1 / -0

One of the objective of preparing Trial Balance is to help locate ___________.

A
clerical errors

B
financial statements

C
difference between ledger and journal

D
none of the above

Solution

The prime objective of preparation of trial balance is to ensure the posting of all transactions. If trial balance agrees, it proves that the books are arithmetically correct. If trial balance does not agrees, there are possibilities of clerical error in the books of account.
Locating clerical error is one of the basic objective of preparation of 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 20

Result

Trial Balance and Rectification of Errors Test 20

Score

-

Rank

-

SHARING IS CARING

Question 1

Balances of personal, real and nominal account are shown

Closing stock appears in trial balance

Statement of assets and liabilities

Both b & c

Solution

Question 2

Error of complete omission

Error of principle

Error of commission

All of the above

Solution

Question 3

whether it is a dollar amount or a process

Intent

materiality

whether it is a caused by the auditor or the client.

Solution

Question 4

affect trial balance

affect profit and loss account

Both a and b

None of the above

Solution

Question 5

It shows the financial position of a business.

All the balances in the trial balance will be summarized on the business balance sheet.

It is a list of balances and forms the starting point for the preparation of the business accounts.

None of the above.

Solution

Question 6

Error in adding up a book of prime entry

Entering an acquisition of an asset, on credit terms, in the Purchases Day Book

Posting to an asset account instead of an expenditure account

Entering a wrong amount in a book of prime entry

Question 7

ledger posting is correct

no outstanding debit

no outstanding credit

all of the above

Solution

Question 8

A's account only

Sales account only

Purchase returns account and sales account

Purchases account only

Solution

Question 9

debit values

accounting

arithmetical

credit values

Solution

Question 10

clerical errors

financial statements

difference between ledger and journal

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.