Trial Balance Test 5

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Trial Balance Test 5

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Weekly Quiz Competition

Question 1
1 / -0

A ______ is a schedule or list of balances of both debit and credit extracted from various accounts.

A
Profits & Loss Account

B
Balance Sheet

C
Cash Flow Statement

D
Trial balance

Solution

Trial balance is normally prepared at the end of the financial year to check whether all entries are posted in the ledger. It is prepared by taking the balances of both debit and credit extracted from various accounts in a list.

If trial balance agrees, it proves that books are arithmetically correct.
Question 2
1 / -0

At the end of the accounting period or at the end of each month, the balances of the ledger accounts are extracted and is prepared to test as to whether the total debits are equal to total credits.

A
Profit & Loss Account

B
Balance Sheet

C
Cash Flow Statement

D
Trial balance

Solution

A trial balance is prepared at the end of the accounting period or at the end of each month, the balances of the ledger accounts are extracted and is prepared to test as to whether the total debits are equal to total credits. Its prepared to check the arithmetical accuracy of the books of account.
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

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 5
1 / -0

The balances of all assets accounts, expenses accounts, losses, drawing are placed in the __________ of the trial balance.

A
credit column

B
debit column

C
ledger folio

D
none of the above

Solution

There are golden rule of accounting for recording the transactions based on the type of account i.e personal a/c, real a/c and nominal a/c.

Based on such rules of accounting, assets account, expenses account, losses and drawings are always have a debit balance. Hence while preparing the trial balance, all such accounts are placed in the debit column of the trial balance.
Question 6
1 / -0

The balances of all liabilities accounts, income accounts, profits, capital are placed in the _________ of the trial balance.

A
credit column

B
debit column

C
ledger folio

D
none of the above

Solution

There are golden rule of accounting for recording the transactions based on the type of account i.e personal a/c, real a/c and nominal a/c.

Based on such rules of accounting, liabilities account, income account, profits and capital are always have a credit balance. Hence while preparing the trial balance, all such accounts are placed in the credit column of the trial balance.
Question 7
1 / -0

Which of the following statement contains all the types of account i.e., personal, real & nominal account?

A
Balance sheet

B
Trial balance

C
Income statement

D
None of the above

Solution

Trial balance is a list of all the balances of each of the account. It includes all accounts of expenses, incomes, assets, liabilities, personal account.
Preparation of trial balance includes all types of account i.e. personal, real ad nominal account.
Question 8
1 / -0

___________ is a statement of debit & credit balances, while __________ is a statement of assets and liabilities.

A
Profit & loss, Balance sheet

B
Trial balance, Balance sheet

C
Balance sheet, Trading account

D
Trial balance, Profit & loss

Solution

Trial balance is a list of all the balances of each of the account. It includes all accounts of expenses, incomes, assets, liabilities, personal account.
Balance Sheet is a statement of assets and liabilities. It shows the financial position of the organization on a particular date.
Question 9
1 / -0

Bank overdraft is shown on the _______ side of trial balance.

A
credit

B
debit

C
front

D
none of these

Solution

Bank overdraft is a liability and liabilities are always having a credit balance.
Therefore, bank overdraft is to be shown on the credit side of the trial balance.
Question 10
1 / -0

Which of the following is/are method for preparation of trial balance?

A
Balances Method

B
Totals Method

C
Both (A) & (B)

D
None of the above

Solution

Trial balance is normally prepared at the end of the financial year to check whether all entries are posted in the ledger. If trial balance agrees, it proves that books are arithmetically correct. Trial balance can be prepared by various methods:
1) Balance method in which only net balances of each account are carried to trial balance depend on the balance i.e. debit or credit.
2) Totals method in which the total of both the sides i.e. debit and credit are carried to the trial balance.

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Re-Attempt Weekly Quiz Competition

Trial Balance Test 5

Result

Trial Balance Test 5

Score

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Rank

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SHARING IS CARING

Question 1

Profits & Loss Account

Balance Sheet

Cash Flow Statement

Trial balance

Solution

Question 2

Profit & Loss Account

Balance Sheet

Cash Flow Statement

Trial balance

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

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 5

credit column

debit column

ledger folio

none of the above

Solution

Question 6

credit column

debit column

ledger folio

none of the above

Solution

Question 7

Balance sheet

Trial balance

Income statement

None of the above

Solution

Question 8

Profit & loss, Balance sheet

Trial balance, Balance sheet

Balance sheet, Trading account

Trial balance, Profit & loss

Solution

Question 9

credit

debit

front

none of these

Solution

Question 10

Balances Method

Totals Method

Both (A) & (B)

None of the above

Solution

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