Trial Balance is a statement which accounts all the balances of the Personal account, Real account and Nominal account regardless of either Revenue or Capital A/c. It comprises of 2 columns viz., debit and credit. If the transactions are documented systematically by providing dual-sided effect and later posted methodically, then the total of both the columns would be similar.
Trial Balance is a part of the accounting process, that shows the debit and credit balances received from the ledger accounts. Whereas, the Balance Sheet is the statement that shows the company’s financial status by reviewing the capital, liabilities, and assets on a particular date.
Given below are important MCQs on Trial Balance to analyse your understanding of the topic. The answers are also given for your reference.
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) Specialised Journals
B) Balance Sheet
C) Ledger Accounts
D) General Journal
Answer: C
4. What is the trial balance used for?
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
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