State whether the following statement is True or False.
Preparation of trial balance helps in locating accounting errors.

True

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False

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Solution

The correct option is A True
The main objectives of preparing the trial balance are :
(i) to ascertain the arithmetical accuracy of the ledger accounts;
(ii) to help in locating errors; and
(iii) to help in the preparation of the final accounts.

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Similar questions

Q. State whether the following statements are True or False:
Preparation of trial balance helps in locating an error of principle.

Q. State whether the following statements are True or False:
Final Accounts are prepared on the basis of Trial Balance.

Q. State whether the following statement is True or False.
In preparation of gross trial balance, ledger account balances are extracted.

Q. State whether the following statement is True or False.
A Trial balance does not ensure accounting accuracy.

State whether the following statements are True or False-

1) A trial balance can agree in spite of certain errors.
2) Errors committed due to lack of accounting knowledge are errors of omission.
3) Trial balance is prepared from the balance of ledger accounts.
4) Rectification entries are passed in cash book.
5) Single sided errors affect only one account.
6) Suspense account is automatically closed after rectification of all errors.
7) Errors affecting the agreement of trial balance are called on side errors.
8) There is no need to open a suspense account if the trial balance agrees.
9) All the errors can be rectified only through suspense account.
10) Compensating errors affect the agreement of trial balance.

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State whether the following statement is True or False.Preparation of trial balance helps in locating accounting errors.

The correct option is A TrueThe main objectives of preparing the trial balance are :(i) to ascertain the arithmetical accuracy of the ledger accounts; (ii) to help in locating errors; and (iii) to help in the preparation of the final accounts.

State whether the following statement is True or False.
Preparation of trial balance helps in locating accounting errors.

The correct option is A True
The main objectives of preparing the trial balance are :
(i) to ascertain the arithmetical accuracy of the ledger accounts;
(ii) to help in locating errors; and
(iii) to help in the preparation of the final accounts.