Multiple Choice Questions on Trial Balance

A trial balance is prepared to check the:

• Accuracy of financial statements

• Accuracy of ledger accounts

• Accuracy of cash book

• Accuracy of journal entries

The trial balance is a:

• Statement

• Account

• Ledger

• Journal

The total of the debit side of the trial balance is equal to the total of the credit side. This indicates that:

• The accounts are completely free from errors 

   

• The accounts are partially correct

• The arithmetic accuracy of the ledger accounts

• All transactions are recorded

Which of the following is not shown in the trial balance?

• Closing stock

• Capital

• Purchase returns

• Sales returns

Suspense account is used in the trial balance to:

• Correct errors in the financial statements

• Record transactions not yet classified

• Balance the trial balance when it does not tally

• Record cash transactions

If a trial balance does not tally, it indicates:

• The books are accurate 

    

• The books contain errors

• there are no errors in ledger accounts

• Financial statements are correct

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

• Errors of omission

• Errors of commission

• Errors of principle

• All of the above

Which account is generally not included in the trial balance?

• Expense accounts

• Revenue accounts

• Memorandum accounts

• Asset accounts

The trial balance is usually prepared:

• Daily

• Weekly

• Monthly

• At the end of the accounting period

If the trial balance totals do not agree, the difference should be:

• Ignored

• Transferred to the capital account

• Placed in a suspense account

• Written off