Y10 Accounting - C3 Trial Balance

What is a trial balance?

• A list of all transactions

• A statement of ledger balances on a particular date

• A summary of cash flow

• A financial statement showing profits

What does a balanced trial balance indicate?

• Total debit balances equal total credit balances

• All entries are error-free

• There are no missing transactions

• The accounts are closed

Which of the following is NOT a use of a trial balance?

• Preparing financial statements

• Checking arithmetical errors

• Verifying ledger balances

• Calculating net income

What is the first step in preparing a trial balance?

• Total the debit and credit columns

• Check for errors

• Close and balance all accounts

• List down all the accounts

Which error does NOT affect the trial balance?

• Error of omission

• Error of addition

• Error of principle

• Error of original entry

What happens if a trial balance does not balance?

• The financial statements are ready

• All accounts are correct

• An error has been made

• The ledger is complete

Which of the following is an example of an error of commission?

• Double entry of a transaction

• Omitting a transaction

• Entering a wrong amount

• Reversing a transaction

What is the purpose of preparing a trial balance?

• To prepare tax returns

• To ensure all transactions are recorded

• To calculate total revenue

• To check the accuracy of double entry bookkeeping

Which of the following errors would still allow a trial balance to balance?

• Error of calculation

• Error of omission

• Error of original entry

• Error of addition

What does a trial balance help to identify?

• The total assets of the company

• Arithmetical errors in the accounts

• The net profit of the business

• The cash flow position