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Understanding Trial Balance and Basic Accounting Equation A1 Wk4

Authored by Barbara DiBuono

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Understanding Trial Balance and Basic Accounting Equation A1 Wk4
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9 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the primary purpose of a Trial Balance?

To show the financial health of a company

To prove that journal entries are posted correctly

To calculate net income

To prepare financial statements.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does the Trial Balance not tell us?

The financial health of a company

The equality of debits and credits

The correctness of journal entries

The total revenue.

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What happens if you increase one side of the accounting equation?

The other side decreases

The other side remains the same

The other side also increases

The equation becomes invalid.

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the result of maintaining the integrity of the accounting equation?

Imbalance in accounts

Equality in Trial Balance

Increase in liabilities

Decrease in assets

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the significance of the Trial Balance in accounting?

It shows the financial health of a company

It proves the correctness of journal entries

It calculates net income

It prepares financial statements.

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What should be done to one side of an equation if you do something to the other side?

Do nothing

Do the opposite

Do the same

Ignore it

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

A __________ is a list of the balances on the accounts in the ledger at a certain date.

Ledger

Trial Balance

Cash Book

Purchase Book

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