Trial Balance

A Trial Balance has no limitations -

• True

• False

One of the purposes of preparing a Trial Balance -

• to adjust assets and liabilities

• to provide financial information to external users

• to prove the mathematical equality of debits and credits in the ledger

• to write up the financial statements

When the amounts of a transaction must be recorded in a minimum of two accounts-

• double-entry

• debit

• credit

• accounting equation

Numerous mistakes can exist even though the Trial Balance totals are in agreement.

• True

• False

A transaction is omitted completely from the books so that there is no debit and credit entry of the transaction. This is an example of what errors?

• Omission

• Commission

• Principle

• Reverse

What type of error is 'the original figure may be incorrectly entered although the correct double-entry principle has been observed using incorrect figure'.

• errors of omission

• errors of commission

• errors of original entry

• compensating errors

What type of error is 'an entry is made in the wrong class of account'

• errors of reversing entries

• errors of principle

• compensating errors

• errors of commission

What type of error is 'an entry is posted to the correct side of the ledger but to the wrong account of the same class'.

• Errors of omission

• Errors of commission

• Errors of principle

• Complete Reversal of entries

Which of the following errors that cannot be revealed by a Trial Balance -

• Errors of original entry

• Errors in calculation

• Errors in omission of one entry

• Transposed errors

What is a transposition error?

• posting to the wrong side of an account

• error of omission

• error in principle

• switching the positions of two (or more) digits number