WorksheetsThe Trial Balance
Total questions: 7
Worksheet time: 7mins
A firm's trial balance . . .
shows its financial position.
establishes whether its accounting records are correct.
lists all of the entries in its double-entry accounting records.
is a list of all of the balances brought down in its double-entry accounting records.
The purpose of a firm preparing a trial balance is to establish whether . . .
the total of the debit balances brought down in its nominal (general) ledger equals that of the credit balances brought down.
the double-entry record it has made for all transactions is correct.
its bank balance is correct.
it has earned a profit or incurred a loss.
The debit and credit totals of a trial balance . . .
need not always agree, as there are sometimes legitimate reasons why they should differ.
should agree in all cases except when the trial balance is prepared at the end of an accounting period.
should always agree.
need not always agree, because the trial balance is not the same as a balance sheet.
An error of omission arises when . . .
either the debit entry or the credit entry for a particular transaction is recorded in the wrong class of ledger account.
a transaction is not entered at all in the nominal (general) ledger.
a correct figure is entered in the double-entry accounting records, but in the wrong person's account.
two errors are made, one of which cancels out the other.
An error of commission arises when . . .
either the debit entry or the credit entry for a particular transaction is recorded in the wrong class of ledger account.
a transaction is not recorded in the double-entry accounting records.
a correct figure is entered in the double-entry accounting records, once in the correct ledger account and once in the wrong person's account.
None of the above.
In the case of a newsagent's shop, which of the following is an error of principle ?
The cost of purchasing a photocopier on credit is entered on the debit side of the purchases account and on the credit side of the creditor's account.
A sale is not recorded in the double-entry accounting records.
A credit sale to A. Barker is entered on the credit side of the sales account and on the debit side of A. Baker's account.
None of the above.
An error of original entry occurs when . . .
either the debit entry or the credit entry for a particular transaction is recorded in the wrong class of account.
a correct figure is entered in the double-entry accounting records, once in the correct ledger account and once in the wrong person's account.
an incorrect figure is entered on the correct sides of the correct ledger accounts.
None of the above.
