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CBSE Questions for Class 9 Elements Of Book Keeping And Accountancy Trial Balance Quiz 1 - MCQExams.com
CBSE
Class 9 Elements Of Book Keeping And Accountancy
Trial Balance
Quiz 1
A Trial balance is an Account.
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0%
True
0%
False
Explanation
Trial balance is a statement showing balances of all the general ledger accounts at a particular point of time.
It is not an account.
It is a summary of all the accounts to check whether all the debit and credit balance are equal or not. It forms the basis for the preparation of the financial statements of the entity.
A trial balance contains the balances of ______________________.
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Only personal and real accounts
0%
Only real and nominal accounts
0%
Only nominal and personal accounts
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All accounts
Explanation
Trial Balance
is a statement which lists all the
balances
of the
Real
,
Personal
and
Nominal
Account irrespective of Capital or Revenue account. It
contains
two columns debit and credit.
A statement containing the various ledger balances on particular date:
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0%
Compound journal
0%
Ledger
0%
Trial balance
0%
None of these
Explanation
The fundamental principle of the double entry system is that for every debit there will be a credit.The statement in which the debit and credit balances are noted down and finally totaled up to ascertain if they are equal, is called trial balance.
In other words, trial balance is a statement of the debit and credit balances of the various ledger accounts which is prepared to check their arithmetical accuracy.
Which of the following account balance will be shown on debit side of Trial Balance?
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Outstanding expenses
0%
Cash a/c
0%
Short-term loan
0%
Creditors
Explanation
Cash account is a real account. Rule for real account is debit what come in and credit what goes out.
Hence cash account is always have the debit balance and this will be shown as debit in trial balance.
The trial balance ensures________.
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Arithmetical accuracy of the accounts maintained
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Recording of business transactions in a systematic manner
0%
The cost of a fixed asset
0%
All of the above
Explanation
Trial balance is a statement of all debits and credits which consists of double entry system of book keeping and helps in the disagreement indicating an error. Hence, trial balance ensures arithmetical accuracy of the accounts maintained.
Preparation of trial balance helps in the deduction of ___________.
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0%
Error of Principle
0%
Compensating Errors
0%
Errors of Omission
0%
Clerical Errors
Explanation
While doing the financial accounting, there are chances of having errors. Financial accounting is based on dual system of accounting where for every debit there will be a credit. In case of mismatch in trial balance, there are chances of a clerical error.
The preparation of a trial balance helps in
locating
______________.
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0%
Errors in Principle
0%
Errors of Omission
0%
Clerical Errors
0%
Compensatory Errors
Explanation
While recording the transaction, there is a possibility of having the error. Since accounting is based on double entry system, for every debit there will be a credit. Hence at any point of time, trial balance must be tallied. If trial balance dose not matches, there must be some clerical error.
Name the methods in which trial balance can be prepared.
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Totals-cum-balances Method.
0%
Totals Method.
0%
Balances Method.
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All of the above.
Explanation
Trial balance can be prepared in three ways:
1) Total cum balance method- In this method, total and balances both are captured in tabular form.
2) Total Method- In this method, total of debit and credit are incorporated in the tabular form.
3) Balance method- In this method, only balances are taken in the trial balance.
Preparation of a trial balance helps in locating __________.
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0%
Negligence
0%
Clerical errors
0%
Frauds
0%
All of these
Explanation
Option B is the correct answer.
Trial Balance is prepared to check and confirm whether posting of all transactions is done in the ledger. If trial balance agrees, it proves that books of account are arithmetically correct. If the total of debit and credit is not matching, it means there are some clerical error.
Hence, preparation of trial balance helps in locating the clerical error.
Totals method does not help in assuming _________of balances of various accounts.
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0%
Total of each side in the ledger
0%
Application of double entry system
0%
Accuracy
0%
None of the above
Explanation
T
otals method is not
in use widely as it
does not
determines the
accurate
balances of the accounts and thus, also
does not help
in the preparation of the Financial statements or final accounts.
Which item is shown on the debit side of a trial balance?
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Rent outstanding.
0%
Prepaid expenses.
0%
Purchases returns.
0%
Excess of income over expenses.
Explanation
Prepaid expenses means the expense which are already paid but the services against which are yet to receive. While passing the closing entry, expenses account will be credited by debiting the prepaid expense.
The amount listed for cash in the trial balance represents __________________.
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The cash at the beginning of the period.
0%
Cash receipts during the period.
0%
Cash receipts minus disbursements during the period.
0%
The balance of cash on the date of trial balance.
Explanation
A Trial Balance is a statement that states the closing balances of all the accounts at the end of the accounting period. Thus, similar to all the other accounts, the closing balance of cash and bank only appears in the Trial Balance.
Thus, the correct option is D.
Most widely used method in preparation of trial balance is __________.
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0%
Balances method
0%
Totals method
0%
Totals-cum-balances method
0%
All of the above
Explanation
Trial balance can be prepared in three ways:
1) Total cum balance method- In this method, total and balances both are captured in tabular form.
2) Total Method- In this method, total of debit and credit are incorporated in the tabular form.
3) Balance method- In this method, only balances are taken in the trial balance. This method is most widely used for preparation of trial balance.
The Trial balance shows only _________ accuracy.
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0%
Arithmetical
0%
Accounting
0%
Historical
0%
Financial
Explanation
A trial balance is a statement showing the balances, or total of debits and credits, of all the accounts in the ledger with a view to verify the arithmetical accuracy of posting into the ledger accounts. Trial balance is an important statement in the accounting process. which shows final position of all accounts and helps in preparing the final statements.
The purpose of preparing a trial balance is to ascertain whether all debits and credit are properly recorded in the ledger or not and that all accounts have been correctly balanced. As a summary of the ledger, it is a list of the accounts and their balances. When the totals of all the debit balances and credit balances in the trial balance are equal, it is assumed that the posting and balancing of accounts is arithmetically correct. However, the tallying of the trial balance is not a conclusive proof of the accuracy of the accounts. It only ensures that all debits and the corresponding credits have been properly recorded in the ledger.
A Trial Balance is a list of __________ accounts.
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0%
personal
0%
real
0%
nominal
0%
ledger
Explanation
Trial Balance is prepared by taking the balances of all ledger account. It is a list of all ledger account. Trial balance is prepared to check the arithmetical accuracy.
A Trial balance provides the base for preparation of __________.
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0%
Final Accounts
0%
Vouchers
0%
Debit Notes
0%
Credit Notes
Explanation
Trial Balance is prepared by taking the balances of all ledger account. It is a list of all ledger account. Trial balance is prepared to check the arithmetical accuracy. If trial balance agrees, it provides the base to prepare the final accounts. Financial statements are prepared using all these ledger balances in the trading, profit & loss account and the balance sheet.
A Trial balance is a _________.
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0%
Ledger
0%
Journal
0%
Subsidiary
0%
Statement
Explanation
Trial Balance is prepared by taking the balances of all ledger account. It is a list of all ledger account. Trial balance is prepared to check the arithmetical accuracy. Trial balance is a statement of all ledger balances.
Which of the following is not an example of clerical or technical error?
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Misappropriation of cash
0%
Errors of omission
0%
Error of commission
0%
None of the above
Explanation
There are four types of error which may arise during the accounting:
1) Error of Principle
2) Error of commission
3) Error of omission
4) Compensating Error
Misappropriation of cash is a fraudulent activity and its not fall in any of the error category.
State whether the following statements are True or False.
A Trial balance is most important document.
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0%
True
0%
False
Explanation
A trial balance is a bookkeeping or accounting report that lists the balances in each of an organization's general ledger accounts.
(Accounts with zero balances will likely be omitted.) The debit balance amounts are listed in a column with the heading "Debit balances" and the credit balance amounts are listed in another column with the heading "Credit balances." The total of each of these two columns should be identical.
Neither the unadjusted trial balance nor the adjusted trial balance is a financial statement and neither trial balance is distributed to anyone outside of the accounting and auditing staff. In other words, the trial balance is an internal document.
Goodwill account appears on _____________ side of Trial Balance.
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0%
debit
0%
credit
0%
both sides
0%
none of these
Explanation
Fixed assets are classified as tangible and intangible assets.
All the assets will always show a debit balance.
Goodwill is a type of an intangible fixed asset which is shown in the balance sheet under the fixed assets. Such an item will always show a debit balance as it is an asset for the business entity.
Trial balance is useful for locating ____________.
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0%
errors
0%
debit balance
0%
financial balance
0%
credit balance
Explanation
The objective of preparing the trial balance is to check the accuracy of posting. If trial balance agrees, it proves that books are arithmetically accurate. If it does not agree, there are chances of error.
Hence, Trail balance is useful for locating errors.
Drawing account appears in ________ column of the trial balance.
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0%
L.F
0%
Debit Balance
0%
Credit Balance
0%
None of the above
Explanation
Drawing is a personal withdrawal done by the proprietor. All personal drawings are debited to the drawing account.
Drawing account will always have a debit balance. Drawing account must be shown in the debit side of trial balance.
A Trial balance may be prepared on any day, date.
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0%
True
0%
False
Explanation
Trial balance is a statement showing all the
ledger balances are properly balanced.
Usually trial balance lists year ending balances in each of the ledger accounts but it can also be prepared on any other day or date in order to ensure the arithmetic accuracy on that particular day or date.
A Trial balance is helpful for preparation of final account.
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0%
True
0%
False
Explanation
Trial balance is a statement showing arithmetic accuracy of the ledger balances.
It is a statement showing balances of all the ledger accounts at a particular point of time.
It is a summary of all the accounts to check whether all the debit and credit balance are equal or not.
It forms the basis for the preparation of the financial statements of the entity.
A Trial Balance facilitates smooth preparation of ______________.
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0%
final accounts
0%
cash book
0%
subsidiary books
0%
journal
Explanation
Final accounts comprises of all the closing balances of all the ledgers posted from the journal entries passed.
Trial balance is a statement showing arithmetic accuracy and summarised balances.
These accounts form the base for finalization of the year ending figures and helps in preparation of final accounts to determine the profitability and the financial position of the entity.
State whether the following statements are True or False.
In Trial balance Opening Stock is recorded in credit balance column.
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0%
True
0%
False
Explanation
Opening stock is an asset for the business. Therefore, it should appear on debit column of trial Balance.
Total of all debit balance must be _____________ to the total of all credit balances.
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0%
different
0%
equal
0%
more
0%
less
Explanation
Under the double entry system of accounting, every transaction has dual aspects i.e. debit and credit. Thus, the total of debit balances must equal to the total of credit balances of the Trial balance to ensure the arithmetical accuracy of accounts.
A list of balances of all the accounts in ledger is called _________.
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0%
Balance sheet
0%
Profit and Loss A/c
0%
Trading A/c
0%
Trail Balance
Explanation
Trial balance is a statement of all debits and credits in a double-entry account book. It shows the balances of all accounts on a particular date. It helps in verifying the arithmetic accuracy of the double entry system used for the accounts. Trading and profit and loss account is used to determine the profitability of the business whereas financial position is determined by the balance sheet.
State whether the following statement is True or False.
A Trial balance shows only arithmetical accuracy.
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0%
True
0%
False
Explanation
Trial balance is an important statement in the accounting process, which shows final position of all accounts and helps in preparing the final statements.
The objective of trial balance is to ascertain the arithmetical accuracy of the ledger accounts. The purpose of preparing a trial balance is to ascertain whether all debits and credit are properly recorded in the ledger or not and that all accounts have been correctly balanced. As a summary of the ledger, it is a list of the accounts and their balances. When the totals of all the debit balances and credit balances in the trial balance are equal, it is assumed that the posting and balancing of accounts is arithmetically correct. However, the tallying of the trial balance is not a conclusive proof of the accuracy of the accounts. It only ensures that all debits and the corresponding credits have been properly recorded in the ledger.
State whether the following statement is True or False.
Trial balance has two sides i.e. liability side and asset side.
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0%
True
0%
False
Explanation
Trial balance has two sides, i.e., debit side and credit side. The preparation of trial balance is based on the double entry system of book-keeping, that is, for every debit in one account; there is a corresponding credit in some other account. It implies that the total of the debit balance of the account should equal to the credit balance of the account. When debit side of the trial balance tally with its credit side,then the entries are correctly made in the ledger accounts. If there is any difference between debit side and the credit side, it means there is some error in the ledger accounts. Thus, the trial balance is made for verifying the correctness of the entries in the books of accounts.
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Practice Class 9 Elements Of Book Keeping And Accountancy Quiz Questions and Answers
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