MCQs on Trial Balance with answers updated for the year 2022 (2024)

FAQs

What is a trial balance Mcq answer? ›

Trial Balance is a statement which accounts all the balances of the Personal account, Real account and Nominal account regardless of either Revenue or Capital A/c. It comprises of 2 columns viz., debit and credit.

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.

The correct option is D) It is used to show that both debit and credit columns are equal in value.

The Trial Balance is a statement of ledger balances on a particular date. It lists the accounts together with their. debit and credit balances extracted at a given date from the ledger. Preparation of a Trial Balance.

Balance Method – This method uses each ledger account's final debit/credit balance in the Trial Balance. Once the balance figures of all accounts are listed, the Trial Balance (both on the debit and credit side) helps check the accuracy of all transactions.

The trial balance formula is total debits = total credits. This equation ensures that the total of the debit column matches the total of the credit column. If they do not match, it indicates that an error has been made.

To check the arithmetical accuracy of the transactions and the ledger accounts. To determine the ledger account balances. It serves as evidence that the double entry system has complied duly. It facilitates the preparation of the financial statements.

A trial balance is a financial report of credit entries and debit entries that businesses use to internally audit their double-entry accounting systems.

The correct answer is Arithmetical accuracy of ledger balances. A company's trial balance can be used to find inaccuracies in its ledger. The third stage of the accounting cycle is trial balance.

Is trial balance always balanced? ›

This is known as preparing a trial balance. A trial balance is thus a list of all the debit and credit balances in the general ledger accounts. If all the individual double entries have been correctly carried out, the total of the debit balances should always equal the total of the credit balances in the trial balance.

Errors of commission of posting of wrong amounts in both the accounts can be revealed by Trial Balance.

A Trial Balance is a check on the arithmetic all accuracy of posting to the ledger accounts. If the debit and credit totals are equal, then arithmetically the ledger entries are correct. It provides a convenient list of ledger balances from which final accounts can be prepared.

A trial balance is a financial report of credit entries and debit entries that businesses use to internally audit their double-entry accounting systems. The goal is to confirm that the sum of all debits equals the sum of all credits and identify whether any entries have been recorded in the wrong account.

Trial balance is a statement, showing the names and balances of all the accounts in the ledger and cash book.

What is a Trial Balance? A trial balance is a report that lists the balances of all general ledger accounts of a company at a certain point in time. The accounts reflected on a trial balance are related to all major accounting items, including assets, liabilities, equity, revenues, expenses, gains, and losses.