Chapter 10 ACCOUNTANCY : Trial Balance — Online MCQ Test
ACCOUNTANCY · CLASS 11 INTER I YEAR · Andhra State Board
Practice Chapter 10 ACCOUNTANCY : Trial Balance with a free chapter-wise online MCQ test.
This chapter covers: This chapter details objectives structure methods of preparation and locating errors in a trial balance to verify arithmetical accuracy..
AI-generated questions from basic to board-exam level, with instant results and explanations.
Chapter 10 ACCOUNTANCY : Trial Balance — Important Questions & Answers
What is the primary objective of preparing a Trial Balance?
- A. To ascertain the net profit of the business
- B. To verify the arithmetical accuracy of ledger accounts
- C. To prepare the Balance Sheet
- D. To record daily transactions
Answer: B. To verify the arithmetical accuracy of ledger accounts
A Trial Balance is prepared to ensure that the total of all debit balances equals the total of all credit balances, checking arithmetical accuracy.
A Trial Balance is prepared to ensure that the total of all debit balances equals the total of all credit balances, checking arithmetical accuracy.
A Trial Balance is usually prepared in the form of a:
- A. Statement
- B. Ledger account
- C. Journal entry
- D. Balance sheet
Answer: A. Statement
A Trial Balance is not an account but a statement containing the balances of all ledger accounts at a specific date.
A Trial Balance is not an account but a statement containing the balances of all ledger accounts at a specific date.
Which of the following items is credited to the Trial Balance?
- A. Purchases
- B. Creditors
- C. Drawings
- D. Stock
Answer: B. Creditors
Creditors represent liabilities to the business, and liabilities are always recorded on the credit side of the Trial Balance.
Creditors represent liabilities to the business, and liabilities are always recorded on the credit side of the Trial Balance.
Compare Trial Balance and Balance Sheet: Which statement is true?
- A. Trial Balance is a part of final accounts, while Balance Sheet is not
- B. Trial Balance is prepared from ledger balances; Balance Sheet is prepared from Trial Balance
- C. Both are legally mandatory for every sole proprietor
- D. Trial Balance shows financial position, while Balance Sheet shows arithmetical accuracy
Answer: B. Trial Balance is prepared from ledger balances; Balance Sheet is prepared from Trial Balance
Trial Balance is the bridge between ledger accounts and the preparation of Final Accounts (Trading, P&L, and Balance Sheet).
Trial Balance is the bridge between ledger accounts and the preparation of Final Accounts (Trading, P&L, and Balance Sheet).
In a Trial Balance, if the 'Suspense Account' is not present, what is the most logical deduction?
- A. The books are entirely free of all errors
- B. All errors have been discovered and rectified
- C. The total of debit and credit balances are equal
- D. The business has no creditors or debtors
Answer: C. The total of debit and credit balances are equal
A Suspense Account is only opened when the Trial Balance does not agree; its absence indicates the trial balance is currently balanced.
A Suspense Account is only opened when the Trial Balance does not agree; its absence indicates the trial balance is currently balanced.