Monday, 24 August 2020

Accounting Multiple Choice Questions with answers | Download PDF for MCQs


1 A trail balance is prepared

(a) after preparation financial statement

(b) after rewarding transactions in subsidiary books

(c) after posting to ledger is complete

(d) after posting to ledger is complete and accounts have been balanced

2 Trial balance shows the

(a) final position of accounts

(b) standard position of accounts

(c) working position of accounts

(d) None of the above

3 Trial balance is considered as the connecting link between accounting records and preparation of financial statements. It provides a basis for

(a) auditing accounting reports

(b) accuracy of the ledger account

(c) further processing of accounting

(d) All of the above

4 Agreement of trail balance is affected by

(a) One sided errors only

(b) Two sided errors only

(c) Both (a) and (b)

(d) None of the above

5 What will be the effect on trial balance if ₹ 2,000 received as rent and correctly entered in the cash book but not posted to rent account?

(a) Debit side of trail balance will exceed by ₹ 2,000

(b) Debit side of trail balance will decrease by ₹ 2,000

(c) Credit side of trail balance will decrease by ₹ 2,000

(d) Credit side of trail balance will exceed by ₹ 2,000

6 If the trail balance agrees, it implies that

(a) there is no error in books

(b) there may be two sided errors in the book

(c) there may be one sided error in the books

(d) there may be both two sided and one sided errors in the books

7 Which is not trail balance method?

(a) Balance method

(b) Total method

(c) Balance cum total method

(d) Grand total method

8 under which method of trail balance, the balance of each account is extracted and written against each account?

(a) Balance method of trail balance

(b) Total method of trial balance

(c) Balance total method of trail balance

(d) None of the above

9 Trail balance can be prepared under balance method, only when

(a) all the entries are made in journal

(b) all the subsidiary books are maintained

(c) all the ledger accounts have been balanced

(d) all the balances have been transferred to financial accounts

11 A trader has prepared the trial balance and total doesn’t tie. Which approach the trader should follow?

(a) Firstly, he should recheck all the ledger

(b) He should recheck the total of trail balance

(c) He should open the suspense account

(d) All of above

12 Balance method is the most commonly used method of preparing trial balance as it facilitates the preparation of Final account where

a) All ledger accounts are showcased

b) Debit/ credit column are totaled

c) Balances are transferred

d) Both (a) and (b)

Answer to Trial Balance

1. (d)

2. (a)

3. (c)

4. (a)

5. (a)

6. (b)

7. (d)

8. (a)

9. (c)

10. (c)

11. (d)

12. (d)

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