MCQs on "Trial Balance": Find the multiple choice questions on "Trial Balance", frequently asked for all competitive examinations.
Here are a few MCQs on Trial Balance for your better understanding of the topic.
Q:1.
Name the account type with a normal balance of credit.
- A. Revenue
- B. Asset
- C. Drawing
- D. Expense
Q:2.
A trial balance shows up on both the equal sides of the credit and debit column:
- A. This means that though the arithmetic is correct, there are still chances of some errors in the sheet
- B. This means that there would be only a single error in the sheet
- C. This means that there would be more than one error in the sheet
- D. This means that there is no error in the sheet
Q:3.
What is the need for companies to make a trial balance?
- A. To calculate the status of the financial orders
- B. To tally the balance of cash and the bank
- C. For calculating profit and loss
- D. For checking the accuracy of ledgers arithmetically
Q:4.
Which of the following is used for checking the arithmetical accuracy of the account books?
- A. Ledger
- B. Trial balance
- C. Journal
- D. All of these
Q:5.
What is a trial balance?
- A. Personal account
- B. Nominal account
- C. Real account
- D. None of these
Q:6.
Should the total of the trial balance always be equal?
- A. Yes, except when the trial balance total is tallied at the end of the year
- B. No, because it depends on the interests of the company
- C. Yes, always
- D. No, because it differs from a balance sheet
Q:7.
In which of the following accounts there is a debit balance?
- A. Purchase returns
- B. Purchase
- C. Discounts
- D. Owner equity
Q:8.
In which of the following accounts there is a credit balance?
- A. Wages outstanding
- B. Return inwards
- C. Motor vehicles
- D. Prepaid rent
Q:9.
What could be the possible description of a trial balance among the following?
- A. Shows the total/balance of books
- B. Shows the entries in the sheet
- C. It is a special system
- D. Showcases the financial position of a company
Q:10.
Before the final accounting, what is the necessity to make a trial balance?
- A. It helps the accountant to make any amendments if required
- B. It gives the adequate accounting to make the final account
- C. It is used for checking the arithmetical accuracy of ledger accounts
- D. It is used to show that both debit and credit columns are equal in value
