Which of the following is true about a trial balance?

A: It lists down the balances of accounts

B: It lists down the balances of a balance sheet

C: It is a kind of financial statement

D: It is not a part of accounting cycle

Answer & Explanation Discussion
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It lists down the balances of accounts

Debit balance = Credit balance in a trial balance indicates that:

A: No error in recording transactions

B: No error in posting entries to ledger accounts

C: Account balances are correct

D: Mathematically Capital+Liabilities=Assets

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Mathematically Capital+Liabilities=Assets

Trial balance is commonly prepared?

A: Frequently during the year

B: At the end of an accounting period

C: At the end of a month

D: At the end of a year

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At the end of an accounting period

Which of the following will affect the agreement of a trial balance?

A: Complete omission of a transaction

B: Partial omission of a transaction

C: Error of principle

D: Compensating errors

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Partial omission of a transaction

When owner withdraw cash for its private use, it is called ___________?

A: Profit

B: Income

C: Expense

D: Drawing

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Drawing

Assets having physical existence are called ___________?

A: Current asset

B: intangible asset

C: Tangible asset

D: Liquid asset

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Tangible asset

The assets which have some market value are called ____________?

A: Fixed asset

B: Quick asset

C: Fictitious assets

D: Real assets

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Real assets

The assets which come into existence upon the happening of a certain event are called__________?

A: Contingent assets

B: Fixed assets

C: Fictitious assets

D: Quick assets

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Contingent assets

Income earned but not received is called ____________?

A: Fictitious assets

B: Quick asset

C: Real asset

D: Outstanding asset

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Outstanding asset

Debts which are payable in the course of a month are called _____________?

A: External liabilities

B: Fixed liabilities

C: Current liabilities

D: Liquid Liabilities

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Current liabilities

1 35 36 37 38 39 40