The 'Trial Balance' includes: MCQ with Answer and Explanation

The 'Trial Balance' includes:

A. Balances of all ledger accounts

B. Only nominal accounts

C. Only personal account balances

D. Only real and nominal accounts

Answer: Option A

It lists all ledger balances irrespective of account type.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

No comments yet. Be the first to start the discussion!

Question #1 Report Error

A complete omission to record a transaction in the journal will cause the Trial Balance to:

A. Show double the difference

B. Show a difference equal to the transaction amount

C. Show a difference equal to half the transaction amount

D. Tally without any difference

Correct Answer: Option D

Explanation:
Since both debit and credit aspects are omitted completely, the Trial Balance equation remains balanced.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2 Report Error

'Capital Work-in-Progress' is shown in the Balance Sheet as:

A. Intangible asset

B. Fixed asset under construction

C. Investment

D. Current asset

Correct Answer: Option B

Explanation:
It represents assets not yet ready for use, part of fixed assets.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3 Report Error

AS 5 (Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies) requires that extraordinary items should be:

A. Not disclosed

B. Shown as appropriation

C. Clubbed with regular income

D. Disclosed separately in the profit and loss statement

Correct Answer: Option D

Explanation:
Extraordinary items are disclosed separately to show their nature and amount.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping