Accounting - Study Mode
[#2316] _______ is the common base for preparing a trial balance
Correct Answer
(A) Ledger accounts
Explanation
Solution: Ledger accounts is the common base for preparing a trial balance. This process is known as 'balancing off' the general ledger accounts. The trial balance can then be prepared by listing each closing balance from the general ledger accounts as either a debit or a credit balance.
[#2317] Which of the following is true about a trial balance?
Correct Answer
(A) It lists down the balances of accounts
Explanation
Solution: Trial balance It lists down the balances of accounts. The debit balance values will be listed in the debit column of the trial balance and the credit value balance will be listed in the credit column.
[#2318] Debit balance = Credit balance in a trial balance indicates that
Correct Answer
(D) Mathematically Capital + Liabilities = Assets
Explanation
Solution: Debit balance = Credit balance in a trial balance indicates that Mathematically Capital + Liabilities = Assets.
[#2319] Trial Balance is commonly prepared
Correct Answer
(B) At the end of an accounting period
Explanation
Solution: Trial Balance is commonly prepared at the end of an accounting period. It is usually prepared at the end of an accounting period to assist in the drafting of financial statements.
[#2320] Which of the following will affect the agreement of a trial balance?
Correct Answer
(B) Partial omission of a transaction
Explanation
Solution: Partial omission of a transaction will affect the agreement of a trial balance. When only one aspect of a transaction is posted to the ledger, it is called as error of partial omission.