Accounting - Study Mode
[#2321] If debit balances = credit balances, trial balance only shows or checks the _________ and it does not indicate that no errors were made during recording and posting.
Correct Answer
(A) Arithmetic accuracy
Explanation
Solution: If debit balances = credit balances, trial balance only shows or checks the Arithmetic accuracy and it does not indicate that no errors were made during recording and posting.
[#2322] Which of the following account with normal balance is shown at the debit side of a trial balance?
Correct Answer
(D) Cash account
Explanation
Solution: Cash account with normal balance is shown at the debit side of a trial balance.
[#2323] Which of the following account with normal balance is shown at the credit side of a trial balance?
Correct Answer
(D) Accrued expenses account
Explanation
Solution: Accrued expenses account with normal balance is shown at the credit side of a trial balance.
[#2324] Financial activities in a cash flow statement as per AS-7 do not include
Correct Answer
(C) purchase of building
[#2325] Which one of the following is a revenue expenditure
Correct Answer
(D) Cost of painting old building