What is ‘Trial Balance’?
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State the accounts which are not considered while preparing the Trial Balance by Balance Method Accounts which do not show any balance are not conside
Correct Answer - Balance Method.
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Agreement of Trial Balance always proves accounting accuracy.
This statement is False. Even though the Trial balance is tally there may be some mistake like the complete omission of transaction or compensatory error so Agreement of Trial Balance does...
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The trial balance is based on the double-entry principle that for every debit there is an equal amount of corresponding credit.
This statement is True. Trial balance is an extract of ledger balances. Ledger is prepared of journal book which follows the Double Entry System of bookkeeping. When both the effects of...
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i. Errors that affect the agreement of Trial Balance. ii. Taking the total more while closing books of accounts.
i. One-sided errors ii. Overcasting iii. Error of omission iv. Error of principle v. Suspense account
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i. Error in which the effect of one mistake is nullified by another mistake. ii. Errors that are not disclosed by the Trial Balance.
i. Compensating error ii. Two-sided errors iii. Errors of commission
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Trial Balance is prepared from the balance of ledger accounts.
This statement is True. A Trial balance is a statement of debit and credit balances extracted from the various accounts in the ledger. All business transactions are recorded first in Journal...
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A Trial Balance can agree in spite of certain errors.
This statement is True. The error of principle or error of complete omission or compensatory error is not disclosed by the Trial Balance. It will be agreed with debit and credit balances...
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There is no need to open a Suspense Account if the Trial Balance agrees.
This statement is True. When the Trial Balance does not tally a temporary account called ‘Suspense Account’ is opened to balance the trial balance. So when the trial balance is agreed there...
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Every item of Trial Balance has only one effect.
This statement is True. Every transaction is recorded through journal or subsidiary books with the principle of the double-entry book-keeping system. Journal and subsidiary books are posted to the ledger account...
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Can a Trial Balance be prepared under a Single Entry System?
A trial balance cannot be prepared under a single entry system.
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