The real accounts are accounts of Assets, Liabilities and
A. Expenses
B. Revenues
C. Capital
D. Drawing
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If a transaction is completely omitted from the books of accounts, will it effect the agreement of Trial Balance?
A. Yes
B. No
C. Transactions can not be omitted
D. None of the above
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_______ is the common base for preparing a trial balance
A. Ledger accounts
B. General Journal
C. Specialized journals
D. Balance sheet
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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
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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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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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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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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.
A. Arithmetic accuracy
B. Errors of commission
C. Omissions of economic events
D. Understatements of balances
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Which of the following account with normal balance is shown at the debit side of a trial balance?
A. Rent income account
B. Creditors account
C. Unearned income account
D. Cash account
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Which of the following account with normal balance is shown at the credit side of a trial balance?
A. Cash account
B. Bank account
C. Equipment account
D. Accrued expenses account
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The closing balance of petty cash book is considered as
A. Liability
B. Asset
C. Expenses
D. Income
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Payment of rent expenses is recorded on which side of cash book?
A. Receipts
B. Payments
C. Income
D. Expense
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An entry which is made on both sides of a cash book is called
A. Cash entry
B. Contra entry
C. Payment entry
D. Compound entry
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A cash book with cash, bank and discount column is commonly referrred to as
A. Cash book
B. Two columns cash book
C. Three columns cash book
D. Petty cash book
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Cash book records
A. Cash payments
B. Cash Receipts
C. Cash payments and cash receipts
D. Neither cash payments nor cash receipts
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Cash discount is allowed on ______ repayment of debt
A. Lump sum
B. Prompt
C. Actual
D. None of them
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Cash book is prepared by
A. Bank
B. Accountant of business
C. Manager of a company
D. Bank's cashier
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The most common imprest system is the ______ system
A. Petty cash
B. Cash book
C. Cash receipts journal
D. Discount
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Discount received is recorded on which of the following side of a cash book?
A. Receipts
B. Payments
C. Income
D. Expenditure
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Drawings by owner of business are generally recorded on which of the following side of a cash book?
A. Receipts
B. Payments
C. Incomes
D. Expenditures
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