General journal is a book of _______ entries?

If debit balances = credit balances, trial balance only shows or check 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

A. Add prepaid expenses to respective expenses and show it as an asset
B. Deduct prepaid expenses from respective expenses and show it as an asset
C. Add prepaid expenses to respective expenses and show it as a liability
D. Deduct prepaid expenses from respective expenses and show it as a liability

Prepaid expense is an expense relating to the next accounting period but has been paid
in the current accounting period and hence it is a current asset. The adjustment would be to
deduct it from the respective expense account in the P&L A/c and show it as a current asset in the
Balance Sheet.

A. Profit and Loss Account
B. Balance Sheet
C. Funds Flow Statement
D. Trial Balance
Trial Balance D. is not a financial statement. It is a list of all accounts showing
outstanding balances at the end of the accounting period. It helps in the preparation of financial statements. The Profit and Loss Account A.; Balance Sheet B. and Funds Flow statement C. are the financial statements prepared by a business entity. Funds flow statement though categorized as one of the financial statements, its preparation is not mandatory. Thus D. is the correct answer

A. 1981
B. 1881
C. 1871
D. 2001