Accounting MCQs / Q&A

Sales on credit is recorded in which of the following journal?

A. Purchase journal
B. Sales journal
C. Purchases return journal
D. Sales return journal

Which of the following specialized journals records “goods returned by customers”?

A. Purchase journal
B. Sales journal
C. Purchases return journal
D. Sales return journal

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

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

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

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

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

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

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