Goods sent on approval basis’ have been recorded as ‘Credit sales’. This is an example of____________?

A. Error of principle
B. Error of commission
C. Error of omission
D. Error of duplication

Cash brought by the owner to start business is called__________?

A. Capital
B. Loan
C. Drawing
D. None of these

If a transaction is completely omitted from the books of accounts, will it affect the agreement of a trial balance?

A. Yes
B. No
C. Transactions can’t be omitted
D. None of these

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

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

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

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

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 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

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