Top 25 MCQs on Trial Balance - Accounting Share

This set of 25 multiple choice questions on trial balance is designed to help accounting students assess their understanding of key concepts.

Whether you’re preparing for an exam or just brushing up on your skills, these questions cover a range of topics to ensure you’re well-versed in trial balance.

Use this quiz to identify areas for improvement and solidify your grasp on one of the essential elements of accounting.

Total MCQs:	25
Time:	10 Minutes
Pass Mark:	60 Percent

Top 25 MCQ – Trial Balance: Test Your Knowledge!

Get ready to test your knowledge and reinforce your understanding of trial balance concepts. This quiz is designed to challenge you and help you master one of the fundamental aspects of accounting. Good luck, and let's get started!

1 / 25

1. Which of the following could cause a trial balance to be out of balance?

a) Failing to record a transaction

b) Recording the same transaction twice

c) Incorrectly posting an amount

d) All of the above

2 / 25

2. The balance of an account, $109, is shown on the wrong side of the trial balance. What difference will there be if all of the other items are correct?

a) $218

b) $54

c) $109

d) $18

3 / 25

3. What is the main purpose of preparing a trial balance?

a) Calculate net profit

b) Test the arithmetical accuracy of the ledger

c) Analyze financial performance

d) Show the cash flow of the business

4 / 25

4. Which of the following is not a step in preparing a trial balance?

a) Listing all account balances

b) Summarizing journal entries

c) Calculating the total debits and credits

d) Checking the equality of debits and credits

5 / 25

5. Which of the following is a characteristic of a trial balance?

a) It lists all account titles and their balances

b) It includes adjusting entries

c) It shows net income or loss

d) It is prepared before the general ledger

6 / 25

6. Which of the following is true about a trial balance?

a) It proves the accuracy of the financial statements

b) It shows the profitability of a company

c) It ensures that total debits equal total credits

d) It is used to prepare a balance sheet

7 / 25

7. If a trial balance is not equal, what might be the problem?

a) An incorrect journal entry was made

b) A ledger account was not posted

c) A transposition error occurred

d) All of the above

8 / 25

8. What does the suspense account of trial balance indicate?

a) Accuracy of trial balance

b) Errors of account

c) Capacity to correct errors

d) Necessity to prepare a new trial balance

9 / 25

9. How can you identify a transposition error in a trial balance?

a) Look for large differences in account balances

b) Check for duplicate entries in the same account

c) Analyze the difference between debits and credits

d) Review entries with high dollar amounts

10 / 25

10. What is the ideal balance for a trial balance?

a) A zero balance for all accounts

b) Total debits equal total credits

c) All revenue accounts have higher balances than expenses

d) There should be no negative account balances

11 / 25

11. What happens if the total debits and credits in a trial balance don't match?

a) It means the business is operating efficiently

b) It indicates an error in recording transactions

c) It shows a high volume of sales

d) It's a normal occurrence in accounting

12 / 25

12. Which one appears in the debit column of the trial balance?

a) All incomes

b) All expenses and liabilities

c) All expenses and assets

d) All liabilities

13 / 25

13. What is the effect on the trial balance if a debit entry is mistakenly recorded as a credit?

a) The trial balance will still balance

b) The trial balance will be out of balance by twice the amount of the error

c) Only the debit side will be affected

d) Only the credit side will be affected

14 / 25

14. A trial balance helps ensure:

a) Transactions are recorded in chronological order

b) Financial statements are completely accurate

c) The business is generating a profit

d) The accounting system is free of mathematical errors

15 / 25

15. Which of the following accounts appears on the trial balance?

a) Depreciation Expense

b) Accumulated Depreciation

c) Sales Revenue

d) All of the above

16 / 25

16. Which one is included in the trial balance?

a) Opening cash

b) Opening bank balance

c) Closing bank balance

d) Closing stock

17 / 25

17. The purchase of stationery for $52 is recorded at $25. What type of error is this?

a) Errors of miss posting

b) Errors of omission

c) Errors of commission

d) Compensating errors

18 / 25

18. Which of the following statements is true about a trial balance?

a) It proves the absence of errors in the accounting system

b) It guarantees the business is profitable

c) It ensures all transactions are posted correctly

d) It displays the financial health of the company

19 / 25

19. Which of these is not a common error that can cause a trial balance to be out of balance?

a) Transposition error (swapping digits)

b) Omission of an entire transaction

c) Incorrect classification of an account (debit vs. credit)

d) Math error in calculations

20 / 25

20. The installation cost of the machine is debited to the wages account, what type of error is it?

a) Errors of miss posting

b) Errors of principle

c) Clerical errors

d) Errors of principle

21 / 25

21. "Suspense account" is closed by

a) Rectification entry

b) Closing entry

c) Adjusting entry

d) Contra entry

22 / 25

22. What type of error is it when $2,000 in goods purchased from ABC International is not recorded in the purchase journal?

a) Errors of miss posting

b) Errors of omission

c) Errors of commission

d) Compensating errors

23 / 25

23. When is the trial balance prepared?

a) Everyday

b) At the end of the month

c) Any day of the year

d) On a certain day

24 / 25

24. What happens if a trial balance is out of balance?

a) The financial statements can still be prepared

b) Errors must be found and corrected

c) The net income will be incorrect

d) The accounts will automatically be adjusted

25 / 25

25. What type of accounts are listed in a trial balance?

a) Only asset and liability accounts

b) Only revenue and expense accounts

c) All permanent and temporary accounts

d) Only cash and inventory accounts

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Top 25 MCQ – Trial Balance: Test Your Knowledge!

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