Trial balance - JSS3 Business studies Past Questions and Answers - page 1
What is the primary purpose of a trial balance?
To prepare tax returns
To verify the accuracy of ledger balances
To calculate employee salaries d
To record daily transactions
Which of the following is NOT a use of the trial balance?
Error detection
Preparation of financial statements
Verification of accounting equation
Processing payroll
Which of the following is an example of an asset on a trial balance?
Accounts Payable
Owner's Equity
Inventory
Salaries ExpenseÂ
What are the balances that form the trial balance?
Assets, Liabilities, Equity, Income, Expenses
Revenue, Expenses, Assets, Liabilities
Assets, Liabilities, Equity
Cash, Accounts Payable, Owner's Capital
What is the first step in forming a trial balance?
Prepare financial statements
Classify balances into debit and credit columns
List all ledger accounts
Calculate total debits and credits
How are ledger account balances classified in a trial balance
As assets or liabilitiesÂ
As debit or credit balances
As expenses or revenues
As cash or non-cash items
Which of the following is an example of a balance sheet item identified on a trial balance?
Revenue
Salaries Expense
Accounts Receivable
Cost of Goods Sold
What does a debit balance in an account signify in a trial balance?
The account has a surplusÂ
The account has a deficit
The account is an expense
) The account is a liability
Which of the following is NOT a step in the formation of a trial balance?
Total Debits and Credits
Verify Equality
Prepare financial statements
Classify Balances
Which financial statement does the trial balance assist in preparing?
Cash Flow Statement
Balance Sheet
Income Statement
Statement of Retained Earnings
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