Trial balance - JSS3 Business studies Past Questions and Answers - page 2

11

How does the trial balance help in error detection?

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A

By automating data entry

B

By listing ledger account balances

C

By preparing tax returns

D

By auditing financial statements

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12

What does the total debit column of a trial balance represent?

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A

Assets

B

Liabilities

C

Expenses

D

Equity

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13

Which of the following is a liability typically found on a trial balance

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A

Owner's Capital

B

Accounts Payable

C

Sales Revenue

D

Rent Expense 

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14

How does the trial balance aid in verifying the accounting equation? 

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A

By listing income and expenses

B

By totaling assets and liabilities

C

By ensuring total debits equal total credits

D

By calculating net income

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15

What does a credit balance in an account signify in a trial balance?

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A

The account has a surplus

B

The account has a deficit

C

The account is an asset

D

The account is an expense

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16

Which of the following statements accurately describes the trial balance?

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A

It is prepared after financial statements

B

It includes only income statement items

C

It verifies the accuracy of ledger balances

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17

What is the primary purpose of a trial balance in accounting?

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18

Can you explain the significance of preparing a trial balance before financial statement preparation?

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19

How would you classify ledger account balances on a trial balance?

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20

What are some common examples of balance sheet items found on a trial balance?

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