Meaning of Trial Balance - SS1 Accounting Past Questions and Answers - page 1

1

What is a trial balance?

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A

A financial statement that lists all the accounts in a company's general ledger and their respective balances

B

A statement of cash flows

C

A statement of retained earnings

D

A statement of comprehensive income

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2

When is a trial balance prepared?

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A

At the beginning of an accounting period

B

Midway through an accounting period

C

At the end of an accounting period

D

As needed during an accounting period

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3

What is the purpose of a trial balance?

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A

To identify errors or discrepancies in a company's accounting records

B

To provide information about a company's cash flows 

C

To provide information about a company's retained earnings 

D

To provide information about a company's comprehensive income

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4

Which of the following errors can cause an unbalanced trial balance?

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A

Posting transactions to the wrong accounts 

B

Recording transactions with incorrect amounts 

C

Omitting transactions altogether 

D

All of the above

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5

What does an unbalanced trial balance indicate?

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A

That there are no errors in the accounting records 

B

That there is an error in the accounting records

C

That the accounting period has not yet ended

D

That the accounting equation has been followed correctly

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6

What are some common errors that can cause a trial balance to be unbalanced? 

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