Rules of Trial Balance - SS1 Accounting Past Questions and Answers - page 1
What is the purpose of the trial balance?
To ensure that the total debits equal the total credits
To provide information about a company's cash flows
To provide information about a company's retained earnings
To provide information about a company's comprehensive income
When should the trial balance be prepared?
Midway through an accounting period
At the end of an accounting period
As needed during an accounting period
At the beginning of an accounting period
What does an unbalanced trial balance indicate?
That there are no errors in the accounting records
That the accounting period has not yet ended
That the accounting equation has been followed correctly
That there is an error in the accounting records
Which accounts are included in the trial balance?
Assets, liabilities, equity, revenues, and expenses
Assets, liabilities, and equity only
Assets and liabilities only
Equity and revenues only
What is the purpose of investigating an unbalanced trial balance?
To determine whether the accounting period has ended
To ensure that the accounting equation has been followed correctly
To identify and correct errors in the accounting records
To provide information about a company's cash flows
What is the difference between a trial balance and a balance sheet?
A trial balance is a list of all the accounts in a company's general ledger with their respective balances, while a balance sheet is a financial statement that shows a company's assets, liabilities, and equity at a specific point in time.
What is the purpose of listing all accounts in the trial balance?
The purpose of listing all accounts in the trial balance is to ensure that all transactions have been recorded and to identify any errors or discrepancies that may have occurred in the accounting records.