Quiz  /  Trial Balance Class 9 MCQ Questions With Answers

  • 1. 
    Temporary Accounts are also called nominal accounts.

  • True
  • False

  • 2. 
    The drawing account is a permanent account.

  • True
  • False

  • 3. 
    What should you do if the Trial Balance is not balanced?

  • Go through and find your mistake
  • It doesn't matter, so just move on
  • Throw everything away and completely restart

  • 4. 
    To close a temporary account, an amount equal to its balance is recorded in the account on the side opposite to its balance.

  • True
  • False

  • 5. 
    What order should you list the accounts on the Trial Balance?

  • It does not matter the order
  • Revenue, Expenses, Assets, Liabilities, Owner's Equity
  • The same as the General Ledger
  • The same as the Chart of Accounts

  • 6. 
    An error of original entry occurs when . . .

  • either the debit entry or the credit entry for a particular transaction is recorded in the wrong class of account.
  • a correct figure is entered in the double-entry accounting records, once in the correct ledger account and once in the wrong person's account.
  • an incorrect figure is entered on the correct sides of the correct ledger accounts.
  • None of the above.

  • 7. 
    Journal entries used to prepare temporary accounts for a new fiscal period are closing entries.

  • True
  • False

  • 8. 
    Which accounts should be listed?

  • Only those with a debit balance
  • Only those with a credit balance
  • Every account that has a balance
  • Every account

  • 9. 
    Temporary accounts include assets, expenses, and the owner’s drawing account.

  • True
  • False

  • 10. 
    The ending account balances of permanent accounts for one fiscal period are the beginning account balances for the next fiscal period.

  • True
  • False

  • 11. 
    Which of the following is the correct definition for Trial Balance?

  • A proof of the equality of debits and credits in the general ledger.
  • A proof to see if debits is more than credits in the general ledger
  • A proof to see if credits is more than debits in the general ledger
  • A proof of the equality of debits and credits in the general journal.

  • 12. 
    The capital account’s new balance after all closing entries are posted is verified by checking it with the amount of capital shown on the balance sheet at the end of the fiscal period.

  • True
  • False

  • 13. 
    The accounts that appear on the post-closing trial balance are

  • a. assets, liabilities, and owner’s capital.
  • b. revenue, expenses, and owner’s drawing.
  • c. all accounts in the chart of accounts.
  • d. all temporary accounts.

  • 14. 
    The series of accounting activities included in recording financial information for a fiscal period is called an accounting cycle.

  • True
  • False

  • 15. 
    Accounts used to accumulate information from one fiscal period to the next are

  • a. revenue accounts.
  • b. permanent accounts.
  • c. temporary accounts.
  • d. expense accounts.

  • 16. 
    Temporary accounts begin each new fiscal period with a

  • a. debit balance.
  • b. credit balance.
  • c. zero balance.
  • d. balance equal to the net income.

  • 17. 
    When the total expenses are greater than the total revenues,

  • a. the Income Summary account has a credit balance.
  • b. the Income Summary account has a debit balance.
  • c. debits equal credits.
  • d. none of these.

  • 18. 
    In the case of a newsagent's shop, which of the following is an error of principle ?

  • The cost of purchasing a photocopier on credit is entered on the debit side of the purchases account and on the credit side of the creditor's account.
  • A sale is not recorded in the double-entry accounting records.
  • A credit sale to A. Barker is entered on the credit side of the sales account and on the debit side of A. Baker's account.
  • None of the above.

  • 19. 
    The Income Summary account has a normal debit balance.

  • True
  • False

  • 20. 
    Income Summary is a(n)

  • a. asset account.
  • b. liability account.
  • c. temporary account.
  • d. permanent account.

  • 21. 
    What are the three things needed to prepare the heading of the Trial Balance

  • The name of the report
  • The name of the business
  • The date of the report
  • All Of above

  • 22. 
    The purpose of a firm preparing a trial balance is to establish whether . . .

  • the total of the debit balances brought down in its nominal (general) ledger equals that of the credit balances brought down.
  • the double-entry record it has made for all transactions is correct.
  • its bank balance is correct.
  • it has earned a profit or incurred a loss.

  • 23. 
    Permanent accounts are used to accumulate information until it is transferred to the owner’s capital account.

  • True
  • False

  • 24. 
    After closing entries are posted, the balance in the owner’s drawing account should be

  • a. a debit.
  • b. zero.
  • c. a credit.
  • d. none of these.

  • 25. 
    Temporary accounts must start each fiscal period with a zero balance.

  • True
  • False

  • 26. 
    An error of commission arises when . . .

  • either the debit entry or the credit entry for a particular transaction is recorded in the wrong class of ledger account.
  • a transaction is not recorded in the double-entry accounting records.
  • a correct figure is entered in the double-entry accounting records, once in the correct ledger account and once in the wrong person's account.
  • None of the above.

  • 27. 
    The debit and credit totals of a trial balance . . .

  • need not always agree, as there are sometimes legitimate reasons why they should differ.
  • should agree in all cases except when the trial balance is prepared at the end of an accounting period.
  • should always agree.
  • need not always agree, because the trial balance is not the same as a balance sheet.

  • 28. 
    Where do you find the information for composing a Trial Balance?

  • General Journal
  • Source Documents
  • General Ledger
  • Memorandum

  • 29. 
    After the closing entries are posted, the owner’s capital account balance should be the same as shown

  • a. on the balance sheet for the fiscal period.
  • b. in the work sheet’s Balance Sheet Debit column.
  • c. in the work sheet’s Balance Sheet Credit column.
  • d. in the work sheet’s Income Statement Debit column.

  • 30. 
    An error of omission arises when . . .

  • either the debit entry or the credit entry for a particular transaction is recorded in the wrong class of ledger account.
  • a transaction is not entered at all in the nominal (general) ledger.
  • a correct figure is entered in the double-entry accounting records, but in the wrong person's account.
  • two errors are made, one of which cancels out the other.
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