21
Which of the following will NOT affect the trial balance?
A.
B.
C.
D.
Answer & Solution
Errors of principle (e.g., classifying revenue expenditure as capital expenditure) do not affect the trial balance.
22
The trial balance is prepared to check:
A.
B.
C.
D.
Answer & Solution
The trial balance is prepared to ensure that the total debits equal total credits, checking the accuracy of ledger postings.
23
If the trial balance does not balance, the error could be due to:
A.
B.
C.
D.
Answer & Solution
If a transaction is not recorded, it can cause an imbalance in the trial balance. Errors like recording expenses as assets do not affect trial balance totals.
24
Which of the following errors will not affect the trial balance?
A.
B.
C.
D.
Answer & Solution
Errors of omission, errors of principle, and compensating errors do not affect the trial balance.
25
Which account normally has a credit balance in the trial balance?
A.
B.
C.
D.
Answer & Solution
Capital is an owner’s equity account, which normally has a credit balance. Assets and expenses typically have debit balances.
26
A trial balance is usually prepared:
A.
B.
C.
D.
Answer & Solution
The trial balance is prepared at the end of an accounting period to check the mathematical accuracy of ledger balances before preparing financial statements.
27
If an accountant forgets to record depreciation, the trial balance will be affected as
A.
B.
C.
D.
Answer & Solution
The trial balance will still balance, but assets will be overstated because depreciation was not recorded as an expense.
28
The difference in a trial balance is transferred to which account temporarily?
A.
B.
C.
D.
Answer & Solution
If the trial balance does not balance, the difference is temporarily placed in the suspense account until errors are found and corrected.
29
Which of the following errors will affect the trial balance totals?
A.
B.
C.
D.
Answer & Solution
If a debit entry is mistakenly recorded as a credit, the total debits and credits will not match, causing an imbalance in the trial balance.
30
If an accountant records a sales transaction twice in the ledger, what will happen to the trial balance?
A.
B.
C.
D.
Answer & Solution
The trial balance will still balance because equal debit and credit entries were recorded twice, but the sales revenue will be overstated.
