“Trial Balance” in Accounting & Finance

94 questions across 3 technologies.

Accounting & Finance

94 questions in 3 technologies

#	Question	Technology	Topic	Level
1	What is a trial balance? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Beginner
2	What is the purpose of a trial balance? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Beginner
3	Which balances go on the debit side and which on the credit side of the trial balance? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Beginner
4	If a trial balance balances, does it mean the accounts are correct? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Beginner
5	When is a trial balance prepared? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Beginner
6	Where do drawings appear in the trial balance and financial statements? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Beginner
7	What is the total of the trial balance meant to demonstrate? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Beginner
8	What comes after the trial balance in the accounting cycle? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Beginner
9	What types of errors are NOT revealed by a trial balance? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Intermediate
10	What types of errors ARE revealed by a trial balance? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Intermediate
11	How is the trial balance used to prepare financial statements? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Intermediate
12	How do you locate the difference when a trial balance does not balance? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Intermediate
13	What is the difference between a trial balance and a balance sheet? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Intermediate
14	How do accruals and prepayments affect the figures taken to the financial statements from the trial balance? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Intermediate
15	What is the effect of depreciation on the trial balance and statements? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Intermediate
16	What is the difference between a trial balance error being 'in the trial balance' versus 'in the ledger'? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Intermediate
17	What is an extended trial balance (ETB)? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Advanced
18	How does closing inventory appear in relation to the trial balance? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Advanced
19	How do compensating errors affect the trial balance? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Advanced
20	How is a suspense account shown if the trial balance still doesn't balance at reporting time? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Advanced
21	How do you incorporate a correction of a prior error into the trial balance / statement of corrected profit? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Advanced
22	What is a trial balance? Financial Accounting › Trial Balance	Financial Accounting	Trial Balance	Beginner
23	What are the two purposes of a trial balance? Financial Accounting › Trial Balance	Financial Accounting	Trial Balance	Beginner
24	Does a balanced trial balance mean there are no errors? Financial Accounting › Trial Balance	Financial Accounting	Trial Balance	Intermediate
25	How do you locate a difference in a trial balance? Financial Accounting › Trial Balance	Financial Accounting	Trial Balance	Advanced
26	What is a balance brought down and carried down? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Beginner
27	How do you balance a ledger account? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Beginner
28	Why do assets and expenses have debit balances while income, liabilities, and capital have credit balances? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Intermediate
29	What is a suspense account and when is it opened? Bookkeeping › Trial Balance	Bookkeeping	Trial Balance	Beginner
30	What is the first step when you discover the trial balance does not balance? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Beginner
31	How does computerized bookkeeping produce the trial balance and financial statements? Bookkeeping › Computerized Bookkeeping	Bookkeeping	Computerized Bookkeeping	Intermediate
32	What errors are NOT revealed by a trial balance? Financial Accounting › Correction of Errors	Financial Accounting	Correction of Errors	Beginner
33	What is an aging report (aged trial balance)? Accounts Payable & Receivable › Aging Analysis	Accounts Payable & Receivable	Aging Analysis	Beginner
34	What is a suspense account? Financial Accounting › Trial Balance	Financial Accounting	Trial Balance	Intermediate
35	Why does double-entry guarantee the trial balance balances? Financial Accounting › Double-Entry Bookkeeping	Financial Accounting	Double-Entry Bookkeeping	Advanced
36	How do you reconcile accounts payable to the trial balance and supporting sub-ledgers at consolidation? Accounts Payable & Receivable › Reconciliations	Accounts Payable & Receivable	Reconciliations	Advanced
37	How do you balance the cash book? Bookkeeping › Cash Book & Petty Cash	Bookkeeping	Cash Book & Petty Cash	Beginner
38	What does a debit balance and a credit balance mean in the cash book? Bookkeeping › Cash Book & Petty Cash	Bookkeeping	Cash Book & Petty Cash	Beginner
39	Can a control account have both a debit and a credit balance? Bookkeeping › Control Accounts	Bookkeeping	Control Accounts	Beginner
40	What is the adjusted (corrected) cash book balance? Bookkeeping › Bank Reconciliation	Bookkeeping	Bank Reconciliation	Beginner
41	What is the normal balance of the sales and purchases ledger control accounts? Bookkeeping › Control Accounts	Bookkeeping	Control Accounts	Beginner
42	How do you deal with a credit balance in the sales ledger? Bookkeeping › Sales & Purchase Ledgers	Bookkeeping	Sales & Purchase Ledgers	Intermediate
43	How do you reconcile when starting from the cash book balance instead of the statement? Bookkeeping › Bank Reconciliation	Bookkeeping	Bank Reconciliation	Intermediate
44	Which errors affect the control account and which affect the list of balances? Bookkeeping › Control Accounts	Bookkeeping	Control Accounts	Advanced
45	What is a debtor and a creditor? Bookkeeping › Sales & Purchase Ledgers	Bookkeeping	Sales & Purchase Ledgers	Beginner
46	Why are the sales and purchases ledgers called memorandum (subsidiary) ledgers? Bookkeeping › Sales & Purchase Ledgers	Bookkeeping	Sales & Purchase Ledgers	Beginner
47	What is a control account? Bookkeeping › Control Accounts	Bookkeeping	Control Accounts	Beginner
48	What is the difference between a control account and a personal account? Bookkeeping › Control Accounts	Bookkeeping	Control Accounts	Beginner
49	How are bookkeeping errors corrected? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Beginner
50	What is an error of omission? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Beginner
51	What is an error of commission? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Beginner
52	What is an error of principle? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Beginner
53	What is a transposition error? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Beginner
54	Why must a correcting journal entry include a narrative? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Beginner
55	What is computerized bookkeeping? Bookkeeping › Computerized Bookkeeping	Bookkeeping	Computerized Bookkeeping	Beginner
56	What are the advantages of computerized over manual bookkeeping? Bookkeeping › Computerized Bookkeeping	Bookkeeping	Computerized Bookkeeping	Beginner
57	What is double-entry bookkeeping? Bookkeeping › Books of Prime Entry	Bookkeeping	Books of Prime Entry	Beginner
58	What is the difference between a debit and a credit? Bookkeeping › Books of Prime Entry	Bookkeeping	Books of Prime Entry	Beginner
59	What is accounts receivable and accounts payable? Bookkeeping › Sales & Purchase Ledgers	Bookkeeping	Sales & Purchase Ledgers	Beginner
60	What is the difference between the SLCA and PLCA in one line each? Bookkeeping › Control Accounts	Bookkeeping	Control Accounts	Beginner
61	What is the double effect of correcting an error of omission? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Beginner
62	What is the effect on profit of correcting an expense that was omitted? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Beginner
63	What is a nominal (general) ledger code and why is it used? Bookkeeping › Computerized Bookkeeping	Bookkeeping	Computerized Bookkeeping	Beginner
64	What is a batch versus real-time processing in bookkeeping software? Bookkeeping › Computerized Bookkeeping	Bookkeeping	Computerized Bookkeeping	Beginner
65	What is an error of original entry? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Intermediate
66	What is a complete reversal of entries? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Intermediate
67	What is a compensating error and how is it corrected? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Intermediate
68	How do you correct an error of duplication? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Intermediate
69	How do you correct an amount posted to the correct account but on the wrong side? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Intermediate
70	What is the chart of accounts (nominal codes) in accounting software? Bookkeeping › Computerized Bookkeeping	Bookkeeping	Computerized Bookkeeping	Intermediate
71	How are errors corrected in computerized bookkeeping compared with manual? Bookkeeping › Computerized Bookkeeping	Bookkeeping	Computerized Bookkeeping	Intermediate
72	What is period-end closing (locking) in accounting software? Bookkeeping › Computerized Bookkeeping	Bookkeeping	Computerized Bookkeeping	Intermediate
73	What is the accounting equation and how does bookkeeping maintain it? Bookkeeping › Books of Prime Entry	Bookkeeping	Books of Prime Entry	Intermediate
74	What is the difference between capital and revenue expenditure? Bookkeeping › Books of Prime Entry	Bookkeeping	Books of Prime Entry	Intermediate
75	How is the receipt of capital or a loan recorded in the cash book? Bookkeeping › Cash Book & Petty Cash	Bookkeeping	Cash Book & Petty Cash	Intermediate
76	How are drawings recorded in the cash book? Bookkeeping › Cash Book & Petty Cash	Bookkeeping	Cash Book & Petty Cash	Intermediate
77	How do you correct an undercast or overcast in a ledger account? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Intermediate
78	How do you correct closing inventory that was valued incorrectly after the accounts were drafted? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Intermediate
79	How do you correct wages posted to the drawings account? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Intermediate
80	What is the risk of miscoding transactions in software, and how is it controlled? Bookkeeping › Computerized Bookkeeping	Bookkeeping	Computerized Bookkeeping	Intermediate
81	How do the books of prime entry contribute to the double-entry system? Bookkeeping › Books of Prime Entry	Bookkeeping	Books of Prime Entry	Advanced
82	How is petty cash treated at the period end for the financial statements? Bookkeeping › Cash Book & Petty Cash	Bookkeeping	Cash Book & Petty Cash	Advanced
83	How do you prepare a sales ledger control account from incomplete information? Bookkeeping › Control Accounts	Bookkeeping	Control Accounts	Advanced
84	How does the bank reconciliation interact with the financial statements? Bookkeeping › Bank Reconciliation	Bookkeeping	Bank Reconciliation	Advanced
85	How does the suspense account feature in error correction? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Advanced
86	How do error corrections affect profit, and what is a statement of corrected profit? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Advanced
87	Walk through correcting a one-sided error using the suspense account. Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Advanced
88	How do you migrate from manual (or one system) to computerized bookkeeping? Bookkeeping › Computerized Bookkeeping	Bookkeeping	Computerized Bookkeeping	Advanced
89	How do you record opening entries when starting a new set of books? Bookkeeping › Books of Prime Entry	Bookkeeping	Books of Prime Entry	Advanced
90	How do you prepare a purchases ledger control account to find missing credit purchases? Bookkeeping › Control Accounts	Bookkeeping	Control Accounts	Advanced
91	How do you handle a customer's standing order paid into the wrong period? Bookkeeping › Bank Reconciliation	Bookkeeping	Bank Reconciliation	Advanced
92	How do you clear a suspense account across several discovered errors? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Advanced
93	How do you correct a complete reversal of entries for a cash payment? Bookkeeping › Correcting Errors	Bookkeeping	Correcting Errors	Advanced
94	How do you ensure data integrity when importing data into accounting software? Bookkeeping › Computerized Bookkeeping	Bookkeeping	Computerized Bookkeeping	Advanced