Accountancy Quiz - Trial Balance and Rectification of Errors
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Preview questions
1. What is the primary purpose of preparing a trial balance?
To calculate net profit · To ensure that debits equal credits · To prepare financial statements · To record transactions
2. Which of the following errors will not affect the trial balance?
Error of omission · Error of commission · Compensating error · Error of principle
3. What is an error of principle?
Recording a transaction in the wrong account · Failing to record a transaction · Recording the wrong amount · Recording in the correct account but wrong classification
4. Which of the following is a method to locate errors in the trial balance?
Rechecking the ledger accounts · Comparing with previous year’s trial balance · Using a computer software · All of the above
5. If the trial balance does not balance, what is the first step to rectify it?
Prepare a new trial balance · Check the addition of the trial balance · Review the ledger accounts · Consult a financial advisor
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