Question 1

What is the purpose of trial balance

Accepted Answer

To identify errors in the accounting records

Answer

To record daily transactions

Answer

To prepare financial statements

Answer

To close the accounting books

Question 2

Which side of the ledger is used to record an increase in owner's equity?

Accepted Answer

Credit

Answer

None of the above

Answer

Debit

Answer

Both credit and debit

Question 3

Which of the following errors would discover in the trial balance

Accepted Answer

An error transferring a debit balance to the credit column.

Answer

A transaction that's not been journalized

Answer

incorrect accounts used when journalizing a transaction

Answer

A journal entry that's not been posted

Question 4

what is the purpose of adjusting entries in the context of a trial balance

Accepted Answer

to update account balances to reflect accrual accounting principles

Answer

to correct errors in the trial balance

Answer

adjusting entries are not related to the trial balance

Answer

to increase the trial balance total

Question 5

how would posting a journal entry to the wrong accounts impact the trial balance

Accepted Answer

total credits and total debits would be properly stated, but individual account balances would be incorrect

Answer

total credits and total debits would be properly istated and individual account balances would be correct

Answer

it woudn't impact the trial balance

Answer

total credits would be understated and total debits would be understated

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