Correct Answer:
D. Check the arithmetical accuracy of the ledger by comparing total debit and credit balances
A trial balance proves only the equality of debit and credit totals.
November 13, 2026 · Accounting and Finance MCQs, Financial Accounting MCQs
A trial balance is prepared mainly to:
Related MCQs
Which of the following is an example of a public sector fraud risk indicator?
A.
Payments approved with full documentation
B.
Competitive bidding with several bidders
C.
Payments split into smaller amounts to avoid approval limits
D.
Regular stock verification
Correct answer is:
C. Payments split into smaller amounts to avoid approval limits
Do you agree with this answer?
Expenditure charged upon the Federal Consolidated Fund (Article 81) is:
A.
Voted separately by the Senate
B.
Free of any audit
C.
Paid only from provincial funds
D.
Not submitted to a vote in the National Assembly, though it may be discussed
Correct answer is:
D. Not submitted to a vote in the National Assembly, though it may be discussed
Do you agree with this answer?
Bank charges shown on the bank statement but not yet recorded in the cash book should be:
A.
Deducted from the cash book balance
B.
Added to the cash book balance
C.
Deducted from the bank statement balance
D.
Ignored until next year
Correct answer is:
A. Deducted from the cash book balance
Do you agree with this answer?
Abnormal loss is:
A.
Loss that is part of normal operations
B.
Loss in excess of the normal loss, charged to the costing profit and loss account
C.
Added to the cost of good units
D.
Always recoverable from the supplier
Correct answer is:
B. Loss in excess of the normal loss, charged to the costing profit and loss account
Do you agree with this answer?
Operating income is Rs. 150,000 and average invested assets are Rs. 1,000,000. Return on investment (ROI) is:
A.
6.67%
B.
150%
C.
1.5%
D.
15%
Correct answer is:
D. 15%
Do you agree with this answer?
Subsequent events are events occurring:
A.
Before the beginning of the financial year
B.
Only after the AGM
C.
During the interim audit only
D.
Between the date of the financial statements and the date of the auditor's report
Correct answer is:
D. Between the date of the financial statements and the date of the auditor's report
Do you agree with this answer?
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