1- The basic purpose of preparing a trial balance is: A) to find out profit of the business B) to show Financial position of the business C) to test arithmetical accuracy of the ledger D) to calculate net purchases of the business 2. Which of the following is correct about an agreed trial balance. A) both debit and credit aspects of each transaction have been recorded B) the books are arithmetically correct C) the debit and credit columns of trial balance have been correctly totaled D) All the above 3 - Which one of the following represents correct sequence of accounting cycle? A) Journal > Trial balance > Ledger > Transaction analysis. B) Transaction analysis > Journal > Ledger > Trial balance C) Purchases > Journal > Ledger > Trial balance E) Auditing. D) Non of the above. 4- A trial balance prepared after taking into account the effect of adjusting entries is known as: A) Financial trial balance B) Adjusted trial balance C) Unadjusted trial balance D) Normal trial balance eslati 5 Two methods of preparing a trial balance are: A) Financial method and total method B) Total method and normal method C) Balance method and financial method D) Balance method and total method 6 Under balance method, which one of the following is used for preparing trial balance at the end of an accounting period? A) Beginning balances of ledger accounts B) Ending balances of ledger accounts C) Total of beginning and ending balances of ledger accounts D) Difference of beginning and ending balances of ledger accounts 7 Under total method, which of the following is used for preparing a trial balance: A) Totals of amount columns of ledger accounts B) Differences of amount columns of ledger accounts C) Opening balances of ledger accounts D) Closing balances of ledger accounts 8- Which of the following errors in the journal entry will not be detected by trial balance A) Debit part is overstated but credit part is correctly recorded B) Debit part is correctly recorded, but credit part is overstated C) Both debit and credit parts are overstated by the same amount D) Debit part is correctly recorded, but credit part is understated 9. Which of the following will be placed in the credit column of the trial balance? A) Purchases B) Rent expense C) Furniture D) Sales 10 - Which of the following will be placed in the debit column of the trial balance? A) Capital B) Accounts payable C) salaries payable D) None of the above 11 - In addition to arithmetical accuracy of ledger, a trial balance provides: A) A summary of total capital invested in the business during the period B) A summary of sales made during the period C) A summary of total cash collected from customers during the period D) A summary of all transactions made since the end of the previous accounting period 12 - Which one of the following is the most popular method of preparing a trial balance: A) Balance Method B) Total Method C) Trial and error Method D) Line Method