8 1 point Trial balance is prepared out of Ledger account balances Balance sheet OOOO Source documents Income statement Previous Next Smith & Co. has prepared the following Trial Balance: Trial Balance as on 31 December 2019 ( Amount in $ million) Dr Cr Sales 40000 Revenue Common Stock 20000 Equity Retained 30000 Equity earnings Equipment 50000 Asset Accounts 12000 Asset Receivables Accounts 1000 Liability Payable Purchases Goods 20000 Expense Salaries 3000 Expense Other Expenses 2000 Expense Cash 4000 Asset 131000 51000 The accounts clerk has committed a mistake for which the Trial Balance did not match. Identify the mistake. Sales should be credit Common stock should be debit Retained earnings should be debit O There may some missing items. 3 1 point Trial Balance is prepared taking all ledger account balance. It is prepared to verify whether ledger account having debit balances are equal to ledger account balances having credit balances whether total of assets are equal to liabilities OOOO Whether cash receipts are equal to cash payments whether incomes are equal to expenses Previous Next 2 1 point Assets of a company at the beginning of thee year $ 100,000 and Liability $ 50,000. If equity of the company decreases by $10000 at the year end and there is no change in liability, what is value of the assets at the year end? $ 50.0000 $ 80,000 0 $ 100,000 $ 90,000 Previous Next