Accounting MCQs with Explanations

Explanation

D. A Trial Balance is a summary of all General Ledger Balances outstanding as on a particular date. All the debit balances from the ledger are shown on one side and all the credit balances are shown on the other side. A Trial Balance is prepared before Final Accounts are prepared. From the point of view of law, a Trial Balance has no statutory importance.

Explanation

Cash payments journal is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

Explanation

Source document is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

Explanation

Cash is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

Explanation

all indirect costs. is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

Explanation

Credit is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

Explanation

Last in, First Out is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

Explanation

Double entry system is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

Explanation

Error of omission occurs when a transaction is entirely omitted from record in the original books partially omitted while posting. Therefore, omission of posting of the sales journal to the Sales Account is an error of omission.

Explanation

Straight-line method is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.