What is a Trial Balance?

A Trial Balance is a list of all the accounts in a company's General Ledger, with balances as of a specific date. It is used to verify that the total of the debit amounts equals the total of the credit amounts.

What are the benefits of using a Trial Balance?

The main benefit of using a Trial Balance is that it helps ensure the accuracy of a company's books. It can also help identify any errors that may have been made in recording transactions.

What causes an error in a Trial Balance?

There are many potential causes of errors in a Trial Balance, including incorrect account balances, incorrect totals, and incorrect journal entries.

How many columns are there in a Trial Balance?

A Trial Balance is a worksheet with two columns, one for debits and one for credits, that ensures a company's Bookkeeping is mathematically correct.

Trial Balance McQs Quiz With Answers

Take this quick test on trial balance to help you prepare for your exams and interviews.

If you find it difficult to answer any of these multiple choice questions (MCQs), read more about trial balance first and complete the MCQ test afterward.

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1. The basic purpose of preparing a trial balance is:

To find out the profit of the business
To show the financial position of the business
To test the arithmetical accuracy of the ledger
To calculate the net purchases of the business

2. Which of the following is correct about an agreed trial balance:

Both debit and credit aspects of each transaction have been recorded
The books are arithmetically correct
The debit and credit columns of trial balance have been correctly summed
All of the above

3. Which of the following is the correct sequence of the accounting cycle:

Journal > Trial balance > Ledger > Transaction Analysis
Transaction Analysis > Journal > Ledger > Trial Balance
Purchases > Journal > Ledger > Trial Balance
None of the above

4. A trial balance prepared after taking into account the effect of adjusting entries is known as:

Financial trial balance
Adjusted trial balance
Unadjusted trial balance
Normal trial balance

5. The two methods of preparing a trial balance are:

Financial method and total method
Total method and normal method
Balance method and financial method
Balance method and total method

6. In addition to the arithmetical accuracy of ledger, a trial balance provides:

A summary of total capital invested in the business during the period
A summary of sales made during the period
A summary of total cash collected from customers during the period
A summary of all transactions made since the end of the previous accounting period