Uses of Trial Balance - SS1 Accounting Past Questions and Answers - page 1

1

What is the primary purpose of the trial balance?

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A

To detect errors in the accounting records

B

To prepare financial statements

C

To evaluate financial performance

D

To track changes over time

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2

When is the trial balance typically prepared?

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A

At the beginning of an accounting period

B

Midway through an accounting period

C

At the end of an accounting period

D

As needed during an accounting period

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3

What does an unbalanced trial balance indicate?

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A

That there are no errors in the accounting records 

 

B

That the accounting period has not yet ended

C

That there is an error in the accounting records 

D

That the company's financial performance is strong

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4

What is the purpose of categorizing accounts into financial statement categories?

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A

To identify errors in the accounting records

B

To prepare financial statements

 

C

To evaluate financial performance

D

To track changes over time

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5

How can the trial balance be used to track changes over time?

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A

By comparing trial balances from different accounting periods

B

By identifying errors in the accounting records

C

By preparing financial statements

D

By evaluating financial performance

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6

How does the trial balance help ensure the accuracy of financial statements?

 

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7

What are some common errors that the trial balance can help detect?

 

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