Trial Balance, Rectification of Errors and Adjusting & Closing Entries – Quiz 1

Trial Balance, Rectification of Errors and Adjusting & Closing Entries is the Fifth Unit (Unit 5) under Module A: Accounting Principles and Processes of Paper – III (Accounting & Financial Management for Bankers)

If you are appearing for the Upcoming JAIIB Exams, it is important to understand the fundamental concepts of the Topics and clear your doubts. We have prepare and collected some fundamental questions and answers in the form of MCQ Questions and Answers arranged into multiple Quizzes having 10 Questions in each Quiz. It can help you to understand the topics. A solid fundamental understanding will build your confidence and encourage you to think critically and enables you to answer the JAIIB Questions correctly in the Exam and increase your chances to pass the exam with flying colors. It is advisable to practice these Questions and Answers on regular basis to raise your confidence Level.

Practice MCQ Question and Answer – Trial Balance, Rectification of Errors and Adjusting & Closing Entries

Quiz 1

1. How many types of Trial Balance is there ?





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Answer is (b)
Two – Gross Trial Balance and Net Trial Balance

2. What is the purpose of a ledger in accounting ?

  1. To summarize financial statements
  2. To calculate profit and loss
  3. To record transactions in chronological order
  4. To provide a summary of all journals of a similar nature




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Answer is (c)
To provide a summary of all journals of a similar nature

3. Where are all transactions recorded in the double entry system of bookkeeping ?





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Answer is (d)
Journal

4. Which of the following statements describe the purpose of a trial balance ?

  1. It confirms the mathematical accuracy of transactions recorded in the books of accounts.
  2. It helps determine the profitability of the business directly.
  3. It includes only profit and loss account balances.
  4. It provides information on amounts receivable from customers and payable to suppliers.




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Answer is (d)
It confirms the mathematical accuracy of transactions recorded in the books of accounts. It provides information on amounts receivable from customers and payable to suppliers.

5. What does the trial balance include besides other ledger balances ?





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Answer is (b)
Cash and Bank balance

6. Which statement accurately describes the flexibility of trial balance preparation ?





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Answer is (a)
It can be prepared monthly, quarterly, or half-yearly

7. What does the preparation of a trial balance facilitate ?

  1. Calculation of sales tax
  2. Management of employee benefits
  3. Preparation of final accounts
  4. Recording of daily transactions




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Answer is (d)
Preparation of final accounts

8. What is the primary characteristic of the double entry system in accounting ?

  1. Recording multiple entries for a single transaction
  2. Recording two entries for a single transaction that are equal and opposite
  3. Recording one entry for double transactions
  4. Recording transactions in a single ledger




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Answer is (a)
Recording two entries for a single transaction that are equal and opposite

9. What does a trial balance primarily consist of ?





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Answer is (c)
Debit and credit balances drawn from the ledger

10. Besides establishing arithmetical accuracy, what additional information does the trial balance provide to a trader ?





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Answer is (b)
Amounts receivable from customers and payable to suppliers
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Quiz Numbers

1

Read More: MCQ Type Questions and Answers from Paper – III (Accounting & Financial Management for Bankers)

Module A: Accounting Principles and Processes

Module B – Financial Statements and Core Banking Systems

  • Balance Sheet Equation
  • Preparation of Final Accounts
  • Company Accounts – I
  • Company Accounts – II
  • Cash Flow & Funds Flow
  • Final Accounts of Banking Companies
  • Core Banking Systems & Accounting in Computerised Environment

Module C – Financial Management

  • Financial Management – An Overview
  • Ratio Analysis
  • Financial Mathematics – Calculation of Interest & Annuities
  • Financial Mathematics – Calculation of YTM
  • Financial Mathematics – Forex Arithmetic
  • Capital Structure and Cost of Capital
  • Capital Investment Decisions/Term Loans
  • Equipment Leasing/Lease Financing
  • Working Capital Management
  • Derivatives

Module D – Taxation and Fundamentals of Costing

  • Taxation: Income Tax/TDS/Deferred Tax
  • Goods & Services Tax
  • An Overview of Cost & Management Accounting
  • Costing Methods
  • Standard Costing
  • Marginal Costing
  • Budgets and Budgetary Control