The assets which come into existence upon the happening of a certain event are called__________?
(A) Contingent assets
(B) Fixed assets
(C) Fictitious assets
(D) Quick assets
The assets which have some market value are called ____________?
(A) Fixed asset
(B) Quick asset
(C) Fictitious assets
(D) Real assets
Assets having physical existence are called ___________?
(A) Current asset
(B) intangible asset
(C) Tangible asset
(D) Liquid asset
When owner withdraw cash for its private use, it is called ___________?
(A) Profit
(B) Income
(C) Expense
(D) Drawing
If debit balances = credit balances, trial balance only shows or check the ____________ and it does not indicate that no errors were made during recording and posting.
(A) Arithmetic accuracy
(B) Errors of commission
(C) Omissions of economic events
(D) Understatements of balances
Which of the following will affect the agreement of a trial balance?
(A) Complete omission of a transaction
(B) Partial omission of a transaction
(C) Error of principle
(D) Compensating errors
Trial balance is commonly prepared?
(A) Frequently during the year
(B) At the end of an accounting period
(C) At the end of a month
(D) At the end of a year
Debit balance = Credit balance in a trial balance indicates that:
(A) No error in recording transactions
(B) No error in posting entries to ledger accounts
(C) Account balances are correct
(D) Mathematically Capital+Liabilities=Assets
Which of the following is true about a trial balance?
(A) It lists down the balances of accounts
(B) It lists down the balances of a balance sheet
(C) It is a kind of financial statement
(D) It is not a part of accounting cycle