The Trial Balance (Copy)
Topic 3.1: The Trial Balance – Quiz
O Level and IGCSE Accounting
Minimum 30 Questions | With Answer Key and Explanations at the End
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Accounting Full Scale Course
1. What is a trial balance?
A. A financial statement showing profit or loss
B. A record of payments and receipts
C. A list of all ledger balances on a specific date
D. A bank reconciliation statement
2. Why is a trial balance prepared?
A. To find out the net profit
B. To verify arithmetical accuracy of ledger accounts
C. To calculate the value of fixed assets
D. To detect all accounting frauds
3. What does it mean if the trial balance totals do not agree?
A. All transactions are correct
B. Profit has been made
C. An error exists in double entry
D. All balances are zero
4. Which of the following will cause the trial balance not to balance?
A. Omission of a transaction
B. Recording both debit and credit sides with the same wrong amount
C. Entering only one side of the transaction
D. Using wrong account for both sides
5. Which of the following is an error of omission?
A. Transaction entered twice
B. A transaction not recorded at all
C. Wrong amount posted on both sides
D. Reversing the debit and credit
6. What is an error of original entry?
A. Using a wrong account
B. Using wrong amount on both sides of entry
C. Posting to the wrong side of the account
D. Failing to record a transaction
7. What is an error of commission?
A. Recording wrong amount
B. Entering a transaction in the correct class but wrong person
C. Reversing debit and credit
D. Leaving out an entry
8. What is an error of principle?
A. Entering in the wrong class of account
B. Entering in the wrong account of same class
C. Arithmetical mistake in the ledger
D. Entry posted on only one side
9. What is an error of compensating?
A. Two opposite errors cancel each other out
B. Repeating a transaction
C. Omitting a transaction
D. Posting the wrong amount
10. What is an error of complete reversal?
A. The transaction is not entered
B. The amount is too high
C. Debit and credit are swapped
D. Entry is made in cash book only
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Accounting Full Scale Course
11. Which of the following errors will NOT affect the agreement of the trial balance?
A. Only one side of the entry is made
B. Error of principle
C. Debit is entered twice
D. Wrong total of sales journal
12. A trial balance is prepared:
A. Daily
B. Weekly
C. Monthly
D. At regular intervals or end of accounting period
13. If rent expense is wrongly debited to wages, which type of error is this?
A. Error of omission
B. Error of commission
C. Error of principle
D. Error of original entry
14. Which of the following is NOT a use of the trial balance?
A. Preparation of financial statements
B. Checking that total debits equal total credits
C. Detecting all types of errors
D. Ensuring arithmetical accuracy
15. What kind of account balance appears on the debit side of the trial balance?
A. Income
B. Capital
C. Asset
D. Liability
16. What kind of error is made if purchases are recorded in the sales journal?
A. Omission
B. Principle
C. Commission
D. Original entry
17. When the debit side of the trial balance exceeds the credit side, it means:
A. All entries are accurate
B. Assets are higher than liabilities
C. There is likely an error
D. There is a net loss
18. If the sales account is undercast by $500, what will be the effect?
A. Trial balance will still agree
B. Debit side will exceed by $500
C. Credit side will be lower by $500
D. No effect at all
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Accounting Full Scale Course
19. Which error involves recording a transaction using the wrong amount?
A. Error of omission
B. Error of principle
C. Error of original entry
D. Error of reversal
20. What type of error occurs if $200 is received from Ali but entered in Aslam’s account?
A. Error of omission
B. Error of principle
C. Error of commission
D. Error of reversal
21. Which of the following is a limitation of a trial balance?
A. Cannot detect reversal errors
B. Always finds fraud
C. Cannot prepare final accounts
D. Always balances even with errors
22. If both sides of a transaction are omitted, the trial balance will:
A. Still agree
B. Not agree
C. Show double the value
D. Be incomplete
23. If a payment is made and recorded as receipt, it is an example of:
A. Error of omission
B. Error of principle
C. Error of commission
D. Complete reversal
24. Which error affects the accuracy of the trial balance?
A. Error of omission
B. Error of commission
C. Error of original entry
D. Posting only one side of a transaction
25. What does an agreed trial balance confirm?
A. No fraud has occurred
B. No accounting errors exist
C. Arithmetical accuracy of double entry
D. All ledgers are complete
26. If a transaction is recorded in wrong class of account, what is it called?
A. Error of principle
B. Error of commission
C. Error of omission
D. Error of compensating
27. What type of error is made if $100 cash is received but entered as $1,000?
A. Error of omission
B. Error of original entry
C. Error of principle
D. Error of compensating
28. A debit entry was made in Sales instead of credit. This is:
A. Error of commission
B. Error of principle
C. Error of original entry
D. Complete reversal
29. What does a trial balance include?
A. All transactions
B. Only credit entries
C. Closing balances of ledger accounts
D. List of all source documents
30. What happens when two equal and opposite errors are made?
A. Trial balance will not agree
B. Trial balance will still agree
C. Only assets are affected
D. Capital decreases
Answer key and explanations
Topic 3.1 – The Trial Balance
O Level and IGCSE Accounting
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Accounting Full Scale Course
1. Correct Answer: C
Explanation: A trial balance is a list of all ledger account balances on a particular date.
2. Correct Answer: B
Explanation: It helps check arithmetical accuracy in the double entry records.
3. Correct Answer: C
Explanation: Unequal totals in a trial balance indicate an error in double entry.
4. Correct Answer: C
Explanation: Entering only one side breaks the double-entry principle and causes imbalance.
5. Correct Answer: B
Explanation: Error of omission means the transaction was not recorded at all.
6. Correct Answer: B
Explanation: If the original amount entered in both debit and credit was wrong, it’s an error of original entry.
7. Correct Answer: B
Explanation: An error of commission happens when an entry is made in the right class but the wrong account.
8. Correct Answer: A
Explanation: This happens when a transaction is entered in the wrong type of account—e.g., asset instead of expense.
9. Correct Answer: A
Explanation: Two errors that offset each other numerically result in a compensating error.
10. Correct Answer: C
Explanation: Reversal means debit is recorded as credit and vice versa.
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Accounting Full Scale Course
11. Correct Answer: B
Explanation: Error of principle doesn’t affect the trial balance since the amount and sides are correct.
12. Correct Answer: D
Explanation: Trial balances are typically prepared at the end of a financial period or monthly.
13. Correct Answer: C
Explanation: Posting rent in the wages account is an error of principle (wrong class of account).
14. Correct Answer: C
Explanation: A trial balance cannot detect all types of errors, especially those with correct totals.
15. Correct Answer: C
Explanation: Assets, expenses, and drawings appear on the debit side.
16. Correct Answer: B
Explanation: Purchases in sales journal → wrong class → error of principle.
17. Correct Answer: C
Explanation: Trial balance should balance; if not, it suggests an error has occurred.
18. Correct Answer: C
Explanation: The sales account is understated; the credit side will be short.
19. Correct Answer: C
Explanation: This is the definition of an error of original entry—same wrong amount used on both sides.
20. Correct Answer: C
Explanation: Entering amount in wrong personal account = error of commission.
21. Correct Answer: A
Explanation: A trial balance cannot detect reversal or some types of compensating errors.
22. Correct Answer: A
Explanation: Trial balance still agrees if both sides are omitted—debits and credits are still balanced.
23. Correct Answer: D
Explanation: This is a complete reversal of the correct entry.
24. Correct Answer: D
Explanation: If only one side is entered, the trial balance becomes unequal.
25. Correct Answer: C
Explanation: It confirms that total debits equal total credits, proving arithmetical accuracy.
26. Correct Answer: A
Explanation: Error of principle is made when the transaction is recorded in an incorrect class of account.
27. Correct Answer: B
Explanation: Wrong amount on both sides = error of original entry.
28. Correct Answer: D
Explanation: Reversing the entry by putting debit in place of credit = complete reversal.
29. Correct Answer: C
Explanation: A trial balance includes only the closing balances of ledger accounts.
30. Correct Answer: B
Explanation: Compensating errors cancel each other, so trial balance still agrees.
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Accounting Full Scale Course