Trial Balance Quiz 2

How well do you know the Trial Balance? Try to answer these 5 questions:

1. The Trial Balance includes both temporary and permanent accounts. True or False?
2. The Trial Balance can help us detect errors like transposition and slide errors. True or False?
3. Net Profit for the period is included in the Trial Balance as a line item. True or False?
4. A zero balance in a Trial Balance means that no transactions were recorded for that account during the period. True or False?
5. A Trial Balance is typically prepared before the Adjusting Entries are made. True or False?

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[AccountingStuff]

Who managed to score 5 out of 5?

⬇️ ANSWERS ⬇️

1. TRUE - The Trial Balance lists all of a business’s accounts. This includes both temporary (Revenue, Expenses & Dividends) and permanent accounts (Assets, Liabilities & Equity).
2. TRUE - The Trial Balance can help identify errors such as transpositions (recording $96 as $69) and slide errors (recording $1, 200 as $120).
3. FALSE - Net Profit isn’t included as a line item in the Trial Balance. The TB does include a business’s Revenue and Expense accounts which can be used to calculate Net Profit.
4. FALSE - A zero balance simply means that the Total Debits equal Total Credits for that account. It doesn’t necessarily indicate that no transactions occurred during the period.
5. TRUE - An Unadjusted Trial Balance is usually prepared before posting Adjusting Entries. Once posted, a business runs an Adjusted Trial Balance which reflects those adjustments.

For more practice questions like this head to: accountingstuff.com

[oneofamillion]

I love your channel. If I haven't studied a topic for a while, it keeps it fresh i my mind. Invaluable. Thank you so much for your helpful content.

[SoniaBDorsey]

4/5 😊 Question #4 was a bit tricky for me! However, I understand why this is false. 😊 Thank you for these quizzes!!!

[flinkymatawaran]

4/5 for me. The transposition error got me!

[thistlefield]

4/5. the one about zero on the trial balance got me.

[beanrunnerWA]

5/5! Thanks to learn accounting in 5 hrs

[Christiskingevermore]

Good day. Please, how do we go about posting accounts like bad debt, prepaid rent, unpaid salaries, depreciation and drawings in adjustments, adjusted trial balance and extended trial balance?

[nothanniballecktor]

Accidentally got all correct. I don't know anything about this stuff, or even what a "trial balance" is. I just guessed what sounded right.

[joshsonofzeus]

Confused on number 5. Isn't the unadjusted trial balance prepared before adjusting entries, while an adjusted trial balance is prepared after adjusting entries? Or is it because the assumption is that the trial balance = unadjusted because there's no word "adjusted" before

[drock]

How can you use a trial balance to detect transposition or slide errors??

[darrylwilliams]

4 out of 5.

I thought that net profit was a line item in the trial balance. I guess I have some work to do.

[life-tzrg]

How come expenses, revenue are on trial balance. Trial balance is just a combination of debts and credits

[groliamhame]

I'm still confused by 4th question
Can someone elaborate more for me

[zumiljoshi]

I lost in the 5th question. My score is 4/5.

[noorykorky]

Oh, no... 3/5 😅
On number 1, I was correct at first but then decided to go with the wrong answer.

[prabjotsingh]

Brother, you are also supposed to give the explanation. Anyone can just make a video asking the questions

[angellombness]

I must be an accountant. [comment engagement 💜]