A: A Trial Balance agrees when total debits equal total credits. R: An agreeing Trial Balance guarantees the absolute accuracy of the books of accounts. Choose the correct option. MCQ with Answer and Explanation
A: A Trial Balance agrees when total debits equal total credits. R: An agreeing Trial Balance guarantees the absolute accuracy of the books of accounts. Choose the correct option.
A. Both A and R are true but R is NOT the correct explanation of A
B. Both A and R are true and R is the correct explanation of A
C. A is true but R is false
D. A is false but R is true
Answer: Option C
Solution (By JKSSB Mock Tests)
A Trial Balance agrees when total debits equal total credits. However, it does not guarantee absolute accuracy, as errors like compensating errors, errors of principle, or complete omissions do not affect the tally. A is true, R is false.
Explanation:
Prudence is an accounting convention, not a fundamental assumption under AS-1. The three fundamental assumptions are Going Concern, Consistency, and Accrual.
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