A: The Trial Balance is a statement, not an account. R: It is prepared to check the arithmetical accuracy of the ledger. Choose the correct option. MCQ with Answer and Explanation

A: The Trial Balance is a statement, not an account. R: It is prepared to check the arithmetical accuracy of the ledger. Choose the correct option.
A. A is false but R is true
B. Both A and R are true and R is the correct explanation of A
C. Both A and R are true but R is NOT the correct explanation of A
D. A is true but R is false
Answer: Option C
Solution (By JKSSB Mock Tests)
The Trial Balance is indeed a statement of ledger balances, and its primary purpose is to check arithmetical accuracy. However, the fact that it is a statement does not explain why it checks accuracy; the double-entry system does.

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Practice More Accountancy and Book Keeping Questions

Question #1
The 'One Person Company' (OPC) can be converted into a private or public company after:
A. Never
B. Any time
C. Completing two years from incorporation (or earlier if threshold exceeds)
D. Only after 5 years

Correct Answer: Option C


Explanation:
OPC must convert if its paid-up capital exceeds ₹50 lakh or turnover exceeds ₹2 crore, or voluntarily after 2 years.

Question #2
Under Activity Based Costing (ABC), costs are allocated based on:
A. Cost Drivers
B. Volume of Production only
C. Machine Hours
D. Direct Labor Hours

Correct Answer: Option A


Explanation:
ABC traces overheads to specific activities and allocates them to products based on the consumption of 'cost drivers'.

Question #3
The 'Statement of Affairs' under single entry is similar to:
A. Cash Flow Statement
B. Balance Sheet
C. Trading Account
D. Profit and Loss Account

Correct Answer: Option B


Explanation:
Statement of affairs shows assets and liabilities, akin to a balance sheet.