When a trial balance tallies, it provides: MCQ with Answer and Explanation

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When a trial balance tallies, it provides:

A. Proof that all accounting standards are followed

B. Prima facie evidence of arithmetical accuracy

C. Conclusive proof of accuracy

D. Proof that no frauds occurred

Answer: Option B

Solution (By JKSSB Mock Tests)

A tallied Trial Balance only guarantees arithmetical accuracy; errors of principle or complete omission might still exist.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1

Which of the following is a 'Non-Cash Expense'?

A. Salaries paid

B. Commission paid

C. Rent paid

D. Depreciation

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Correct Answer: Option D

Explanation:
Depreciation is a non-cash expense as there is no outflow of cash.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

The 'Impersonal Accounts' are further classified into:

A. Real and Nominal

B. Representative and Personal

C. Natural and Artificial

D. Current and Non-current

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Correct Answer: Option A

Explanation:
Impersonal accounts include real (assets) and nominal (expenses/losses, incomes/gains).

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3

The balance of the Cash Book represents:

A. Cash at bank only

B. Cash in hand only

C. Cash in hand and cash at bank

D. Cash in hand, cash at bank, and petty cash

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Correct Answer: Option C

Explanation:
A standard triple-column cash book records both cash in hand and cash at bank transactions, so its balance represents both.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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