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 no frauds occurred

B. Conclusive proof of accuracy

C. Prima facie evidence of arithmetical accuracy

D. Proof that all accounting standards are followed

Answer: Option C

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

The journal entry for transferring 'Net Profit' to capital account is:

A. Drawings A/c Dr. To Capital A/c

B. Profit & Loss Appropriation A/c Dr. To Capital A/c

C. Profit & Loss A/c Dr. To Capital A/c

D. Capital A/c Dr. To Profit & Loss A/c

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Correct Answer: Option C

Explanation:
Net profit is closed by debiting Profit & Loss A/c and crediting Capital A/c (or Retained Earnings for companies).

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

Question #2

The 'International Accounting Standards Board' (IASB) issues:

A. IFRS

B. AS

C. US GAAP

D. Ind AS

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Correct Answer: Option A

Explanation:
IASB is responsible for developing and issuing IFRS.

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

Question #3

The 'Tax Information Network' (TIN) in India is managed by:

A. CBDT

B. GSTN

C. RBI

D. NSDL

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Correct Answer: Option D

Explanation:
TIN was established by NSDL for collection, processing, and monitoring of TDS.

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

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