Which of the following is true regarding a Trial Balance? MCQ with Answer and Explanation

Question
Which of the following is true regarding a Trial Balance?
A. It proves the arithmetical accuracy of books.
B. It detects errors of principle.
C. It is a part of the double entry system.
D. It is prepared at the end of every month.
Answer: Option A
Solution (By JKSSB Mock Tests)
Trial balance only checks arithmetical accuracy; it does not detect all errors, especially errors of principle.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Question #1
Under the Income Tax Act, the 'TDS' on payment of interest on securities (other than 8% taxable government securities) is governed by which section?
A. Section 194C
B. Section 194A
C. Section 194J
D. Section 194
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Correct Answer: Option D

Explanation:
Section 194 of the Income Tax Act mandates TDS on income by way of interest on securities (like debentures, corporate bonds) at the prescribed rates.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
A company's 'Return on Capital Employed' (ROCE) improved from 12% to 15%. This indicates:
A. Decrease in efficiency
B. Increase in debt
C. Better utilisation of capital
D. Decrease in profit
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Correct Answer: Option C

Explanation:
ROCE measures profitability relative to capital employed; increase signals improved efficiency.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
A tax is said to be progressive when:
A. The rate of tax remains constant
B. The rate of tax decreases as income increases
C. The rate of tax increases as income increases
D. It is levied on essential commodities
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Correct Answer: Option C

Explanation:
Progressive taxation means higher income earners pay a higher percentage of their income as tax, promoting wealth redistribution.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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