______ is defined as a statement or a list of all ledger account balances taken from various ledger books on a particular date to check the arithmetical accuracy.
Trial balance
The correct answer is option 1. A trial balance is a statement or list of all ledger account balances taken from the various ledger books on a particular date. It is used to check the arithmetical accuracy of the accounting entries. The other options do not serve this purpose: a pass book is a record of a bank account, compound posting refers to combining multiple postings, and the general journal is where all accounting entries are initially recorded.
Important Questions from Basics of Accounting
Match the following accounting concepts with the meaning/implications.
Accounting
Concept
Meaning
Implication
(i)
Money
measurement
concept(a)
Capital of the proprietor is considered as a liability
(ii)
Business
entity concept(b)
Fixed assets are
valued on a cost basis(iii)
Going concern concept
(c)
Changes in purchasing power are ignored
Which of the following statements is INCORRECT?
Which of the following statements is correct?
Which of the following statements is correct?
Accounting is rightly referred to as the '________' of business.
