Financial Statements – I · Class 11 · CBSE · Commerce Accountancy
Which of the following errors will be disclosed by the preparation of a Trial Balance, but NOT by the preparation of Trading and Profit and Loss Acco…
Practice question from Financial Statements – I (Class 11 · CBSE · Commerce Accountancy), with the correct answer and a step-by-step solution.
hard · MCQ · Q-3E31EC
Which of the following errors will be disclosed by the preparation of a Trial Balance, but NOT by the preparation of Trading and Profit and Loss Account?
- A.Error of complete omission
- B.Error of partial omission (posting to only one account)Correct answer
- C.Error of principle
- D.Error of recording wrong amount in both accounts
Solution
Errors of partial omission cause a disagreement in the Trial Balance debit and credit totals. Financial statements are prepared after the Trial Balance is tallied, so such an error would have already been rectified or prevented from reaching the financial statements.
More from Financial Statements – I
- Which of the following is the primary objective of preparing financial statements according to the accounting principles?
- Gross Profit is best defined as:
- While preparing the Trading and Profit and Loss Account, Closing Stock is valued at:
- Which of the following items is treated as an operating expense in the Profit and Loss Account?
Practise more Accountancy
Sign up free for adaptive practice on this chapter, with instant feedback and hints on every question.
Start practising freeFree to start · No credit card needed