PRC-1 · Chapter 3 · Question 16 of 100
Which of the following pairs of account balances will normally appear on opposite sides of a Trial Balance?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Trade Receivables and Return Outwards
Explanation
Trade Receivables are assets with a debit balance. Return Outwards (Purchase Returns) decrease expenses and carry a credit balance. Thus, they appear on opposite sides of the trial balance.
More Ledgers and Trial Balance MCQs
- Q18The total of the Purchases Returns Day Book is posted periodically to which specific ledger account?
- Q19The 'Receivables Ledger' maintained by 'Oasis Furniture' is fundamentally synonymous with which of the following terms?
- Q20If 'Zephyr Tech' utilizes a contra settlement to offset Rs. 10,000 owed to a supplier who is also a customer, what is the correct double…
- Q21In the General Journal of 'Radiant Motors', there is a column headed 'LF' (Ledger Folio). What is its primary administrative purpose?
- Q22Which of the following scenarios describes a 'Compensating Error' that will remain undetected by a Trial Balance?