If a transaction is completely omitted from the books of accounts, will it effect the agreement of Trial Balance?
A. Yes
B. No
C. Transactions can not be omitted
D. None of the above
Answer: Option B
Solution(By Examveda Team)
If a transaction is completely omitted from the books of accounts, No it wont effect the agreement of Trial Balance.This Question Belongs to Commerce >> Accounting
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Kindly elaborate some explanation of this question..
Answer should b no bcz a transaction completely omitted cannot affect the balance
It will not effect the agreement of trial balance
Internal users (Primary Users) of accounting information include the following:
Management: for analyzing the organization's performance and position and taking appropriate measures to improve the company results.
Employees: for assessing company's profitability and its consequence on their future remuneration and job security.
Owners: for analyzing the viability and profitability of their investment and determining any future course of action.
So, share holders of the company is owners...how can create this nonsense questions for exams..
If transactions omitted complete it will not effect trial balance....
Ex. Rent paid not recorded in journal, then there is no ledger posting