Here are 25 multiple-choice questions (MCQs) on Tally, an accounting software, complete with answers and explanations. These questions cover various aspects of Tally’s features and functionalities.
1. What does Tally primarily focus on?
a) Graphic Design
b) Accounting
c) Data Analysis
d) Project Management
Answer:
b) Accounting
Explanation:
Tally is primarily an accounting software used for financial statements, vouchers, and taxation in many industries.
2. In Tally, what is a 'Ledger'?
a) A type of currency
b) A tool for data entry
c) An account for recording transactions
d) A report generator
Answer:
c) An account for recording transactions
Explanation:
In Tally, a Ledger is an account that is used to record all similar types of transactions.
3. Which feature in Tally is used for managing inventory?
a) Payroll
b) Inventory Management
c) Ledger
d) Balance Sheet
Answer:
b) Inventory Management
Explanation:
The Inventory Management feature in Tally is used to manage stock, set reorder levels, and keep track of stock levels.
4. What is 'GST' in the context of Tally?
a) General Service Technology
b) Goods and Services Tax
c) Global Sales Total
d) General Savings Total
Answer:
b) Goods and Services Tax
Explanation:
In Tally, GST refers to Goods and Services Tax, which is a value-added tax levied on most goods and services sold for domestic consumption.
5. How can you create a new company in Tally?
a) File > New Company
b) Gateway of Tally > Create Company
c) Accounts Info > Create Company
d) Company Info > Create Company
Answer:
d) Company Info > Create Company
Explanation:
To create a new company in Tally, go to the 'Company Info' menu and select 'Create Company'.
6. What is the use of the 'F11: Features' option in Tally?
a) To change company information
b) To access Tally's advanced features
c) To check software updates
d) To create a new ledger
Answer:
b) To access Tally's advanced features
Explanation:
The 'F11: Features' option in Tally is used to access and enable/disable various advanced features specific to your business requirements.
7. In Tally, what does the 'F2: Date' button do?
a) Changes the company's financial year
b) Modifies the voucher date
c) Adjusts the system date
d) Displays the current date report
Answer:
b) Modifies the voucher date
Explanation:
The 'F2: Date' button in Tally is used to change the date of a voucher entry.
8. What is a 'Voucher' in Tally?
a) A type of report
b) An inventory item
c) A document recording a transaction
d) A user permission setting
Answer:
c) A document recording a transaction
Explanation:
In Tally, a voucher is a document that records a financial transaction in accounting terms.
9. How can you back up data in Tally?
a) File > Backup
b) Gateway of Tally > Backup
c) Company Info > Backup
d) Data Configuration > Backup
Answer:
c) Company Info > Backup
Explanation:
To back up data in Tally, navigate to 'Company Info' and select the 'Backup' option.
10. What is the shortcut key to view the balance sheet in Tally?
a) F1
b) F2
c) F3
d) F4
Answer:
d) F4
Explanation:
The shortcut key to view the balance sheet in Tally is 'F4'.
11. What is the function of the 'F3: Company' feature in Tally?
a) To change the company's name
b) To select or switch between companies
c) To create a new company
d) To delete a company
Answer:
b) To select or switch between companies
Explanation:
The 'F3: Company' feature in Tally is used to select or switch between multiple companies that a user might have created in Tally.
12. In Tally, what is 'Direct Income'?
a) Income earned through non-business activities
b) Income that affects the profit and loss directly
c) Income from investments
d) Income generated from sales
Answer:
b) Income that affects the profit and loss directly
Explanation:
In Tally, Direct Income refers to the income categories that have a direct impact on the profit and loss of a business.
13. How do you activate GST in Tally?
a) Gateway of Tally > F11: Features > F3: Statutory
b) Gateway of Tally > Accounts Info > GST
c) Company Info > Create Company > Enable GST
d) Gateway of Tally > Inventory Info > GST
Answer:
a) Gateway of Tally > F11: Features > F3: Statutory
Explanation:
To activate GST in Tally, you go to Gateway of Tally, then press F11: Features, and under Statutory & Taxation, enable GST.
14. What is a 'Group' in Tally?
a) A collection of ledgers
b) A type of voucher
c) A report format
d) A company file
Answer:
a) A collection of ledgers
Explanation:
In Tally, a Group is a collection of ledgers of the same nature. For instance, creating a group of all debtors or creditors.
15. Which of these is a type of voucher in Tally?
a) Sales Order
b) Purchase Order
c) Receipt
d) Invoice
Answer:
c) Receipt
Explanation:
Receipt is a type of voucher in Tally that is used to record money received.
16. What does the term 'Reconciling' refer to in Tally?
a) Adjusting entries for closing stock
b) Ensuring the ledger balances match the bank statements
c) Correcting errors in entries
d) Balancing debits and credits
Answer:
b) Ensuring the ledger balances match the bank statements
Explanation:
In Tally, reconciling typically refers to the process of ensuring that the company's ledger balances match the corresponding bank statements.
17. What is the shortcut key for duplicating a voucher in Tally?
a) Alt + 2
b) Ctrl + 2
c) Alt + D
d) Ctrl + D
Answer:
a) Alt + 2
Explanation:
The shortcut key for duplicating a voucher in Tally is Alt + 2.
18. How do you generate a Profit & Loss statement in Tally?
a) Gateway of Tally > Display > Profit & Loss
b) Gateway of Tally > Accounts Info > Profit & Loss
c) Company Info > Profit & Loss
d) Gateway of Tally > Balance Sheet > Profit & Loss
Answer:
a) Gateway of Tally > Display > Profit & Loss
Explanation:
To generate a Profit & Loss statement, go to Gateway of Tally, then to Display, and select Profit & Loss.
19. What is 'Cost Centre' in Tally?
a) A segment for tracking expenses and revenues
b) A department within a company
c) A tool for cost analysis
d) A budgeting feature
Answer:
a) A segment for tracking expenses and revenues
Explanation:
In Tally, a Cost Centre is a segment or an area of the business for which separate cost data is desired for the purposes of tracking expenses and revenues.
20. How can you view the trial balance in Tally?
a) Gateway of Tally > Trial Balance
b) Gateway of Tally > Display > Trial Balance
c) Company Info > Trial Balance
d) Accounts Info > Trial Balance
Answer:
b) Gateway of Tally > Display > Trial Balance
Explanation:
To view the trial balance in Tally, navigate to Gateway of Tally, then to Display, and select Trial Balance.
21. In Tally, how is a 'Contra Voucher' primarily used?
a) For recording sales transactions
b) For fund transfers between cash and bank accounts
c) For inventory management
d) For recording purchase transactions
Answer:
b) For fund transfers between cash and bank accounts
Explanation:
In Tally, a Contra Voucher is primarily used for recording transactions involving fund transfers between cash and bank accounts, or between two different bank accounts.
22. What does the term 'Multi-currency' in Tally refer to?
a) Handling multiple companies in a single account
b) Managing accounts in different financial years
c) Transacting and maintaining accounts in multiple currencies
d) Having multiple users in the same Tally account
Answer:
c) Transacting and maintaining accounts in multiple currencies
Explanation:
The Multi-currency feature in Tally allows businesses to transact and keep accounts in more than one currency, making it easier to manage international transactions.
23. What is 'Remote Access' in Tally?
a) Accessing data from external storage
b) Working with Tally data from a different location via the internet
c) Transferring data between different Tally installations
d) Accessing support from Tally service providers
Answer:
b) Working with Tally data from a different location via the internet
Explanation:
Remote Access in Tally refers to the ability to access and work with Tally data from any location, provided there is an internet connection, enhancing flexibility and mobility.
24. How do you create a budget in Tally?
a) Gateway of Tally > Accounts Info > Budgets
b) Gateway of Tally > Inventory Info > Budgets
c) Company Info > Create Budget
d) Gateway of Tally > Display > Budgets
Answer:
a) Gateway of Tally > Accounts Info > Budgets
Explanation:
To create a budget in Tally, navigate to Gateway of Tally, then to Accounts Info, and select Budgets. This feature helps in financial planning and monitoring.
25. What is 'Data Synchronization' in Tally?
a) Merging data from different departments
b) Updating the Tally software
c) Transferring and syncing data between two or more Tally installations
d) Backing up data in Tally
Answer:
c) Transferring and syncing data between two or more Tally installations
Explanation:
Data Synchronization in Tally refers to the process of transferring and syncing data between two or more Tally installations, which is beneficial for businesses with multiple locations or remote access needs.