Fundamentals of Tally MCQ Questions with Answers

Question. A number ranging from 0 to 1 (or percentage) to measure the performance of company against its potential is called .
A. Scenarios 
B. Voucher 
C. Ratio analysis
D. Budgets

Answer : C. Ratio analysis 

Question. Comparison of company performance against budget goals is called .
A. Variance analysis
B. Profit & Loss accounts
C. Balance sheet
D. Trial balance

Answer : A. Variance analysis 

Question. The tax collected by the seller from the buyer is generally called .
A. Fringe Benefit Tax (FBT) 
B. Tax Collected at Source (TCS)
C. Tax Deducted at Source (TDS) 
D. Value Added Tax (VAT) 

Answer : B. Tax Collected at Source (TCS) 

Question. The voucher created for scenario is called voucher.
A. Purchase
B. Payment 
C. Reversing journal 
D. Sales 

Answer : C. Reversing journal 

Question. Displays the right extreme in the tally screen
A. Selected companies
B. Current date 
C. Gateway of tally 
D. Button bar 

Answer : D. Button bar 

Question. Tally maintains account using entry system of accounting.
A. Single
B. Double
C. Triple 
D. Quadruple 

Answer : B. Double 

Question. The tax on the value added to an item is called .
A. Fringe Benefit Tax (FBT)
B. Tax Deducted at Source (TDS) 
C. Tax Collected at Source (TCS) 
D. Value Added Tax (VAT) 

Answer : D. Value Added Tax (VAT) 

Question. Which of the following file is usually used as a master file?
A. Inventory subsidiary 
B. Cash disbursements
C. Cash receipts 
D. Payroll transactions

Answer : A. Inventory subsidiary

Question. How to activate the tally audit feature in a company?
A. Press F11 key 
B. During the creation of a company
C. In comp info > security control-option 
D. Press F12 key / F12

Answer : B. During the creation of a company 

Question. What is the purpose of Inventory Management Feature in Tally?
A. Provides daily balance and transaction value 
B. Provides all relevant information for any stock item in a single screen
C. Provides option for data backup 
D. Provides option to upload reports on the website directly 

Answer : B. Provides all relevant information for any stock item in a single screen 

Question. Branch / Division is defined under which group?
A. Liabilities 
B. Assets
C. Income 
D. Expenditure 

Answer : A. Liabilities

Question. Discount column is available in .
A. Purchase invoice
B. Sales invoice 
C. Both A) and B) 
D. None of these 

Answer : C. Both A. and B. 

Question. What is the purpose of Alt +W key in Tally?
A. Open default web browser
B. Invoke Tally Reference Manual
C. Change the financial period 
D. Exit Tally without confirmation

Answer : A. Open default web browser 

Question. Which report displays the summary of all the cost centres under a cost category?
A. Group Breakup
B. Cost centre Breakup
C. Category summary 
D. Ledger breakup 

Answer : C. Category summary

Question. Which of the following option is not mandatory while entering Accounts with Inventory?
A. Stock Groups
B. Stock Item
C. Stock Categories 
D. Units of Measure 

Answer : C. Stock Categories

Question. Which of the following can be budgeted in tally?
A. Closing Balance 
B. Net Transactions 
C. Daybook
D. A and B 

Answer : D. A and B 

Question. In Tally “Alias” represents .
A. Code name 
B. Nick name
C. Short name
D. All of these 

Answer : D. All of these 

Question. Single Entry mode is applicable for .
A. Payment Voucher
B. Contra Voucher
C. Receipt Voucher
D. All of these

Answer : D. All of these 

Question. Which option is required to be activated to create a Scenario? 
A. Use Rev Journal & Optional voucher in F12 / F12 
B. Use Optional voucher in F11 / F11
C. Use Reversing voucher in F11 / F11
D. Use Reverse Journal & Optional voucher in F11 / F11

Answer : D. Use Reverse Journal & Optional voucher in F11 / F11 

Question. Income tax number of the company will appear in which report?
A. Reminder letter 
B. Profit and loss a/c 
C. Cash / Bank book
D. None of these 

Answer : D. None of these 

Question. In which of the following vouchers, Single Entry mode entry can be made?
A. Receipt Voucher
B. Contra Voucher
C. Payment Voucher 
D. All of the above 

Answer : D. All of the above 

Question. “Inventory Books‟ is used to view . 
A. Group Summary
B. Stock items 
C. Both A. and B. 
D. None of these 

Answer : C. Both A. and B. 

Question. Which option is used to view Stock Items or Group Summary?
A. Accounts Books 
B. Inventory Books 
C. Statutory Books
D. Display 

Answer : B. Inventory Books

Question. Company Restore option available 
A. Company Features
B. Company Information
C. Configuration 
D. None of these 

Answer : B. Company Information

Question. Tally package has been developed by whom?
A. Peutronics
B. Tally solutions
C. Coral Software 
D. Vedica Software

Answer : B. Tally solutions 

Question. How to find that Tally does not have default ledger?
A. Cash in Hand
B. Capital Account 
C. Profit & Loss 
D. None of these 

Answer : D. None of these 

Question. Which sub menu is used for voucher entry in tally?
A. voucher 
B. Account Vouchers 
C. Accounts Info 
D. None of these 

Answer : B. Account Vouchers 

Question. How can we show Bill wise details in the ledger of Debtors and Creditors? 
A. Bill by Bill
B. Maintain Bill wise Details
C. Maintain References
D. None of these 

Answer : B. Maintain Bill wise Details.

Question. What is the purpose of Technological feature in Tally?
A. Allows importing and exporting data 
B. Provides option for data backup 
C. Provides budgeting option 
D. Flexible units of measure

Answer : A. Allows importing and exporting data 

Question. Which unit is created for stock items like food grains, sugar, oil, ghee etc.
A. Lts 
B. Nos
C. Kgs 
D. Box

Answer : C. Kgs 

Question. Which option is correct to view Profit and Loss a/c in Gateway of Tally?
A. Gateway of Tally > Reports > Profit & Loss A/c
B. Gateway of Tally > Display > Profit & Loss A/c
C. Gateway of Tally > Account Books > Profit & Loss A/c
D. None of these 

Answer : A. Gateway of Tally > Reports > Profit & Loss A/c.

Question. Can we use for Stock Journal?
A. Production and Consumption 
B. Inter Godown transfer for stock 
C. Both A and B 
D. None of these 

Answer : C. Both A and B

Question. By what name 'Godown' is created by default in Tally?
A. Primary 
B. Main location 
C. Both A or B
D. None of these 

Answer : B. Main location

Question. Predefined groups are also called as .
A. Statutory 
B. Primary group 
C. Main group 
D. Parent group

Answer : A. Statutory

Question. By which option the Purchase or Sales register can be viewed ?
A. Statutory Books 
B. Inventory Books 
C. Accounts Books 
D. Display 

Answer : C. Accounts Books 

Question. What is the purpose of Tally audit feature in Tally ERP 9?
A. Verify, validate and accept accounting information
B. Allows statutory reporting for VAT, CST, TCS, TDS, FBT, GST
C. Allows easy analysis of result / reports with graphical values 
D. Allows splitting of company data into multiple Companies

Answer : A. Verify, validate and accept accounting information 

Question. What is the Under Group of Suspense Accounts? 
A. Income 
B. Expenditure
C. Liabilities
D. Assets 

Answer : C. Liabilities

Question. Which option should be active to create Manufacturing Journal? 
A. Use Common Narration
B. Narrations for each entry 
C. Prefilled with Zero 
D. Use as manufacturing Journal 

Answer : D. Use as manufacturing Journal

Question. Which menu appears first after starting Tally?
A. Gateway of Tally 
B. Company Info
C. Display
D. None of these 

Answer : B. Company Info 

Question. Profit & Loss statement can be displayed in format.
A. Horizontal 
B. Vertical
C. Both A and B 
D. None of these 

Answer : C. Both A and B

Question. How many measurement units can we create in Tally?
A. 2
B. 3
C. 5
D. Unlimited 

Answer : D. Unlimited 

Question. What does BOM represent? 
A. Billing of Machines 
B. Bill of Materials
C. Bill of Maintenance
D. None of these 

Answer : B. Bill of Materials 

Question. What is the purpose of Ctrl+Q key, in the Gateway of Tally screen?
A. Close the tally screen 
B. Exit without confirmation 
C. Exit with confirmation
D. Quit tally current screen

Answer : B. Exit without confirmation

Question. Which option needs to be activated to activate job costing?
A. Maintain Cost Centre 
B. Use Cost Centre for Job Costing 
C. Both A and B
D. None of these 

Answer : C. Both A and B

Question. Find out which is not a Default Ledger in Tally?
A. Profit & Loss 
B. Capital Account 
C. Cash in Hand
D. None of these 

Answer : B. Capital Account 

Question. Can we change the Working Capital figure?
A. Voucher configuration 
B. Profit & Loss configuration 
C. Balance Sheet configuration
D. Ledger configuration

Answer : C. Balance Sheet configuration 

Question. From where do we see the report of Job Work Analysis? 
A. Display > Statement of a/c
B. Display > Statements of a > Job Work Analysis
C. Display > Statements of a/c > Cost Centre > Job work
D. None of these 

Answer : B. Display > Statements of a > Job Work Analysis.

Question. From where can we get the interest report?
A. Account Book
B. Cash and Fund Flow 
C. Inventory Book 
D. Statements of Accounts 

Answer : D. Statements of Accounts 

Question. If the merchant returns the goods to the creditor after deduction of the invoice, in which voucher will its entry be made?
A. Debit Note
B. Receipt Note
C. Rejection Out 
D. Rejection In

Answer : C. Rejection Out.

Question. What is visible at the bottom of the tally screen?
A. Button bar 
B. List of vouchers 
C. List of companies
D. Calculator 

Answer : D. Calculator

Question. What is done to get Payroll Report?
A. Gateway of Tally > Display
B. Gateway of Tally > Display > Statements of Accounts
C. Gateway of Tally > Display > Statements of Payroll
D. Gateway of tally > Display > Payroll Reports

Answer : D. Gateway of tally > Display > Payroll Reports.

Question. Budget represents .
A. Assumption 
B. Forecasting 
C. Estimation 
D. All of these

Answer : D. All of these

Question. How many ledgers are created by default in Tally?
A. Balance sheet & profit & Loss 
B. Profit & loss trial balance 
C. Profit & loss and trial balance 
D. Cash and profit & loss

Answer : D. Cash and profit & loss 

Question. Under whom does the earning of the business come?
A. Indirect Income 
B. Reserve and Surplus 
C. Capital Accounts
D. Investments 

Answer : B. Reserve and Surplus 

Question. Which mode is enabled by default in Purchase and Sales voucher?
A. Normal Mode 
B. As Invoice Mode
C. Particulars Mode 
D. None of these 

Answer : B. As Invoice Mode

Question. What does ETCS mean? 
A. Enable Tax Collected at Source
B. Electronic Tax Collected at Source
C. Electric Tax Collected at Source
D. None of these 

Answer : B. Electronic Tax Collected at Source.

Question. To see reports of job work Analysis .
A. Display- statement of A/c‟s- Job work analysis
B. Display- Statements of A/c‟s - job work Analysis
C. Display-Statement of A/c
D. None of these

Answer : B. Display- Statements of A/c‟s - job work Analysis.

Question. What is the utility of Tally Vault Password?
A. This will close the time period of the company 
B. This will lock all voucher entries for that company 
C. It will not show company name in Select Company list 
D. None of these 

Answer : C. It will not show company name in Select Company list 

Question. Which step is followed to view the Purchase Register? 
A. Gateway of Tally > Display > Purchase Register
B. Gateway of Tally > Account Books > Purchase Register
C. Gateway of Tally > Display > Account Books > Purchase Register
D. Purchase Register

Answer : C. Gateway of Tally > Display > Account Books > Purchase Register.

Question. From where the Tally Audit feature is activated in any company?
A. Press F11 Key / F11 
B. During the creation of a company
C. In-comp info > security control-option 
D. Press F12 Key / F12

Answer : B. During the creation of a company

Question. Which file in tally is used to record the import activity?
A. Tally imp 
B. Tally ini
C. Tally dat 
D. None of these 

Answer : B. Tally ini 

Question. Stock maintained for production purpose is called
A. Inventory 
B. Trial balance 
C. Payroll 
D. Ledger

Answer : A. Inventory 

Question. Which of the following file is generally used as master file?
A. Inventory subsidiary
B. Cash disbursements
C. Cash receipts 
D. Payroll transactions

Answer : A. Inventory subsidiary

Question. Which of the following users can view the audit list?
A. Tally vault
B. Owner
C. Data Entry 
D. Administrator 

Answer : D. Administrator

Question. In which report will the Income Tax Number of the company appear?
A. Cash/bank book
B. Profit and loss a/c 
C. Reminder letter 
D. None of these 

Answer : D. None of these 

Question. What is the advantage of computer-based transaction processing system?
A. Not required as a string of internal controls
B. Will produce a more accurate set of financial statements
C. Eliminates the need to reconcile control accounts and subsidiary ledgers
D. Be more efficient in preparing financial statements

Answer : D. Be more efficient in preparing financial statements.

Question. Which of the following option is used in the budget?
A. Net Transaction
B. Closing Balance 
C. A and B
D. None of these 

Answer : C. A and B 

Question. Which of the following is the predefined stock category in tally?
A. Primary
B. Symbol
C. Stock
D. Main location

Answer : A. Primary

Question. Which option is used to enable VAT, TDS, and Service Tax etc. in Tally?
A. Accounting Features 
B. Inventory Features
C. Statutory & Taxation 
D. None of these 

Answer : C. Statutory & Taxation 

Question. What is the TDS exemption limit for contractor and sub-contractor?
A. 5000
B. 10000
C. 20000
D. 50000

Answer : C 20000.

Question. “Tally vault‟ is a . 
A. Cost category
B. Ledger a/c 
C. Security mechanism 
D. None of these 

Answer : C. Security mechanism

Question. Which of the following is essential while making an account entry with inventory?
A. Stock Groups
B. Stock Items 
C. Units of Measure 
D. All these 

Answer : D. All these 

Question. Which of the following is useful for making voucher entry?
A. Ledger Account 
B. Groups
C. Sub-Groups
D. Depends on number of companies

Answer : A. Ledger Account

Question. The rate of trade discount varies with the of the goods purchased?
A. Fixed Assets 
B. Current Assets 
C. Quantity 
D. None of these 

Answer : C. Quantity

Question. What is the full form of ERP?
A. Enterprise resource planning
B. Economic resource planning 
C. Efficient resource planning 
D. Economic resource processing 

Answer : A. Enterprise resource planning 

Question. How to import data in Tally?
A. One company to another company created within tally package
B. Other programs – a spreadsheet or database file
C. Both A and B 

Answer : C. Both A and B 

Question. In which option does Statutory Compliance appear? 
A. Company creation screen 
B. Vat classification screen F11 
C. Accounting features 
D. Account creation screen 

Answer : A. Company creation screen 

Question. By which of the following option we can get the complete stock information?
A. Stock report 
B. Stock journal 
C. Stock analysis 
D. Stock summary

Answer : D. Stock summary

Question. Employee salary details are shown in.
A. Attendance sheet 
B. Gratuity papers 
C. Exact reports 
D. Payroll 

Answer : D. Payroll

Question. How do professionals usually maintain their accounts?
A. Accounts with inventory
B. Accounts only 
C. Normal Accounting 
D. Payroll Accounting 

Answer : B. Accounts only 

Question. Inventory books are used to see the following?
A. Stock Items
B. Group Summary
C. Both A and B 
D. None of these 

Answer : C. Both A and B 

Question. There is no harm in introducing computer based accounting system.
A. Possible demotivation through withdrawal 
B. High set up cost 
C. Saving on labor cost 
D. Required staff training 

Answer : C. Saving on labor cost 

Question. What is the full form of ODBC? 
A. Open data base connectivity
B. Open data base calculating 
C. Open document basically
D. Order data base connection 

Answer : A. Open data base connectivity

Question. How to activate the tally audit feature in a company?
A. Press F12 key / F12 
B. In comp info-> security control-option
C. During the creation of a company 
D. Press F11 key

Answer : C. During the creation of a company 

Question. Company features in Tally include
A. Accounting features 
B. List features
C. Legal features
D. All these 

Answer : D. All these 

Question. Bad loans in banking terminology are generally known as
A. CBS 
B. NPAs 
C. Prime Asset 
D. BPOs 

Answer : B. NPAs

Question. What is the advantage of a computer-based transaction processing system?
A. Will be more efficient at producing financial statements. 
B. Eliminates the need to reconcile control accounts and subsidiary ledgers. 
C. Does not require as stringent a set of internal controls.
D. Will produce a more accurate set of financial statements. 

Answer : A. Will be more efficient at producing financial statements. 

Question. An account that does not require the user to create ?
A. Cash at bank
B. Sundry creditors
C. Cash in hand 
D. Balance sheet 

Answer : A. Cash at bank 

Question. In which menu do you get currency symbol option in Tally?
A. Company Creation
B. Stock item Units
C. Regional Setting
D. None of these

Answer : A. Company Creation 

Question. A serves the purpose of both Journal and Ledger?
A. Journal book 
B. Purchase day book 
C. Cash book 
D. None of these 

Answer : C. Cash book

Question. In which of the following option is Integrated Accounts with Inventory available?
A. F12 configuration 
B. F11 features 
C. Inventory info 
D. Account‟s info 

Answer : B. F11 features