Accounting With Tally MCQ Quiz - Objective Question with Answer for Accounting With Tally - Download Free PDF

The correct answer is - Inventory info

Key Points

• Inventory info
  • Used to view and manage stock items and stock groups.
  • Provides detailed information related to inventory management in accounting software.
  • Essential for tracking and maintaining accurate records of stock levels and movements.

Additional Information

• Accounts books
  • Used for viewing and managing financial transactions and reports.
  • Includes ledgers, trial balance, and other accounting records.
• Statutory books
  • Contains records required by law for compliance purposes.
  • Includes registers of members, directors, and other statutory records.
• Display
  • Used to view various reports and summaries in the accounting software.
  • Includes financial statements, stock summaries, and other analytical reports.

The correct answer is - Company configuration

Key Points

• Company configuration
  • The F-12 key is used to access the Company configuration settings in accounting software like Tally.
  • This configuration allows users to set up various parameters and options that define how the company data will be managed and processed.
  • It includes settings for financial year, currency, voucher numbering, and other essential features.

Additional Information

• Company features
  • This section allows users to enable or disable various features specific to the company, such as inventory management, cost centers, and multi-currency.
  • Accessing company features can typically be done through other menu options, not the F-12 key.
• Accounting features
  • These features pertain to the configuration of various accounting capabilities such as budgeting, interest calculations, and bank reconciliation.
  • While related to company configuration, these settings are often accessed through a different menu or shortcut key.
• Shortcut Keys
  • Understanding various shortcut keys like F-12 is crucial for efficient navigation and operation within accounting software.
  • Other commonly used shortcut keys in Tally include F1 for Help, F2 for Date, and F3 for Company Selection.

The correct answer is - Double entry is not automatically completed

Key Points

• Double entry is not automatically completed
  • Spreadsheet software like Microsoft Excel or Google Sheets does not have built-in functionalities to automatically perform double-entry bookkeeping.
  • Double-entry bookkeeping is a specific accounting method where every entry to an account requires a corresponding and opposite entry to a different account.
  • To perform double-entry bookkeeping in a spreadsheet, users must manually input both the debit and credit entries.

Additional Information

• Simple to use and easy to understand
  • Spreadsheet software typically offers a user-friendly interface that is intuitive and easy to navigate, making it accessible even for beginners.
  • Basic functions such as data entry, formatting, and basic calculations can be learned quickly.
• Calculations can be easily done in a spreadsheet
  • Spreadsheets support a wide range of arithmetic and statistical functions, allowing users to perform complex calculations with ease.
  • Formulas and functions can be applied to large datasets to automate calculations and data analysis.
• Grouping and Regrouping of Accounts
  • Spreadsheets allow for the organization of data into groups and subgroups, facilitating better data management and analysis.
  • Pivot tables and grouping functions enable users to dynamically change the structure of their data and extract meaningful insights.

The correct answer is - Accounting package

Key Points

• Accounting package
  • Tally is a widely used software specifically designed for accounting and financial management.
  • It provides tools for inventory management, payroll, and tax management.
  • Tally is utilized by businesses to manage their financial transactions efficiently and maintain accurate financial records.

Additional Information

• Other types of application software
  • Statistics package
    • Software designed for statistical analysis and data visualization, e.g., SPSS, SAS.
    • Used in research and data-driven fields to perform complex statistical tests.
  • Spreadsheet package
    • Software used for organizing, analyzing, and storing data in tabular form, e.g., Microsoft Excel, Google Sheets.
    • Enables users to perform calculations and create graphs and charts.

The correct answer is 'Gateway of Tally → Display → Trial Balance'

Key Points

• Gateway of Tally → Display → Trial Balance:
  • This sequence is the correct method to view the trial balance on the screen in Tally.
  • The 'Display' menu provides various reports, including the trial balance, which is a summary of all ledger balances.
  • Using this path ensures you access the correct report directly from the main menu.

Additional Information

• Gateway of Tally → Trial balance:
  • This option is incorrect as the direct path to 'Trial balance' is not available from the 'Gateway of Tally'.
  • The 'Trial balance' report is nested under the 'Display' menu.
• Gateway of Tally → Accounts Info → Trial Balance:
  • This path is incorrect because 'Accounts Info' is used for managing account-related information, not for viewing reports.
  • The 'Trial balance' report is not found under 'Accounts Info'.
• Gateway of Tally → Display → Account Book → Trial balance:
  • This option is partially correct but not the most direct path.
  • While 'Account Book' may contain various ledger details, the 'Trial balance' is specifically found directly under the 'Display' menu.

The correct answer is All of the Above

Key Points Goods and Services Tax

• GST, or Goods and Services Tax, is an indirect tax imposed on the supply of goods and services.
• It is a multi-stage, destination-oriented tax imposed on every value addition, replacing multiple indirect taxes, including VAT, excise duty, service taxes, etc

Important Points

THE CENTRAL TAXES WERE REPLACED BY GST

• Additional duties of excise
• Central Excise Duty
• Excise duty levied the under Medicinal & Toiletries Preparation Act
• Additional duties of Excise levied under Textiles & Textile Products
• Additional duties of Customs(CVD & SAD)
• Service Tax
• Surcharges & Cesses
• Central Sales tax

THE STATE-LEVEL TAXES REPLACED BY GST

• State VAT/Sales Tax
• Central Sales Tax
• Purchase Tax
• Entertainment Tax (Other than those levied by local bodies)
• Luxury Tax
• Entry Tax(All Forms)
• Taxes on lottery, betting & gambling
• Surcharges & Cesses
• Taxes on advertisement

Additional InformationDuty on Medical and Toilet Preparations: Under the Medical and Toilet Preparations (Excise Duties) Act, 1955, excise duty is charged on medical preparations.

The correct answer is Input Tax credit of SGST/UTGST can be utilised for payment of CGST.

Key Points

• [Section 2(63) of the CGST Act, 2017 Input Tax Credit - Input tax credit Simply, the GST amount paid on an inside supply can be applied toward the tax due on an outgoing supply.
• Section 2(62) of the CGST Act of 2017's input tax - Any goods or services that have CGST, SGST, UTGST, and IGST paid on them .
• Section 2(59) of the CGST Act of 2017 input -any products other than capital goods that a supplier uses or intends to use in the course of doing business.
• Any service utilised or intended to be used by a provider in the course of conducting business is considered an input service under Section 2(60) of the CGST Act, 2017 .
• Capital goods [CGST Act of 2017 Section 2(19)] - Products utilised or intended to be used in the course or furtherance of business and whose worth is capitalised in the books of accounts of the person claiming the input tax credit.

Important PointsUtilize IGST credit in the following order:-

First, use it to pay for IGST Utilize a second time to pay CGST, SGST, or UTGST The last to be used for SGST or UTGST or CGST payment Note: Before ITC of CGST, SGST, or UTGST may be used to satisfy any tax debt, IGST credit must be fully utilised.

Beginning on or after January 4, 2019, [Sections 49, 49A, and 49B of the CGST Act, 2017 and Rule 88A of the CGST Rules, 2017] CGST credit should be used in the sequence of: -

Utilize IGST first, if it is available, to pay CGST, SGST, or UTGST. Use CGST to pay for CGST. Pay any remaining CGST liability in cash or by other acceptable means. Utilize any remaining CGST input credit toward paying IGST; not permitted against SGST or UTGST.

1-4-2019 Onwards [Sections 49, 49A and 49B of CGST Act, 2017 and rule 88A of CGST Rules, 2017], SGST or UTGST must be used in the following order:

First, use IGST, if available, to pay for SGST, UTGST, or CGST liability. •Second, use SGST or UTGST to pay for SGST, UTGST, or both. •Any remaining SGST or UTGST due must be paid in cash. Alternately, you can: •Utilize any remaining SGST or UTGST input credit toward paying the IGST •Not permitted against CGST.

The correct answer is Frequency of each class.

Key PointsTally sheet:

• A tally sheet, also known as a check sheet, is a tool for gathering data by counting and observing things.
• It can be used to count things, determine how frequently something has occurred or will occur, or both.
• A sheet of paper and a pencil can be used as a tally sheet, while a computer application can be more sophisticated.

The correct answer is - Inventory info

Key Points

• Inventory info
  • Used to view and manage stock items and stock groups.
  • Provides detailed information related to inventory management in accounting software.
  • Essential for tracking and maintaining accurate records of stock levels and movements.

Additional Information

• Accounts books
  • Used for viewing and managing financial transactions and reports.
  • Includes ledgers, trial balance, and other accounting records.
• Statutory books
  • Contains records required by law for compliance purposes.
  • Includes registers of members, directors, and other statutory records.
• Display
  • Used to view various reports and summaries in the accounting software.
  • Includes financial statements, stock summaries, and other analytical reports.

The correct answer is - Company configuration

Key Points

• Company configuration
  • The F-12 key is used to access the Company configuration settings in accounting software like Tally.
  • This configuration allows users to set up various parameters and options that define how the company data will be managed and processed.
  • It includes settings for financial year, currency, voucher numbering, and other essential features.

Additional Information

• Company features
  • This section allows users to enable or disable various features specific to the company, such as inventory management, cost centers, and multi-currency.
  • Accessing company features can typically be done through other menu options, not the F-12 key.
• Accounting features
  • These features pertain to the configuration of various accounting capabilities such as budgeting, interest calculations, and bank reconciliation.
  • While related to company configuration, these settings are often accessed through a different menu or shortcut key.
• Shortcut Keys
  • Understanding various shortcut keys like F-12 is crucial for efficient navigation and operation within accounting software.
  • Other commonly used shortcut keys in Tally include F1 for Help, F2 for Date, and F3 for Company Selection.

The correct answer is - Double entry is not automatically completed

Key Points

• Double entry is not automatically completed
  • Spreadsheet software like Microsoft Excel or Google Sheets does not have built-in functionalities to automatically perform double-entry bookkeeping.
  • Double-entry bookkeeping is a specific accounting method where every entry to an account requires a corresponding and opposite entry to a different account.
  • To perform double-entry bookkeeping in a spreadsheet, users must manually input both the debit and credit entries.

Additional Information

• Simple to use and easy to understand
  • Spreadsheet software typically offers a user-friendly interface that is intuitive and easy to navigate, making it accessible even for beginners.
  • Basic functions such as data entry, formatting, and basic calculations can be learned quickly.
• Calculations can be easily done in a spreadsheet
  • Spreadsheets support a wide range of arithmetic and statistical functions, allowing users to perform complex calculations with ease.
  • Formulas and functions can be applied to large datasets to automate calculations and data analysis.
• Grouping and Regrouping of Accounts
  • Spreadsheets allow for the organization of data into groups and subgroups, facilitating better data management and analysis.
  • Pivot tables and grouping functions enable users to dynamically change the structure of their data and extract meaningful insights.

The correct answer is - Accounting package

Key Points

• Accounting package
  • Tally is a widely used software specifically designed for accounting and financial management.
  • It provides tools for inventory management, payroll, and tax management.
  • Tally is utilized by businesses to manage their financial transactions efficiently and maintain accurate financial records.

Additional Information

• Other types of application software
  • Statistics package
    • Software designed for statistical analysis and data visualization, e.g., SPSS, SAS.
    • Used in research and data-driven fields to perform complex statistical tests.
  • Spreadsheet package
    • Software used for organizing, analyzing, and storing data in tabular form, e.g., Microsoft Excel, Google Sheets.
    • Enables users to perform calculations and create graphs and charts.

The correct answer is debit note.

Key Points

• A debit note is a commercial document issued by a buyer to a seller to inform them that they are returning goods.

Additional Information

• Invoice: An invoice is a commercial document issued by a seller to a buyer to inform them of the amount they owe for goods or services that have been purchased.
• Cash invoice: A cash invoice is a type of invoice that is paid in cash upon receipt.
• Deposit letter: A deposit letter is a letter that is used to confirm that a deposit has been made on a purchase.

The correct answer is All of the Above

Key Points Goods and Services Tax

• GST, or Goods and Services Tax, is an indirect tax imposed on the supply of goods and services.
• It is a multi-stage, destination-oriented tax imposed on every value addition, replacing multiple indirect taxes, including VAT, excise duty, service taxes, etc

Important Points

THE CENTRAL TAXES WERE REPLACED BY GST

• Additional duties of excise
• Central Excise Duty
• Excise duty levied the under Medicinal & Toiletries Preparation Act
• Additional duties of Excise levied under Textiles & Textile Products
• Additional duties of Customs(CVD & SAD)
• Service Tax
• Surcharges & Cesses
• Central Sales tax

THE STATE-LEVEL TAXES REPLACED BY GST

• State VAT/Sales Tax
• Central Sales Tax
• Purchase Tax
• Entertainment Tax (Other than those levied by local bodies)
• Luxury Tax
• Entry Tax(All Forms)
• Taxes on lottery, betting & gambling
• Surcharges & Cesses
• Taxes on advertisement

Additional InformationDuty on Medical and Toilet Preparations: Under the Medical and Toilet Preparations (Excise Duties) Act, 1955, excise duty is charged on medical preparations.

The correct answer is Input Tax credit of SGST/UTGST can be utilised for payment of CGST.

Key Points

• [Section 2(63) of the CGST Act, 2017 Input Tax Credit - Input tax credit Simply, the GST amount paid on an inside supply can be applied toward the tax due on an outgoing supply.
• Section 2(62) of the CGST Act of 2017's input tax - Any goods or services that have CGST, SGST, UTGST, and IGST paid on them .
• Section 2(59) of the CGST Act of 2017 input -any products other than capital goods that a supplier uses or intends to use in the course of doing business.
• Any service utilised or intended to be used by a provider in the course of conducting business is considered an input service under Section 2(60) of the CGST Act, 2017 .
• Capital goods [CGST Act of 2017 Section 2(19)] - Products utilised or intended to be used in the course or furtherance of business and whose worth is capitalised in the books of accounts of the person claiming the input tax credit.

Important PointsUtilize IGST credit in the following order:-

First, use it to pay for IGST Utilize a second time to pay CGST, SGST, or UTGST The last to be used for SGST or UTGST or CGST payment Note: Before ITC of CGST, SGST, or UTGST may be used to satisfy any tax debt, IGST credit must be fully utilised.

Beginning on or after January 4, 2019, [Sections 49, 49A, and 49B of the CGST Act, 2017 and Rule 88A of the CGST Rules, 2017] CGST credit should be used in the sequence of: -

Utilize IGST first, if it is available, to pay CGST, SGST, or UTGST. Use CGST to pay for CGST. Pay any remaining CGST liability in cash or by other acceptable means. Utilize any remaining CGST input credit toward paying IGST; not permitted against SGST or UTGST.

1-4-2019 Onwards [Sections 49, 49A and 49B of CGST Act, 2017 and rule 88A of CGST Rules, 2017], SGST or UTGST must be used in the following order:

First, use IGST, if available, to pay for SGST, UTGST, or CGST liability. •Second, use SGST or UTGST to pay for SGST, UTGST, or both. •Any remaining SGST or UTGST due must be paid in cash. Alternately, you can: •Utilize any remaining SGST or UTGST input credit toward paying the IGST •Not permitted against CGST.