tally prime ERA MCQ

1. What is the primary purpose of accounting?
To record financial transactionsTo maximize profits
2.What is the purpose of double-entry accounting?

To reduce the risk of errors in recording transactions
3.What is accounting primarily concerned with?
Recording, summarizing, and analyzing financial transactions

4. Which of the following best defines accounting?
The process of measuring, processing, and communicating financial information about

5. What is accounting?
The process of recording, summarizing, and reporting financial transactions

6. Why is accounting important for businesses?
To record financial transactions and monitor financial health
7. What is the main objective of financial accounting?
To communicate financial information to external parties

8. Which of the following is an example of a financial transaction that would be recorded in
accounting?
Receiving payment from a customeruring, processing, and communicating financial

information about
9. What is the single-entry method of accounting primarily used for?
Small businesses and individuals
10. In single-entry accounting, how are financial transactions recorded?
Transactions are recorded in a single column, either as income or expense
11. Who is the founder of Tally Solutions, the company behind Tally software?
Shyam Sunder Goenka
12. In which year was the first version of Tally accounting software released?
1986
13. What is the primary purpose of Tally in accounting?
To provide legal and tax advice to businesses
14. How does Tally contribute to financial reporting in businesses?
It allows for the accurate and timely preparation of financial reports.
15. Why is Tally considered a valuable tool for accountants and financial professionals?
It enhances accuracy and reduces the risk of errors.
16. Which of the following statements is true regarding data accessibility in Tally Prime and
Tally.ERP 9?
Both Tally Prime and Tally.ERP 9 allow remote access to data.

17. What significant feature does Tally Prime introduce to improve data security compared to
Tally.ERP 9?
Role-based access control

18. What is the primary reason for Tally Prime's introduction, despite the existence of Tally.ERP 9?
To provide an updated, modernized version with enhanced features
19. Which is the authenticated website to download the installation file for Tally Prime?
www.tallysolutions.com
20. The tally installation file needs to be installed on each system.
TRUE
21. While creating company data in Tally Prime, the company data path location indicates
folder location where the company data folder will be created
22. Which of the following is the shortcut key to access configuration options on a selected page in
Tally Prime?
F12 Configuration
23. Which of the following options encrypts the company data in Tally Prime?
Tally Vault Password
24. Which of the following options enables the user to track transaction creation and alteration
history?
Enable Tally Edit Log

25. Which of the following options allows the user to set an administrator login credential for
company data?
User Access Control

26. The Name and Mailing Name on the company creation page can be the same.
TRUE
27. The _____________________ is the display name in Tally Prime under the list of companies.
Company Name
28. Which of the options is not available under the company creation page in Tally Prime?
PAN Details
29. The financial year starts at ___________.
1 April
30. If the financial year beginning on April 1, 2023, is selected, then the book beginning on April 1,
2023, can be ___________.
1st April 2023

1st May 2023
1st December 2023
Any of the above
31. In Tally Prime, which type of accounting master is used to record information about individuals or
organizations with whom the company has financial transactions?
Ledger
32. What information is typically entered when creating a ledger in Tally Prime?
Group under which the ledger falls
33. In Tally Prime, which master is used to categorize ledgers based on their nature or function,
such as income, expenses, assets, or liabilities?
Accounting Group
34. In Tally Prime, what is the purpose of creating a "Group" master?
To categorize ledgers into broader classifications
35. Which of the options should be selected to create an accounting master in Tally Prime?
Create
36. _____________ are collections of ledgers of the same nature.
Accounting Group
37. At the highest level, accounting groups are classified as __________.
Assests
Liabilities
Income and Expenses
All of the above
38. Tally Prime contains _________ pre-defined accounting groups.
28.00
39. Pre-defined accounting groups contain 15 primary accounting groups and 13 subgroups.
TRUE
40. Which of the following accounting subgroups is not part of the current assets group?
Bank OD Accounts
41. Which accounting master in Tally Prime is used to record information about inventory items,
including their description, unit of measurement, and rate?
Stock Item
42. _____________ offers a parallel classification of stock items in Tally data.
Stock Category
43. A user can define a stock group as well as a stock category at the same time while creating a
stock item master in Tally.
TRUE
44. ___________ is used to measure stock item quantity in Tally Prime.
Unit of Measurement
45. A unit of measurement can be set as ____________.
A and B both
46. 1 dozen = 12 Nos is an example of ___________ UOM.
Compound
47. Which of the masters is not related to the inventory master in Tally Prime?
Payheads
48. What is a stock item in Tally Prime?
An item used for tracking inventory, like goods or products

49. What is the purpose of defining a stock group in Tally Prime?
To categorize stock items for reporting purposes

50. How can you set the opening stock balance for a stock item in Tally Prime?
By entering it in the stock item creation screen
51. In Tally Prime, what is the Chart of Accounts report primarily used for?
All of the above

52.The chart of accounts in Tally Prime is a one-stop repository to gain information specific to all the
masters.
TRUE
53. Which of the following letters can be used to access the chart of accounts report from the
Gateway of Tally?
H
54. The user can access the multi-master creation alteration option under _________ in Tally Prime.
Chart of Account
55. __________ in Tally Prime provides you with an index of a list of all accounting masters created
in the company data.
Chart of Accounts
56. The chart of accounts also displays masters altered or deleted if ________ is enabled in Tally
Prime.
Edit Log feature

57. Which of the following information cannot be found under the chart of accounts in Tally Prime?
Closing Bank Balance

58. In Tally Prime, vouchers are classified as _______.
All of the above

59. A _________ is a document that contains details of financial transactions and is required for
recording the same in the books of accounts.
Voucher
60. There are ___________ default voucher types available in Tally Prime.
24.00
61. To access the multi-master creation option in Tally, we should navigate to _________.
Gateway of Tally >> Chart of Account >> Ledger >> Multi Master
62. A list of multi-masters contains _________.
All of the above

63. Which of the ledgers should be grouped under direct expense?
Purchase Accounts
64. There is no need to define the opening balance of the ledger grouped under _________.
All of the above

65. Computers and printers for business use should be grouped under _________.
Fixed Assets
66. Which of the following is a shortcut key to mark zero as the opening balance for all ledgers under
the multi-master alteration page?
ATL +Z - Zero Opening Balance

67. Which of the following ledgers should have an opening balance as a debit balance?
Sundry Debtors
68. In Tally Prime, what does "multi-master" creation and alteration refer to?
Creating and altering multiple ledger accounts at once

69. What is the primary benefit of using multi-master creation and alteration in Tally Prime?
It saves time by performing bulk operations on master data.

70. Which type of master data can be created or altered using the multi-master feature in Tally
Prime?
All of the above

71. ____________ in Tally Prime provides a simple and effective way to record financial
transactions accurately and efficiently.
Accounting Vouchers
72. A ____________ voucher in Tally is a virtual accounting tool to document a cash transaction
involving one or more banks, cash, or a deposit.
Contra
73. Cash deposit into the company's bank account transaction to be recorded under __________
voucher
Contra
74. You can use the ________ voucher when the customer pays the amount against the sales
invoice.
Receipt
75. ___________ voucher is used to account all the payments made by the company in cash or by
bank.
Payment
76. Purchase transactions in a business can be classified as cash purchases or ___________.
credit purchase
77. Material supplied to customers to be recorded using the ___________ voucher in Tally Prime
Sales
78. Which of the following is the shortcut key to access receipt vouchers in Tally Prime?
F6-Receipt
79. Which of the following options can be configured under F12 in the receipt voucher to update the
bank details of the receipt transaction?
Use the default bank allocation

80. How can a user create a ledger master from the transaction level in Tally Prime?
A and B both
81. What is the primary purpose of a Contra Voucher in accounting?
To record transactions involving both cash and bank accounts
82. In a Contra Voucher, which accounts are typically affected?
Both income and expense accounts, and bank and cash accounts
83. Which of the following transactions can be recorded using a Contra Voucher?
Receiving a loan from a bank
84. What is the shortcut key to access the contra voucher in Tally Prime?
F4- Contra
85. Contra voucher is a/an ____________
Accounting Vouchers
86. Which of the following is an example of a contra voucher?
All of the above
87. Contra, Payment and Receipt vouchers can be recorded using the Dr, Cr, and To, By formats in
Tally Prime.
TRUE
88. Cash Denomination Information is generally needed in the case of _______.
Contra Voucher
89. Which of the following is the shortcut key to change the voucher date in the contra voucher?
F2 – Date
90. What is the primary purpose of a Journal Voucher in Tally Prime?
To record non-cash transactions and adjustments
91. What is the primary purpose of a Purchase Voucher in Tally Prime?
To record purchases of goods or services from suppliers
92. In a Purchase Voucher, which account is debited?
Creditors Account
93. What information is typically recorded in a Purchase Voucher?
Details of goods or services purchased, supplier information, and payment details
94. In a Purchase Voucher, what is the purpose of the "Party's A/c Name" field?
To update the supplier's name and contact details
95. Which of the bill references should be selected while recording a fresh purchase invoice?
New Reference
96. Under _________, no credit days are extended by supplied under purchase.
Cash Purchase
97. A cash purchase occurs when a business pays for goods or services immediately upon ordering
or delivery.
TRUE
98. Which of the following is the shortcut key to access the purchase voucher?
F9 – Purchase
99. A purchase invoice can be recorded under _______.
All of the above

100. Purchase of trading stock item should be recorded under ________ in Tally Prime.
Item Invoice mode

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1. What is the primary purpose of accounting?

To record financial transactionsTo maximize profits

2.What is the purpose of double-entry accounting?

3.What is accounting primarily concerned with?

Recording, summarizing, and analyzing financial transactions

The process of measuring, processing, and communicating financial information about

The process of recording, summarizing, and reporting financial transactions

To record financial transactions and monitor financial health

7. What is the main objective of financial accounting?

To communicate financial information to external parties

Receiving payment from a customeruring, processing, and communicating financial

Both Tally Prime and Tally.ERP 9 allow remote access to data.

Role-based access control

Enable Tally Edit Log

User Access Control

1st April 2023

38. Tally Prime contains _________ pre-defined accounting groups.

An item used for tracking inventory, like goods or products

To categorize stock items for reporting purposes

All of the above

Edit Log feature

Closing Bank Balance

All of the above

All of the above

All of the above

ATL +Z - Zero Opening Balance

Creating and altering multiple ledger accounts at once

It saves time by performing bulk operations on master data.

All of the above

Use the default bank allocation

All of the above

Item Invoice mode

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