Accounting in Tally MCQ Questions with Answers

Question. Which account is odd?
A. Furniture
B. Land & Building 
C. Row Material Stock 
D. Workshop and Equipment

Answer : C. Row Material Stock 

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

Answer : A. Ledger Account

Question. Acquired Income come.
A. Current Liability 
B. Capital 
C. Current Assets 
D. Fixed Assets

Answer : C. Current Assets 

Question. is an example for tangible assets.
A. Furniture
B. Debtors
C. Patent
D. Discount on issue of shares and debentures

Answer : A. Furniture

Question. Which liabilities are payable after a long period?
A. Fixed liabilities
B. Miscellaneous expenditure
C. Current liabilities
D. Contingent liabilities 

Answer : A. Fixed liabilities

Question. Why is trial balance prepared?
A. To prepare Profit & Loss a/c
B. To test the arithmetical accuracy
C. For making adjustments
D. To balance the a/c

Answer : B. To test the arithmetical accuracy 

Question. Drawing account is created and linked to which account?
A. Capital 
B. Current assets
C. Current liability 
D. Drawings 

Answer : A. Capital 

Question. Capital of the company is included under .
A. Capital account 
B. Fixed liabilities 
C. Loans and advances
D. Current liabilities 

Answer : A. Capital account

Question. Carriage inwards can be included in .
A. Direct Expense
B. Current liability 
C. Indirect Expenses
D. Misc Expenses

Answer : A. Direct Expenses

Question. The capital of the company is included under which of the following?
A. Capital account 
B. Fixed liabilities 
C. Loans and advances
D. Current liabilities 

Answer : B. Fixed liabilities

Question. The term current assets does not include .
A. Debtors
B. Bills Receivable
C. Stock
D. Goodwill

Answer : D. Goodwill 

Question. Which register is used to post the journal entries periodically?
A. Ledger
B. Cash book
C. Bill book
D. Trial balance 

Answer : A. Ledger 

Question. Which ratio measures the availability of cash to pay off debits?
A. Liquidity ratio 
B. Debit ratio 
C. Activity ratio
D. Market ratio 

Answer : A. Liquidity ratio 

Question. The branch of accounting which analyses and interprets the overall data is.
A. Financial accounting
B. Cost accounting
C. Management accounting
D. None of these

Answer : C. Management accounting 

Question. Bank account is
A. Personal account 
B. Real account 
C. Nominal account 
D. Intangible real account 

Answer : B. Real account 

Question. Capital is treated as a liability.
A. Dual aspect concept 
B. Money measurement concept
C. Matching concept
D. Entity concept

Answer : D. Entity concept

Question. is an example for long term liabilities.
A. Creditors
B. Debentures
C. Overdraft
D. Bill payable

Answer : B. Debentures

Question. Accrued income comes under .
A. Current liability
B. Capital 
C. Current asset
D. Fixed asset 

Answer : C. Current asset 

Question. When a customer returns an item, it is sent to ?
A. Debit Note
B. Credit Note
C. Proforma 
D. Invoice Bill

Answer : B. Credit Note

Question. We use vouchers to make entries related to bank transactions?
A. Contra voucher
B. Journal
C. Sales 
D. Purchase

Answer : A. Contra voucher

Question. Entries of adjusting entries are made in which of the following vouchers?
A. Contra voucher
B. Journal voucher
C. Sales voucher
D. Purchase voucher

Answer : B. Journal voucher.

Question. Salary Account comes under which head?
A. Indirect Incomes
B. Indirect Expenses
C. Direct Incomes
D. Direct Expenses

Answer : B. Indirect Expenses

Question. Transaction is entered in which of the following?
A. Journal
B. Ledger
C. Trial balance
D. None of these

Answer : A. Journal

Question. Debit note is used to make which of the following entry?
A. Purchases
B. Sales
C. Purchase return 
D. Sales return 

Answer : C. Purchase return 

Question. Schedule VI of Companies Act specifies the format for report.
A. Balance sheet
B. Balance sheet & profit and loss accounts 
C. Profit and loss accounts 
D. None of these 

Answer : B. Balance sheet & profit and loss accounts 

Question. Which of the following is not a transaction
A. Goods are purchased on cash basis for Rs.1000 
B. Salary paid for the month of May 2009
C. The land has been purchased for Rs.10 lakhs 
D. An employee has been terminated 

Answer : D. An employee has been terminated

Question. What is referred to as buying and selling of goods?
A. Profit and loss account 
B. Real account
C. Normal account 
D. Trading account 

Answer : D. Trading account 

Question. refers the amount invested by the owner into business.
A. Loan 
B. Advance
C. Capital 
D. Prepaid expenses

Answer : C. Capital

Question. Under whom does the patent account come?
A. Investments
B. Liabilities
C. Current assets
D. None of these

Answer : D. None of these

Question. The process of ascertaining the balance of a particular account on a given date is?
A. Posting
B. Journalizing
C. Balancing 
D. Accounting 

Answer : C. Balancing

Question. Acquired income which is not received is known as _?
A. Advance income 
B. Proposed income
C. Outstanding income 
D. Accrued income 

Answer : D. Accrued income

Question. List of Optional Voucher we can get from .
A. Accounts Books
B. Exceptional Reports 
C. Cash Bank Books 
D. Balance Sheet 

Answer : B. Exceptional Reports

Question. is the main source of revenue of any business.
A. Investment
B. Prepaid 
C. Loan 
D. Sales

Answer : D. Sales 

Question. A person who lends money to a business is called a .
A. Debtor
B. Creditor 
C. Investor 
D. Supplier

Answer : A. Debtor 

Question. Taxes paid come under which group?
A. Capital
B. Loans and liabilities 
C. Direct expenses 
D. Duties and taxes 

Answer : D. Duties and taxes

Question. Normally when does the financial year start?
A. from 1st April of any year 
B. from 31st March of any year
C. A And B Both 
D. None of these

Answer : A. from 1st April of any year 

Question. Bank account is a .
A. Nominal account
B. Real account
C. Personal account
D. Intangible real account

Answer : C. Personal account.

Question. Accounting principles are divided into two types. These are
A. Accounting Concepts 
B. Accounting Convention 
C. Accounting Standard 
D. Both a and B 

Answer : D. Both a and B 

Question. E-mail option is used -
A. To send mail directly from Tally screen 
B. To send E-mail 
C. To Download Information 
D. Access help 

Answer : A. To send mail directly from Tally screen

Question. To make which of the following entries, credit note is used?
A. Purchases
B. Sales
C. Purchase return
D. Sales return

Answer : D. Sales return

Question. The loan of the person comes under the group?
A. Fixed liabilities
B. Loans and advances 
C. Current liabilities
D. Capital

Answer : B. Loans and advances

Question. What is termed as excess of credit side total amount over debit side total amount in profit and loss account?
A. Credit
B. Profit 
C. Loss 
D. Debit

Answer : B. Profit 

Question. is a record of all monetary transactions.
A. Account 
B. Asset
C. Accrual basis
D. Credit 

Answer : A. Account

Question. What is a summarized record of all the transactions to every person, every property and every type of service?
A. Ledgers
B. Journals 
C. Account 
D. Vouchers 

Answer : C. Account 

Question. Which accounting system is incomplete and unscientific?
A. Multi Entry System
B. Single Entry System 
C. Double Entry System
D. Triple Entry System

Answer : B. Single Entry System

Question. Closing stock comes under .
A. Stock in hand 
B. Fixed asset
C. Current asset
D. Direct income

Answer : A. Stock in hand 

Question. Which term is used for all the amounts payable by a business concern to outsiders?
A. Debits 
B. Capitals
C. Assets
D. Liabilities 

Answer : D. Liabilities

Question. Which of the following is not a transaction?
A. Land is purchased for Rs 10 lakhs 
B. Salaries paid for the amount of May 2009 
C. Goods are purchased on cash basis for Rs 1000
D. An employee is dismissed from the job 

Answer : D. An employee is dismissed from the job

Question. Which of the following is a book of original entry?
A. Journal
B. Voucher
C. Invoices
D. Ledger

Answer : A. Journal

Question. The branch of accounting that deals with the analysis and interpretation of aggregate data is .
A. Financial Accounting
B. Cost Accounting
C. Management Accounting 
D. None of these 

Answer : C. Management Accounting

Question. Which of the following is an example of external users of accounting information?
A. Government
B. Owners
C. Management
D. Employee

Answer : A. Government