v

1. What is the primary purpose of accounting?

To record financial transactionsTo maximize profits

[Link] is the purpose of double-entry accounting?

To reduce the risk of errors in recording transactions

[Link] 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
[Link] 9?

Both Tally Prime and [Link] 9 allow remote access to data.

17. What significant feature does Tally Prime introduce to improve data security compared to
[Link] 9?

Role-based access control

18. What is the primary reason for Tally Prime's introduction, despite the existence of [Link] 9?
To provide an updated, modernized version with enhanced features
19. Which is the authenticated website to download the installation file for Tally Prime?
[Link]
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

[Link] 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


101. The user cannot create a ledger master while recording a sales or purchase transaction in Tally
Prime.

FALSE

102. What is the shortcut key to access sales invoices in Tally?

F8 Sales

103. To record the supply of trading goods, which of the transactions is suitable to use in Tally
Prime?

Item Invoice Mode

104. To update separate buyer and consignee details while recording sales transactions, the user
should enable the option at ___________.

F12 Configuration Page

105. While recording sales transactions, the cursor is not moving to the date field. What could be the
reason?

The skip date field option is set to Yes under the F12 Configure page
106. Which of the shortcuts is needed to alter any master while recording a transaction in Tally
Prime?

CTL+Enter
107. Which of the following can be used to describe or provide additional information about a stock
item while recording a sales transaction?

Item Description
108. Which of the shortcut keys is used to access calculator while recording transaction in Tally
Prime?

CTN+N
109. While recording inventory cash purchase, supplier details can be updated _________.
under the party details page
110. Education mode of Tally license allow you to record voucher dated on _________.
All of the above
111. What is a debit note in accounting?
A document sent by a buyer to a seller to request a reduction in the invoice amount
112. When is a debit note typically issued?
When a company wants to reduce its expenses
113. Which of the following is the primary purpose of a debit note?
To adjust an overcharged amount on a previous invoice
114. In a debit note, which account is typically debited?
Accounts Payable

115. What is the effect of a debit note on the recipient's financial records?
It increases the recipient's liabilities.
116. Which type of transaction is not typically associated with a debit note?

Paying employee salaries

117. What information is commonly included in a debit note?

Details of goods returned to a supplier

118. In accounting, a debit note is often used in conjunction with which other document?

Sales invoice
119. What is the purpose of the "Reason for Debit Note" field in a debit note document?

To explain the reason for the debit note issuance

120. Which party usually initiates the issuance of a debit note in a business transaction?

The seller or supplier

121. Financial Statement Reports includes ________.

All of the above

122. Which financial statement provides a snapshot of a company's financial position at a specific
point in time?
Balance Sheet
123. What does the Income Statement (Profit and Loss Statement) report?

A company's revenues, expenses, and net income or loss over a period

124. Which of the following statements displays the liabilities and assets of the business for a
specific period?
Balance Sheet
125. Which of the following statements displays business net profit for the year?

Profit and Loss Statement

126. Which of the following is not one of the main financial statements typically prepared by a
company?

Purchase Voucher
127. What is the primary purpose of financial statements in accounting?
To summarize a company's financial performance and position
128. How to access the balance sheet report in Tally Prime?

Gateway of Tally >> Balance Sheet

129. How to access the profit and loss statement in Tally Prime?

Gateway of Tally >> P&L Statement

130. How to access the trial balance report in Tally Prime?

Gateway of Tally >> Display More Reports >> Trial Balance

131. Which of the following reports in Tally Prime displays all the voucher transactions recorded in
the books of accounts for the specified period?

Daybook
132. Which of the following keys is not available under the daybook report in Tally Prime?

ALT I - Duplicate Voucher

133. Which of the options should be used to view the daybook report for a specified voucher in Tally
Prime?

Press F4 - Change Voucher

134. A daybook report in Tally Prime can be exported in __________ format.

All of the above

135. Press ________ to export the financial report in Tally Prime.

ALT E – Export
136. Press _______ to print the report and voucher in Tally Prime.

ALT P – Print
137. How to extract sales registers in Tally Prime?

Gateway of Tally >> Display more reports >> account books >> sales register
138. Which of the shortcut key buttons will you use to generate a columnar sales register?

ALT -F8
139. What is the Sales Register in Tally Prime used for?

To record sales transactions

140. In the Sales Register, what information is typically displayed?

Sales transactions, including invoice numbers, dates, and amounts

141. What are the benefits of maintaining the bill-wise feature in Tally Prime?

All of the above

142. The enable billwise feature option is generally applicable to ______.
A and B both
143. There are a total of __________ different types of bill references available in Tally Prime.

4.00
144. While recording a sales or purchase invoice, we should select ____________ as a bill
reference.

New Reference
145. Against bill reference is generally used to _________.

record payment or receipt against invoice

146. When billwise reference details are not applicable or available, the user should use
___________.

On Account
147. Which of the billwise references should be avoided to extract the complete billwise outstanding
balance?

On Account
148. Which of the following bill-wise references should be used to make payment against the sales
invoice?

Against Reference
149. The billwise feature is activated by default under the company's F11 feature.
TRUE
150. The Billwise feature can also be activated for non-trading accounts in Tally Prime.

TRUE
151. The user can select multiple bill references under bill allocation while recording receipt
transactions.

TRUE
152. Press ______ to view the age-wise outstanding report under the bill-wise ledger report.
F6
153. How will you view bill-wise details under the party ledger report in Tally Prime?

Press F5 bill-wise
154. Which of the following bill references should be used while recording payment or receipt
against the outstanding balance?
Against Reference
155. Which of the following is not a bill reference in Tally Prime?

Bill Reference
156. Which of the following options should be used to configure bill-wise detail for non-trading
account ledgers in Tally Prime?

CLT+I - More details

157. Invoices raised with on-account bill references will be displayed under ___________.
None of the above
158. The invoice booked from the supplier will be reported under ________.
Payable Report
159. Invoices raised with customers will be reported under __________.
Receivable Report
160. An advance receipt from the customer will be displayed under ___________.

Payable Report
161. Which of the following is not a banking transaction in Tally Prime? ?

UPI
162. Banking utilities in Tally Prime is/are ___________.
All of the above
163. The _________ feature in Tally Prime facilitates maintaining and recording business financial
transactions.

Banking
164. What does the "Bank Allocation" feature in Tally Prime allow you to do?

Allocate funds to specific bank accounts

165. Which Tally Prime report provides an overview of all banking transactions, including deposits
and withdrawals?

Cash and Bank Balance Report

166. How can you record a bank deposit in Tally Prime?

By creating a receipt voucher

167. What is the purpose of configuring bank details in Tally Prime's banking feature?
To link bank accounts to specific vouchers
168. In Tally Prime, what type of transactions can you record using the banking feature?
Bank deposits and withdrawals
169. Which module in Tally Prime allows you to access the banking features?
Accounts
170. What is the primary purpose of the banking feature in Tally Prime?
To track and record banking transactions
171. With reference to the given snapshot, identify the incorrect statement.
The sales ledger account will be reported under assets on the balance sheet
172. With reference to the given snapshot, this is a __________ transaction.
Cash Sales
173. With reference to the given snapshot, supplier detail information is updated at
__________.
Party details page
174. With reference to the given snapshot, what is the available balance under the bank ledger?
Rs 550600/-

175. With reference to the given transaction snapshot, this is a _______ transaction.
Cash Purchase
176. Which of the options under the displayed page will be used to update the contact
information in the ledger?
Provide Contact Details
177. Which of the options will help to configure the printing of cheque for payment transactions
in Tally Prime?
Enable Cheque Printing
178. Which of the pages is displayed in the given Tally Prime Snapshot?
Account Ledger Creation
179. The banking menu option on the Gateway of Tally serves _______.
All of the above
[Link] should be the transaction mode to print a cheque for a payment voucher in Tally Prime?

Cheque
181. ________ helps you manage your cheque books for various banking transactions.
Cheque Register
182. With reference to the given snapshot, press ______ to change vendor master for payment
advice.
F4
183. With reference to the given snapshot, the displayed page is __________.
Payment Advice
184. How would you access the payment advice report in Tally Prime?
Gateway of Tally >> Banking >> Payment Advice

185. Payment advice is generally applicable in the case of _________.

Payment Voucher
186. ___________ copy is an acknowledgement document for payments made to suppliers or any
other parties.
Payment Advice

187. What is the primary purpose of creating payment advice in Tally Prime?
To notify vendors of upcoming payments
188. What information is typically included on a printed payment advice note using Tally Prime's
payment advice feature?

Payment date, mode, and details

189. In Tally Prime, what is the purpose of the "Payment Advice Register" report?
To track payment advice notes and their status
190. Which type of businesses or organizations can benefit the most from using the payment advice
feature in Tally Prime?

Any business that regularly issues payments to vendors

1
301. _____________ is the systematic process of transferring raw materials into finished goods.

Manufacturing

302. The manufacturing process involves __________.

All of the above

303. The main objective of the manufacturing process is/are __________.

All of the above

304. BOM stands for __________.

Bill of Materials
305. __________ is a list of constituent items along with quantity details that can be allotted for
manufacturing.

Bill of Materials
306. The Bill of Materials facilitates automatic ________ in stock of the item.

Reduction
307. ____________ includes the process of listing raw component materials for the production of
finished goods.

Bill of Material
308. The manufacturing process is a\an _____________ in Tally Prime.
Inventory Feature
309. How to activate the manufacturing process in Tally Prime?
Create a manufacturing voucher under the stock journal
310. The manufacturing journal voucher should be created under ___________.

Stock Journal
311. Which of the following inventories was used for production?

Raw Material
312. __________ is the process of converting component materials into finished products.

Manufacturing
313. Tally Prime ___________ helps to process and implement the manufacturing cycle.

Inventory Feature
314. Which of the options should be enabled under the godown creation page to store inventories at
Other Location?

Our stock with a third party

315. Which of the options should be enabled under the godown creation page if materials from other
parties are stored at our godown?

Third-party stock with Us

[Link] default stock journal voucher in Tally Prime can be used as a manufacturing journal.

TRUE
317. A manufacturing journal voucher is used for ________.

Stock Production
318. Under ___________, finished goods quantity increases and raw component quantity
decreases.

Manufacturing Journal
319. Under _________, the closing quantity of inventories remains unchanged.

Stock Transfer
320. Which voucher should be used when finished goods are supplied to customers?

Sales Invoice
321. Standard component materials are configured under ________ for the manufacturing process. BOM Bills
of Material
BOM Bills of Material

322. Batch-wise production helps to track _________ in Tally Prime.

All of the above

323. What is a batch in Tally Prime?

A group of inventory items with similar attributes

324. How to activate the batchwise feature in Tally Prime?

F11 Company Feature

325. In Tally Prime, what information is typically associated with a batch?

Manufacturing date and expiration date

326. Batchwise details can be defined at __________.

All of the above
327. What report in Tally Prime provides information about the quantity and value of items in a specific
batch?

Stock Summary
328. What does the "Batch Register" report in the Tally Prime display?

Batch-wise information for inventory items

329. What does "Batch-Wise Details" represent in Tally Prime's inventory management?

Detailed data on inventory items by batch

330. In Tally Prime, which voucher type is used to record the adjustment of inventory quantities due to
damage or loss in a specific batch?

Stock Journal
331. Integrating accounts with inventory features helps to integrate the closing balance of accounting ledgers
and ____________.

Inventories

332. Integrate accounts with inventory feature should be activated from _______.

F11 Company Feature

333. If the integrate accounts with inventory feature is not activated, then ___________.
The closing stock balance will not be added under the financial statement

334. Enabling the option to integrate accounts with inventory in the F11 feature will reflect on ____________.

A and B both

335. Closing Stock balances are included under ___________.

A and B both
336. A Tally user can also drill down on the stock register from the balance sheet.

TRUE
337. Stock in Hand Ledger allows users to update inventory balances manually periodically.

TRUE
338. A __________ is a reduction in the original price or cost of a product.

Discount
339. Which of the following discount types is offered by business entities to their customers?

All of the above

340. Which of the discounts is generally offered in cases of instant payment by buyers? Cash Discount
341. POS voucher stand for __________

Point of Sales Voucher

342. A POS voucher is a kind of _______ voucher.

Sales Voucher
343. A POS voucher is generally used for ________.

Walkin Customers
344. Which of the following is not a default voucher in Tally Prime?

POS Voucher
345. A POS voucher should be created under _______.

Sales Voucher
346. Tally's POS module is designed to help businesses manage their __________.

Retail Transaction
347. Which of the following modes of payment is not available under the POS voucher?
UPI
348. If a POS voucher transaction is set up using a discount coupon, then _______ payment mode should be
used.

Gift Voucher
349. Which of the key combinations should be used to toggle between single-mode and multi-mode payments
in a POS voucher?

ALT+I
350. Which of the following information is not mandatory to fill out while recording a POS voucher in Tally?
Party Name
351. ___________are used to automate accounting allocations in transactions.

Voucher Classes
352. The voucher class is a table for __________ the entries to make invoice entry a simple task.

Predefining
353. Voucher classes are generally useful in ________.

Sales Invoice
354. Voucher classes can be configured for ___________.

All of the above

355. Voucher class setup can be configured at ___________.

Voucher Alteration
356. __________ can be predefined while configuring the voucher class for the sales invoice.

Accounting Ledger
357. Tally allows you to create multiple voucher classes for a particular voucher.

TRUE
358. Which of the fields describes the summary of a transaction recorded in books?

Narration
359. The company's multiple addresses can be configured at _______.

Company's F11 Feature

360. The address defined while creating company data in Tally Prime is known as __________.

Primary Address
361. Company data security can be enabled at __________.

Company Creation/Alteration Page

362. Which of the options should be enabled to set login control for data?

Enable Control User Access to company data

363. The user login created at the time of company creation is also called as _________.

Administrator Login
364. With the help of ___________ login, we can setup different permissions for all other Tally users.

Administrator
365. Which of the following security controls helps to encrypt company data?

Tally Vault
366. How will you activate the security control feature while creating company data in Tally Prime?

Press F12 Configuration on the company creation page

367. The company creation F12 configuration page helps to activate___________.

All of the above

368. How will you change the administrator login password for company data in Tally Prime?

Go to ALT K - Company Info

369. Which of the following shortcut keys will you use to access company information for tab?

ALT+C – Company
370. It is mandatory to enter an old password while changing or updating a new password in Tally Prime.

TRUE

371. ___________ is a feature in Tally Prime that will help businesses maintain the confidentiality of
information by encrypting the date.
Tally Vault
372. Which of the following is the most secure way to protect data?

Use the Tally Audit Feature

373. If a company name is not listed under the select company list, then _________.

Data is encrypted with a Tally Vault Password

374. Which of the following is a benefit of a Tally Vault password?

All of the above

375. Which of the following is not a benefit of a Tally Vault password?

Data Sharing
376. The Tally Vault password can be activated at _______.

Company Creation/Alteration Page

377. Which of the security levels allows users to set user roles?

Tally Administrative login

378. The user can permanently lose access to data if they lose __________.

Tally Vault Password

379. Which of the following security controls is unsurpassable in Tally Prime for accessing company data?

Tally Vault Password

380. Tally vault passwords cannot be set until administrative logins are configured in company data.

FALSE

381. Can a child company within a Group Company have its own unique chart of accounts?

Yes, each child company can have its own chart of accounts
382. How does the 'Alter' option in the Gateway of Tally function in a Group Company setup?

It provides access to alter the details of the child companies

383. What is the purpose of the 'Group Summary' report in Group Companies?

To show consolidated financial data for all companies in the group

384. Can you have different financial years for individual child companies within a Group Company?

Yes, each child company can have its own financial year
385. What does the 'Intercompany Transactions' feature facilitate in Group Companies?

It automatically reconciles transactions between child companies

386. How can you switch between different child companies within a Group Company in Tally Prime?

By selecting the desired company from the List of Companies

387. What happens when you create a Group Company in Tally Prime?

It establishes a hierarchical structure with multiple child companies

388. In a Group Company setup, what term is used to refer to individual companies under the group?

Child companies
389. How can you access the Group Company feature in Tally Prime?

On the company alter

390. What is the primary purpose of the Group Company feature in Tally Prime?
To create multiple companies under a common umbrellaation page
391. _____________ in Tally Prime refers to the process of efficiently handling and organizing data within the
software.

Data Management
392. The data management task includes __________.
All of the above
393. Data management in Tally Prime includes _________.
All of the above
394. Which of the options helps to secure your data in Tally Prime?
Data Backup
395. __________ is the process to restore a backup data file in a selected folder.

Data Restore
396. The __________ options helps troubleshoot data-related issues in Tally.

Data Repair
397. The _________ option helps you convert your tally data from a lower version of Tally to a higher version
of Tally.

Data Migration
398. The _____________ option is used to configure Tally data location in software.

Data Path
399. _______ is the location where backup data is stored.

Backup Destination Path

400. It is mandatory to enter the Tally vault password while processing data backups in Tally Prime.

TRUE
401. How would you access the export configuration page in Tally Prime?

Press ALT+E - Export – Configuration

402. Press ________ to import data or a master from the Gateway of Tally.

ALT+O
403. Press ________ to export data or a master from the Gateway of Tally.

ALT+E
404. Which of the formats is supported for data interchange in Tally?

.XML format
405. Which of the formats is supported for exporting data in Excel format from Tally?

.XLS format
406. Key features of data export in Tally Prime _________

All of the above

407. Which of the extension formats should be used for data export to publish online?

HTML format
408. Tally data can also be exposed as raw data, which is called _________.

CSV format
409. Tally data can be exported in _________ format.

All of the above

410. The _________ feature in Tally Prime is a powerful tool that allows users to extract and save
data from Tally in various formats for external use or analysis.

Data Export
411. What is required to enable remote access in Tally Prime?
[Link] subscription
412. How is [Link] different from traditional methods of accessing Tally data?
It allows real-time remote access to Tally data
413. Which option in Tally Prime facilitates remote access?
[Link]
414. What is the primary purpose of the remote access feature in Tally Prime?
Accessing Tally data from a remote location
415. What are the important criteria for the remote access feature in Tally Prime?
All of the above
416. Important key features of the Tally Remote Access feature ________.
All of the above
417. To connect Tally data remotely, the user should have _________.

Internet Connection
418. Which of the options will not be available under the Tally Remote Access feature?

Import Data
419. With the help of Tally Remote Access, users can _________.

All of the above

420. The _________ feature in Tally Prime allows you to access Tally Prime to work from home or
anywhere.

Remote Access
421. ___________ is the process of calculating and disbursing compensation and benefits to
employees of a company.

Payroll
422. The payroll process includes the financial aspects of managing employee salaries, wages,
bonuses, and ___________.

Deductions
423. _______ includes gathering details about employees' work hours, attendance, overtime, and
other information.

Collecting Employee Information

424. The net pay calculation is the amount that gets computed as ____________.

Total Earning Less Deductions

425. Employee information details include _________.

All of the above

426. Earnings heads of payment structure includes ________.

All of the above

427. Which of the following is not an earning type under the payroll structure?

Income Tax
428. Deductions and withholdings in the payroll structure includes __________.

All of the above

429. The payroll feature can be activated from ________ in the tally data.
F11 Company Feature
430. The payroll statutory details page allows users to update _________ in company data.
All of the above
431. What is the first phase of the payroll cycle?
Data Collection
432. In the context of the payroll process, what does the term "net pay" refer to?
Earnings After Deductions
433. Which document is typically provided to employees, summarizing their earnings and
deductions?

Payslip
434. In the payroll process, what is the significance of gross pay?
Total Earnings Before Deductions
435. Which statutory compliance is typically managed within the payroll process?
All of the above
436. Which of the following is a pre-requisite for initiating the payroll process?
Employee Attendance Data
437. What does ESI stand for in the context of payroll processing in Tally Prime?
Employee State Insurance
438. What is the purpose of the Attendance Voucher in Tally Prime's Payroll feature?
To record employee attendance
439. Payroll vouchers are ____________.
All of the above
440. What is the primary purpose of the payroll feature in Tally Prime?
Employee Salary Processing
441. The revised salary structure for employees can be updated under __________.

All of the above

442. While defining the revised salary structure, Tally will allow the user to define the revised salary
structure using the start type as __________.

A and B both
443. Which of the following payheads can be configured as variable income types?

All of the above

444. Overtime payhead should be configured as the ________ calculation type.

On Production
445. Which of the following payheads should be configured under current liabilities?

Salary Payable
446. Which of the following is a statutory deduction payhead?

Professional Tax
447. _________ is the process of a set salary structure of an employee in data.

Defining Salary
448. While processing payroll vouchers in Tally data, the narration for payroll vouchers gets auto-
populated.

TRUE
449. Attendance vouchers are not considered if payhead masters are configured based on the
_________ calculation method.

A and B both
450. What document summarizes an employee's earnings and deductions for a specific pay period?

Payslip
451. GST stands for __________.

Goods & Service Tax

452. GST is a/an ___________ that has replaced many applicable taxes in India.

Indirect Tax
453. GST was applicable from _________ in India.

1st July 2017

454. GST is a comprehensive, multi-stage __________ tax that is levied on every value addition.

Destination base
455. Taxes applicable prior to GST, which have been replaced by GST __________.

All of the above

456. Taxes that have not been subsumed under GST compliances.

Custom Duty
457. Which of the taxes was applicable to the exhibition of movies, sporting events, and other forms
of events?

Entertainment Tax
458. Which of the following taxes was levied in cases of cross-border sales of goods prior to GST?

Central Sales Tax

459. The tax components of GST are ____________.

All of the above

460. CGST stands for __________.

Central Goods & Service Tax

461. GST liability ledger to be created under _______

Duties & Taxes

462. GST registration details are to be updated under ________.

F11 Company Feature

463. Which of the details should be updated while filling out the GST registration page in company
data?

All of the above

464. While creating a GST party ledger master in Tally data, the user should update the GST
registration type to ________.

Any of the above, as per registration

465. HSN details should be entered while creating _______.
Stock Item Master
466. The service accounting code should be updated for _________.
Service Income Expense Ledger
467. While creating the party ledger master, if the GST registration number mismatches as per the
selected state of the party master, Tally will display a warning message of a mismatch.

TRUE
468. GST rates can be defined as ________.

All of the above

469. A business may register under GST compliances based on __________.

All of the above

470. Threshold limit of business registration under GST compliance for trader of goods _________.

Rs 40 Lakhs
471. What is the significance of the Input Tax Credit (ITC) for a Regular Registered Dealer?

Allows offsetting taxes paid on purchases against taxes collected on sales

472. What does the term "GST Composition" refer to in Tally Prime?

Composition Scheme for Small Taxpayers

473. Which of the methods for GST ledger creation should be used for liability on sales?

Any of the
474. What is the significance of the GSTIN (Goods and Services Tax Identification Number) in Tally
Prime?

Unique Identification for GST Compliance

475. Which type of GST master is created for tracking interstate transactions in Tally Prime?
Integrated GST (IGST)
476. In Tally Prime, what role does the "Tax Type" play when creating a GST master?
Specify the Type of Goods or Services
477. How can you verify the correctness of the GST master setup in Tally Prime?
Reviewing the Chart of Accounts
478. What is the eligibility criteria for a taxpayer to be classified as a Regular Registered Dealer
under GST?

Engaged in both intra- and interstate transactions

479. In the GST system, what is the primary responsibility of a Regular Registered Dealer?
Collect and remit GST on outward supplies
480. Under GST, how often does a Regular Registered Dealer need to file GSTR-1 (Outward
Supplies) returns?

Monthly
481. Which document is crucial for recording intrastate supply transactions in Tally Prime to comply
with GST regulations?

Tax Invoice
482. _________ is applicable where goods or services are taxable.
Tax Invoice
483. _________ is applicable where goods or services are not taxable.
Bill of Supply
484. What is the impact of intrastate supply on the SGST and CGST ledgers in Tally Prime?
Both SGST and CGST are applicable
485. What is the purpose of the "Place of Supply" field in an intrastate sales voucher in Tally Prime?
To identify the buyer's location
486. Which tax ledgers are affected when recording an intrastate purchase transaction in Tally
Prime?

CGST and SGST

487. In Tally Prime, what is the significance of the reverse charge mechanism in the context of
intrastate supply?

It shifts the responsibility of tax payment from the supplier to the recipient
488. Which of the following GST ledgers should be selected while recording intrastate inward
supply?

Input CGST + Input S

489. GST Inward supply of service transactions should be recorded under _________.
Purchase Voucher - Account Invoices Format
490. While recording the inward supply of goods under the purchase voucher, which detail is
important from a reconciliation perspective?

Supplier Invoice Number

491. If goods worth Rs 28000/- are supplied from Nagpur to Jaipur (Rajasthan) with a rate of GST of
12%, then which of the following tax components will be applicable?

IGST - 3360/-
492. Details of outward supply should be reported under __________.
GSTR1
493. The summary of outward and inward supply should be reported under ________.
GSTR3B
494. Which of the following is not a return to be filed?
GSTR2
495. Composite dealers should be based on quarterly turnover.
CMP-08
496. ________ is a form of notice and reminder sent to tax payers on account of non-filing of GST
returns within the due dates.

GSTR3A
497. The __________ report autopopulates purchase invoices based on invoices filed by suppliers
under GSTR1.

GSTR2A
498. Which return is to be uploaded by NRI taxpayers?
GSTR5
499. The GSTR3B return report includes __________..

All of the above

500. Under the GST export invoice concept, LUT stands for ___________.
Letter about Undertaking
501. Which of the following vouchers should be used to record outward intrastate supply in Tally
Prime?

Sales
502. Which of the following vouchers should be used to record inward interstate supply in Tally
Prime?
Purchase
503. GST statutory adjustment transactions should be recorded under the ___________ voucher in
Tally Prime.

Journal
504. Use the __________ key combination to access the stat adjustment journal voucher.
ALT+J
505. Liability for reverse charge supply can be viewed under ________.
GSTR3B Report
506. Which of the following nature of adjustments should be selected to record ITC and liability on
reverse charge supply?

Increase in tax liability and input tax credit

507. Tax liability under the reverse charge mechanism needs to be paid in cash only; hence, it is
necessary to create separate RCM ledgers in Tally Prime.

TRUE
508. Which of the following inward supplies attracts reverse charge tax liability under GST?

All of the above

509. The _________________ option helps to view GST applied to sales or purchase transactions
in Tally Prime.
GST Analysis

[Link] and SGST tax balances (ITC or liability) cannot be set off with each other.

TRUE
511. What is the primary function of a Journal Voucher (JV) in accounting?

FALTo capture financial transactions and maintain accurate financial [Link]

512. Journal Vouchers are used to send invoices to clients.

FALSE
513. What is the main purpose of creating an 'Item Master' in Tally?

To define and categorize specific items for accounting purposes.

514. Which option in Tally should a user select to create an 'Item Master'?
Inventory Info
515. In Tally, which of the following is a major component involved in Advance Payment
transactions?

Payment Amount
516. What does recording an advance payment as a credit to a liability account named 'Advance'
indicate?
The company has an obligation to deliver the goods or services in the future.
517. Advance payment is made after goods or services are provided based on mutual agreement.

FALSE
518. What is the significance of expense booking against advance payment?

Recording expenses after receiving an advance payment.

519. What does recording an advance payment in a liability account indicate?

The company has an obligation to deliver the goods or services in the future.

520. What is the primary function of the 'TDS Liabilities Payment' process in Tally?
To record the taxes deducted at source and payable to the government.

521. Why is it essential for businesses to manage multi-branch accounting efficiently?

To ensure consistency and accuracy across branches.

522. What is the primary goal of adhering to GST and TDS regulations in multi-branch accounting?
To comply with legal and financial standards.
523. What benefits can a company derive from transparent financial reporting in multi-branch
accounting?

Enhanced investor trust.

Improved decision-making.

Compliance with financial regulations.

524. What is the initial step in setting up multi-branch features in Tally Prime?
Creating a new company.

525. Which key in Tally Prime is used for creating a new company?

F3
526. What is the significance of activating the "Maintain Accounts" feature in Tally?

It allows for inventory management.

It enables the tracking of financial transactions.

It facilitates multi-branch accounting.

527. What does an "Inventory Inward Transaction" typically represent in business accounting?
Receipt of goods from suppliers.
528. Which document is essential for recording an Inward Transaction of Inventory in the books of
accounts?

Purchase Invoice
529. Why is creating an item master crucial for the Inward Inventory Transaction process?

To keep track of inventory levels.

To standardize item descriptions across transactions.

530. For which branch operations is the "Inventory Inward Transaction" primarily recorded in this
topic?
Mumbai Branch

531. What does the year-end transaction summary provide?

A comprehensive overview of all financial transactions during a specific accounting period.
532. Which of the following steps are mentioned in the process of accessing the year-end summary
report in Tally Prime? (Choose 2)

Open Tally Prime.

Gateway of Tally will appear.

533. What does depreciation on fixed assets signify?

The division of the cost of a physical item over its period of use in business.
534. What is included in the "Cost of the Asset" for depreciation?

Purchase price, delivery charges, installation fees, and legal costs.

535. Which of the following factors are considered when estimating the "Useful Life" of an asset?
(Choose 2)
Wear and tear of the asset.
Technological advancements.
536. What does a write-off on fixed assets imply?
Recognizing and recording the reduction in the book value of a fixed asset.
537. What is the first step in the process of writing off fixed assets in Tally Prime?

Creating a Fixed Asset Ledger.

538. What is the primary purpose of creating provisions in business?

To cover future potential costs or liabilities.

539. How are provisions recorded in financial statements?

As current liabilities on the company's balance sheet.

540. Which of the following statements are correct about provisions? (Choose 2)
Provisions help in managing future obligations.

They provide a more accurate representation of the company's financial health.

541. What is the primary purpose of a balance sheet?

To show the assets and liabilities of the company.

[Link] businesses tend to have simple balance sheets?

Small businesses.

543. Which of the following statements are true regarding a balance sheet?
It provides insights into the company’s financial status to stakeholders.

It aids in understanding business liquidity.

544. What does a Profit and Loss statement primarily sum up?

The revenue generated, and expenses incurred by a business.

545. Why do companies maintain a profit and loss account?

To get a clear understanding of their financial position at the end of a financial year.

546. Which of the following statements are true regarding the Profit & Loss account?
It records transactions either on a cash basis or accrual basis.
547. What is the primary purpose of a Group Voucher?

To get details of all the vouchers in a specified group together.

548. Under which category would multiple Bank Accounts typically fall?

Bank Accounts.

549. Which of the following statements are true regarding Group Vouchers?
They assist in getting details of all the vouchers in a specified group.

550. When is a Contra voucher used in Tally Prime?

When the transaction is between a Cash Account & Bank Account, resulting in the same balance of
funds.
551. What is the main objective of the 'Stock Item Report' in Tally?

To provide details of all stock items along with their closing balances.
552. Which of the following details can be viewed in the 'Stock Item Report'?

Inventory details and closing stock balances.

553. The 'Stock Item Report' in Tally is used to manage and categorize different types of payments.

FALSE
554. What is the primary purpose of the 'Godown Report' in Tally?

To provide details of stock items in a specific godown or location.

555. In the 'Godown Report', which details can be viewed for each godown?

Stock items and their quantities in the godown.

556. The 'Godown Report' in Tally is primarily used to view employee details of a company.

FALSE
557. What is the main objective of the 'Stock group & Category Summary' report in Tally?

To provide a summarized view of stock items based on groups and categories.

558. Which of the following details can be derived from the 'Stock group & Category Summary'
report?

Total stock quantity and value based on groups and categories.

559. The 'Stock group & Category Summary' report in Tally is used to view company's financial
statements.

FALSE
560. What kind of information can be accessed through the 'Stock Query Report' in Tally?

Detailed information about a specific stock item.