Challenging Tally Accounting Quiz

A fax machine is considered a fixed asset because it is a long-term, tangible asset that is used in the day-to-day operations of a business. Fixed assets are typically not intended for resale and are expected to provide economic benefits for more than one year. In contrast, current assets are short-term assets that are expected to be converted into cash within one year. A fax machine does not fall under the category of a current asset.

F2 is the function key for changing the date. This key is commonly used in software applications and operating systems to allow users to modify the current date. By pressing the F2 key, users can access a date field and make changes to the day, month, and year. This key is often used in spreadsheet programs, file managers, and other applications where date input is required.

VAT stands for Value Added Tax, which is a consumption tax levied on the value added to goods and services at each stage of production and distribution. It is an indirect tax that is ultimately borne by the end consumer. This tax is commonly used by governments around the world as a way to generate revenue and fund public services.

The beginning date of the financial year is typically on 1st April. This is the date when many organizations and governments start their financial accounting for the year. It allows for a consistent and standardized approach to financial reporting and planning. Starting the financial year on 1st April also aligns with the calendar year for ease of record-keeping and analysis.

Rates & Taxes come under the Duties & Taxes group because rates refer to the charges or levies imposed on certain goods or services, while taxes are the compulsory payments made by individuals or businesses to the government. Both rates and taxes fall under the category of duties and responsibilities that individuals or businesses have towards the government in terms of financial obligations. Therefore, Duties & Taxes is the correct group for Rates & Taxes.

The given options are Contra, Payment, Capital, and Receipt. Contra, Payment, and Receipt are all voucher types commonly used in accounting. However, Capital is not a voucher type. Voucher types typically represent different types of transactions or documents used in accounting, such as contra vouchers for cash transfers within the same bank, payment vouchers for recording payments made, and receipt vouchers for recording money received. Capital, on the other hand, refers to the funds invested in a business by its owners and is not a specific type of voucher.

Contra entry is used for transactions involving Cash and Bank. This means that when there is a transfer of funds between a company's cash account and its bank account, a contra entry is made. This is done to record the movement of money within the company's own accounts and to ensure accurate bookkeeping. Contra entries are commonly used for activities such as cash withdrawals, cash deposits, bank transfers, or any other transaction that involves the movement of funds between the cash and bank accounts.

The given answer "Occasional account" is not an account type because it does not exist in the standard classification of accounts. Personal accounts, real accounts, and nominal accounts are the three main types of accounts used in accounting. Personal accounts represent individuals or entities, real accounts represent tangible assets, and nominal accounts represent revenues, expenses, gains, and losses. However, "Occasional account" is not a recognized account type in accounting.

Alias is a simple mechanism to call an account by another name. This means that an alias allows you to use a different name to refer to an account, without changing the actual account name. This can be useful in situations where you have multiple accounts with similar names or when you want to create a more user-friendly name for an account. By using an alias, you can easily identify and access the desired account without confusion.

The given options are different categories or types of software. Tally is a software that falls under the category of computerized accounting. This means that Tally is a software program specifically designed for accounting purposes and is used to automate and streamline accounting processes.

Cheques cannot be printed in a Quick Format because they require specific information such as the payee's name, amount, and signature, which cannot be easily generated through a quick printing process. Cheques need to be filled out manually or through specialized software that allows for accurate and secure printing. Quick Format printing is typically used for standardized documents that do not require individualized information like cheques do.

The correct answer is B. In a balance sheet, the shortcut key to activate the value is B. This means that pressing the B key on the keyboard will activate or select the value in the balance sheet. This shortcut can be used to quickly navigate and select different values in the balance sheet without having to use the mouse.

Alias is a simple mechanism to call an account by another name. It allows users to assign a different name to an account, making it easier to identify and reference. This can be useful when dealing with complex or lengthy account names, as it provides a more convenient and user-friendly way to refer to the account. By using an alias, users can quickly and easily access the desired account without having to remember or type out the full account name.

To create a company, two essential pieces of information are required: the name of the company and the financial year. The name of the company is necessary to identify and differentiate it from other businesses, while the financial year is important for accounting and reporting purposes. The financial year determines the period in which the company's financial statements will be prepared and audited. Therefore, both the name of the company and the financial year are must-have information to establish a company.

A balance sheet can be made from a trial balance because the trial balance provides a list of all the accounts and their respective balances. The balance sheet is a financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time. By taking the account balances from the trial balance and organizing them into the appropriate categories, such as assets, liabilities, and equity, a balance sheet can be prepared. The balance sheet provides a snapshot of the company's financial position and is an essential tool for analyzing its financial health.

Closing stock appears in the Balance Sheet. The Balance Sheet is a financial statement that shows a company's financial position at a specific point in time. It consists of assets, liabilities, and equity. Closing stock is considered an asset because it represents the value of unsold goods or inventory at the end of an accounting period. Therefore, it is included in the Balance Sheet to provide an accurate representation of the company's assets and their value.

Cash in hand and bank account balance helps in making payment decisions. Having cash in hand and a healthy bank account balance ensures that a business has enough funds to meet its payment obligations. It allows the business to make timely payments to suppliers, creditors, and employees, thereby maintaining good relationships and avoiding any penalties or late fees. Additionally, monitoring cash in hand and bank account balance helps in determining the available funds for making payments and managing cash flow effectively.

A delivery note is considered a pure inventory voucher because it is used to document the transfer of goods from one location to another. It serves as proof of delivery and provides details about the quantity and condition of the items being transferred. Unlike the other options listed, such as cash paid creditor, material rejection entry, and expenses, a delivery note specifically relates to inventory management and is used to update inventory records.

The statement "In each & every entry Debit & Credit balance must be equal" is true. This is a fundamental principle of double-entry bookkeeping, where every transaction must have equal debits and credits. This ensures that the accounting equation (Assets = Liabilities + Equity) remains balanced. However, this principle does not apply to contra entries, which are used to offset or cancel out previous entries. In contra entries, the debit and credit amounts may not be equal. Therefore, the correct answer is that the above statement is true.

The correct answer is "Opening". The Trial Balance contains the opening balance of all accounts. This means that it includes the balance of each account at the beginning of the accounting period. The Trial Balance is used to ensure that the total debits equal the total credits in the accounting system, and the opening balances are an important part of this reconciliation process.

A tracking number is used in stock item transactions to keep a record of the movement and location of the item. It helps in tracking the item from the time it is received in the inventory until it is sold or used. This number allows for easy identification and monitoring of the stock item, ensuring efficient inventory management and accurate record-keeping.

The changes carried out in F12 are affected to that particular company only. This means that any changes made in F12 will only have an impact on the specific company in which they are made, and will not affect any other working companies.

The correct answer is Alt + F2. This shortcut key is used to change the period in Tally. By pressing Alt + F2, users can easily navigate to a different period or financial year within the Tally software. This shortcut saves time and allows for efficient navigation and management of financial data.

In personal accounts, the credit effect can go to either the giver or the taker, depending on the transaction. In this case, the correct answer is "The Giver," indicating that the credit effect goes to the person who is giving the money. This means that when money is being transferred from a bank account to another person, the giver's account will be credited.

The supplier of the company belongs to the "Sundry creditor" group in accounting. Sundry creditors are individuals or businesses that the company owes money to for goods or services received on credit. They are considered as liabilities for the company and are listed under the accounts payable section in the balance sheet.

All the options provided in the question are correct explanations of what Tally is. Tally is a package that can be used to maintain accounts only, maintain accounts with inventory records, and display detailed reports such as trial balance and balance sheet. Therefore, all the options are correct explanations of what Tally is.

In case of personal accounts, the receiver is debited. This means that when a personal account receives an amount, it is recorded as a debit entry in the books of accounts. This is because personal accounts represent individuals or entities to whom money is owed. When money is received from them, it increases their balance, hence the debit entry.

Capital A/C is a reserved group that goes to liabilities because it represents the owner's investment in the business. It is considered a liability because it represents the amount of money that the business owes to the owner. The capital invested by the owner is not treated as an expense but rather as a liability owed to the owner.

Sales purchase A/C groups are reflected in the Profit & Loss A/C. The Profit & Loss A/C is a financial statement that shows the revenues, expenses, and net profit or loss of a business over a specific period. Sales and purchases are considered revenue and expense transactions, respectively, and are therefore included in the Profit & Loss A/C. This statement helps to determine the profitability of the business and is an important component of the financial reporting of a company.

The given statement is true because Tally does provide the facility to fine tune our control of budgets over ledger accounts. Tally is a popular accounting software that allows users to set budgets for different ledger accounts and monitor their spending against those budgets. This feature helps businesses to effectively manage their finances and keep track of their expenses.

The Shift + R key is used to view next level details of the item on the same screen.

Duties & Taxes is considered as taxes in accounting groups because it represents the amount of money owed to the government as a result of various transactions and activities. It is a liability that needs to be paid in the future and is not classified as a current or fixed asset.

The balance sheet displays the exact financial position of the business on a specific date. It provides a snapshot of the company's assets, liabilities, and equity at a given point in time. This allows stakeholders to assess the company's financial health and make informed decisions. The balance sheet includes the balances of all individual accounts, including bank and cash balances, and provides a comprehensive summary of all ledger accounts.

A journal book is used to record all the non-cash transactions only. This means that it is specifically designed to document any transaction that does not involve the exchange of physical currency. This could include transactions such as credit sales, purchases made on credit, and any other non-cash forms of payment. By using a journal book, businesses can keep track of these transactions separately from cash transactions, allowing for easier organization and analysis of financial data.

A Memorandum Voucher is used to record an entry that may have an effect in the future. It serves as a reminder for the transaction and allows for proper documentation. This type of voucher is often used when there is a possibility of future adjustments or corrections needed in the accounts. It helps in maintaining accurate and up-to-date records by ensuring that no important transactions are forgotten or overlooked.

Manufacturing expenses are costs that are directly associated with the production of goods. These expenses include the cost of raw materials, labor, and overhead costs such as rent and utilities for the manufacturing facility. Therefore, manufacturing expenses fall under the category of Direct Expenses, as they are directly related to the production process.

In Tally 5.4, the option available for maintaining accounts is "Account only." This means that users can use Tally 5.4 specifically for managing and maintaining their financial accounts. It does not include options for managing inventory or any other functionalities.

Under the group "Multiple Ledgers" in accounting software, multiple ledgers can be created. This allows for the organization and management of different accounts and financial records separately. By creating multiple ledgers, businesses can easily track and analyze their financial transactions and maintain accurate and organized records for each ledger. This feature is particularly useful for businesses with multiple departments, branches, or projects that require separate accounting and reporting.

Negative stock is the correct answer because it is a type of exception report. Exception reports are generated when there are abnormal or unusual situations that require attention or action. Negative stock refers to a situation where the inventory count shows a negative quantity, indicating that more items have been sold or used than what is actually available. This is an exception that needs to be addressed and corrected, making it a type of exception report.

Tally is an accounting software that provides various options for managing and recording financial transactions. One of these options is the ability to post stock value from Inventory directly to the balance sheet. This feature is available in the Integrated Accounts & Inventory module of Tally. Integrated Accounts & Inventory allows for seamless integration between the accounting and inventory management functions, ensuring accurate and up-to-date financial reporting. With this module, businesses can easily track and manage their stock value, and reflect it in the balance sheet without the need for manual entries or adjustments.

Restoration of data refers to the process of keeping a copy of the data in another place. This is done as a precautionary measure to ensure that the data can be retrieved in case of any data loss or damage. By storing a copy of the data in a separate location, such as a backup server or cloud storage, it provides a means to restore the data if the original copy becomes inaccessible or corrupted. This helps to prevent data loss and ensures the availability of important information.

Term loans and other medium/long-term loans come under the Loans & Advances group. This is because term loans and other medium/long-term loans are types of loans that are provided by financial institutions for a specific period of time, usually more than a year. These loans are categorized as assets on the balance sheet and are part of the Loans & Advances group, which represents the amount of money that the company has advanced to others.

The correct answer is "Temporary Voucher which does not update any figure anywhere." This means that the optional voucher is a type of temporary voucher that does not make any changes or updates to any figures in any system or record. It is likely used for emergency purposes or special circumstances where a temporary voucher is needed without affecting any existing data.

Inventory management comprises of delivery in, delivery out, and inventory control. Delivery in refers to the process of receiving goods or materials into the inventory system, while delivery out involves the process of shipping or distributing goods from the inventory. Inventory control involves managing and monitoring the levels, locations, and movement of inventory items to ensure efficient and effective operations. Therefore, all of the mentioned options are part of inventory management.

The accounts of Buyer, Suppliers, Owners, Lenders, etc. can be classified as nominal accounts because they are related to expenses and income. These accounts represent transactions that occur during the normal course of business operations, such as purchases, sales, discounts allowed, etc. Nominal accounts are temporary accounts that are closed at the end of an accounting period and their balances are transferred to the owner's equity or retained earnings account. On the other hand, accounts of fixed and current assets, as well as bank, stock, and cash accounts, are classified as real accounts.

The correct answer is "Audit trail". An audit trail refers to a system or process that tracks and documents the sequence of activities or transactions in an accounting system. It allows for the tracing of financial transactions from the balance sheet to the voucher, ensuring transparency and accountability. The audit trail helps in identifying errors, fraud, or any irregularities in the financial records. It provides a comprehensive view of all the activities and changes made in the system, making it easier to review and verify the accuracy of the financial data.

The correct answer is "None of the above" because the question is asking about the availability of a limit on single payments. The options provided, which include Only Groups, Only ledger Accounts, and Group& Ledger, do not mention anything about a limit on single payments. Therefore, the correct answer is None of the above, indicating that the limit on single payments is not available for any specific category mentioned in the options.

The given correct answer for this question is "ALT + S". This key combination is used for TDS deduction.

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Expenses and losses always have a debit balance, not a credit balance. This is because expenses and losses are considered as decreases in assets or increases in liabilities, which are recorded on the debit side of the accounting equation. A credit balance is typically associated with revenue or income accounts, which represent increases in assets or decreases in liabilities. Therefore, the given answer is incorrect.