FINANCIAL ACCOUNTING

1. To transfer Rs5000/- from main cashier to petty cashier in Tally, we need to use ----------
--- function key
a) Receipt
b) Payment
c) Contra

Answer: c) Contra (Transfer of funds from one cash account to another, similar
as transfer of funds from bank to cashier or vice versa)

2. ---------------------- Account is to be linked to Capital Account in Tally.

a) Drawings
b) Current Liabilities
c) Fixed Liabilities

Answer : a) Drawings account will be considered as sub group under the main
group Capital Account

3. Furniture purchased worth Rs20000/-, we need to use ------------- function key.

a) Receipt
b) Payment
c) Journal

Answer : c) Journal – All transactions which are not purchase of goods but
purchase of assets have to be shown in the journal proper, hence furniture
purchased should be shown as a journal voucher using function key F7.

4. In Tally ----------------- Ledger Account is available by default.

a) Cash
b) Machinery
c) Furniture

Answer : a) Cash – Cash Account is available in Tally ERP 9 by default and so

we do not have to create a ledger account separately.
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FY BCOM – FINANCIAL ACCOUNTING – MCQ – QUESTION BANK - COMPILED BY MANOJ

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5. The maximum number of groups, which can be formed in tally are----------.
a) 12
b) 18
c) 28

Answer : c) 28 - Tally has provision to form maximum 28 groups only. Not more
than 28 groups can be formed whereas many ledger accounts can be created.

6. In Tally ----------------- needs to be used for every voucher entry.

a) Group
b) Sub Group
c) Ledger Account

Answer: c) Ledger Account – In computerized accounting for transaction the

entry needs to be made directly under two or more ledger account.

7. In Tally, operation can be done by-----------------.

a) An Administrator.
b) Owner and Administrator
c) Owner, Data entry Operator and Administrator.

Answer: c) Owner, Data entry Operator and Administrator. – Tally is

accessible to more than one person simultaneously. The owner of the
organization, the accountant who makes entries on behalf of the firm, and the
administrator or the tally software vendor have access to tally software. It is
password protected and so all the above three are authorized to make
alterations.

8. To Close an opened company in Tally the following command needs to be used---------

a) Shut Company
b) Exit Company
c) Close Company

Answer: a) Shut Company – Tally ERP software has the option for shut
company by default
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FY BCOM – FINANCIAL ACCOUNTING – MCQ – QUESTION BANK - COMPILED BY MANOJ

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9. In Tally, to create a new company we need to use ------------ shortcut keys.
a) Alt + F1
b) Alt + F2
c) Alt + F3

Answer: c) Alt +F3 is the inbuilt shortcut key to be used in Tally.

10. To select a company, --------- Function key needs to be used in Tally.

a) F1
b) F2
c) F3

Answer: c) F3 is the inbuilt shortcut key to be used in Tally, to select a

company.

11. In Tally, to print the report we need to use ------------ shortcut keys.
a) Alt + A
b) Alt + C
c) Alt + P

Answer: c) Alt + P is the inbuilt shortcut key to be used in Tally, for giving the
print command

12. To select the Ledger, --------- Function key needs to be used in Tally.
a) CTRL + L
b) CTRL + B
c) CTRL + C

Answer: a) CTRL + L , is the inbuilt shortcut key to be used in Tally, for

selecting the ledger. The drop box for all the ledger accounts created will be
displayed in an alphabetical order.

13. To select the Group, --------- Function key needs to be used in Tally.
a) CTRL + G
b) CTRL + L
c) CTRL + I

Answer: a) CTRL + G , is the inbuilt shortcut key to be used in Tally, for

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selecting the Group under which the ledger account needs to be used.

FY BCOM – FINANCIAL ACCOUNTING – MCQ – QUESTION BANK - COMPILED BY MANOJ

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14. Tally package is developed by the following------------.

a) Google
b) Tally Solutions
c) Microsoft

Answer: b) Tally Solutions- Tally package is the accounting software developed

by the company Tally solutions.

15. In Tally, closing stock will be reflected under ------------ statement or report.
a) Stock Report
b) Ledger Account
c) Balance Sheet

Answer: c) Balance Sheet – Closing stock is the closing inventory of goods in the
company and the total amount is reflected under current assets in the balance
sheet.

16. The following is not the feature of computerized accounting.

a) Recording transactions in books of accounts
b) Time efficient
c) Cost efficient

Answer a) - Recording transactions in books of accounts – In Manual

accounting each transactions needs to be entered into the journal or
subsidiary books and later posted into the ledger, but not required in
computerized accounting. There are no hard books of accounts required if
the accounting software is installed on the computer. If required, reports
can be printed.

17. The following is not the feature of manual accounting

a) Fatigue among the accounting clerk
b) Possibility of clerical mistakes
c) Uniform, Neat and more Accurate.

Answer: c) Uniform, Neat and more Accurate. – Manual Accounting is not

always uniform in terms of format, handwriting, neatness accuracy etc. It
depends on the competence, skill and ability of the accounting clerk. Manual
accounting may have errors, which may be unrealized by the accounting clerk,
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due to various reasons.

FY BCOM – FINANCIAL ACCOUNTING – MCQ – QUESTION BANK - COMPILED BY MANOJ

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18. The following is disadvantage of using computerized accounting

a) Not suitable among incompetent and illiterate data operators.
b) Duplication of entries in journal and ledger
c) None of the above
Answer : a) Not suitable among incompetent and illiterate data operators –
For computerized accounting one needs to have the basic computer
knowledge. Must also have some knowledge and familiarity of using, an
accounting software. Prior experienced people are preferred by firms for
the computerized accounting jobs.

19. The following is advantage of using computerized accounting

a) Online sharing of accounts among many people simultaneously
b) Reliable and accuracy of financial statements
c) Both a and b

Answer c) both a and b – Computerized accounting is superior to the

manual accounting due to its special features of speed, automation,
accuracy, auto generation of reports, inbuilt auto correction features, better
storage, more efficient etc.

20. The following is advantage of using computerized accounting

a) Easy movement of data through internet and gadgets
b) Multiple copies of data can be prepared
c) Time and cost efficient

Answer c) Time and cost efficient – Computerized accounting is superior to

the manual accounting due to its special features of speed, automation,
accuracy, auto generation of reports, inbuilt auto correction features, better
storage, more efficient etc.
21. To record the receipt of Rupees forty thousand from Mahesh ------------ function key has
to be used.
a) F1
b) F5
c) F6

Answer c) F6- is the function key to be used for receipt voucher- Rupees
fifty thousand is received in the form of cash and hence the receipt voucher
needs to be used.
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FY BCOM – FINANCIAL ACCOUNTING – MCQ – QUESTION BANK - COMPILED BY MANOJ

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22. To record the payment of Rupees Thirty thousand to Rakesh ------------ function key has
to be used.
a) F5
b) F7
c) F9

Answer c) F5- is the function key to be used for payment voucher- Rupees
Thirty thousand is paid in the form of cash and hence the payment voucher
needs to be used.

23. To record the deposit of cash in HDFC Bank ------------ function key has to be used.
a) F2
b) F4
c) F6

Answer c) F4- is the function key to be used for contra voucher - Two ledger
accounts are involved. Traditionally in double column cash book one
column is for cash and the other is for bank account. One is debited and the
other is credited. Similarly, Inter account transactions come under contra
voucher in Tally.

24. To record the Sale of goods worth Rupees Three Lakh to ABC & Co ------------ function
key has to be used.
a) F6
b) F8
c) F9

Answer c) F8- is the function key to be used for Sales voucher- The above
statement represents a credit sale transaction; hence F8 for selecting sales
voucher needs to be used.

25. To record the cash Sale of goods worth Rupees One Lakh to Manish stores ------------
function key has to be used.
a) F4
b) F5
c) F6
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FY BCOM – FINANCIAL ACCOUNTING – MCQ – QUESTION BANK - COMPILED BY MANOJ

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Answer c) F6- is the function key to be used for Receipt voucher- The above
statement represents a Cash sale transaction; hence F6 for selecting receipt
voucher needs to be used.

26. Wages paid to workers working in the factory will be recorded under _________ group
in Tally
a) Direct Expenses
b) Indirect Expenses
c) Indirect Incomes

Answer a) Direct Expenses- Any expenditure which is met by the

organization to purchase raw material, involve laborers to convert the raw
material into the finished product and any such related expense which shall
be required to convert into fully finished product will all be termed as direct
expenses.

27. ---------------- has to be recorded under the main group Bank Account.
a) Both b and c
b) SBI Saving Bank Account
c) ICICI Current Bank Account

Answer a) both b and c – In Tally ledger accounts are classified under some
main groups. Ledger accounts below each such group may be termed as sub
groups. Each bank forms the subset of Bank Group and Bank Accounts
forms the subset of Current Assets. Both SBI and ICICI are banks and
hence are grouped under Bank Accounts.

28. The main group Current Assets will have the following sub group---------
a) Furniture
b) Machinery
c) Stock

Answer c) Stock- Current Assets are those which keep converting from one
form to another. They can be converted into cash with in one accounting
year. Stock is meant for sales and the firm does not have to park funds in
the form of stock for a very long period of time as in case of furniture and
machinery, hence stock comes under current assets.
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FY BCOM – FINANCIAL ACCOUNTING – MCQ – QUESTION BANK - COMPILED BY MANOJ

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