Welcome to Tally Interview Questions – your destination to test and enhance your knowledge of Tally, the widely-used accounting software! Whether you’re gearing up for a job interview, looking for practice questions with answers, or you’re an employer seeking the right fit, these questions are tailored to be your guiding tool.
Tally acts like a superhero for businesses, smoothing out the complexities of accounting, and our interview questions, along with answers for practice, cover everything from the basics to the nitty-gritty. Whether you’re a seasoned pro or just starting, these questions are crafted to give you a well-rounded understanding of Tally, ensuring you shine in your interview and have ample practice material.
So, let’s dive into Tally Interview Questions and Questions for Practice with Answers together, ensuring you’re not just ready but confident to tackle any challenges that may come your way!
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Benefits of Using MCQ : Tally Questions for Practice with Answers
The Tally interview preparation with a unique approach – Multiple Choice Questions (MCQs)! If you’re gearing up for a Tally interview, these questions, presented in an easy-to-answer format, are your secret weapon for a smooth and effective learning experience.
Think of tally interview questions as your friendly companion, not just reinforcing your existing Tally knowledge but also pointing out areas where you can fine-tune your skills. Whether you’re a Tally pro or just starting, this curated set of questions is designed to boost your confidence and ensure you stand out in your interview.
So, let’s explore the benefits of using tally interview questions for Tally interview preparation, ensuring that you not only feel ready but also excited to showcase your Tally expertise!
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Tally Question with Answer || Tally Interview Questions
Q: What is accounting?
A: Accounting is the process of recording, summarizing, analyzing, and interpreting financial information of a business.
Q: What are the main objectives of accounting?
A: The main objectives of accounting are to provide financial information for decision-making, ensure accurate record-keeping, facilitate regulatory compliance, and assess the financial health of a business.
Q: What is the accounting equation?
A: The accounting equation states that assets equal liabilities plus equity. It represents the fundamental relationship between a company’s resources, its obligations, and the owners’ claims to those resources.
Q: What are the basic accounting principles?
A: The basic accounting principles include the principles of monetary unit, going concern, historical cost, matching, revenue recognition, consistency, conservatism, materiality, and full disclosure.
Q: What are the financial statements?
A: The financial statements include the balance sheet, income statement, cash flow statement, and statement of changes in equity. These statements provide information about a company’s financial performance and position.
Q: What is the balance sheet?
A: The balance sheet is a financial statement that shows a company’s assets, liabilities, and equity at a specific point in time. It provides a snapshot of a company’s financial position.
Q: What is the income statement?
A: The income statement is a financial statement that shows a company’s revenues, expenses, and net income or loss over a specific period. It reflects the profitability of a company.
Q: What is the purpose of a cost category in Tally Prime?
A: A cost category in Tally Prime is used to classify expenses based on predefined categories such as salaries, rent, utilities, and more, allowing businesses to analyze costs by category.
Q: How can you create a cost category in Tally Prime?
A: To create a cost category in Tally Prime, go to Gateway of Tally, select “Accounts Info,” choose “Cost Categories,” and provide the necessary details such as the name and type of category.
Q: What is the significance of group companies in Tally Prime?
A: Group companies in Tally Prime allow businesses to manage multiple companies under a common parent company, facilitating consolidation of financial data and generating consolidated reports.
Q: How can you create a group company in Tally Prime?
A: To create a group company in Tally Prime, go to Gateway of Tally, select “Create Company,” choose “Group Company,” and provide the required information for the parent company and its subsidiaries.
Q: What is the purpose of cost allocation in Tally Prime?
A: Cost allocation in Tally Prime involves distributing shared expenses or revenues among multiple cost centers or departments to accurately reflect their respective shares.
Q: How can you allocate costs in Tally Prime?
A: To allocate costs in Tally Prime, go to the cost allocation screen, select the appropriate cost center, specify the allocation method (e.g., percentage or amount), and allocate the costs accordingly.
Q: What is the role of a payroll in Tally Prime?
A: Payroll in Tally Prime is used to manage employee-related activities such as salary calculations, attendance tracking, leave management, and generating payslips.
Q: How can you set up payroll in Tally Prime?
A: To set up payroll in Tally Prime, go to Gateway of Tally, select “Payroll Info,” and provide the necessary details such as employee information, salary structures, and statutory requirements.
Q: What is the purpose of inventory management in Tally Prime?
A: Inventory management in Tally Prime involves tracking and controlling the stock levels, monitoring purchases and sales, and generating reports to ensure efficient inventory operations.
Q: How can you manage inventory in Tally Prime?
A: In Tally Prime, you can manage inventory by creating stock items, recording stock transactions (such as purchases and sales), maintaining stock registers, and generating inventory reports.
Q: What is the role of a stock group in Tally Prime?
A: A stock group in Tally Prime is used to categorize similar stock items into groups, making it easier to manage and analyze inventory based on different classifications.
Q: How can you create a stock group in Tally Prime?
A: To create a stock group in Tally Prime, go to the Gateway of Tally, select “Inventory Info,” choose “Stock Groups,” and provide the necessary details such as the name and parent group.
Q: What is the purpose of cost of goods sold (COGS) in Tally Prime?
A: Cost of goods sold (COGS) in Tally Prime represents the direct costs associated with producing or acquiring the goods sold during a specific period, which is deducted from revenue to calculate gross profit.
Q: How can you calculate cost of goods sold (COGS) in Tally Prime?
A: In Tally Prime, you can calculate cost of goods sold (COGS) by deducting the value of opening stock, adding purchases, and subtracting closing stock from the available stock.
Q: What is the use of interest calculation in Tally Prime?
A: Interest calculation in Tally Prime is used to compute interest on outstanding payments, late fees, or finance charges, helping businesses track and account for interest-related transactions.
Q: How can you perform interest calculation in Tally Prime?
A: To perform interest calculation in Tally Prime, go to the interest calculation screen, specify the interest rate, select the relevant transactions, and let Tally Prime compute the interest amount.
Q: What is the purpose of cost centers and cost categories in Tally Prime?
A: Cost centers and cost categories in Tally Prime help businesses track and allocate expenses to specific departments, projects, or cost elements, enabling better cost analysis and control.
Q: How can you set up cost centers and cost categories in Tally Prime?
A: To set up cost centers and cost categories in Tally Prime, go to F11: Features, enable cost centers and cost categories, and configure the necessary details such as names, types, and allocation methods.
Q: What is the significance of bill-wise details in Tally Prime?
A: Bill-wise details in Tally Prime allow businesses to track and manage outstanding receivables and payables, providing a detailed view of transactions associated with specific parties or invoices.
Q: How can you enter bill-wise details in Tally Prime?
A: To enter bill-wise details in Tally Prime, go to the voucher entry screen, select the appropriate voucher type (such as sales or purchase), enter the party details, and provide the bill-wise information, including due dates and amounts.
Q: What is the cash flow statement?
A: The cash flow statement is a financial statement that shows the inflows and outflows of cash during a specific period. It provides information about a company’s cash generated from operating activities, investing activities, and financing activities.
Q: What is double-entry bookkeeping?
A: Double-entry bookkeeping is a system of recording financial transactions that requires every transaction to have an equal and opposite entry in at least two different accounts. It ensures the accuracy of financial records and maintains the accounting equation.
Q: What is accrual accounting?
A: Accrual accounting is an accounting method that recognizes revenues and expenses when they are earned or incurred, regardless of when the cash is received or paid. It provides a more accurate representation of a company’s financial position and performance.
Q: What is a trial balance?
A: A trial balance is a list of all the general ledger accounts and their balances at a specific point in time. It is used to ensure that debits equal credits and to detect any errors in the recording of transactions.
Q: What is a general ledger?
A: A general ledger is a book or electronic record that contains all the accounts used by a company to record its financial transactions. It serves as the central repository of accounting information.
Q: What is a journal entry?
A: A journal entry is a record of a single transaction in the accounting books. It includes the date, accounts affected, amounts debited and credited, and a brief description of the transaction.
Q: What are the types of accounts in accounting?
A: The types of accounts in accounting include assets, liabilities, equity, revenue, and expenses. These accounts are used to classify and track the financial activities of a business.
Q: What is depreciation?
A: Depreciation is the systematic allocation of the cost of a long-term asset over its useful life. It reflects the wear and tear, obsolescence, or decline in value of the asset over time.
Q: What is the difference between gross profit and net profit?
A: Gross profit is the difference between revenue and the cost of goods sold, while net profit is the remaining profit after deducting all expenses, including operating expenses, taxes, and interest.
Q: What is the accounting cycle?
A: The accounting cycle is a series of steps that accountants follow to process financial transactions and prepare financial statements. It includes identifying and analyzing transactions, recording journal entries, posting to the general ledger, preparing trial balances, making adjusting entries, preparing financial statements, and closing the books.
Q: What is a ledger account?
A: A ledger account is a detailed record of transactions related to a specific account, such as cash, accounts receivable, or inventory. It summarizes the activity and balance of the account.
Q: What is the difference between bookkeeping and accounting?
A: Bookkeeping is the process of recording financial transactions, while accounting encompasses a broader scope, including bookkeeping as well as analyzing, interpreting, and reporting financial information.
Q: What is the purpose of financial ratios in accounting?
A: Financial ratios are used to analyze and interpret financial information, assess the financial health and performance of a business, and make informed business decisions. They provide insights into liquidity, profitability, solvency, efficiency, and other aspects of a company’s financial condition.