[UPDATED] 50 TOP Tally Multiple choice Questions and Answers for freshers and experienced pdf

Real Time Tally Quiz Questions and Answers

=> More Related Tally Interview Questions
1. Tally package is developed by

a. Peutronics
b. Tally solutions
c. Coral software
d. vedika software
Ans: B

2. Company Restore option is available in
a. Company Feature
b. Company Information
c. Configuration
d. None of these
Ans: B


3. in general thje financial year from shall be from
a. 1st April of any year
b. 31st March of any year
c. All of them are true
d. None of these
Ans : A

5. we can Modify an existing company from
a. Company info > Alter
b. Company info> Alter Company
c. Geteway of tally > Modify company
d. None of these
Ans: A

6. To change current date from gateway of tally press the key
a. F1
b. F5
c. F2
d. F9
Ans: C

7. Part account can be created through
a. Group creation window
b. Ledger creation window
c. Inventory creation window
d. Any on of them
Ans: B


8. A Ledger may get declaration space for its Alias through
a. F12
b. F11
c. Alt+F1
d. ALt+F2
Ans: A

9. F12 key is Known as
a. Company feature
b. Company Configuration
c. Accounting Feature
d. None of these
Ans: B

10. What is the utility of Tally Vault Password?
a. it will lock the period of company
b. it will lock all voucher entries for that company
c. It will no show the company name in the Company Select List.
d. None of these
Ans: C

11. We can show bill wise details of debtors and creditor by activating
a. Bill by bill
b. Maintain bill wise details
c. Maintain reference
d. None of these
Ans: B

12. The shortcut key to quit from tally is
a. Ctrl +L
b. Ctrl +P
c. Ctrl +M
d. Ctrl +Q
Ans: D

13. A Ledger can't be deleted if it is caring Opening Balance
A. True
b. False
Ans: A

14. How many inbuilt account group are in tally by default?
a. 29
b. 31
c. 25
d. 34
Ans: A

15. The shortcut used to activate calculator is
a. Ctrl +N
b. Ctrl +M
c. Ctrl +A
d. Ctrl + C
Ans: A

16. Suspense Account Group is defined under
A. Income
b. Expenditure
c. Liabilities
d. Assets
Ans: A

17. To activate MRP feature from Geteway of Tally initially we need to press
a. F11
b. F12
c. F10
d. None of these
Ans: A

18. Manufacturing Journal creates based on
a. Journal
b. Receipt Note
c. Stock Journal
d. Purchase Quotation
Ans: A

19. To activate job Costing which option require to be activated
a. Maintain Cost Center
b. Use Cost Center for Job Costing
c. Both  a & b
d. None of these
Ans: B

20. Multiple Godowns are activated from
a. F11
b. F11> F1
c. F11 > F2
d. F11 > F3
Ans: C

21. There are .............................. Predefined Ledger
a. One
b. Three
c. Two
d. Four
Ans: C

22. To print a voucher from tally we need to press
a. Ctrl +p
b. Shift +P
c. Alt +P
d. None of these
Ans: C

23. We can see working capital figure changing
a. Voucher Configuration
b. Profit & Loss configuration
c. Balance sheet Configuration
d. Ledger Configuration
Ans: A

24. Input vat / Output vat Ledger Created under which account ?
a. Duties & Taxes
b. Sales
c. Purchase
d. Vat
Ans: A

25. Allow Components List details (BOM) option is activated for
a. Ledger
b. Cost Category
c. Stock items
d. Budgets
Ans: B

26. We can repeat narration by pressing
a. Shift + R
b. Alt +R
c.Crl +
d. Alt+Shift+R
Ans: B

27. Discount Column is available in
a. Sales Invoice
b. Purchase Invoice
c. Both A & B
d. None of these
Ans: C

28.  We cand cancel a voucher Using:
a. Alt+X
b. Ctrl +X
c. Shift + X
d. Ctrl +Shift+X
ans: A

29. We can't Select Cash in Journal Voucher
a. True
b. False
Ans: A

30. To Create Scenario which option require to be activated?
a. use Rev. Journal & Optional Voucher in F12
b. use Optional Voucer in F11
c. Use Reversing Voucher in F11
d. Use Reversing Journal & Optional voucher in F11
Ans : D

31. List of Optional Voucer we can get from
a. Cash Bank Book
b. Exceptional Report
c. Account Book
d. Balance Sheet
Ans: C

32. Singal Entry Mode is Applicable for
a. Receipt Voucher
b. Contra Voucehr
c. Payment Voucher
d. All of these
Ans: D

33. To Hind the name of the company you need to define
a. Security Control
b. Tally Audit
c. Create at Least one User
d. Tally Valut Password
and: D

34. To dedare a voucher as Post Dated Press
a. Ctrl +T
b. Alrt +T
c. Ctrl +P
d. None of these
Ans: A

35. We can switch from Accounting Voucher to inventory Voucher Pressing
a. F2
b. Alt +F1
c. Ctrl +F1
d. F11
ans: D

36. Goods Returning to a creditor after cahalln but before bill we need to pass
a. Debit Note
b. Receipt Note
c. Rejection Out
d. Rejection in
Ans: C

37.  To Use Dr/Cr instead of To/By during voucher entry or vice versa, Press
a. F10
b. F12
c. F11
d. None of these
Ans: C

38.  To Alter a master while making an entry or viewing a report
a. Alt+Enter
b. Shift + Enter
c. Ctrl + Enter
d. Tab + Enter
Ans: C

39. To show the cheque number while reconciling bank accounts press
a.  F11
b. F12
c. Ctrl + F11
d. Ctrl + F12
ans: B

40. Total number of Ledger, Groups, Entries etc can be shown from
a. Tally Audit
b. Statistics
c. Accounts Infromation
d. Company Information
Ans: B

41. What is TAN?
A. Tax Absorb Number
B. Tax Assign Number
C. Tax Account Number
D. Tax Assessment Number
Ans: D

42. How many formats are available while Exporting?
A. 2
B. 3
C. 4
D. 5
Ans: B

43. Tally package is developed by
A. Microsoft
B. Apple Software
C. Adobe Software
D. Tally Solutions
Ans: D

44. What is the full of TCS?
A. Tax Collected from Sales
B. Tax Collected by Staff
C. Tax Consumption at Source
D. Tax Collected at Source
Ans: D

45. We can create multiple users in Tally activating
A. Maintain VAT
B. Tally Audit
C. Use Security Control
D. Both a and b
Ans: C

46. ETCS means
A. Electric Tax Collected at Source
B. Electronic Tax Collection at Source
C. Electronic Tax Collected at Source
D. Enable Tax Collected at Source
Ans: C

47. Total number of Ledgers, Groups, Entries etc. can be shown from
A. Company Information
B. Tally Audit
C. Statistics
D. Accouts Information
Ans: C

48. Transfer from Main Cash to Petty Cash you require to pass ........... voucher.
A. Voucher
B. Contra
C. Payment
D. Receipt
Ans: B

49. To show the cheque number while reconcilling Bank Accounts press
A. Ctrl + F11
B. Ctrl + F12
C. F11
D. F12
Ans: D

50. Recording of actual stock as physically verified or counted is done thorugh
A. Journal
B. Sales
C. Stock Journal
D. Physical Stock
Ans: D

Latest Tally Multiple choice Questions for freshers

50 TOP Tally ERP 9 Interview Questions and Answers for freshers and experienced pdf

Real Time Tally ERP 9 Interview Questions and Answers

=> More Related Tally MCQs
1. Where sales tax is shown in balance sheet.

Sales Tax is liability for the business therefore it will be shown in the liability side of the balance sheet but before putting sales tax in liability we have to see where sales tax is shown in the trial balance sheet.


2 . What is accounting ?
As there are many definition in book and i recommend you to learn any one
“Accounting is an art of recording classifying and summarizing in a significant manner and in terms of money event and transaction which are at least of financial character and interpreting the result thereof ”

3. What are personal accounts ?
Answer : Those account which are related to individual ,person or firm are term as personal account.
Example : ram ,Sh yam,reliance,bank,capital ,drawing.

4. What are assets in business ?
Answer : Anything which we posses and have control right and in coming future that will give us some economic benefit is known as Assets.
Example : land and building ,plant and machinery,furniture and fixture ,cash ,prepaid expenses,debtor, accrued income .

5. What are ledger ?
Answer :Collection of accounts are known as ledger it is prepared after creating journal entry .A ledger is an accounting book that facilitates the transfer of all journal entries in a chronological sequence to individual accounts.

6. What is trial balance :
Answer :Trial Balance is a list of closing balances of ledger accounts on a certain date and is the first step towards the preparation of financial statements.


7. What are Liabilities ?
Answer :It refers to the amount which the firm owes to outsiders (expecting the amount owes to proprietor)
Example : creditors,bank overdraft .loan from bank,outstanding expenses ,income earned in advance

8. What are current assets ?
Answer : Current assets includes cash and other assets which are expected to be converted into cash within a short period of (with in year )
example of current assets are cash,debtors,bank,stock

9. what are current liabilities
Answer :Current Liabilities  refers to those liabilities which are to be paid in near future with in a year.
Example : Creditors ,Bill payable

10.What is the abbreviation for the accounting terms debit and credit?
Answer :?Debit abbreviation is “dr” and credit abbreviation is “cr”.

11. Define fictitious assets?
These are the assets that cannot be shown or touch. Fictitious assets can only be felt such as good will, rights etc.

12. What do you think is bank reconciliation statement?
A reconciliation statement is prepared when the passbook balance differs from the cashbook balance.

13. Define depreciation and its types?
By depreciation we mean that a value of an asset is decreasing as it is in use. It has two types such as “Straight Line Method” and “Written Down Value Method”.

14. Differentiate between consignor and consignee?
Cosigner is the owner of the goods or you can say he is the person who delivers the goods to the consignee. The consignee is the person who receives the goods.

15. Define Scrap value in accounting ?
It is the residual value of an asset. The residual value is the value that any asset holds after its estimated life time.

16. Differentiate between provision and reserve?
Provisions are the liabilities or the anticipated items such as depreciation. You can say provisions are expenses. Reserves are the profits of any company and a part of that profit is placed back to the business to keep it sustainable in tough times of a company.

17. Where a cash discount should be recorded in journal entry ?
A cash discount should be recorded in journal entry as a reduction of expense in cash account.

18. what are working capital ?
Working capital is a financial metric that calculates the resources available to the company to finance its day-to-day operations.  It is typically calculated by deducting current liabilities from current assets.

19. How many types of business transactions are there in accounting?
There are two types of transactions in accounting i.e. revenue and capital.

20. What is book keeping ?
Book keeping: It is mainly concerned with recording of financial data relating to the business operations in a significant and orderly manner.

21.What are different branches of Accounting ?
Cost accounting
Financial Accounting
Management Accounting

22. What are accrued income ?
Accrued Income: Accrued income means income which has been earned by the business during the accounting year but which has not yet been due and, therefore, has not been received.

23. What are deferred expenditure ?
In case deferred revenue expenditure no asset is in fact acquired by incurring the expenditure: only the benefits of the expenditure which has not been exhausted is estimated and carried forward.

24.Explain what is compound journal entry?
A compound journal entry is just like other accounting entry where there is more than one debit, more than one credit, or more than one of both debits and credits. It is essentially a combination of several simple journal entries.

25.what are debit note ?
Debit note: When the goods are returned to the supplier, a debit note is sent to him indicating that his a/c has been debited with the amount mentioned in the debit note.

26. Contingent liability: An obligation to an existing condition or situation which may arise in future depending on the occurrence of one or more uncertain future events.

27 what is contingent assets :Contingent Asset: An asset the existence ownership or value of which may be known or determined only on the occurrence or non occurrence of one more uncertain future event

28. What are credit note ?
The customer when returns the goods get credit for the value of the goods returned. A credit note is sent to him intimating that his a/c has been credited with the value of the goods returned.

29. what are suspense account ?
Suspense account: The suspense account is an account to which the difference in the trial balance has been put temporarily.

30.what is amortisation ?
Amortisation: The process of writing of intangible assets is term as amortisation.

31. What are miscellaneous assets ?
Miscellaneous Assets which are not covered under the classification of Fixed assets as per accounting standard misc assets which are not shown in the profit and loss account for example preliminary expense ,development expenditure and expenditure on raising of share and debentures.

32. are drawing Assets or liabilities in business ?
Drawing are neither assets nor liabilities .

33. What is balance Sheet ?
Answer : A statement of the assets, liabilities, and capital of a business or other organisation at a particular point in time, detailing the balance of income and expenditure over the preceding period.

34.Why balance sheet is prepared ?
Answer: A balance sheet provides a snapshot of a business’ health at a point in time. It is a summary of what the business owns (assets) and owes (liabilities). Balance sheets are usually prepared at the close of an accounting period such as month-end, quarter-end, or year-end.

35.What is delivery note ?
A document that accompanies a goods shipment and lists details about the goods delivered. A delivery note explains what the contents of a package are. If some goods that were ordered are not enclosed (due to lack of stock, unavailability, etc.) they will also be listed on the delivery note.

36 where is delivery note key in Tally ERP ?
Answer : Go to gateway of tally > f11 > F2 >Using tracking number ( Delivery / Receipt Note ) set to Yes
Now in inventory voucher >Alt + F8

37. Why to use tally erp Software in accounting ?
Tally ERP 9 is a complete product that retains its original simplicity yet offers comprehensive business functionalities such as Accounting, Finance, Inventory, Sales, Purchase, Point of Sales, Manufacturing, Costing, Job Costing, Payroll and Branch Management along with capabilities like Statutory Processes.Moreover you can find work force available for this software and its 90% of accounting software market in SME in India.

38.What are accounting voucher keys for Debit and credit note in tally ?
Ctrl + F8 for debit note and Ctrl + f9 for credit Note .

39 . Mention what are the two pre-defined ledger available in Tally ERP 9?
Answer: In Tally ERP 9, there are two types of pre-defined ledgers
Cash: Under the group Cash-in-hand this ledger is created, you can enter the opening balance as on the books beginning from.
Profit and Loss Account: This ledger is created under the group Primary. In this ledger, previous year’s profit or loss is entered as the opening balance of this ledger.

40. Mention what is the shortcuts for Voucher Creation and Alteration Screen in Tally ERP 9?
Tally ERP 9, to create any master (ledger, stock item) on the voucher or alteration screen, you have to enter Alt+C.
To alter or configure any master item on a voucher, you have to select specific ledger or stock item on the sales voucher screen and press Ctrl+Enter.

41. Mention what is the shortcut to repeat the narration on a voucher?
Ctrl+R

42.  what are short cut key to see ledger balances in Tally erp 9?
Got>display > accounts

42. What are short cut key to quit tally ?
Ctrl + Q

43. What are component of GST
component of GST are IGST SGST and CGST

44. how make budget in Tally accounting ?
Go to Gateway of Tally > F11: Features (Accounting Features)
Set ‘Maintain Budgets and Controls’ to ‘Yes.
Set ‘Yes’ under ‘Group’ in ‘Set/ Alter Budgets of’ > Press ‘Enter’

45. What are batch wise details in tally ?
it is use to identify the movement of goods in batches or lots.
Go gateway of tally > F11> F2 >maintain batch wise detail set to YES

46. The short cut key to select company in tally ?
Alt +f3

47. In which directory data store by default in tally ?
data

48. What are the keys for backup in tally ?
Alt + F3 > backup select the company and the USB drive where backup is to be taken

49. What is goodwill in accounting ?
Goodwill is an intangile asset that reflects a business’s customer connections, reputation and other similar factors.

50. Mention what is the difference between Tally ERP 9 and Tally 7.2?
 Tally 7.2:                                              
1. It is an integrated solution that provides a function related to accounting, reporting and inventory
2. This version includes VAT (Value Added Tax) functionality, Licensing and Tax deduction at source
3. It is widely used because of simplifying VAT, Service Tax and TDS formalities
4. It provides two licensing, Single User Licensing and Multi User Licensing

Tally ERP 9:
1. It is an upgraded version of Tally 7.2, and provides many features like TDS, Payroll management, Excise for dealers, etc.
2. This version includes handling of POS invoicing, Statutory and Taxation, Payroll, Multi-lingual support, etc.
3. It is more popular because of providing advanced inventory management and simplifying accounting
4. It is available in two edition Tally Silver (Single User Edition) and Tally Gold (Multi-User Edition)

Latest Tally ERP 9 Interview Questions and Answers faqs for freshers

TOP 100 Tally Accounting Interview Questions & Answers for freshers and experienced pdf

Real Time Tally Accounting Interview Questions and Answers

=> More Related Tally MCQs

1) Why did you select accounting as your profession?
Well, I was quite good in accounting throughout but in my masters, when I got distinction I decided to adopt this field as a profession.

2) Do you have any professional experience of this field?
Yes, I have worked as an accountant at two different places.


3) Did you use accounting applications at your previous companies or prefer working manually??
Yes, I have used Advanced Business Solutions and AME Accounting Software in my previous jobs.

4) Can you name any other accounting application?
Yes, I am familiar with CGram Software, Financial Force, Microsoft Accounting Professional, Microsoft Dynamics AX and Microsoft Small Business Financials.

5) Which accounting application you prefer most and why?
I think all are good though but Microsoft Accounting Professional is best because it offers reliable and fast processing of accounting transactions that saves time and increases proficiency.

6) What is the abbreviation for the accounting terms debit and credit?
Debit abbreviation is “dr” and credit abbreviation is “cr”.

7) How many types of business transactions are there in accounting?
There are two types of transactions in accounting i.e. revenue and capital.


8)      What is balance sheet?
It is a statement that states all the liabilities and assets of the company at certain point.

9)      Have you ever heard about TDS, what it is?
Yes, TDS abbreviates Tax Deduction at Source.

10)      In balance sheet, where do you show TDS?
It is shown on the assets section, right after the head current asset.

11)      Do you have any idea about Service Tax or Excise?
It is a kind of hidden tax that is included in the service provided by the service provider and paid by the service receiver.

12)      Do you think there is any difference between inactive and dormant accounts?
Yes, both are different terms in accounting. Inactive accounts means that accounts have been closed and will not be used in future as well. While, dormant accounts are those that are not functional today but may be used in future.

13)      What is tally accounting?
It is the software used for accounting in small business and shops for managing routine accounting transactions.

14)      How can you define departmental accounting?
It is a type of accounting in which separate account is created for departments. It is managed separately as well as shown independently in the balance sheet.

15)   Define fictitious assets?
These are the assets that cannot be shown or touch. Fictitious assets can only be felt such as good will, rights etc.

16)   By saying, perpetual or periodic inventory system; what do we mean?
In the first one i.e. the perpetual inventory system, the accounts are adjusted on continual basis. In the periodic inventory system, the accounts are adjusted periodically.

17)   In accounting, how do you define premises?
Premises refer to fixed assets that are shown in the balance sheet.

18)   In accounting, VAT abbreviates what?
VAT means Value Added Tax.

19)   Do you possess any knowledge about accounting standards?
Yes, as per my knowledge there are total 33 accounting standards published so far by ICAI. The purpose of these standards is to implement same policies and practices in any country.

20)   What is ICAI?
It is the abbreviation of Institute of Chartered Accountants in India.

21)   How can you explain the basic accounting equation?
We know that accounting is all about assets, liabilities and capital. Therefore, the accounting equation is:
Assets = Liabilities + Owners Equity.

22)   Define Executive accounting?
It is a type of accounting that is specifically designed for the business that offers services to users.

23)   Define Public accounting?
Public accounting offers audits and CPAs to review company financial records to ensure accountability. It is for general public.

24)   What is a CPA?
CPA stands for Certified Public Accountant. To become a CPA, one should have to do many other qualifications as well. It is a qualification with 150 hour requirement; it means that one should complete 150 credit hours at any accredited university.

25)   What do you think is bank reconciliation statement?
A reconciliation statement is prepared when the passbook balance differs from the cashbook balance.

26)   Differentiate Public and Private Accounting?
Public accounting is a type of accounting that is done by one company for another company. Private accounting is done for your own company.

27)   What is project implementation?
Project implementation involves six steps in total such as:
Identify Need
Generate and Screen Ideas
Conduct Feasible Study
Develop the Project
Implement the Project
Control the Project

28)   Do you think Accounting Standards are mandatory and why?
Yes, I do believe that accounting standards play a very important role to prepare good quality and accurate financial reports. It ensures reliability and relevance in financial reports.

29)   Can you name different branches of accounting?
There are three branches of accounting named as “Financial Accounting”, “Management Accounting” and “Cost Accounting”.

30)   Differentiate Accounting and Auditing?
Accounting is all about recording daily business activities while auditing is the checking that whether all these events have been noted down correctly or not.

31)   Define dual aspect term in accounting?
As the name implies, the dual aspect concept states that every transaction has two sides. For example, when you buy something, you give the cash and get the thing. Similarly, when you sale something, you lose the thing and gets the money. So this getting and losing is basically two aspects of every transaction.

32)   What do we mean by purchase return in accounting?
It is the term introduced in the records for every defective or unsatisfactory good returned back to its supplier.

33)   Define the term material facts in accounting?
Material facts are the bills or any document that becomes the base of every account book. It means that all those documents, on which account book is prepared, are called material facts.

34)   Have you ever prepared MIS reports and what are these?
Yes, I have prepared few MIS reports during my previous jobs. MIS reports are created to identify the efficiency of any department of a company.

35)   Define company’s payable cycle?
It is the time required by the company to pay all its account payables.

36)   Define retail banking?
It is a type of banking that involves a retail client. These clients are the normal people and not any organizational customers.

37)   How much mathematics knowledge is necessary or required in accounting?
Not much knowledge but basic mathematical background is required in accounting for operations like addition, subtraction, multiplication and division.

38)   Define bills receivable?
All types of exchange bills, bonds and other securities owned by a merchant that is payable to him are said as bills receivable.

39)   Define depreciation and its types?
By depreciation we mean that a value of an asset is decreasing as it is in use. It has two types such as “Straight Line Method” and “Written Down Value Method”.

40)   Differentiate between consignor and consignee?
Consigner is the owner of the goods or you can say he is the person who delivers the goods to the consignee. The consignee is the person who receives the goods.

41)   Define balancing in accounting?
Balancing means to equate both sides of the T-account i.e. the debit and credit sides of a T-account must be equal/balanced.

42)   How much statistics knowledge is necessary or required in accounting?
You must be very good at statistics if you want to do well in accounting. Otherwise, with minimum knowledge you cannot manage your day to day transactions effectively in accounting.

43)   Define Scrap value in accounting?
It is the residual value of an asset. The residual value is the value that any asset holds after its estimated life time.

44)   Define Marginal Cost?
Suppose you have to produce an additional unit of output. The estimated cost of additional inputs to produce that output is actually the marginal cost.

45)   Define Partitioning in accounting?
It is a kind of groups made on the basis of same responses by a system.

46)   Differentiate between provision and reserve?
Provisions are the liabilities or the anticipated items such as depreciation. You can say provisions are expenses. Reserves are the profits of any company and a part of that profit is placed back to the business to keep it sustainable in tough times of a company.

47)   Define Offset accounting?
Offset accounting is one that decreases the net amount of another account to create a net balance.

48)   Define overhead in terms of accounting?
It is the indirect expenditure of a company such as salaries, rent dues etc.

49)   Define trade bills?
We know that all types of transactions need to be documented. The trade bills are the documents, generated against each transaction.

50)   Define fair value accounting?
As per fair value accounting, a company has to show the value of all of its assets in terms of price on balance sheet on which that asset can be sold.

51) Explain what is compound journal entry?
A compound journal entry is just like other accounting entry where there is more than one debit, more than one credit, or more than one of both debits and credits. It is essentially a combination of several simple journal entries.

52) What are the accounting events that are frequently involved in compound entries?
The accounting events that are frequently involved in compound entries are;
Record multiple line items in a supplier invoice that address to different expenses
Record all bank deductions associated to a bank reconciliation
Record all deduction and payments related to a payroll
Record the account receivable and sales taxes related to a customer invoice

53) Mention the types of accounts involved in double entry book-keeping?
Double entry book-keeping involves five types of accounts,
Income accounts
Expense accounts
Asset accounts
Liability accounts
Capital accounts

54) Mention what are the rules for debit and credit for different accounts to increase the amount in your business accounts?
The rules for debit and credit for different accounts,
for a capital account, you credit to increase it and debit to decrease it
for an asset account, you debit to increase it and credit to decrease it
for a liability account, you credit to increase it and debit to decrease it
for an expense account, you debit to increase it, and credit to decrease it
for an income account, you credit to increase it and debit to decrease it

55) List out the Stages of Double Entry System?
Recording of transactions in the journal
Posting of journal entry in to the respective ledger accounts and then preparing a trial balance
Preparing final accounts and closing of books of accounts

56) Mention what is the disadvantage of double entry system?
The disadvantage of double entry system,
If there is any compensatory errors, it is difficult to find out by this system
This system needs more clerical labour
It is difficult to find the errors if the errors are in the transactions recorded in the books
It is not preferable to disclose all the information of a transaction, which is not properly recorded in the journal

57) Mention what is General ledger account?
The General ledger account is an account where the company records all the information for its various expenses and income types into separate accounts.  Such that all the debits and credits pertaining to that particular type of transaction can be entered in one place and kept balanced.

58) What is the general classification of accounts that usually ledger account involve?
The general classification of accounts that usually ledger account involves are
Assets- Cash, Accounts Receivable
Liabilities- Accounts Payable, Loans Payable
Stockholders’ equity- Common Stock
Operating revenues- Revenues through Sales
Operating expenses- Rent Expense, Salaries Expense
Non-operating revenues and gains- Investment Income, gain on Disposal of Equipment
Non-operating revenues and losses- Interest Expense, Loss on Disposal of Equipment

59) Mention what are things will not be included in bank reconciliation statement?
In a bank reconciliation statement, following thing can be excluded.
Direct payments made by bank not entered in Cash book
Cheques deposited but not cleared
Cheques dishonoured not recorded in cash book
Wrong debits given by bank
Bank Charges or Interst debited by bank
Banks direct payment not entered in Cash book

60) Under the accrual basis of accounting, when revenues are reported in the accounting period?
When service or goods have been delivered, then revenues are reported in the accounting period.

61) Under what type of account does the unearned revenues fall?
The unearned revenues falls under “Liability” account.

62) Mention whether the account “Cash” will be credited or debited, when a company pays a bill?
The account “Cash” will be credited when a company pays a bill.

63) Mention what is assets minus liabilities?
Assets minus liabilities is equal to owners’ equity or stockholders equity.

64) Entries to revenues accounts such as Service Revenues are usually?
Entries to revenues accounts such as Service Revenues usually goes into credit side.

65) Explain what is the difference between accumulated depreciation and depreciation expense?
The difference between accumulated depreciation and depreciation expense is that
Accumulated depreciation: It is the total amount of depreciation that has been taken on a company’s assets up to the date of the balance sheet
Depreciation expense: It is the amount of depreciation that is reported on the income statement. Basically, it is the amount that corresponds only to the period of time indicated in the heading of the income statement.

66) List out some of the examples for liability accounts?
Some of the examples for liability accounts
Accounts Payable
Accrued Expenses
Short-term Loans Payable
Unearned or Deferred Revenues
Installment Loans Payable
Current Portion of Long-term Debt
Mortgage Loans Payable

67) Explain how you can adjust entries into account?
To adjust entries into account, you can sort entries into five categories.
Accrued expenses: Expenses have been incurred but the vendors invoices are not generated or processed yet
Accrued revenues: Revenues have been earned but the sales invoices are not generated or processed yet
Deferred revenues: Money was received in advance of having been paid or earned
Deferred expenses: Money was paid for a future expense
Depreciation expense: An asset purchased in one period must be allocated to expense in each of the accounting periods of the asset’s useful life

68) Explain what a deferred asset is and give an example?
A deferred asset refers to a deferred debit or a deferred charge.  An example of a deferred charge is bond issue costs. These costs involves all of the fees or charges that an organization incurs in order to register and issue bonds. This fees are paid in a near time when the bonds are issued but it will not be expensed at that time.

69) Mention what is Bank Reconciliation?
A bank reconciliation is a process done by a company to ensure that the company’s records (check register, balance sheet, general ledger account, etc.) are correct and that the bank’s records are also correct.

70) Mention what is “deposit in transit”?
A deposit in transit is a checks and cash that have been received and recorded by an entity, but which have not yet been entered in the records of the bank where the funds are deposited.

71) Explain what is an over accrual?
An over accrual is a condition where the estimate for an accrual journal entry is too high. This estimate may apply to an accrual of expense or revenue.

72) Mention what is account receivable?
A short term amounts due from buyers to a seller, who have purchased goods or services from the seller on credit is referred as account receivable.

73) Explain what are the activities that includes in Cash Flow Statement?
The cash flow statement showcase the cash generated and used during the year or months. Various activities that are involved for the Cash Flow are
Operating activities – business activities accounting to cash
Investing activities – sale and purchase of equipment or property
Financial activities- purchase of stock and own bonds
Supplemental information- exchange of significant items that don’t involve cash

74) Mention what happens to company’s “Cash Account” if it borrows money from the bank by signing a note payable?
Due to double entry, the “cash account” will increase as such the liability account increases.

75) Mention which account is responsible for interest payable?
Account which is responsible or affected by the interest payable is “Current liability account”

76) Mention what is reversing journal entries?
Reversing journal entries are entries made at the beginning of an accounting period to cancel out the adjusting journal entries made at the end of the previous accounting period.

77) Mention where do generally accruals appear on the balance sheet?
Accrued expenses usually tend to be extremely short-term. So you would record them within the “current liabilities section” of the balance sheet.

78) List out some of the accrued expenses and the accounts in which you would record them?
Wage accrual is entered with a credit to the “wages payable account”
Interest accrual is entered with a credit to the “interest payable account”
Payroll tax accrual is entered with a credit to the “payroll taxes payable account”

79) Deferred taxation is a part of which equity?
Deferred taxation is a part of owner’s equity.

80) Mention what does the investment of personal assets by the owner will do?
The investment of personal assets by the owner will increase total assets and increase owner’s equity.

81) What is the equation for Acid-Test Ratio in accounting?
The equation for Acid-Test Ratio in accounting
Acid-Test Ratio = (Current assets – Inventory) / Current Liabilities

82) List out things that fall under intangible asset?
Things that fall under intangible asset are,
Patents
Copyrights
Trademarks
Brand names
Domain names, and so on.

83) Mention what is trial balance in accounting?
In accounting, trial balance is an accounting report that lists the balances in each of an organization’s general ledger accounts. This is done at the end of posting journal entry to ensure that there are no posting errors.

84) Where a cash discount should be recorded in journal entry?
A cash discount should be recorded in journal entry as a reduction of expense in “cash account”.

85) Mention why some asset accounts have a credit balance?
Some asset accounts have a credit balance due to following reasons,
Receiving and posting an amount that was higher than the recorded receivable
Expenses occurred faster than the agreed upon prepayments
An error caused by posting an amount to a wrong account
The amount of checks written exceeded the positive amount in the Cash account
Continuing to amortize or depreciate an asset after its balance has reached zero

86) Define what is Bad debt expense?
A Bad debt expense is the amount of an account receivable that is considered to NOT be collectible.

87) Explain what is the Master Account?
A Master Account has subsidiary accounts.  A master account receivable could be anything, it could be account receivable for various individual receivable accounts.

88) Mention in which account does the unpresented cheque will get recorded?
The unpresented cheque will get recorded as a credit to the cash account in the company’s General ledger.

89) What knowledge should financial accountant have?
A certified financial accountant should have knowledge about
Accounting principles and practices
Reporting and analysis of financial data
Auditing practices and principles
Account management
Budgets
Software knowledge dealing with Accounting
Knowledge of relevant laws, codes and regulations

90) What are the three factors that can affect your cash flow and business profitability?
The three factors that can affect your cash flow and business profit includes
Cash flows from investing activities: It includes shares, bonds, physical property, machineries, etc.
Cash flows from operating activities: It does not include cash received from other sources like investments
Cash flow from financing activities: It includes any activities that involves dividend payments that the company made to its shareholders, any money that includes stock to the public, any money borrowed from the lender etc. in other words, it is a report that tells the firm about the money borrowed and paid out in order to finance its activities.

91) Explain what is accrual accounting?
Accrual Accounting is a method for measuring the performance and position of the company by identifying economic events regardless of when cash transaction happened. In this method, revenue is compared with the expenditures, at the time in which the transaction happens rather than when the payment is made.

92) Explain the term account payable?
Account payable is referred as the amount company owes to its suppliers, its employees, and its partners.  In other words, it is the basic cost levied on the company to run business process that is outstanding.  Account payable for one company may be account receivable for another firm or company.

93) Explain the meaning of long-term notes payable is or long term liabilities?
Long-term notes payable or liabilities are referred for that loan that are not supposed to due for more than a year.  These are the loans from banks or financial institution that are secured against various assets on the balance sheet, such as inventories.

94) Mention what does financial statement of the company includes?
Financial statement of the company includes various information like
Balance Sheet ( Assets, liabilities, and equity)
Income statement ( Profit or Loss statement)
Equity statement
Cash flow statement

95) Explain what is working capital?
Working capital is a financial metric that calculates the resources available to the company to finance its day-to-day operations.  It is typically calculated by deducting current liabilities from current assets.

96) Explain what is ledger?
A ledger can be referred as an accounting book that keeps the record of journal entries in a chronological order to individual accounts.  The process of recording this journal entries is known as posting.

97) Mention the types of ledger?
There are three types of ledger
General ledger
Debtors ledger
Creditors ledger

98) Explain what is GAAP?
GAAP means Generally Accepted Accounting Principle; it is a framework of accounting, standards, procedures & rules determined by the professional accounting industry and practiced by publicly traded U.S companies all over the U.S.A.

99) Explain what is double-entry accounting? Explain with an example?
Double entry accounting is an accounting system that requires recording business transaction or event in at least two accounts.  It is the same concept of accounting, where every debit account should be matched with a credit account.
For example, if a company takes a loan from a bank, it receives cash as an asset but at the same time it creates a liability on a company.  This single entry will affect both accounts, the asset accounts, and the liabilities accounts, such entry is referred as double entry accounting.

100) Explain what does the standard journal entry includes?
A standard journal entry includes, date of business transaction, name of the accounts affected, amounts to be debited or credited and a brief description of the event.

Latest Tally Accounting Interview Questions and Answers faqs