COMPUTERISED ACCOUNTING SYSTEM- MULTIPLE CHOICE QUESTIONS AND ANSWERS

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COMPUTERISED ACCOUNTING SYSTEM-

MULTIPLE CHOICE QUESTIONS AND ANSWERS



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SET-1

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Question 1.

What are the features of a computerized accounting system.

(a) It facilitates off-line input and storage of accounting data

(b) This system never fails

(c) It generates a print-out of purchase and sale invoices

(d) None of the above


Answer: (c) It generates a print-out of purchase and sale invoices


Question 2.

What is not an advantages of a computerized accounting system.

(a) High Speed

(b) High Reliability

(c) Reduced training cost

(d) None of the above


Answer: (c) Reduced training cost



 Question 3.

What are the types of a computerized accounting system.

(a) Ready to use Software

(b) Customized Software

(c) Tailor-made Software

(d) All of the above


Answer

Answer: (d) All of the above


 Question 4.

What is the advantages of tailor-made software.

(a) These are ready made softwares

(b) Low cost

(c) High secrecy of data

(d) None of the above


Answer: (c) High secrecy of data


Question 5.

What are the factors to be considered while source accounting software?

(a) Flexibility

(b) Adaptability

(c) Interest of management

(d) Both a & B


Answer: (d) Both a & B



Question 6.

Ram want to install a computerised accounting system but his budget is low. Which software he should opt for

(a) Ready to use Software

(b) Customized Software

(c) Tailor-made Software

(d) He can buy any of above, all cost same


Answer: (a) Ready to use Software


Question 7.

If an organisation want to develop a computerised accounting system according to its need as the business of organisation is complex. Which software it should opt for

(a) Ready to use Software

(b) Customized Software

(c) Tailor-made Software

(d) Any of above

Answer: (c) Tailor-made Software


Question 8.

What are the features of computerized accounting software?

(a) storage of accounting data and on-line input

(b) instantly produces different reports

(c) group different account

(d) All of the above


Answer: (d) All of the above


Question 9.

The ……….of a vendor is also an important factor to consider while opting for a computerized accounting software

(a) Level of profit

(b) Honesty

(c) Capability

(d) None of the above


Answer: (a) Level of profit


Question 10.

A software must be easy to…….

(a) Install

(b) Adapt

(c) Understand

(d) All of the above


Answer: (d) All of the above


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SET-2

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Question 1.

In a computerised accounting system, operating environment consists of:

(a) Hardware

(b) Software

(c) Both (a) and (b)

(d) None of them


Answer: (c) Both (a) and (b)


Question 2.

Among the below-mentioned options, which option does not specifies the advantage of computerised accounting system :

(a) High speed

(b) Reliability

(c) Accuracy

(d) Ill-effect on health


Answer: (d) Ill-effect on health


Question 3.

When any manual accounting system is transformed into a computerised accounting system, what do the employees of an organisation undertake?

(a) Resist the change

(b) Accept the change

(c) Do nothing

(d) Take training


Answer: (d) Take training


Question 4.

Which among the accounting packages, level of secrecy is lowest?

(a) Tailored

(b) Customised

(c) Ready-to-use

(d) None of the above


Answer: (c) Ready-to-use


Question 5.

The basic requirement of a computerised accounting system is/are:

(a) Accounting framework

(b) Operating procedure

(c) Both (a) and (b)

(d) None of the above


Answer: (c) Both (a) and (b)


Question 6.

Which among these, cannot be treated as limitation of computerised accounting system?

(a) Security breach

(b) Staff opposition

(c) Automated document production

(d) Cost of training


Answer: (c) Automated document production


Question 7.

Liveware of the computer system are

(a) System analysts

(b) Programmers

(c) Operators

(d) All of the above


Answer: (d) All of the above


Question 8.

The criterion fulfilled by an effective accounting report is

(a) Relevance, Timeliness, Accuracy, Completeness and Summarisation 

(b) Relevance, Timeliness, Accuracy, Completeness and Globalisation

(c) Relevance, Legibility, Speed, Automation

(d) Reliability, Accuracy, Scalability, Efficiency and Quality


Answer: (a) Relevance, Timeliness, Accuracy, Completeness and Summarisation


Question 9.

Which among these is not an example of operating system?

(a) Unix

(b) Tally

(c) Linux

(d) MS-Dos


Answer: (b) Tally


Question 10.

The data storage system which remains hidden from the user and responds to the requirement of the user to the extent the user is authorised to access is known as:

(a) Back-end database

(b) Front-end database

(c) Data processing

(d) Reporting system


Answer: (a) Back-end database


Question 11.

Modern computerised accounting system is based on the concept of database w hich is implemented using

(a) Management Information System

(b) Database Management System

(c) Marketing Information System

(d) Accounting Information System


Answer: (b) Database Management System


Question 12.

An accounting information system processes the financial transactions and events based on

(a) Governing Principles

(b) Management Principles

(c) Accepted Principles

(d) Generally Accepted Accounting Principles


Answer: (d) Generally Accepted Accounting Principles


Question 13.

Among the following, which ready-to-use accounting software package is available in today’s market?

(a) Tally

(b) E.X.

(c) Busy

(d) The Professional Accountant

(e) All of the Above


Answer: (e) All of the Above


Question 14.

Which among these, is not an example of system utility software?

(a) Anti-virus utility to scan computer for viruses

(b) Microsoft-office Package

(c) Disk compression utility to compress contents of a disk for increasing the capacity of a disk

(d) Disk partitioning to divide a single drive into multiple logical drives


Answer: (b) Microsoft-office package


Question 15.

COBOL, BASIC, FORTRAN, C, C++, JAVA are examples of:

(a) High-level programming languages

(b) Low-level machine language

(c) Assembly language

(d) Application software


Answer: (a) High-level programming languages


Question 16.

What are the features of a computerized accounting system.

(a) It facilitates off-line input and storage of accounting data

(b) This system never fails

(c) It generates a print-out of purchase and sale invoices

(d) None of the above


Answer: (c) It generates a print-out of purchase and sale invoices


Question 17.

What is not an advantages of a computerized accounting system.

(a) High Speed

(b) High Reliability

(c) Reduced training cost

(d) None of the above


Answer: (c) Reduced training cost


Question 18.

What are the types of a computerized accounting system.

(a) Ready to use Software

(b) Customized Software

(c) Tailor-made Software

(d) All of the above


Answer: (d) All of the above


Question 19.

What is the advantages of tailor-made software.

(a) These are ready made softwares

(b) Low cost

(c) High secrecy of data

(d) None of the above


Answer: (c) High secrecy of data


Question 20.

What are the factors to be considered while source accounting software?

(a) Flexibility

(b) Adaptability

(c) Interest of management

(d) Both a & B


Answer: (d) Both a & B


Question 21.

Ram want to install a computerised accounting system but his budget is low. Which software he should opt for

(a) Ready to use Software

(b) Customized Software

(c) Tailor-made Software

(d) He can buy any of above, all cost same


Answer: (a) Ready to use Software


Question 22.

If an organisation want to develop a computerised accounting system according to its need as the business of organisation is complex. Which software it should opt for

(a) Ready to use Software

(b) Customized Software

(c) Tailor-made Software

(d) Any of above


Answer: (c) Tailor-made Software


Question 23.

What are the features of computerized accounting software?

(a) storage of accounting data and on-line input

(b) instantly produces different reports

(c) group different account

(d) All of the above


Answer: (d) All of the above


Question 24.

The ……….of a vendor is also an important factor to consider while opting for a computerized accounting software

(a) Level of profit

(b) Honesty

(c) Capability

(d) None of the above


Answer: (a) Level of profit


Question 25.

A software must be easy to…….

(a) Install

(b) Adapt

(c) Understand

(d) All of the above


Answer

Answer: (d) All of the above


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SET-3-Fill in the blanks

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Question 1.

The framework of storage and processing of data is called as …………….


Answer: Operating Environment


Question 2.

Database is implemented using ……………..


Answer: DBMS


Question 3.

A sequence of actions taken to transform the data into decision useful information is called ……………….


Answer: Data Processing


Question 4.

An appropriate accounting software for a small business organisation having only one user and single office location would be ……………..


Answer: Ready to use


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SET-4-Point out the statements are True or False.

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Question 1.

Every computerised accounting system has two basic requirements.


Answer: True


Question 2.

in computerised accounting system transaction data duplicity is done.


Answer: False


Question 3.

System failure cannot be avoided by any arrangement.


Answer: False


Question 4.

Accounting records are updated automatically in computerised accounting system.


Answer: True


Question 5.

Accounting software can be customised to meet the special requirement of the user.


Answer: True


Question 6.

Tailored software is best suited for organisations whose business is geographically not scattered.


Answer: False


Question 7.

Expenses under a particular head can be an example of responsibility report.


Answer: True


Question 8.

Language processor cannot check the language system.


Answer: False


Question 9.

There are four types of accounting packages.

Answer: False

Question 10.

Accounting data is processed slower by using a computerised accounting system than it is achieved through manual efforts.

Answer: False

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