Commerce Accountancy

Accounting Principles and Practices

2,324 Questions

Accounting principles and practices involve the preparation of trial balances, ledgers, and bank reconciliation statements. This area tests your knowledge of fundamental accounting concepts and routine business transactions. It is a core section in commerce exams and various competitive tests.

Ledger accountsTrial balance preparationBank reconciliation statementAccounting conceptsPrimary books of accounts

Accounting Principles and Practices Questions

Multiple choice technology databases

An example of an OLTP environment is _____

  1. creating a report to show a comparison of sales from this week to last week

  2. creating a report show how much credit can be extended to a customer

  3. creating a report that shows the top ten selling items across all stores for one year

  4. updating a checking account to reflect a deposit
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

OLTP (Online Transaction Processing) systems are characterized by individual, transactional operations that update data in real-time. Updating a checking account to reflect a deposit is a classic OLTP operation. The other options - sales comparison reports, credit limit reports, and top-selling item reports - are all OLAP (Online Analytical Processing) activities involving historical data analysis and reporting.

Multiple choice technology

Account is what kind of entity

  1. Single Organization

  2. Multiple Organization

  3. Single User

  4. Single Position
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

An account entity represents a multi-organization structure, allowing relationships across multiple organizations rather than being limited to a single organization, user, or position. This multi-org design enables complex business relationships and hierarchical structures.

Multiple choice technology platforms and products

Daily Financial transactions would be updated to MNS database through ___________ process

  1. Posting

  2. Cutoff

  3. Review

  4. Capture
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Posting is the process that records daily financial transactions into the MNS (Mainframe Network System) database. Cutoff is typically a cycle-based process, while Review is a verification step and Capture is initial data collection - none of these directly update the database like Posting does.

Multiple choice technology platforms and products

Statementing process happens immediately after _____

  1. Posting

  2. Cycle cut

  3. Review

  4. Non financial process

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Statementing occurs immediately after the cycle cut process, which marks the end of a billing cycle and triggers statement generation for that cycle. Posting happens continuously, Review is periodic, and Non-Financial updates are independent of statement generation timing.

Multiple choice technology security

Credit card numbers should be logged into the log file during exception

  1. No. Because leads to insecure storage of private information of the customer

  2. Yes. Because it is a good logging practice to log all relevant information during an exception

  3. Yes. Because it will help in troubleshooting specific customer problems

  4. No. Because its an additional over head
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Credit card numbers must NOT be logged during exceptions as it creates insecure storage of sensitive customer data, violating PCI-DSS and privacy requirements. Options B and C incorrectly suggest it's good practice or helps troubleshooting. The security risk outweighs any troubleshooting benefit.

Multiple choice technology security

Credit card numbers should be logged into the log file during exception

  1. No. Because leads to insecure storage of private information of the customer

  2. Yes. Because it is a good logging practice to log all relevant information during an exception

  3. Yes. Because it will help in troubleshooting specific customer problems

  4. No. Because its an additional over head
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Logging sensitive customer information like credit card numbers creates security vulnerabilities and violates PCI-DSS compliance requirements. Log files can be accessed by unauthorized personnel or leaked in data breaches. The overhead argument is irrelevant compared to the security risk.

Multiple choice technology security

Which form of accountability should be used

  1. Accounts for each user

  2. Account for each group of users

  3. Accounts for each business unit

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Individual user accounts provide clear accountability by linking actions to specific users. Group or business unit accounts obscure who performed specific actions, making audits and incident investigation difficult. Individual accounts are essential for maintaining an audit trail and meeting compliance requirements.

Multiple choice technology security

Credit card numbers should be logged into the log file during exception

  1. No. Because leads to insecure storage of private information of the customer

  2. Yes. Because it is a good logging practice to log all relevant information during an exception

  3. Yes. Because it will help in troubleshooting specific customer problems

  4. No. Because its an additional over head
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Logging sensitive information like credit card numbers during exceptions is a serious security violation. It creates insecure storage of PII (Personally Identifiable Information) and PCI DSS protected data in log files, which are often less protected than the main application database. This can lead to data breaches and compliance violations. The correct approach is to log that an error occurred without including the actual sensitive data.

Multiple choice technology security

Which form of accountability should be used

  1. Accounts for each user

  2. Account for each group of users

  3. Accounts for each business unit

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Individual user accounts provide proper audit trails and accountability because each action can be traced to a specific person. Shared accounts (group or business unit) make it impossible to determine who actually performed an action, which is a security and compliance issue. The principle of least privilege and accountability requires one-to-one mapping between accounts and individuals.

Multiple choice technology packaged enterprise solutions

T-Class determines the G/L account for IM&S Purchasing.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In SAP IM&S (Industry Solution for Mill Products) or general purchasing, the T-Class (Transaction Class or similar classification) does not solely determine the G/L account. G/L account determination is a more complex process involving valuation class, material type, account modifier, transaction keys, and the OBYC configuration. While T-class may be one factor, stating it 'determines' the G/L account is an oversimplification. The answer False correctly indicates that T-class alone is not the determinant.

Multiple choice technology packaged enterprise solutions

With reference to naming convention of GL accounts, what should be the range of first digit for balance sheet and P&L accounts in Kraft APAC Catalyst model

  1. B.S. 1-4 and P&L 6-9

  2. B.S. 6-9 and P&L 1-4

  3. B.S. 1-4 and P&L 4-9

  4. B.S. 4-9 and P&L 1-4
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In the Kraft APAC Catalyst model, Balance Sheet accounts use first digits 6-9, while P&L accounts use first digits 1-4. This naming convention helps distinguish between asset/liability accounts (BS) and revenue/expense accounts (P&L) in the GL account numbering system. Option A has the ranges reversed.

Multiple choice technology packaged enterprise solutions

Leading Ledger is used in Kraft APAC for which GAAP?

  1. IFRS

  2. US GAAP

  3. Local GAAP

  4. None of above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

As a US-based multinational company, Kraft Heinz uses US GAAP for consolidation and group reporting. Consequently, the Leading Ledger (0L) in SAP is configured under US GAAP to maintain corporate compliance, while local GAAP configurations are managed in non-leading parallel ledgers for country-specific statutory requirements.