Tag: elements of accounts

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Questions Related to elements of accounts

Multiple choice elements of accounts using computerised accounting system grouping and codification of accounting steps in installation of cas accounting information system

The accounting Sub-system transaction cycle would not include the processing of purchase orders.

  1. True

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

The accounting Sub-system transaction cycle would include the processing of purchase orders, advance to suppliers/vendors, inventory status updation, account payable etc.

Multiple choice elements of accounts using computerised accounting system grouping and codification of accounting steps in installation of cas accounting information system

Bad debts report for a given product, Stock valuation report are prepared under ________ reports.

  1. summary

  2. demand

  3. exception

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

 Demand Reports This reports are prepared only when the management request them, e.g,Bad Debts Report for a given product ,Stock Valuation Report.

Multiple choice elements of accounts using computerised accounting system grouping and codification of accounting steps in installation of cas accounting information system

Under ______________, the business process in the marketing and sales department involve functions such as inquiry, contact creation, entry of orders, etc.

  1. AIS and Marketing Information System

  2. AIS and Manufacturing Information System

  3. Accounting Information System

  4. Manufacturing Information System
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The integration of Accounting Information Systems (AIS) with Marketing Information Systems allows for the seamless handling of sales-related business processes like inquiries, order entry, and customer contact management.

Multiple choice elements of accounts using computerised accounting system grouping and codification of accounting steps in installation of cas accounting information system

Stock status query, over stocked status are to be prepared under ___________ reports.

  1. summary

  2. demand

  3. responsibility

  4. exception
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Exception reports are used to identify items that deviate from normal operating levels, such as stock levels that are too high or too low, requiring management intervention.

Multiple choice elements of accounts computerised accounting system accounting systems - manual and computerized difference between manual and computerised accounting meaning and importance of computerised accounting system

The computerised accounting system are ________.

  1. Scalable

  2. Less scalable

  3. Highly scalable

  4. None of the Above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In a computerised accounting system, the requirement of additional manpower is confined to data entry operators for storing additional vouchers. The additional cost of processing additional transactions is almost negligible because of which the computerised accounting system is highly scalable.

Multiple choice elements of accounts computerised accounting system accounting systems - manual and computerized difference between manual and computerised accounting meaning and importance of computerised accounting system

Which of the following is not a function of generalized audit software?

  1. To aid in the radom selection of trasctions for substantive testing

  2. To run in parallel with the client's application software and compare the output.

  3. To test the mathematical accuracy by footing and cross-foot items in the accounting system

  4. To keep an independent log of access to the computer application software.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Generalized audit software is used for data analysis, sampling, and calculations. Keeping an independent log of access to application software is a security/control function, not a function of audit software.

Multiple choice elements of accounts computerised accounting system accounting systems - manual and computerized difference between manual and computerised accounting meaning and importance of computerised accounting system

Which of the following has helped to eliminate the use of stock certificates by placing stock transactions on computers?

  1. Demat account

  2. Securities Exchange Commission

  3. Depository Trust Company

  4. Federal Depository Insurance Corporation
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Demat accounts allow for the holding of securities in electronic form, eliminating the need for physical stock certificates.

Multiple choice elements of accounts computerised accounting system accounting systems - manual and computerized difference between manual and computerised accounting meaning and importance of computerised accounting system

Which of the following is not an advantage of a computerized accounting system?

  1. Computers process transaction uniformly.

  2. Computers help alleviate human errors.

  3. Computers can process many transactions quickly.

  4. Computers leave a thorough audit trail which can be easily followed.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Computerized systems often lack the visible, step-by-step audit trail found in manual systems, as transactions are processed electronically, which is a disadvantage.

Multiple choice elements of accounts computerised accounting system accounting systems - manual and computerized difference between manual and computerised accounting meaning and importance of computerised accounting system

A, the Works Manager, gets 5% commission of net

profits after charging his commission and Bs commission. B, the General Manager,

gets 10% commission on the net profits after charging his commission and As

commission. If the profit before charging commission of A and B is 1,000, the commission of A will be:

  1. 42.50

  2. 43.50

  3. 47.00

  4. 49.00
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let P = 1000. A's commission = 0.05 * (1000 - A - B). B's commission = 0.10 * (1000 - A - B). Solving these simultaneous equations leads to A = 43.50 (approx).

Multiple choice elements of accounts computerised accounting system accounting systems - manual and computerized difference between manual and computerised accounting meaning and importance of computerised accounting system

Which of the following is not an advantage of introducing computerized accounting systems?

  1. Increased job satisfaction

  2. Increased accuracy of entries

  3. Time saved through speed of inputs

  4. Costs involved in training staff to use system
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Training costs are an implementation expense, not an operational advantage of the system itself.