Tag: elements of accounts

Questions Related to elements of accounts

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

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

  1. True

  2. False

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Correct Option: B
Explanation:

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

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

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

  1. summary

  2. demand

  3. exception

  4. responsibility

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Correct Option: B
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.

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

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

  1. AIS and Marketing Information System

  2. AIS and Manufacturing Information System

  3. Accounting Information System

  4. Manufacturing Information System

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Correct Option: A

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

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

  1. summary

  2. demand

  3. responsibility

  4. exception

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Correct Option: D

The computerised accounting system are ________.

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

  1. Scalable

  2. Less scalable

  3. Highly scalable

  4. None of the Above

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Correct Option: C
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.

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

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

  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.

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Correct Option: D

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

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

  1. Demat account

  2. Securities Exchange Commission

  3. Depository Trust Company

  4. Federal Depository Insurance Corporation

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Correct Option: A

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

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

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Correct Option: D

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:

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

  1. 42.50

  2. 43.50

  3. 47.00

  4. 49.00

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Correct Option: B

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

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

  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

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Correct Option: D