Tag: elements of accounts

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Questions Related to elements of accounts

Multiple choice elements of accounts applications of computers in accounting introduction to computer and accounting information system meaning of computerised accounting system application of computerised accounting system

_____________ is a complex process involving information, knowledge, intelligence, wisdom and ability to judge.

  1. Commonsense

  2. Decision-making

  3. Zero IQ

  4. Both a and b
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Decision-making is a high-level cognitive process that requires human judgment, experience, and wisdom, which computers currently lack.

Multiple choice elements of accounts applications of computers in accounting introduction to computer and accounting information system meaning of computerised accounting system application of computerised accounting system

___________ controls various input devices which are used for entering data into the computer system.

  1. Input unit

  2. Output unit

  3. Hardware

  4. Central processing ystem
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The input unit is the part of the computer system responsible for accepting data and instructions from the user and converting them into a machine-readable format.

Multiple choice elements of accounts applications of computers in accounting introduction to computer and accounting information system meaning of computerised accounting system application of computerised accounting system

_________________ is where computer systems as on date do not possess any common sense because no full-proof algorithm is designed to programme common sense.

  1. Lack of Commonsense

  2. Zero IQ

  3. Lack of Decision-making

  4. Both b and c
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The inability of computers to handle situations requiring common sense is due to the fact that common sense is based on vast, unstructured human experience that is difficult to codify into algorithms.

Multiple choice elements of accounts applications of computers in accounting introduction to computer and accounting information system meaning of computerised accounting system application of computerised accounting system

Which of the following are features of computerised accounting system?

  1. Online input and storage of accounting data.

  2. Printout of purchase and sales invoice.

  3. Grouping of accounts is done from the very beginning.

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Computerized accounting systems automate data entry, storage, and reporting. They allow for efficient invoice generation and structured account grouping from the start, making all listed options correct.

Multiple choice elements of accounts applications of computers in accounting introduction to computer and accounting information system meaning of computerised accounting system application of computerised accounting system

Which equation does the chart of accounts tie-in with?

  1. Accounting equation

  2. Wave equation

  3. The origin of complex numbers

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

A chart of accounts (COA) is a financial organizational tool that provides a complete listing of every account in an accounting system. An account is a unique record for each type of asset, liability, equity, revenue and expense.

Multiple choice elements of accounts applications of computers in accounting introduction to computer and accounting information system meaning of computerised accounting system application of computerised accounting system

Why is a manual accounting system not feasible for most businesses?

  1. There may be too many transactions that cannot be maintained in a manual system.

  2. The information may be confidential and a manual system requires employees to see data.

  3. Some businesses do not use accounting.

  4. Some systems may not know how to use manual spreadsheets.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Manual systems rely on physical ledgers and manual calculations, which become inefficient and error-prone as the volume of business transactions increases. Automation is necessary to handle high transaction volumes accurately.

Multiple choice elements of accounts applications of computers in accounting introduction to computer and accounting information system meaning of computerised accounting system application of computerised accounting system

Transction processing system refers to the system which processes the transaction of an organisation.

  1. True

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

A Transaction Processing System (TPS) is specifically designed to record, store, and modify the daily routine transactions of an organization.

Multiple choice elements of accounts applications of computers in accounting introduction to computer and accounting information system meaning of computerised accounting system application of computerised accounting system

Name the five main categories that the ledger accounts are grouped under:

  1. Assets, credit cards, liabilities, money, contact cards

  2. Assets, production, bank register, purchases, sales

  3. Assets, liabilities, equity, income, expenses

  4. Assets, credit cards, purchases, money, bank register
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The fundamental accounting equation and the structure of the general ledger are based on five core categories: Assets, Liabilities, Equity, Income (Revenue), and Expenses.

Multiple choice elements of accounts applications of computers in accounting introduction to computer and accounting information system meaning of computerised accounting system application of computerised accounting system

What is one disadvantage of a computerized accounting system?

  1. It makes accounting entries much faster

  2. Systems often has to be customized to handle the needs of the business.

  3. If incorrect information is entered into the system, the reported data will be wrong.

  4. There are too many options in software packages.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Computerized systems are only as accurate as the data provided to them. If the input is incorrect, the system will process that error, leading to unreliable financial reports.

Multiple choice elements of accounts applications of computers in accounting introduction to computer and accounting information system meaning of computerised accounting system application of computerised accounting system

In addition to the standard chart of accounts for a specific industry, you will likely want to expand and/or modify the chart of accounts to fit your business. One tool that would be helpful in determining the accounts for your company would be your company's ___________ chart.

  1. profit

  2. loss

  3. cash

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

An organization chart provides a clear view of the business structure, departments, and reporting lines, which helps in determining how accounts should be categorized to reflect the business's operational structure.