Tag: computerised accounting system

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Questions Related to computerised accounting system

Multiple choice commercial studies computerised accounting system accounting systems - manual and computerized difference between manual and computerised accounting meaning and importance of computerised accounting system

State whether the following statement are True or False:
Computer Accounting System is used for recording the financial transaction. 

  1. True

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

Computerized accounting systems are designed to automate the recording, processing, and reporting of financial transactions.

Multiple choice commercial studies computerised accounting system accounting systems - manual and computerized difference between manual and computerised accounting meaning and importance of computerised accounting system

State whether the following statement are True or False:
Computer Accounts System is Single entry as well as Double entry system. 

  1. True

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

Modern accounting software is flexible and can be configured to support both single-entry and double-entry bookkeeping systems.

Multiple choice commercial studies computerised accounting system accounting systems - manual and computerized difference between manual and computerised accounting meaning and importance of computerised accounting system

When computer programme or files can be accessed from terminals, access can be limited to authorized individuals by ________. 

  1. appointing a librarian

  2. controlling passwords

  3. appointing EDP auditor

  4. both (A) and (B)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Access control in computer systems is maintained by both physical security (like a librarian or terminal room access) and logical security (like passwords). Therefore, combining these methods provides a more robust security framework.

Multiple choice commercial studies computerised accounting system accounting systems - manual and computerized difference between manual and computerised accounting meaning and importance of computerised accounting system

To avoid invalid data input, a bank added an extra number at the end of each account number and subjected the new number to an algorithm. This techniques is known as _________. 

  1. dual read

  2. test for reasonableness

  3. check digit

  4. occurrence correction
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A check digit is a form of redundancy check used for error detection on identification numbers. It involves appending a digit calculated from the other digits in the number to ensure data integrity during input.

Multiple choice commercial studies 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 activities would most likely be performed by EDP department?

  1. Authorising transactions

  2. Parity checks

  3. Distributing output

  4. Correction to transactional errors
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The EDP (Electronic Data Processing) department is responsible for the operational aspects of computing, including the distribution of processed output to the relevant departments. Authorizing transactions and correcting errors are typically functions of the user departments, not the EDP department.

Multiple choice commercial studies computerised accounting system accounting systems - manual and computerized difference between manual and computerised accounting meaning and importance of computerised accounting system

General controls will be ineffective when EDP department.

  1. Participates in computer software acquisition decisions

  2. Design Documentation for computerized operations

  3. Originate changes in master files

  4. Provide physical security for programme files
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

General controls are designed to protect the integrity of the system. If the EDP department, which operates the system, also originates changes in master files, it creates a conflict of interest and bypasses the segregation of duties, rendering general controls ineffective.

Multiple choice commercial studies 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 statement is not distinguishing feature for computer based processing and manual processing?

  1. Errors in a CIS environment are less systemic as compared to errors in manual processing

  2. The potential for human error in the CIS environment is greater as compared to manual system

  3. In a computer based accounting system, audit trail is in electronic form

  4. Computer processing offers management a variety of analytical tools.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In a CIS environment, errors are actually more systemic because a single programming error can affect every transaction processed by that system. Manual systems are prone to random human errors, but computer systems are prone to consistent, systemic errors.

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.