Tag: computerised accounting system

Questions Related to computerised accounting system

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

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

  1. True

  2. False

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Correct Option: A

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

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

  1. True

  2. False

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Correct Option: A

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

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

  1. appointing a librarian

  2. controlling passwords

  3. appointing EDP auditor

  4. both (A) and (B)

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Correct Option: D

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 _________. 

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

  1. dual read

  2. test for reasonableness

  3. check digit

  4. occurrence correction

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Correct Option: C

Which of the following activities would most likely be performed by EDP department?

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

  1. Authorising transactions

  2. Parity checks

  3. Distributing output

  4. Correction to transactional errors

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Correct Option: C

General controls will be ineffective when EDP department.

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

  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

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Correct Option: C

Which of the following statement is not distinguishing feature for computer based processing and manual processing?

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

  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.

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Correct Option: A

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