Tag: meaning and importance of computerised accounting system

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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

The preparation of financial statements pre-supposes the availability of trial balance in ________ system of accounting.

  1. computerised

  2. manual

  3. both manual and computerised

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

In a manual system of accounting, the preparation of financial statements pre-supposes the availability of trial balance. However, in computerised accounting, there is no such requirement.

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

The danger of the system crashing due to hardware failures and the subsequent loss of work is a serious ___________ of computerised accounting system.

  1. advantage

  2. limitation

  3. advantage and limitation

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

The danger of the system crashing due to hardware failures and subsequent loss of work is a serious limitation of computerised accounting system. However, providing for back-up arrangements can obviate this limitation.

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

___________ is a well-defined procedure blended suitably with the operating environment of the organisation.

  1. Accounting Framework

  2. Back-end Database

  3. Operating Procedure

  4. Data Processing
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

• Operating Procedure : It is a well-defined operating procedure blended. suitably with the operating environment of the organisation. The use of computers in any database oriented application has four basic.

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

An interactive link or a dialog between the user and database-oriented software through which the user communicates to the back-end database is ___________________.

  1. Back-end Database

  2. Front-end Interface

  3. Data Processing

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

Front-end Interface is an interactive link or a dialog between the user and database-oriented software through which the user communicates to the back-end database.

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

____________by definition, is the process of identifying, recording, classifying and summarising financial transactions to produce the financial reports for their ultimate analysis.

  1. Cost accounting

  2. Accounting

  3. Management accounting

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

Accounting, by definition, is the process of identifying, recording, classifying and summarising financial transactions to produce the financial reports for their ultimate analysis.

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

Transactions lead to data duplication in __________ accounting system.

  1. computerised

  2. manual

  3. both manual and computerised

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

In a manual accounting system, transactions recorded in the books of original entry are further classified by posting into ledger accounts. This results in transaction data duplicity. In computerised accounting, no such data duplication is made to cause classification of 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

A computerised accounting system is an accounting information system that processes the ______ to produce reports as per user requirements.

  1. financial transactions and events

  2. cost transactions and events

  3. management transactions and events

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

A computerised accounting system is an accounting information system that processes the financial transactions and events as per Generally Accepted Accounting Principles (GAAP) to produce reports as per user requirements. Every accounting system, manual or computerised, has two aspects.

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

________, one of the advantage of computerised accounting system, allows the users to store data in a manner that does not require a large amount of physical space. 

  1. MIS Reports

  2. Efficiency

  3. Legability

  4. Storage and Retrieval
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The advantage of computerised accounting system, storage and retrieval, allows the users to store data in a manner that does not require a large amount of physical space.

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

In a manual accounting system, ___________ are made to adhere to the principle of cost matching revenue, whereas in computerised accounting system _________ are prepared and stored to follow the principle of cost matching revenue.

  1. adjusting entries, journal vouchers

  2. journal entries, journal vouchers

  3. adjusting entries, journal entries

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

In a manual accounting system Adjusting entries are recorded to match the expenses of the accounting period with the revenues generated by them.

In computerized accounting, Journal vouchers are prepared and stored to follow the principle of cost matching revenue.

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

The internet has assisted in decreasing the ______ in issuing financial reports to users.

  1. time gap

  2. free from bias

  3. revenue

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

Earlier the physical copies of financial reports were sent via post or courier (though the option is still available).

But now, with the advent of internet, it has become possible for the companies display the financial reports on their official website, it is convenient for any one sitting in any part of the world to refer to these reports and also to other information of the company.
This saves a lot of time of the company and also the other stakeholders.