Tag: meaning of computerised accounting system

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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.

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

Erroneous data has been detected by computer program controls. It has been excluded from processing and printed separately "Error Report". Who should most probably  review and follow up on this report?

  1. System analyst

  2. Data control group

  3. Programmer

  4. Computer operator
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The system analyst is typically responsible for designing and maintaining the system's logic and controls, making them the appropriate person to investigate why specific data was flagged as erroneous by those controls.