Chapter: Software Used in Accounting
1.

What are the features of a computerized accounting system? Sol:

A. It facilitates off-line input and storage of accounting data
B. This system never fails
C. It generates a print-out of purchase and sale invoices
D. None of the above
Answer» C. It generates a print-out of purchase and sale invoices
2.

What is not an advantage of a computerized accounting system. Sol:

A. High Speed
B. High Reliability
C. Reduced training cost
D. None of the above
Answer» C. Reduced training cost
3.

What are the types of a computerized accounting system? Sol:

A. Ready to use Software
B. Customized Software
C. Tailor-made Software
D. All of the above
Answer» D. All of the above
4.

What are the advantages of tailor-made software? Sol:

A. These are ready made softwares
B. Low cost
C. High secrecy of data
D. None of the above
Answer» C. High secrecy of data
5.

What are the factors to be considered while source accounting software? Sol:

A. Flexibility
B. Adaptability
C. Interest of management
D. Both a & b
Answer» D. Both a & b
6.

Ram want to install a computerised accounting system but his budget is low. Which
software he should opt for
Sol:

A. Ready to use Software
B. Customized Software
C. Tailor-made Software
D. He can buy any of above, all cost same
Answer» A. Ready to use Software
7.

If an organisation want to develop a computerised accounting system according to its need as the business of organisation is complex. Which software it should opt for :

A. Ready to use Software
B. Customized Software
C. Tailor-made Software
D. Any of above
Answer» C. Tailor-made Software
8.

What are the features of computerized accounting software? Sol:

A. storage of accounting data and on-line input
B. instantly produces different reports
C. group different account
D. All of the above
Answer» D. All of the above
9.

The ……….of a vendor is also an important factor to consider while opting for a computerized accounting software

A. Level of profit
B. Honesty
C. Capability
D. None of the above
Answer» C. Capability
10.

Software must be easy to……. Sol:

A. Install
B. Adapt
C. Understand
D. All of the above
Answer» D. All of the above
11.

Acounting Packages are developed on the basis of Sol:

A. Accounting concepts
B. Accounting conventions
C. Both Accounting concepts and Conventions
D. None of the above
Answer» C. Both Accounting concepts and Conventions
12.

What type of Software is an Accounting Package? Sol:

A. System Software
B. Application Software
C. Utility Software
D. Basic
Answer» B. Application Software
13.

The components of computerised accounting system are Sol:

A. Data, Report, Ledger, software, Hardware
B. Software, Hardware, People, Procedure, Data
C. Data, Coding, Procedure, Objective, Output
D. People, Procedure, Hard ware, software
Answer» B. Software, Hardware, People, Procedure, Data
14.

Grouping of Accounts means the classification of data from: Sol:

A. Assets, Capital, and Liabilities
B. Assets, Capital, Liabilities, Revenues & Expenses
C. Assets, Owners equity, Revenue & Expenses
D. Capital, Liabilities, Revenues, & Expenses
Answer» B. Assets, Capital, Liabilities, Revenues & Expenses
15.

Codification of Accounts required for the purpose of:

A. Hierarchical relationship between groups and components
B. Data processing faster and preparing of final accounts
C. Keeping data and information secured
D. None of the above
Answer» A. Hierarchical relationship between groups and components
16.

Method of codification should be

A. Such that it leads to grouping of accounts
B. An identification mark
C. Easy to understand and leads to grouping of accounts
D. None of the above
Answer» C. Easy to understand and leads to grouping of accounts
17.

Final account subsystem in Accounting Information System (AIS) deals with Sol:

A. Preparation of budgets
B. Preparation of Pay Roll
C. Preparation of Final Accounts
D. None of the above
Answer» C. Preparation of Final Accounts
18.

Pick the odd one out Sol:

A. Password security
B. Data Audit
C. Data Bank
D. Data vault
Answer» C. Data Bank
19.

Which among the following is an example of mnemonic codes? Sol:

A. AS03, AS04, AS05
B. 1925, 1926, 1927, 1928
C. ACC, ECO, ENG, MAL
D. 001-100, 101-200, 201-300, 301-400
Answer» C. ACC, ECO, ENG, MAL
20.

Which among the following deals with generation of reports that are vital for management
decision making?
Sol:

A. Costing sub system
B. Pay Roll Accounting Sub system
C. Budget Sub System
D. Management Information System
Answer» D. Management Information System
21.

The need of codification is Sol:

A. Easy to process data
B. Keeping proper records
C. The generation of block codes
D. The encryption of data
Answer» D. The encryption of data
22.

Choose the correct pair Sol:

A. Cash and Bank sub system – Deals with receipts and payments of cash
B. Inventory subsystem – deals with recording of sales
C. Payroll Accounting sub system – deals with the preparation of final accounts
D. Accounts receivable sub system – deals with expenses
Answer» A. Cash and Bank sub system – Deals with receipts and payments of cash
23.

It refers to the system of recording, organising, summarising, analysing, interpreting and
communicating the financial data of a business.
Sol:

A. Manual Accounting
B. Computerised Accounting
C. Auditing
D. Human Resource Accounting
Answer» B. Computerised Accounting
24.

Following businesses generally require customised software: Sol:

A. Banking
B. Medical
C. Retail or point of Sale
D. All of the above
Answer» D. All of the above
25.

Features of computerised accounting system Sol:

A. Complete visibility
B. Fast, powerful, simple and integrated
C. Accuracy and speed
D. All of the above
Answer» B. Fast, powerful, simple and integrated
26.

When different accounts are clubbed on the basis of some common characteristics that are shared by them, the concept is known as_______.

A. Asset
B. Liability
C. Income
D. Grouping
Answer» D. Grouping
27.

_________ is the systematic assignment of number to items to classify and organise them. Sol:

A. Codification
B. Coding
C. Grouping
D. Recording
Answer» B. Coding
28.

Most organisations use __________ for coding their accounts. Sol:

A. Block code
B. Block number
C. Block group
D. Block section
Answer» A. Block code
29.

Computers can be used in accounting in different number of ways: Sol:

A. Utility in batch processing
B. Utility in Online/Interactive Processing
C. Utility in Wage/Payroll System
D. All of the above
Answer» D. All of the above
30.

Such systems also generate reports which allow the accounting professionals to have a proper view of different transactions in a comprehensive manner.

A. Enterprise Resource Planning software
B. Pre-packaged accounting software
C. Spreadsheet software
D. Customised accounting packages
Answer» B. Pre-packaged accounting software
31.

This software is a package which is used for managing the entire organisation in a comprehensive.

A. Enterprise Resource Planning software
B. Pre-packaged accounting software
C. Spreadsheet software
D. Customised accounting packages
Answer» A. Enterprise Resource Planning software
32.

The individual field in the sheet is known as a _________. Sol:

A. Row
B. Cell
C. Column
D. Group
Answer» B. Cell
33.

Such kind of software offers various functionalities such as cell content, pivot table, formulas and macros.

A. Enterprise Resource Planning software
B. Pre-packaged accounting software
C. Spreadsheet software
D. Customised accounting packages
Answer» C. Spreadsheet software
34.

The software may also allow for graphical rendering of data, which is useful for carrying
out analysis.
Sol:

A. Enterprise Resource Planning software
B. Spreadsheet software
C. Pre-packaged accounting software
D. Customised accounting packages
Answer» B. Spreadsheet software
35.

This is the kind of software which is specifically designed for meeting the requirements of
a particular business.
Sol:

A. Enterprise Resource Planning software
B. Customised accounting packages
C. Pre-packaged accounting software
D. Spreadsheet software
Answer» B. Customised accounting packages
36.

The components of Computerised Accounting System are : Sol:

A. Data, Report, Ledger, Hardware, Software
B. Data, People, Procedure, Hardware, Software
C. People, Procedure, Ledger, Data, Chart of Accounts
D. Data, Coding, Procedure, Rules, Output
Answer» B. Data, People, Procedure, Hardware, Software
37.

The Computerised Accounting System refers to : Sol:

A. Printing of Balance Sheet and Profit and Loss Accounts using computer
B. Processing of accounting transaction through computer and produce records and reports
C. Processing of accounting related data and printing reports
D. None of the above
Answer» B. Processing of accounting transaction through computer and produce records and reports
38.

The components of Computerised Accounting System refers to :

A. Business transactions are analysed, transactions recorded, prepare trial balance, preparation of balance sheet and profit and loss account
B. From data entry to preparation of final statements
C. Transformation of manual accounting system to CAS
D. None of the above
Answer» A. Business transactions are analysed, transactions recorded, prepare trial balance, preparation of balance sheet and profit and loss account
39.

The CAS should be Sol:

A. Simple and integrated, transparent, accurate, scalability, reliability
B. Complex, Accurate, Transparent, Faster to work
C. Able to transform the manual accounting system to computerised accounting system
D. None of the above.
Answer» A. Simple and integrated, transparent, accurate, scalability, reliability
40.

A computer is an electric device Sol:

A. True
B. False
C. none
D. all
Answer» B. False
41.

Control unit works as ___________ of the computer. Sol:

A. Monitor
B. Brain
C. Component
D. Part
Answer» B. Brain
42.

Accounting standards issued by ICAI are mandatory in India. Sol:

A. True
B. False
C. none
D. all
Answer» A. True
43.

Computer Accounting System is used for recording the financial transaction. Sol:

A. True
B. False
C. none
D. all
Answer» A. True
44.

Which of the following is true statement for computerised accounting system? a. the computer accounting system is based on the concept of database. b. Computer accounting system does not away with the concept of creating and maintaining journals, ledger etc.

A. Only a
B. Only b
C. Both a and b
D. None of the above
Answer» A. Only a
45.

Opening an account in a computerized accounting system is entirely different from opening an account in a manual system.

A. True
B. False
C. none
D. all
Answer» B. False
46.

Creation of company is the first step in Computerized Accounting process. Sol:

A. True
B. False
C. none
D. all
Answer» A. True
47.

Application softwares Sol:

A. Can operate on its own
B. Cannot operate without Operating Software
C. Both a and b
D. None of these
Answer» B. Cannot operate without Operating Software
48.

Accounting software requires Sol:

A. Transactions to be entered once
B. Transactions to be entered at each stage i.e. recording and posting into accounts
C. Both a and b
D. None of the above
Answer» A. Transactions to be entered once
49.

Accounting softwares available are Sol:

A. Readymade or off-the-shelf software
B. Tailor-made software
C. Customised Software
D. All of these
Answer» D. All of these
50.

Which of the following software is not operating software? Sol:

A. MS DOS
B. Windows XP
C. MS Word
D. None of these
Answer» C. MS Word
Chapter: Final Accounts Charitable Trust
51.

The public hospitals do not carry the activities with an intention of earning profits. Sol:

A. True
B. False
C. none
D. all
Answer» A. True
52.

The Income and Expenditure Account is a summary of cash transactions. Sol:

A. True
B. False
C. none
D. all
Answer» B. False
53.

The Income and Expenditure Account includes all revenue expenses and income
irrespective of its cash flow
Sol:

A. True
B. False
C. none
D. all
Answer» A. True
54.

The Income and Expenditure Account is always accompanied with a cash flow statement Sol:

A. True
B. False
C. none
D. all
Answer» B. False
55.

The fees are collected only once at the time of admission of a member, hence Entrance Fees should be treated as 'Revenue Receipt'.

A. True
B. False
C. none
D. all
Answer» B. False
56.

The fees received from life members is not a periodic subscription, hence are to be capitalized

A. True
B. False
C. none
D. all
Answer» A. True
57.

) A Receipts and Payments Account is nothing but a summary of all capital receipts and payments.

A. True
B. False
C. none
D. all
Answer» B. False
58.

Charitable Organizations promote welfare of the common man, in general Sol:

A. True
B. False
C. none
D. all
Answer» A. True
59.

A Receipts and Payments Account record only non-cash items. Sol:

A. True
B. False
C. none
D. all
Answer» B. False
60.

Receipts and Payments A/c is a summary of: Sol:

A. All Capital Receipts and Payments
B. All Revenue Receipts and Payments
C. All Revenue and Capital Receipts and Payments
D. None of the above
Answer» C. All Revenue and Capital Receipts and Payments
61.

Out of the following items, which one is shown in the Receipts and Payments Account? Sol:

A. Outstanding Salary
B. Depreciation
C. Life Membership Fees
D. Accrued Subscription
Answer» C. Life Membership Fees
62.

In case specific fund is maintained, the expenses exceeding the amount of the fluids, should be recorded on:

A. Liabilities side of the Balance Sheet
B. Debit side the Income and Expenditure Account
C. Credit side of the Income and Expenditure Account
D. Assets side of the Balance Sheet
Answer» B. Debit side the Income and Expenditure Account
63.

All receipts from sale of consumable items are treated as: Sol:

A. Capital Receipts
B. Revenue Receipts
C. Both (a) and (b)
D. None of these
Answer» B. Revenue Receipts
64.

Capital fund is calculated: Sol:

A. Income-Expenditure
B. Assets Liabilities
C. Capital + Liabilities
D. None of these
Answer» B. Assets Liabilities
65.

Subscription received in advance during the current year is: Sol:

A. An income
B. An Asset
C. A liability
D. None of these
Answer» C. A liability
66.

Balance of Income and Expenditure Account shows: Sol:

A. Cash in hand
B. Capital fund
C. Net Profit
D. Excess of Income over expenditure or vice versa
Answer» D. Excess of Income over expenditure or vice versa
67.

Property received as a result of the will of the deceased person is called: Sol:

A. Lagacy
B. Honorarium
C. Donation
D. Subscription
Answer» A. Lagacy
68.

Receipts and Payments Account usually indicates: Sol:

A. Surplus
B. Capital fund
C. Debit Balance
D. Credit Balance
Answer» C. Debit Balance
69.

Income and Expenditure Account generally indicates: Sol:

A. Surplus/ deficit
B. Cash balance
C. Capital fund
D. Net profit/Loss
Answer» A. Surplus/ deficit
70.

Donation received for a special purpose: Sol:

A. Should be credited to Income and Expenditure A/c
B. Should be credited to a separate account and shown in the Balance Sheet
C. Should be shown on the Assets side of the Balance Sheet
D. None of these
Answer» B. Should be credited to a separate account and shown in the Balance Sheet
71.

In not-for-profit organisation, excess of expenditure over income is called : Sol:

A. Loss
B. Profit
C. Deficit
D. Surplus
Answer» C. Deficit
72.

Which of the following is a non-profitable organisation ? Sol:

A. Jharkhand Academic Council
B. Tata Steel
C. Air India
D. Reliance
Answer» A. Jharkhand Academic Council
73.

Income and Expenditure Account is preparedly : Sol:

A. Trending Organisation
B. Non-trading Organisation
C. Both (a) and (b)
D. None of these
Answer» B. Non-trading Organisation
74.

Sale of old newspapers is: Sol:

A. Capital Receipt
B. Revenue Receipt
C. Asset
D. Profit
Answer» B. Revenue Receipt
75.

Income and expenses related to the prize fund is shown in: Sol:

A. Income and Expenditure Account
B. Assets side of the Balance Sheet
C. Liabilities side of the Balance Sheet
D. Cash Account
Answer» A. Income and Expenditure Account
76.

Which of the following is not a not-for-profit organisation: Sol:

A. School
B. Hospital
C. Club
D. Partnership Firm
Answer» D. Partnership Firm
77.

Subscription received during the year 50,000 Rs. Subscriptions outstanding at the end of
the year 8,000 Rs. Subscription outstanding at the beginning of the year 6,000 Rs. Net Income
from subscription will be :

A. Rs 48000
B. RS 64000
C. RS 52000
D. RS 36000
Answer» C. RS 52000
78.

In case specific fund is maintained, the expenses exceeding the amount of the funds, should be recorded on:

A. Liabilities side of the Balance Sheet
B. Debit side of the Income and Expenditure Account
C. Credit side of the Income and Expenditure Account
D. Assets side of the Balance Sheet
Answer» B. Debit side of the Income and Expenditure Account
79.

Income and Expenditure Account is: Sol:

A. Personal Account
B. Real Account
C. Nominal Account
D. None of these
Answer» C. Nominal Account
80.

Life Membership Fees received by a club is shown in : Sol:

A. Income and Expenditure A/c
B. Balance Sheet
C. Receipts and Payments A/c
D. None of these
Answer» B. Balance Sheet
81.

Receipts and Payments Account is a : Sol:

A. Personal Account
B. Real Account
C. Nominal Account
D. None of these
Answer» B. Real Account
82.

Income and Expenditure Account is prepared : Sol:

A. By Business Organisation
B. By Industrial Organisation
C. By Not-for-Profit Organisation
D. By All Organisations
Answer» C. By Not-for-Profit Organisation
83.

Payment of honorarium to secretary is treated as : Sol:

A. Capital expenditure
B. Revenue expenditure
C. An income
D. None of these
Answer» B. Revenue expenditure
84.

Outstanding subscription is a: Sol:

A. Income
B. Assets
C. (a) and (b) Both
D. None of these
Answer» C. (a) and (b) Both
85.

Legacies should be treated as Sol:

A. A Liability
B. A Revenue Receipt
C. An Income
D. None of these
Answer» A. A Liability
86.

The excess of assets over liabilities in non-trading concerns is termed as: Sol:

A. Capital Fund
B. Capital
C. Profit
D. Net profit
Answer» A. Capital Fund
87.

For a non-trading concern, honorarium paid is: Sol:

A. An Income
B. An Assets
C. An Expense
D. None of these
Answer» C. An Expense
88.

Entrance fees, unless otherwise stated, is treated as: Sol:

A. A Capital Receipt
B. A Revenue Income
C. A liability
D. None of these
Answer» B. A Revenue Income
89.

Specific donation is: Sol:

A. Capital receipt
B. Revenue Receipt
C. Assets
D. Liabilities
Answer» A. Capital receipt
90.

Income and Expenditure Account records transactions of: Sol:

A. Capital nature only
B. Revenue nature only
C. (a) and (b) both
D. None of these
Answer» B. Revenue nature only
91.

Life membership fee received by a club is: Sol:

A. Revenue Receipt
B. Capital Receipt
C. (a) and (b)
D. None of these
Answer» B. Capital Receipt
92.

All receipts of capital nature are shown in : Sol:

A. Income and Expenditure A/c
B. Balance Sheet
C. P. & L. A/c
D. None of these
Answer» B. Balance Sheet
93.

All items of revenue in nature are shown in: Sol:

A. Income and Expenditure A/c
B. Balance Sheet
C. (a) and (b) both
D. None of these
Answer» A. Income and Expenditure A/c
94.

Which of the following is not a not-for-profit organisation ? Sol:

A. College
B. Sports Club
C. Tata Automobiles
D. Hospital
Answer» C. Tata Automobiles
95.

Subscriptions received in advance by a club are shown on……………..of the Balance
Sheet
Sol:

A. Assets Side
B. Liability Side
C. Credit Side
D. Debit Side
Answer» B. Liability Side
96.

Which of the following is not an income ? Sol:

A. Subscription
B. Donation
C. Sale of ticket
D. Endowment Fund
Answer» D. Endowment Fund
97.

Subscription received by an organisation is: Sol:

A. Capital Receipt
B. Revenue Receipt
C. Both (a) and (b)
D. None of the above
Answer» B. Revenue Receipt
98.

Not-for-profit organisations are based on…………………………theory. Sol:

A. Fund
B. Surplus
C. Profit
D. Expenses
Answer» A. Fund
99.

The not for profit concerns prohibit the payment of any ………………………to their
members
Sol:

A. Dividend
B. Loss
C. Assets
D. Expenditure
Answer» A. Dividend
100.

The primary motive of Charitable Trust organizations is to provide……………………. Sol:

A. Fund
B. Servive
C. Profit
D. Loss
Answer» B. Servive
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