1. Bachelor of Business Administration in ...
  2. Financial Accounting
  3. Set 1
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
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