1870+ Financial Accounting Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration in Computer Applications (BBA [CA]) , Bachelor of Business Administration (BBA) , Bachelor of Accounting and Finance (BAF) , Bachelor of Commerce (B Com) , Cost Accounting .

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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

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

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

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

1870+ Financial Accounting Solved MCQs

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

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

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

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

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

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

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 :

What are the features of computerized accounting software? Sol:

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

Software must be easy to……. Sol:

Acounting Packages are developed on the basis of Sol:

What type of Software is an Accounting Package? Sol:

The components of computerised accounting system are Sol:

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

Codification of Accounts required for the purpose of:

Method of codification should be

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

Pick the odd one out Sol:

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

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

The need of codification is Sol:

Choose the correct pair Sol:

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

Following businesses generally require customised software: Sol:

Features of computerised accounting system Sol:

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

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

Most organisations use __________ for coding their accounts. Sol:

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

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

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

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

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

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

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

The components of Computerised Accounting System are : Sol:

The Computerised Accounting System refers to : Sol:

The components of Computerised Accounting System refers to :

The CAS should be Sol:

A computer is an electric device Sol:

Control unit works as ___________ of the computer. Sol:

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

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

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.

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

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

Application softwares Sol:

Accounting software requires Sol:

Accounting softwares available are Sol:

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

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

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

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

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

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

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

32.	The individual field in the sheet is known as a _________. Sol:
A.	Row
B.	Cell
C.	Column
D.	Group
Answer» B. Cell

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