Financial Accounting Solved MCQs
Chapters
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 |
| 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 |
| 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 |
| 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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