Tag: elements of accounts

Questions Related to elements of accounts

The computer accounting system is based on the concept of ______.

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

  1. Software

  2. Hardware

  3. Data processing

  4. Database

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Correct Option: D
Explanation:

Accounting software is used to implement a computerised accounting  system. The computer accounting system is based on the concept of databases. It does away with the concept of creating and maintaining journals, ledger, etc.

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.

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

  1. Only a

  2. Only b

  3. Both a and b

  4. None of the above

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Correct Option: A
Explanation:

Accounting software is used to implement a computerised accounting system. The computer accounting system is based on the concept of databases. It does away with the concept of creating and maintaining journals, ledgers, etc.

The way computer components are embedded in a computer may ______ from one architecture design to another. 

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

  1. differ

  2. similar

  3. common

  4. None of the above

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Correct Option: A
Explanation:

The functional components of computer system consist of input unit, central processing unit, Output unit. The way these components are embedded in a computer may differ from one architectural design to another, yet all of them constitute the essential building blocks of a computer system. 

There are devices which respond to voice and physical touch. A menu layout displayed on a touch ______.

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

  1. Sensitive

  2. Insensitivie

  3. Magnetic

  4. None of the above

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Correct Option: A
Explanation:

There are devices which respond to voice and physical touch. A menu layout is displayed on a touch sensitive screen. Whenever user touches a menu item on touch-screen, the computer senses which particular menu item has been touched and accordingly performs the operation associated with that menu item.

Which of the following is an example of "Instant reports for management" feature provided by computerised accounting system?

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

  1. Aging Statement

  2. Bank Reconciliation Statement

  3. Journal

  4. None of the above

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Correct Option: A
Explanation:

The examples of feature "Instant reports for management" provided by computerised accounting system are as follows: Aging Statement, Trial Balance, Trading and Profit and Loss Account, Balance Sheet, Stock Valuation, Value Added Tax (VAT), Returns, Payroll Report, etc.

Accounting software is not used to implement a computerised accounting system. 

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

  1. True

  2. False

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Correct Option: B
Explanation:

Accounting software is used to implement a computerised accounting system. The computer accounting system is based on the concepts of database.

Which of the following sequence of steps is used by the TPS in processing a transaction? 

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

  1. Data entry, Data validation, Processing and revalidation, Storage, Information, Reporting

  2. Data analysis, Data validation, Processing and revalidation, Storage, Information, Reporting

  3. Data entry, Data validation, Storage, Information, Reporting, Processing and revalidation

  4. Data entry, Data validation, Processing and revalidation, Information, Reporting, Storage

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Correct Option: A
Explanation:

When the purchase department purchases materials from a supplier, an external transaction take place. The scope of financial accounting is confined to external transactions only. TPS involves following steps in processing a transaction: Data entry, Data validation, Processing and revalidation, Storage, Information, Reporting.

Which of the following statements is not true of the test data approach in a test of computerised accounting system?

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

  1. Test data tests only those controls which the auditor wishes to rely

  2. Test data should consist of data related to all controls prevalent in the organization

  3. The result of test data indicates that all the application and general controls are functioning properly

  4. Test data processed by the client's computer programme under the auditor's control

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Correct Option: B

Computers are dumb devices with ________________ as they cannot visualize and think what exactly to do under a particular situation. 

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

  1. lack of commonsense

  2. zero IQ

  3. lack of decision-making

  4. both a and b

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Correct Option: B

Which of the following is not a limitation of a computer system?

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

  1. Lack of Commonsense

  2. Zero IQ

  3. Reliability

  4. Lack of Decision-making

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Correct Option: C