Tag: elements of accounts

Questions Related to elements of accounts

Which of the following transactions is not posted in the ledger?

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  1. Withdrew from bank for business purpose

  2. Withdrew from bank for personal use

  3. Withdrew cash for personal use.

  4. Cash paid to creditor.

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Correct Option: A

Ledger book is popularly known as ______________.

elements of accounts ledger and posting three column cash book three columnar cash book triple column cash book

  1. Secondary book of accounts

  2. Principal book of accounts

  3. Subsidiary book of accounts

  4. None of these

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Correct Option: B

Narration is not necessary in ledger.

elements of accounts ledger and posting three column cash book three columnar cash book triple column cash book

  1. True

  2. False

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Correct Option: A
Explanation:

Narration 

A short explanation of each transaction is written under each entry which is called narration. 

Narration is not required in ledger, whereas it is required in a Journal. 
It is the brief explanation that provides the details of Journal entry and helps understand the account debited or credited. Journal entries are posted to the ledger accounts. 
Thus,narration is not necessary in ledger.

Balance of petty cash book is posted to ledger ______________.

elements of accounts ledger and posting three column cash book three columnar cash book triple column cash book

  1. In the cash account

  2. In the bank A/c

  3. Nowhere

  4. Either (a) or (b).

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Correct Option: C
Explanation:

A petty cash book is a ledger kept with the petty cash fund to record amounts that are added to or subtracted from its balance. Petty cash should be part of an overall business accounting system that documents how your business moves funds between one account and another and how it spends its money.

In the absence of proper agreement, representative of the deceased partner is entitled to the Dead partner's share in the following items _______. 

elements of accounts ledger and posting three column cash book three columnar cash book triple column cash book

  1. profits till date, goodwill, joint life policy, interest on capital, share in revalued assets and liabilities.

  2. capital, goodwill, joint life policy, interest on capital, share in revalued assets and liabilities.

  3. capital, profits till date, goodwill, interest on capital, share in revalued assets and liabilities.

  4. capital, profits till date, goodwill, joint life policy, share in revalued assets and liabilities.

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Correct Option: D

An organisation is a collection of interdependent decision-making units that exist to pursue organisational objectives.

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  1. True

  2. False

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Correct Option: A
Explanation:

An organisation is a collection of interdependent decision-making units that exists to pursue organisational objectives. Every organisation accepts inputs and transforms them into outputs. All organisational system pursue certain objectives through a process of resource allocation, which is accomplish through the process of managerial decision-making.

_____________ is used the most common form of information system.

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  1. Management Informal System (MIS)

  2. Management Information System (MIS)

  3. Management Input System (MIS)

  4. Management Internal System (MIS)

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Correct Option: B
Explanation:

Management Information System (MIS) is used the most common form of information system. A management information system is a system that provides the information necessary to take decision and manage an organisation effectively.

With the increasing use of information systems in organisations, _______ have started playing a vital role in supporting business operations.

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  1. transaction processing systems (TPS)

  2. central processing unit (CPU)

  3. arithmetic and logic unit (ALU)

  4. none of the above

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Correct Option: A
Explanation:

Every medium sized to large organisation has a well established information system that is meant to generate the information required for decision-making. With the increasing use of information system in organisations, Transaction processing systems (TPS) have started playing a vital role in supporting business operations.

________ is responsible for performing all the arithmetic computations such as addition, subtraction, division, multiplication and exponentiation.

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  1. Control unit

  2. Central unit

  3. Memory unit

  4. Arithmetic and logic unit

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Correct Option: D
Explanation:

Arithmetic and logic unit is responsible for performing all the arithmetic computations such as addition, subtraction, division, multiplication and exponentiation. In addition to this it also performs logical operations involving comparisons among variables and data items.

A large number of devices are now available to automate the input process for a TPS.

elements of accounts overview of computerised accounting system accounting software concepts and types of computerized accounting system types of accounting software

  1. True

  2. False

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Correct Option: A
Explanation:

Information Technology (IT) follows the GIGO principle (Garbage in-Garbage out), it is necessary that input to the IT-based information system is accurate, complete and authorised. This is a achieved by automated by automating the input, A large number of devices are now available to automate the input process for a TPS.