Tag: application of computerised accounting system

Questions Related to application of computerised accounting system

Why is a manual accounting system not feasible for most businesses?

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  1. There may be too many transactions that cannot be maintained in a manual system.

  2. The information may be confidential and a manual system requires employees to see data.

  3. Some businesses do not use accounting.

  4. Some systems may not know how to use manual spreadsheets.

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Correct Option: A

Transction processing system refers to the system which processes the transaction of an organisation.

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: A

Name the five main categories that the ledger accounts are grouped under:

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. Assets, credit cards, liabilities, money, contact cards

  2. Assets, production, bank register, purchases, sales

  3. Assets, liabilities, equity, income, expenses

  4. Assets, credit cards, purchases, money, bank register

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Correct Option: C

What is one disadvantage of a computerized 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. It makes accounting entries much faster

  2. Systems often has to be customized to handle the needs of the business.

  3. If incorrect information is entered into the system, the reported data will be wrong.

  4. There are too many options in software packages.

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Correct Option: C

In addition to the standard chart of accounts for a specific industry, you will likely want to expand and/or modify the chart of accounts to fit your business. One tool that would be helpful in determining the accounts for your company would be your company's ___________ chart.

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  1. profit

  2. loss

  3. cash

  4. organization

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Correct Option: D

Erroneous data has been detected by computer program controls. It has been excluded from processing and printed separately "Error Report". Who should most probably  review and follow up on this report?

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. System analyst

  2. Data control group

  3. Programmer

  4. Computer operator

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Correct Option: A