Text Book Back Questions and Answers
I. Multiple Choice Questions
Choose the Correct Answer
Question 1.
In accounting, computer is commonly used in the following areas:
(a) Recording of business transactions
(b) Payroll accounting
(c) Stores accounting
(d) All the above
Answer:
(d) All the above
Question 2.
Customised accounting software is suitable for ………………
(a) Small, conventional business
(b) Large, medium business
(c) Large, typical business
(d) None of the above
Answer:
(b) Large, medium business
Question 3.
Which one is not a component of computer system?
(a) Input unit
(b) Output unit
(c) Data
(d) Central Processing Unit
Answer:
(c) Data
Question 4.
An example of output device is ………………
(a) Mouse
(b) Printer
(c) Scanner
(d) Keyboard
Answer:
(b) Printer
Question 5.
One of the limitations of computerised accounting system is ………………
(a) System failure
(b) Accuracy
(c) Versatility
(d) Storage
Answer:
(a) System failure
Question 6.
Expand CAS ………………
(a) Common Application Software
(b) Computerised Accounting System
(c) Centralised Accounting System
(d) Certified Accounting System
Answer:
(b) Computerised Accounting System
Question 7.
Which one of the following is not a method of codification of accounts?
(a) Access codes
(b) Sequential codes
(c) Block codes
(d) Mnemonic codes
Answer:
(a) Access codes
Question 8.
TALLY is an example of ………………
(a) Tailor – made accounting software
(b) Ready – made accounting software
(c) In – built accounting software
(d) Customised accounting software
Answer:
(b) Ready – made accounting software
Question 9.
People who write codes and programs are called as ………………
(a) System analysts
(b) System designers
(c) System operators
(d) System programmers
Answer:
(d) System programmers
Question 10.
Accounting software is an example of ………………
(a) System software
(b) Application software
(c) Utility software
(d) Operating software
Answer:
(b) Application software
II. Very Short Answer Questions
Question 1.
What is a computer?
Answer:
Question 2.
What is CAS?
Answer:
A computerized accounting system (CAS) refers to the system of maintaining accounts using computers. It involves the processing of accounting transactions through the use of hardware and software in order to keep and produce accounting records and reports.
Question 3.
What is hardware?
Answer:
Question 4.
What is meant by software?
Answer:
A set of programs that form an interface between the hardware and the user of a computer system are referred to as software.
Question 5.
What is accounting software?
Answer:
Accounting software describes a type of application software that records and processes accounting transactions within functional modules such as accounts payable, accounts receivable, journal, general ledger, payroll, and trial balance. It functions as an accounting information system.
Question 6.
Name any two accounting packages.
Answer:
Question 7.
Give any two examples of readymade software.
Answer:
Question 8.
What is coding?
Answer:
Code is an identification mark, generally, computerized accounting involves codification of accounts.
Question 9.
What is a grouping of accounts?
Answer:
Question 10.
What are mnemonic codes?
Answer:
A mnemonic code consists of alphabets or abbreviations as symbols to codify a piece of information.
III. Short Answer Questions
Question 1.
What are the various types of accounting software?
Answer:
1. Readymade software:
2. Customised software:
3. Tailor-made software:
Question 2.
Mention any three limitations of computerized accounting system.
Answer:
Heavy cost of installation, Cost of training and fear of unemployment
Question 3.
State the various types of coding methods.
Answer:
Sequential codes, block codes, and mnemonic codes.
Question 4.
List out the various reports generated by the computerized accounting systems.
Answer:
A computerized accounting system takes accounting transactions as inputs that are processed through accounting software to generate the following reports:
Question 5.
State the input and output devices of a computer system.
Answer:
Input devices: keyboard, optical scanner, mouse, joystick, touch screen, and stylus.
Output devices: Monitor and printer.
Textbook Case Study Solved
Question 1.
The manager of a medium-sized business is considering the introduction of the computerized accounting system. Some staff feels that it is an opportunity to learn a new skill. The manager has promised free framing for their staff, So, the staff realizes that their own skill can be enhanced. Also, there is a demand for highly skilled staff. But, some staff feels threatened by these changes. They feel that they may not be able to leam new skills. Moreover, some of them are nearing their retiring age. So they think that it is not needed for them. But the manager expects cooperation from all the staff.
Now, discuss the following points:
Question 1.
Will it be expensive for the business to introduce a computerized accounting system?
Answer:
No, it will not be expensive. It may be integrated with enhanced MIS, multilingual, and data organization capabilities to simplify all the business processes easily and cost-effectively.
Question 2.
Will everyone get access to use the computers? In such a case, how to protect data?
Answer:
It is an opportunity to leam new skills free of cost. Retrieval of data is easier as the records are kept in soft copy in the database. By giving instructions, data can be retrieved quickly.
Question 3.
“People at the retirement age are not required to leam new skills” – Do you think so?
Answer:
No, the computerized accounting system is easy to leam by everyone. It is not a difficult one for retiring people also.
Question 4.
What are the factors to be considered by the managers before introducing CAS?
Answer:
The manager has to give an opportunity to leam new skill to his employees. It will take time but he has to face the employee’s problems:
I. Multiple Choice Questions
Choose the correct answer
Question 1.
An example of input device is ________.
a) Mouse
b) Printer
c) Monitor
d) Headphone
Answer:
a) Mouse
Question 2.
Components of CAS can be classified into …………….. categories.
(a) Six
(b) Seven
(c) Five
(d) Three
Answer:
(a) Six
Question 3.
________ packages are used by small and conventional business enterprises.
a) Readymade software
b) Customised software
c) Tailor-made software
d) None of these
Answer:
a) Readymade software
Question 4.
Which one is matched correctly?
(a) Land & building – current assets
(b) Goodwill – non – current liabilities
(c) Patents – intangible assets
(d) Sales – expenses
Answer:
(c) Patents – intangible assets
Question 5.
________ packages are used by medium or large nature business enterprises.
a) Readymade software
b) Customised software
c) Tailor-made software
d) None of these
Answer:
b) Customised software
II. Very Short Answer Questions
Question 1.
What is an Operating system?
Answer:
A set of tools and programs to manage the overall working of a computer using a defined set of hardware components is called an operating system. It is the interface between the user and the computer system.
Example: DOS, Windows, UBUNTU, Imac, etc.
Question 2.
Mention any two features of CAS.
Answer:
Question 3.
What is utility software?
Answer:
These are designed specifically for managing the computer device and its resources.
Question 4.
What are system operators?
Answer:
People who operate the systems and use it for different purposes. They are also called end-users.
Question 5.
What is data?
Answer:
The facts and figures that are fed into a computer for further processing are called data. Data are raw input until the computer system interprets them using machine language, stores them in memory, classifies them for processing and produces results in conformance with the instructions given to it. Processed and useful data are called information which is used for decision making.
III. Short Answer Questions
Question 1.
What are the types of people interacting with a computer system?
Answer:
Question 2.
What is an operating system? Give two examples.
Answer:
A set of tools and programs to manage the overall working of a computer using a defined set of hardware components is called an operating system.
Example:
Question 3.
Mention any three advantages of CAS.
Answer:
Question 4.
What are the three types of procedures in a computer system?
Answer:
Question 5.
Can you explain the data?
Answer:
The facts and figures that are fed into a computer for further processing are called data. Data are raw input until the computer system interprets them using machine language, stores them in memory, classifies them for processing, and produces results in conformance with the instructions given to it. Processed and useful data are called information which is used for decision making.