This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Accountancy > Class 12 Accountancy Chapter 9 Computerised Accounting System – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Accountancy Chapter 9 Computerised Accounting System Quiz 1 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The usual sequence of steps in the transaction recording process is A) Analyze $\rightarrow$ journal $\rightarrow$ ledger. B) Journal $\rightarrow$ ledger $\rightarrow$ analyze. C) Journal $\rightarrow$ analyze $\rightarrow$ ledger. D) Ledger $\rightarrow$ journal $\rightarrow$ analyze. Show Answer Correct Answer: A) Analyze $\rightarrow$ journal $\rightarrow$ ledger. 2. What is one of the main advantages of manual accounting mentioned in the text? A) It is always accessible. B) It has a high risk of file corruption. C) It is prone to data entry errors. D) It requires internet connection. Show Answer Correct Answer: A) It is always accessible. 3. What is considered the most effective method for recording business transactions as a business grows? A) Outsourcing to an accounting firm. B) Manual recording in ledgers. C) Using a basic spreadsheet. D) Using a computerised system. Show Answer Correct Answer: D) Using a computerised system. 4. A ledger is called a book of A) Primary entry. B) Secondary entry. C) Final entry. D) None of the above. Show Answer Correct Answer: C) Final entry. 5. The cash book records: A) Only credit transactions. B) All cash and bank transactions. C) Only profit items. D) Only year-end adjustments. Show Answer Correct Answer: B) All cash and bank transactions. 6. Tally package is developed by A) Peutronics. B) Tally solutions. C) Coral software. D) Vedika software. Show Answer Correct Answer: B) Tally solutions. 7. The portion of the computerised accounting system that integrates all of the components is the ..... A) Accounts receivable module. B) General Ledger module. C) General Journal module. D) Accounts payable module. Show Answer Correct Answer: B) General Ledger module. 8. Transactions are posted into ledger account from. A) Vouchers. B) Journal Book. C) Source Documents. D) None of the above. Show Answer Correct Answer: B) Journal Book. 9. Once an accounting system has been implemented, feedback will be used to continuously analyze and improve the system. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 10. After transaction information has been recorded in the journal, it is transferred to the A) Book of original entry. B) Income statement. C) Trial balance. D) Ledger. Show Answer Correct Answer: D) Ledger. 11. The sequence of operation in a computerised accounting environmentis ..... A) Posting, journalising, preparation and printing of final reports. B) Posting, creation of chart of accounts, the printing of final reports. C) Printing of final reports, posting, journalising. D) Journalising, posting, preparation and printing of final reports. Show Answer Correct Answer: D) Journalising, posting, preparation and printing of final reports. 12. Which of the following transactions is recorded in the purchases journal? A) Return of damaged office equipment. B) Purchase of office equipment for cash. C) Purchase of store supplies on account. D) Purchase of store supplies for cash. Show Answer Correct Answer: C) Purchase of store supplies on account. 13. Which of the following is not considered a special journal? A) Cash payments journal. B) General journal. C) Purchases journal. D) Cash receipts journal. Show Answer Correct Answer: B) General journal. 14. In computerized accounting systems, reports may be generated at any time. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 15. Which one of the following is not a nominal account? A) Cash account. B) Sales account. C) Salaries account. D) Purchases account. Show Answer Correct Answer: A) Cash account. 16. Can computerised accounting systems be customised, or the business just has to purchase a standard system? A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: A) Yes. 17. What does an accounting system allow a business to do? A) Keep track of their transactions, including purchases, expenses, sales, and liabilities. B) Monitor the personal activities of employees. C) Track the inventory of office supplies. D) Control the business's social media accounts. Show Answer Correct Answer: A) Keep track of their transactions, including purchases, expenses, sales, and liabilities. 18. A disadvantage of using computer-based accounting system is that it ..... A) Introduces storage media errors. B) Introduces human posting errors. C) Reduces incomplete entries. D) Reduces the number of transactions posted. Show Answer Correct Answer: A) Introduces storage media errors. 19. What can computerised accounting systems produce to aid business decision making? A) Only final accounts. B) Only VAT returns. C) Only bank reconciliations. D) Final accounts, VAT returns, bank reconciliations, and reports. Show Answer Correct Answer: D) Final accounts, VAT returns, bank reconciliations, and reports. 20. The account that records expenses, gains and losses is A) Personal account. B) Real account. C) Nominal Account. D) None of the above. Show Answer Correct Answer: C) Nominal Account. 21. Beachside Coffee Shop, in an effort to streamline its accounting system, has decided to utilize a cash receipts journal in its operations. If the company records the cash sale of food for $ 18, which is the correct entry? A) Cash Dr., $ 18; Food Revenue Dr., $ 18. B) Cash Cr., $ 18; Food Revenue Dr., $ 18. C) Cash Cr., $ 18; Food Revenue Cr., $ 18. D) Cash Dr., $ 18; Food Revenue Cr., $ 18. Show Answer Correct Answer: D) Cash Dr., $ 18; Food Revenue Cr., $ 18. 22. Which of the following is not a general classification of software? A) Application. B) System. C) Development. D) Word processing. Show Answer Correct Answer: D) Word processing. 23. Passwords can be used to protect data from people from outside the organisation only A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 24. Which of the following is a source document? A) Profit or loss report. B) General ledger. C) Trial balance. D) Sales invoice. Show Answer Correct Answer: D) Sales invoice. 25. In an integrated business systems software, which of the following module's interfaces directly with the General Ledger module? A) Purchase order processing. B) Sales order processing. C) Accounts receivable. D) Sales analysis. Show Answer Correct Answer: C) Accounts receivable. 26. What financial statements are prepared with the help of accurate accounting records? A) The Business Plan and Marketing Strategy. B) The Income Statement and the Statement of Financial Position. C) The Employee Handbook and Safety Procedures. D) The Customer Service Policy and Guarantee Terms. Show Answer Correct Answer: B) The Income Statement and the Statement of Financial Position. 27. Why should every business, no matter the size, accurately record their accounting transactions? A) To avoid using computerised systems. B) To comply with legal requirements only. C) To assist in effective business decision making. D) To make the process more complicated. Show Answer Correct Answer: C) To assist in effective business decision making. 28. What is the primary purpose of an accounting system in a business? A) To manage employee performance. B) To manage the income, expenses, and other financial activities. C) To handle customer service inquiries. D) To oversee the production process. Show Answer Correct Answer: B) To manage the income, expenses, and other financial activities. 29. What is one of the advantages of computerised accounting systems like Xero/Sage/QuickBooks? A) Increased complexity. B) Single entry system with manual double entry requirement. C) Simplicity-single entry system with double entry completed by the system. D) Higher risk of fraud. Show Answer Correct Answer: C) Simplicity-single entry system with double entry completed by the system. 30. Which of the following is not a common feature of an accounting package? A) Menu-driven. B) Flexible chart of accounts. C) Easy access to all the accounts for all users. D) Help function. Show Answer Correct Answer: C) Easy access to all the accounts for all users. 31. Davis account is related to A) Personal account. B) Real account. C) Nominal account. D) All the above. Show Answer Correct Answer: A) Personal account. 32. Which of the following general ledger accounts normally has a subsidiary ledger? A) Supplies. B) Capital Stock. C) Accounts Payable. D) Retained Earnings. Show Answer Correct Answer: C) Accounts Payable. 33. QS:The directors of ABC Ltd are considering to implement a computerised accounting system. Discuss and advice whether the computerised accounting system should be implemented. (7 marks)What is the format of answering these types of questions? A) Provide 6 advantages, and advice. B) Provide 5 advantages and 2 disadvantages. C) Provide 3 advantages, 3 disadvantages, and advice. D) None of the above. Show Answer Correct Answer: C) Provide 3 advantages, 3 disadvantages, and advice. 34. An advantage of a computerised accounting system is that it provides ..... A) Higher quality information. B) More timely information. C) A greater variety of information. D) All of the above. Show Answer Correct Answer: D) All of the above. 35. A purchase of supplies on account is recorded in the A) Revenue journal. B) Purchases journal. C) Cash payments journal. D) General journal. Show Answer Correct Answer: B) Purchases journal. 36. What does accurate record-keeping enable businesses to do more effectively? A) Increase the number of employees. B) Make effective business decisions regarding products/services and costs. C) Reduce the overall need for marketing. D) Eliminate competition. Show Answer Correct Answer: B) Make effective business decisions regarding products/services and costs. 37. The other name for the journal is: A) Day book. B) Cash book. C) Ledger. D) T-account. Show Answer Correct Answer: A) Day book. 38. What type of system is used by most businesses for accounting today? A) Paper-based ledgers. B) Abacus and manual calculations. C) Computer-based, using specialised software and/or cloud-based services. D) Physical cash registers only. Show Answer Correct Answer: C) Computer-based, using specialised software and/or cloud-based services. 39. The first step of implementing a computerised accounting system is: A) Choosing who to buy the system from. B) Setting up accounts. C) Choosing what package to purchase. D) Installing software. Show Answer Correct Answer: C) Choosing what package to purchase. 40. A journal is called a book of A) Primary Entry. B) Secondary Entry. C) Final Entry. D) None of these. Show Answer Correct Answer: A) Primary Entry. 41. Cash sales revenue of 1, 000 dollars is recorded as: A) Debit Cash, Credit Revenue. B) Debit Accounts Receivable, Credit Revenue. C) Debit Revenue, Credit Cash. D) Debit Cash, Credit Sales. Show Answer Correct Answer: D) Debit Cash, Credit Sales. 42. Which of the following is NOT listed as an advantage of manual accounting? A) Error Correction. B) Data System Errors and File Corruption. C) Data Entry Errors. D) Always Accessible. Show Answer Correct Answer: C) Data Entry Errors. 43. What is a potential disadvantage of using a computerised accounting system? A) It is slower than manual methods. B) It is less accurate than manual methods. C) It may be costly and require training. D) It eliminates all forms of risk. Show Answer Correct Answer: C) It may be costly and require training. 44. Credit purchases are recorded as: A) Debit Purchases, Credit Payables. B) Debit Payables, Credit Purchases. C) Debit Cash, Credit Purchases. D) None of the above. Show Answer Correct Answer: A) Debit Purchases, Credit Payables. 45. Which of the following module's interfaces directly with the accounts payable module in a typical computerised business system? A) Purchase order. B) Purchase analysis. C) Sales order. D) None of the above. Show Answer Correct Answer: A) Purchase order. 46. Why is it essential to keep accurate records in a business? A) To ensure that the business can pay more taxes. B) To make sure that the business knows what they owe and are owed, and if they are making a profit or loss. C) To allow the business to avoid financial audits. D) To make the process of hiring employees easier. Show Answer Correct Answer: B) To make sure that the business knows what they owe and are owed, and if they are making a profit or loss. 47. Which of the following accounts can be classified as a real account? A) Insurance expense account. B) Rent income account. C) Rent expense account. D) Cash account. Show Answer Correct Answer: D) Cash account. 48. According to the text, what is a disadvantage of manual accounting? A) Error Correction. B) Always Accessible. C) Potential Loss of Physical Copies. D) Data System Errors and File Corruption. Show Answer Correct Answer: C) Potential Loss of Physical Copies. 49. The process of recording transactions in different journals is called: A) Adjusting. B) Posting. C) Journalizing. D) Entry making. Show Answer Correct Answer: C) Journalizing. 50. Which of the following is a disadvantage of computerised accounting systems? A) Cost-effectiveness. B) Reliability. C) Potential for technical issues. D) Ability to produce VAT returns. Show Answer Correct Answer: C) Potential for technical issues. 51. Rent paid is related to A) Personal account. B) Real account. C) Nominal account. D) All of the above. Show Answer Correct Answer: C) Nominal account. 52. The ledger contains: A) All accounts necessary to prepare financial statements. B) Only assets. C) Only source documents. D) Only expenses. Show Answer Correct Answer: A) All accounts necessary to prepare financial statements. 53. To change current date getway of tally press the key A) F5. B) F2. C) F9. D) F1. Show Answer Correct Answer: B) F2. 54. Which of the following is recorded in the cash receipts journal? A) Cash withdrawn by the owner. B) Adjusting entry for depreciation. C) Cash received on customer's account. D) Cash purchase of equipment. Show Answer Correct Answer: C) Cash received on customer's account. 55. What is the purpose of the trial balance in accounting? A) To determine the amount of stock available. B) To record the minutes of business meetings. C) To ensure that the correct balances are transferred from the ledgers. D) To calculate the total sales of the business. Show Answer Correct Answer: C) To ensure that the correct balances are transferred from the ledgers. 56. The correct order is: A) Source documents $\rightarrow$ Ledger $\rightarrow$ Trial balance $\rightarrow$ Financial statements. B) Trial balance $\rightarrow$ Source documents $\rightarrow$ Ledger. C) Source documents $\rightarrow$ Financial statements $\rightarrow$ Trial balance. D) Ledger $\rightarrow$ Source documents $\rightarrow$ Financial statements $\rightarrow$ Trial balance. Show Answer Correct Answer: A) Source documents $\rightarrow$ Ledger $\rightarrow$ Trial balance $\rightarrow$ Financial statements. 57. All of the following are required steps in the accounting cycle EXCEPT: A) Journalizing and posting closing entries. B) Preparing financial statements. C) Journalizing the transactions. D) Preparing a worksheet. Show Answer Correct Answer: D) Preparing a worksheet. 58. A purchase of supplies for cash is recorded in the A) Cash payments journal. B) Purchases journal. C) Revenue journal. D) Cash receipts journal. Show Answer Correct Answer: A) Cash payments journal. 59. Stock statement display A) Physical stock journal. B) Purchase voucher. C) Payment voucher p. D) Stock journal. Show Answer Correct Answer: A) Physical stock journal. 60. Atypical report generated from a General Ledger accounting package would be ..... A) Profit and loss statement. B) Re-order report. C) Invoices. D) Pay cheques. Show Answer Correct Answer: A) Profit and loss statement. 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