Accounting
Question : Under a manual accounting system, addition, subtraction, multiplication and division are done _________.
Option 1: manually
Option 2: through computers
Option 3: Through electronic media
Option 4: All of the above
Correct Answer: manually
Solution : The manual system of accounting calls for manual adding, subtracting, and totaling as well as the recording of transactions in the original entry books. Hence, the correct option is 1.
Question : The components of computerised accounting system are -
Option 1: Data, Report, Ledger, software, Hardware
Option 2: Software, Hardware, People
Option 3: Data, Coding, Procedure, Objective, Output
Option 4: People, Procedure, Hard ware, software
Correct Answer: Software, Hardware, People
Solution : Components of computerised accounting system are -
Software
Hardware
People
Hence the correct answer is option 2.
Question :
Under computerised accounting, software means
Option 1:
A logical sequence of actions to perform a task
Option 2: System software and application software
Option 3: The raw fact (as input) for any business application
Option 4: Computer, associated peripherals, and their network
Correct Answer: System software and application software
Solution : Under a computerized accounting system, software means system software and application software. Hence, the correct option is 2.
Question : Modern computerised accounting system is based on the concept of database which is implemented using -
Option 1: Management Information System
Option 2: Database Management System
Option 3: Marketing Information System
Option 4: Accounting Information System
Correct Answer: Database Management System
Solution : The idea of a database is the foundation of contemporary computerised accounting systems. A database management system, which is defined by a collection of computer programmes (or software) that properly manage and organise data and give access to the stored data to application
Question : There are various applications of spreadsheet in accounting. What are they?
Option 1: Text and Nunmber in accounting
Option 2: Calculation of Expense
Option 3: Calculation of income
Correct Answer: All of the above
Solution : The various applications of spreadsheet in accounting are as follows :
Text and number in Accounting
Calculation of Expense
Calculation of Income
Prepration of trading account
Preparation of Profit Loss Account
Trial Balance
Balance Sheet
Hence the correct answer is option 4.
Question : The accounting standard prescribes that Cash Flow Statement be prepared either by
Option 1: Direct Method
Option 2: Indirect Method
Option 3: Both 1 and 2
Option 4: Neither 1 nor 2
Correct Answer: Both 1 and 2
Solution : Answer = Both 1 and 2
The accounting standard prescribes that the Cash Flow Statement be prepared using either the Direct Method, which lists actual cash inflows and outflows, or the Indirect Method, which adjusts net income for non-cash items. Hence, the
Question : Choose the correct statement with respect to the Share of Profit or Loss and the year of death will be?
Option 1: Deceased partner is entitled to his share in profit from the beginning of the accounting year up to the date of his death.
Option 2: He bears loss, if any incurred by the firm during this period.
Deceased partners are entitled to their share in the profit from the beginning of the accounting year up to the date of his death and he has also borne loss if any. This ensures a fair
Question : Statement 1: In management accounting, data from cost accounting and financial accounting are both used. Statement 2: Therefore, a suitable system is required to combine cost accounts and financial accounts.
Option 1: Both the statements are true
Option 2: Both the statements are false
Option 3: Statement 1 is true and statement 2 is false
Option 4: Statement 1 is false and statement 2 is true
Correct Answer: Both the statements are true
Solution : In management accounting, data from cost accounting and financial accounting are both used. Therefore, a suitable system is required to combine cost accounts and financial accounts. Data duplication is prevented. The integration mechanism must be precise and trustworthy. Hence, the correct
Question : Assertion A :- Price level changes and the purchasing power of money are inversely related. A change in the price level makes analysis of financial statements of different accounting years invalid.
Reason R :- Accounting records ignore changes in the value of money.
In the context of the above two statements, which of the following is correct?
Option 1: Both Assertion A and reason R are correct but the reason R is not the correct explanation of Assertion A
Option 2: Both Assertion A and reason R are correct but the reason R is the correct explanation of Assertion A
Option 3: Both Assertion A is correct but the reason R is not correct
Option 4: Both Assertion A and reason R are not correct
Correct Answer: Both Assertion A and reason R are correct but the reason R is the correct explanation of Assertion A
Solution : Answer = Both Assertion A and reason R are correct but reason R is the correct explanation of Assertion A
It may become invalid to compare financial
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