Question : What ate the reports that computerized accounting software takes into consideration as input through Accounting Software?
Option 1: Day books/journals
Option 2: ledger
Option 3: trial balance, position statement (Balance Sheet) and Statement of Profit and Loss (Profit and Loss Account)
Option 4: All of the above
Correct Answer: All of the above
Solution : The following are the reports that take accounting transactions as inputs that are processed through Accounting Software to generate the following reports:
1. Day book/Journals
2. Ledger
3. Trial Balance
4. Position Statement (Balance Sheet)
5. Statement of Profit and Loss (Profit and Loss Account).
Hence, the correct option is 4.
Answer laterQuestion : Computer Accounting Software (CAS) can be used for any size of business and type of organization. This feature is known as ____________.
Option 1: Simple and integrated
Option 2: Transparency
Option 3: Accuracy and speed
Option 4: Scalability
Correct Answer: Scalability
Solution : Computer Accounting Software (CAS) can be used for any size of business and type of organization. The software can be used for any size of business and type of organization. This feature is known as scalability. Hence the correct option is 4.
Question : Shyam wants to install a computerised accounting software but his budget is low. which software he should opt for -
Option 1: Customized Software
Option 2: Ready to use Software
Option 3: Tailor-made Software
Option 4: He can buy any of above
Correct Answer: Ready to use Software
Solution : Software that is ready to use or ready-made. Software of this sort is easily accessible on the market and comes with predetermined and common features. Small-scale businesses, where there aren't a lot of transactions, typically utilise this accounting software. Its installation and upkeep are similarly inexpensive.
Hence the correct answer is option 2.
Question : Statement 1: For efficient analysis and interpretation, the financial accounting data is categorised and codified.
Statement 2: The accounts are categorised according to their nature.
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 : For efficient analysis and interpretation, the financial accounting data is categorised and codified. The accounts are categorised according to their nature. The codification accounts make account identification simple. Hence, the correct option is 1.
Question : What are the features of Computer Accounting Software (CAS)?
Option 1: Password Security
Option 2: Data Audit
Option 3: Data Vault
Option 4: All of the above
Correct Answer: All of the above
Solution : Every Computerised Accounting Software (CAS) ensures the following security features:
1. Password Security
2. Data Audit, and
3. Data Vault.
Hence, the correct option is 4.
Question : Which of the following statements is true?
Option 1: If the amount of interest accrued and due is not paid, it is known as Interest Accrued and Due or Interest Outstanding
Option 2: If the date of payment of interest and accounting date are different, Interest Accrued and Not Due Account is credited at the end of the year to maintain accounting records on accrual basis
Option 3: Interest Accrued or Outstanding (whether due or not) on Debentures is shown under the main head 'Current Liabilities' and sub-head 'Other Current Liabilities'
Option 4: All of the above
Correct Answer: All of the above
Solution : Answer = All of the above
1. Interest on debentures is a Charge against profit and is payable whether the company earns a profit or incurs a loss. Interest on debentures is calculated at a fixed rate of interest.
2. Interest is not payable on debentures issued as collateral security.
Debentures' Interest Account is transferred to the Statement of Profit and Loss Account.
3. If the amount of interest accrued and due is not paid, it is known as Interest Accrued and Due. If the date of payment of interest and accounting date is different, the Interest Accrued and Not Due Account is credited at the end of the year to maintain accounting records on an accrual basis.
Hence, the correct option is 4.
Question : What are the factors to be considered while source accounting software?
Option 1: Flexibility
Option 2: Adaptability
Option 3: Interest of management
Option 4: Both 1 & 2
Correct Answer: Both 1 & 2
Solution : The things to think about when choosing an accounting software supplier.
Flexibility.
Adaptability.
the price of installation and upkeep.
a company's size.
level of secrecy.
Hence the Correct answer is option 4.
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.
Option 3: Both 1 and 2
Option 4: Neither 1 nor 2
Correct Answer: Both 1 and 2
Solution : Answer = Both 1 and 2
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 treatment of the deceased partner's interest in the partnership.
Hence, the correct option is 3.
Question : Rearrange the parts of the sentence in the correct order.
A. newly
P. reflected on why he chose to work for his
Q. appointed division manager, trained in accounting,
R. company, despite better offers, and realised that
S. it was the friendly, collaborative, and ethical culture
Option 1: QPRS
Option 2: SPRQ
Option 3: SQRP
Option 4: RQPS
Correct Answer: QPRS
Solution : The correct choice is the first option: QPRS.
The logical flow of information is as follows:
- The segment Q introduces the subject of the sentence, which is a division manager with training in accounting.
- The segment P leads into the person's reflection on his choice of employment.
- The segment R provides the outcome of the reflection, indicating that despite having better offers, the person chose to work for his current company.
- The segment S concludes the sentence by revealing the reason for the person's choice and emphasising the positive aspects of the company.
Therefore, the correct sequence is: Newly appointed division manager, trained in accounting, reflected on why he chose to work for his company despite better offers and realised that it was the friendly, collaborative, and ethical culture.
Question : Which of the following is correct for the objectives of Ratio Analysis:
A:To simplify the accounting information
B: To assess the operating efficiency of the business.
C:To help in comparative analysis
D:To analyze the profitability of the business.
Option 1: A, B and C
Option 2: B, C, and D
Option 3: A, C and D
Option 4: All of the above
Correct Answer: All of the above
Solution : Ratio analysis has the following goals:
1: Simplify accounting data.
2: Find the liquidity or the long- and short-term solvency.
3: The ability of the business to meet its short-term financial obligations is known as short-term solvency
4: In contrast, long-term solvency refers to an organization's capacity to meet its long-term debt obligations.
5: Analyze the business's operational effectiveness.
6: Analyze the company's profitability with the assistance of comparative analysis, specifically with intra- and inter-firm comparisons.
Hence option 4 is the correct answer.
