Quiznetik

Financial Accounting | Set 1

1. What are the features of a computerized accounting system? Sol:

Correct : C. It generates a print-out of purchase and sale invoices

2. What is not an advantage of a computerized accounting system. Sol:

Correct : C. Reduced training cost

3. What are the types of a computerized accounting system? Sol:

Correct : D. All of the above

4. What are the advantages of tailor-made software? Sol:

Correct : C. High secrecy of data

5. What are the factors to be considered while source accounting software? Sol:

Correct : D. Both a & b

6. Ram want to install a computerised accounting system but his budget is low. Which software he should opt for Sol:

Correct : A. Ready to use Software

7. If an organisation want to develop a computerised accounting system according to its need as the business of organisation is complex. Which software it should opt for :

Correct : C. Tailor-made Software

8. What are the features of computerized accounting software? Sol:

Correct : D. All of the above

9. The ……….of a vendor is also an important factor to consider while opting for a computerized accounting software

Correct : C. Capability

10. Software must be easy to……. Sol:

Correct : D. All of the above

11. Acounting Packages are developed on the basis of Sol:

Correct : C. Both Accounting concepts and Conventions

12. What type of Software is an Accounting Package? Sol:

Correct : B. Application Software

13. The components of computerised accounting system are Sol:

Correct : B. Software, Hardware, People, Procedure, Data

14. Grouping of Accounts means the classification of data from: Sol:

Correct : B. Assets, Capital, Liabilities, Revenues & Expenses

15. Codification of Accounts required for the purpose of:

Correct : A. Hierarchical relationship between groups and components

16. Method of codification should be

Correct : C. Easy to understand and leads to grouping of accounts

17. Final account subsystem in Accounting Information System (AIS) deals with Sol:

Correct : C. Preparation of Final Accounts

18. Pick the odd one out Sol:

Correct : C. Data Bank

19. Which among the following is an example of mnemonic codes? Sol:

Correct : C. ACC, ECO, ENG, MAL

20. Which among the following deals with generation of reports that are vital for management decision making? Sol:

Correct : D. Management Information System

21. The need of codification is Sol:

Correct : D. The encryption of data

22. Choose the correct pair Sol:

Correct : A. Cash and Bank sub system – Deals with receipts and payments of cash

23. It refers to the system of recording, organising, summarising, analysing, interpreting and communicating the financial data of a business. Sol:

Correct : B. Computerised Accounting

24. Following businesses generally require customised software: Sol:

Correct : D. All of the above

25. Features of computerised accounting system Sol:

Correct : B. Fast, powerful, simple and integrated

26. When different accounts are clubbed on the basis of some common characteristics that are shared by them, the concept is known as_______.

Correct : D. Grouping

27. _________ is the systematic assignment of number to items to classify and organise them. Sol:

Correct : B. Coding

28. Most organisations use __________ for coding their accounts. Sol:

Correct : A. Block code

29. Computers can be used in accounting in different number of ways: Sol:

Correct : D. All of the above

30. Such systems also generate reports which allow the accounting professionals to have a proper view of different transactions in a comprehensive manner.

Correct : B. Pre-packaged accounting software

31. This software is a package which is used for managing the entire organisation in a comprehensive.

Correct : A. Enterprise Resource Planning software

32. The individual field in the sheet is known as a _________. Sol:

Correct : B. Cell

33. Such kind of software offers various functionalities such as cell content, pivot table, formulas and macros.

Correct : C. Spreadsheet software

34. The software may also allow for graphical rendering of data, which is useful for carrying out analysis. Sol:

Correct : B. Spreadsheet software

35. This is the kind of software which is specifically designed for meeting the requirements of a particular business. Sol:

Correct : B. Customised accounting packages

36. The components of Computerised Accounting System are : Sol:

Correct : B. Data, People, Procedure, Hardware, Software

37. The Computerised Accounting System refers to : Sol:

Correct : B. Processing of accounting transaction through computer and produce records and reports

38. The components of Computerised Accounting System refers to :

Correct : A. Business transactions are analysed, transactions recorded, prepare trial balance, preparation of balance sheet and profit and loss account

39. The CAS should be Sol:

Correct : A. Simple and integrated, transparent, accurate, scalability, reliability

40. A computer is an electric device Sol:

Correct : B. False

41. Control unit works as ___________ of the computer. Sol:

Correct : B. Brain

42. Accounting standards issued by ICAI are mandatory in India. Sol:

Correct : A. True

43. Computer Accounting System is used for recording the financial transaction. Sol:

Correct : A. True

44. Which of the following is true statement for computerised accounting system? a. the computer accounting system is based on the concept of database. b. Computer accounting system does not away with the concept of creating and maintaining journals, ledger etc.

Correct : A. Only a

45. Opening an account in a computerized accounting system is entirely different from opening an account in a manual system.

Correct : B. False

46. Creation of company is the first step in Computerized Accounting process. Sol:

Correct : A. True

47. Application softwares Sol:

Correct : B. Cannot operate without Operating Software

48. Accounting software requires Sol:

Correct : A. Transactions to be entered once

49. Accounting softwares available are Sol:

Correct : D. All of these

50. Which of the following software is not operating software? Sol:

Correct : C. MS Word

51. The public hospitals do not carry the activities with an intention of earning profits. Sol:

Correct : A. True

52. The Income and Expenditure Account is a summary of cash transactions. Sol:

Correct : B. False

53. The Income and Expenditure Account includes all revenue expenses and income irrespective of its cash flow Sol:

Correct : A. True

54. The Income and Expenditure Account is always accompanied with a cash flow statement Sol:

Correct : B. False

55. The fees are collected only once at the time of admission of a member, hence Entrance Fees should be treated as 'Revenue Receipt'.

Correct : B. False

56. The fees received from life members is not a periodic subscription, hence are to be capitalized

Correct : A. True

57. ) A Receipts and Payments Account is nothing but a summary of all capital receipts and payments.

Correct : B. False

58. Charitable Organizations promote welfare of the common man, in general Sol:

Correct : A. True

59. A Receipts and Payments Account record only non-cash items. Sol:

Correct : B. False

60. Receipts and Payments A/c is a summary of: Sol:

Correct : C. All Revenue and Capital Receipts and Payments

61. Out of the following items, which one is shown in the Receipts and Payments Account? Sol:

Correct : C. Life Membership Fees

62. In case specific fund is maintained, the expenses exceeding the amount of the fluids, should be recorded on:

Correct : B. Debit side the Income and Expenditure Account

63. All receipts from sale of consumable items are treated as: Sol:

Correct : B. Revenue Receipts

64. Capital fund is calculated: Sol:

Correct : B. Assets Liabilities

65. Subscription received in advance during the current year is: Sol:

Correct : C. A liability

66. Balance of Income and Expenditure Account shows: Sol:

Correct : D. Excess of Income over expenditure or vice versa

67. Property received as a result of the will of the deceased person is called: Sol:

Correct : A. Lagacy

68. Receipts and Payments Account usually indicates: Sol:

Correct : C. Debit Balance

69. Income and Expenditure Account generally indicates: Sol:

Correct : A. Surplus/ deficit

70. Donation received for a special purpose: Sol:

Correct : B. Should be credited to a separate account and shown in the Balance Sheet

71. In not-for-profit organisation, excess of expenditure over income is called : Sol:

Correct : C. Deficit

72. Which of the following is a non-profitable organisation ? Sol:

Correct : A. Jharkhand Academic Council

73. Income and Expenditure Account is preparedly : Sol:

Correct : B. Non-trading Organisation

74. Sale of old newspapers is: Sol:

Correct : B. Revenue Receipt

75. Income and expenses related to the prize fund is shown in: Sol:

Correct : A. Income and Expenditure Account

76. Which of the following is not a not-for-profit organisation: Sol:

Correct : D. Partnership Firm

77. Subscription received during the year 50,000 Rs. Subscriptions outstanding at the end of the year 8,000 Rs. Subscription outstanding at the beginning of the year 6,000 Rs. Net Income from subscription will be :

Correct : C. RS 52000

78. In case specific fund is maintained, the expenses exceeding the amount of the funds, should be recorded on:

Correct : B. Debit side of the Income and Expenditure Account

79. Income and Expenditure Account is: Sol:

Correct : C. Nominal Account

80. Life Membership Fees received by a club is shown in : Sol:

Correct : B. Balance Sheet

81. Receipts and Payments Account is a : Sol:

Correct : B. Real Account

82. Income and Expenditure Account is prepared : Sol:

Correct : C. By Not-for-Profit Organisation

83. Payment of honorarium to secretary is treated as : Sol:

Correct : B. Revenue expenditure

84. Outstanding subscription is a: Sol:

Correct : C. (a) and (b) Both

85. Legacies should be treated as Sol:

Correct : A. A Liability

86. The excess of assets over liabilities in non-trading concerns is termed as: Sol:

Correct : A. Capital Fund

87. For a non-trading concern, honorarium paid is: Sol:

Correct : C. An Expense

88. Entrance fees, unless otherwise stated, is treated as: Sol:

Correct : B. A Revenue Income

89. Specific donation is: Sol:

Correct : A. Capital receipt

90. Income and Expenditure Account records transactions of: Sol:

Correct : B. Revenue nature only

91. Life membership fee received by a club is: Sol:

Correct : B. Capital Receipt

92. All receipts of capital nature are shown in : Sol:

Correct : B. Balance Sheet

93. All items of revenue in nature are shown in: Sol:

Correct : A. Income and Expenditure A/c

94. Which of the following is not a not-for-profit organisation ? Sol:

Correct : C. Tata Automobiles

95. Subscriptions received in advance by a club are shown on……………..of the Balance Sheet Sol:

Correct : B. Liability Side

96. Which of the following is not an income ? Sol:

Correct : D. Endowment Fund

97. Subscription received by an organisation is: Sol:

Correct : B. Revenue Receipt

98. Not-for-profit organisations are based on…………………………theory. Sol:

Correct : A. Fund

99. The not for profit concerns prohibit the payment of any ………………………to their members Sol:

Correct : A. Dividend

100. The primary motive of Charitable Trust organizations is to provide……………………. Sol:

Correct : B. Servive