Samacheer Kalvi 11th Accountancy Guide Chapter 14 Computerised Accounting

Tamilnadu State Board New Syllabus Samacheer Kalvi 11th Accountancy Guide Pdf Chapter 14 Computerised Accounting Text Book Back Questions and Answers, Notes.

Tamilnadu Samacheer Kalvi 11th Accountancy Solutions Chapter 14 Computerised Accounting

11th Accountancy Guide Computerised Accounting Text Book Back Questions and Answers

I. Multiple Choice Questions

Choose the correct answer.

Question 1.
n 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 code
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 programmes 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:
A computer can be described as an electronic device designed to accept raw data as input, processes them, and produces meaningful information as output. It has the ability to perform arithmetic and logical operations as per the given set of instructions called a program. Today, computers are used all over the world in several areas for different purposes.

Question 2.
What is CAS?
Answer:

1. A computerized accounting system refers to the system of maintaining accounts using computers.
2. It involves the processing of accounting transactions through the use of hardware and software in order to keep and produce accounting records and reports.
3. Computerized accounting system takes accounting transactions as inputs that are processed through accounting software.

Question 3.
What is hardware?
Answer:
The physical components of a computer constitute its hardware. The hardware consists of input devices and output devices that make a complete computer system.

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:
The main function of CAS is to perform the accounting activities in an organization and generate reports as per the requirements of the users. To obtain the desired results optimally, need-based software or packages are to be installed in the organization.

Question 6.
Name any two accounting packages.
Answer:

1. Readymade software
2. Customized software
3. Tailormade software

Question 7.
Give any two examples of readymade software.
Answer:

1. Tally ERP
2. Profit Books

Question 8.
What is coding?
Answer:

1. Coding refers to creating computer programming code.
2. The process of assigning something for classification or identification is known as coding.

Question 9.
What is a grouping of accounts?
Answer:
In any organization, the main unit of classification is the major head which is further divided, into minor heads. Each minor head may have a number of subheads. After classification of accounts into various groups.

Question 10.
What are mnemonic codes?
Answer:

1. A mnemonic is a term, symbol or name used to define or specify a computing function.
2. Assembly language also uses a mnemonic to represent machine operation, or opcode.
3. Examples are SJ – Sales Journals; HQ – Head Quarters.

III. Short Answer Questions

Question 1.
What are the various types of accounting software?
Answer:
1. Readymade software:

• These packages are standardized or readymade packages which can be used by the business enterprises immediately on procurement. These packages are used by small and conventional business enterprises.
• The cost of installation and maintenance is very low. The training cost is negligible and sometimes the vendor provides free of cost training.
• This software is used by enterprises where financial transactions are simple, uniform, and routine in nature. Few examples of such type of software are Tally, Busy, Marg, and Profit books.

2. Customised software:

• Many a time, it is not possible that ready-to-use packages suit the requirements of the business enterprise.
• In such circumstances, customized packages may help the business enterprise for fulfilling its requirements. Customized packages can be modified according to the need of the enterprise.
• For example, software can record attendance of the employees and on the requirement of the customer it can also count the absence of employees in a month, etc.

3. Tailor-made software:

• Large enterprises have their own way of functioning.
• For effective management information systems, varied and specific information is frequently required by many users which may not be needed in the case of small or medium scale enterprises.
• In such enterprises, depending upon their functioning, need-based software known as tailored packages are installed.
• The cost of these packages is very high and specific training for using these packages is also required.

Question 2.
Mention any three limitations of a computerized accounting system.
Answer:
1. Heavy cost of installation – Computer hardware needs replacement and software needs to be updated from time to time with the availability of newer versions.

2. Cost of training – To ensure effective and efficient use of computerized system of accounting, newer versions of hardware and software are to be introduced. These require special training and hence, cost is incurred to train the staff personnel.

3. Fear of unemployment – On account of the introduction of computerised accounting system, the employees feel insecure that they may lose employment and show less interest in computer related work.

4. Disruption of work – When computerised system is introduced, the existing process of accounting and other works are interrupted. This results in certain changes in the working environment.

5. System failure – The danger of a system crashing due to some failure in hardware can lead to subsequent interruption of work. This is more when no back-up is made.

Question 3.
State the various types of coding methods.
Answer:
Following are the three methods of codification.
(a) Sequential codes – In sequential code, numbers and/or letters are assigned in consecutive order. These codes are applied primarily to source documents such as cheques, invoices, etc. A sequential code can facilitate document search.
For example:

• Code – Accounts
• CL001 – ABC LTD
• CL002 – XYZ LTD
• CL003 – SCERT

(b) Block codes – In a block code, a range of numbers is partitioned into a desired number of sub-ranges and each sub- range is allotted to a specific group. In most of the cases of block codes, numbers within a sub – range follow sequential coding scheme, i.e., the numbers increase consecutively.
For example:

• Code       – Dealer type
• 100 – 199 – Small pumps
• 200 – 299 – Medium pumps
• 300 – 399 – Pipes
•  400 – 499 – Motors

(c) Mnemonic codes – A mnemonic code consists of alphabets or abbreviations as symbols to codify a piece of information.
For example:

• Code – Information
• SJ – Sales Journals
• HQ – Head Quarters

Question 4.
List out the various reports generated by the computerized accounting systems.
Answer:

1. Liabilities and capital
2. Assets
3. Revenues and
4. Expenses.

Under Liabilities and Capital:
Capital, Non – current liabilities, and current liabilities.

Under Assets:
Non-current assets and Current assets.

Question 5.
Tate the input and output devices of a computer system,
Answer:
1. Input devices – Examples of input devices are keyboard, optical scanner, mouse, joystick, touch screen, and stylus which are used to feed data into the computer.

2. Output devices – Examples Output devices such as monitors and printers are media to get the output from the computer.

11th Accountancy Guide Computerised Accounting Additional Important Questions and Answers

I. Choose the correct answer.

Question 1.
Which one is an output device?
(a) Monitor
(b) Keyboard
(c) Mouse
(d) Optical scanner
Answer:
(a) Monitor

Question 2.
The facts and figures that are fed into a computer for further processing are called ________.
a) Procedure
b) Connectivity
c) Data
d) Reliability
Answer:
c) Data

Question 3.
Which one is an operating system?
(a) File manager
(b) COBOL
(c) Windows
(d) PASCAL
Answer:
(c) Windows

Question 4.
________ packages c n be modified according to the need of the enterprise.
a) Readymade software
b) Customised software
c) Tailor-made software
d) None of these
Answer:
b) Customised software

Question 5.
There are …………….. methods of codification.
(a) Two
(b) Three
(c) Four
(d) Five
Answer:
(b) Three

Question 6.
________ is a step by step series of instructions to per! rm a specific function and achieve the desired output.
a) Procedure
b) Connectivity
c) Data
d) Reliability
Answer:
a) Procedure

Question 7.
The physical components of a computer constitute it ________.
a) Hardware
b) Software
c) Data
d) Procedure
Answer:
a) Hardware

Question 8.
A set of tools and programs to manage the overall working of a computer using a defined set of hardware components is called an ________.
a) Programming software
b) Utility software
c) Application software
d) Operating system
Answer:
d) Operating system

Question 9.
________ are designed specifically for managing the computer device and its resources.
a) Programming software
b) Utility software
c) Application software
d) Operating system
Answer:
b) Utility software

Question 10.
________ is an identification mark.
a) Hardware
b) Software
c) Data
d) Code
Answer:
d) Code

Question 11.
________ codes are applied primarily to source documents such as cheques, invoices, etc.
a) Sequential codes
b) Block codes
c) Mnemonic codes
d) None of these
Answer:
a) Sequential codes

Question 12.
________ code can facilitate document search.
a) Mnemonic codes
b) Block codes
c) Sequential codes
d) None of these
Answer:
c) Sequential codes

Question 13.
________ code, a range of numbers is partitioned into a desired number of sub-ranges and each sub-range is allotted to a specific group.
a) Mnemonic codes
b) Block codes
c) Sequential codes
d) None of these
Answer:
b) Block codes

Question 14.
________ code consists of alphabets or abbreviations as symbols to codify a piece of information.
a) Mnemonic codes
b) Block codes
c) Sequential codes
d) None of these
Answer:
a) Mnemonic codes

Question 15.
________ consists of input devices and output devices that make a complete computer system.
a) Hardware
b) Software
c) Data
d) Code
Answer:
a) Hardware

Question 16.
How many formats are available white exporting a file?
a) 2
b) 3
c) 5
d) 7
Answer:
b) 3

Question 17.
Tally package was developed by ________.
a) Tally solutions
b) Microsoft
c) Apple Solutions
d) None of the above
Answer:
a) Tally solutions

Question 18.
Which device of computer operation dispenses with the use of the keyboard?
a) Joystick
b) Mouse
c) Light Pen
d) Touch pen
Answer:
b) Mouse

Question 19.
Which of the following device primarily used to provide hard copy?
a) CRT
b) Pen drive
c) Printer
d) Card Reader
Answer:
c) Printer

Question 20.
Which of the following produces high-quality output?
a) Impact Printer
b) Non-Impact Printer
c) Both (a) and (b)
d) one of the above
Answer:
b) Non-Impact Printer

Question 21.
Which of the following is not hardware?
a) Printer
b) Scanner
c) Interpreter
d) All of the above
Answer:
c) Interpreter

Question 22.
The copimonly used input device is the ________.
a) Mouse
b) Monitor
c) Keyboard
d) None of the above
Answer:
c) Keyboard

Question 23.
The shortcut to use calculator is ________.
a) Ctrl + M
b) Ctrl + N
c) Ctrl + O
d) Ctrl + C
Answer:
b) Ctrl + N

Question 24.
Suspense account is grouped under ________.
a) Assets
b) Liabilities
c) Income
d) Expenses
Answer:
b) Liabilities

Question 25.
________ is a step by step series of instructions to perform a specific function and achieve the desired output.
a) Procedure
b) Data
c) Connectivity
d) All the above
Answer:
a) Procedure

II. Short Answer Questions

Question 1.
Expands of MIS and CPU.
Answer:

1. MIS – Management Information System
2. CPU – Central Processing Unit

Question 2.
What is Programming software?
Answer:
Special software to accept data and interpret them in the form of machine/assembly language understandable by a computer.
Example: C, PASCAL, COBOL, etc.

Question 3.
What is Utility software?
Answer:
These are designed specifically for managing the computer device and its resources.
Example: File manager, Anti-virus software, etc.

Question 4.
Give any two examples of Application software?
Answer:

1. General purpose software.
2. Specific purpose software.

Question 5.
Give any two examples of System software?
Answer:

1. Operating system.
2. Programming software.
3. Utility software.

Question 6.
What do you mean by DATA?
Answer:
The facts and figures that are fed into a computer for further processing are called data.

Question 7.
What are sequential codes?
Answer:
In sequential code, numbers and/or letters are assigned in consecutive order. These codes are applied primarily to source documents such as cheques, invoices, etc. A sequential code can facilitate document search.
For example:

Question 8.
What are sequential codes?
Answer:
In a block code, a range of numbers is partitioned into a desired number of sub-ranges and each sub-range is allotted to a specific group. In most of the cases of block codes, numbers within a sub-range follow a sequential coding scheme, i.e., the numbers increase consecutively.
For example:

Question 9.
What is General purpose software?
Answer:
This type of application can be used for a variety of tasks and not limited to one particular function.
Example: MS-Office.

Question 10.
What is Specific purpose software?
Answer:
This software is created to execute one specific task and they are customized to the needs of the user.
Example: Accounting software, payroll software, etc.

Question 11.
Explain the basic features of a computerized accounting system.
Answer:
i) Simple and integrated – CAS is designed to automate and integrate ail the business operations such as purchase, sales, finance, inventory, and manufacturing. The CAS may be integrated with an enhanced Management Information System (MIS), multi-lingual and data organization capabilities to simplify all the business processes of the organization easily and cost-effectively.

ii) Speed – It can perform functions at a much higher speed than doing the same manually.

iii) Accuracy – Computers perform functions with a high degree of accuracy. If hardware, software, and input by people are proper, the computerized accounting system can assure an accurate outcome.

iv) Reliability – Computers are used to process large volumes of data and hence, data provided by it are reliable.

v) Versatility – Computer and accounting software has the ability to perform diverse tasks. For example, by simply recording accounting entries through accounting software, one can get trial balance, trading account, profit and loss account, balance sheet and diverse reports.

vi) Transparency – With computerised accounting, the organisation will have greater transparency of day-to-day business operations and access to the vital information.

vii) Scalability – CAS enables processing of any volume of data in tune with the change in the size of the business.

viii) On-line facility – CAS offers online facility to store and process transaction and data so as to retrieve information to generate and view financial reports in any part of the world.

Question 12.
Discuss the Advantages of Computerised Accounting System.
Answer:
i) Faster processing – Computers require far less time than human beings in performing a particular task. Therefore, accounting data are processed faster using a computerised accounting system.

ii) Accurate information – There is less space for error because only one account entry is needed for each transaction unlike repeated posting of the same accounting data in manual system.

iii) Reliability – Computer systems are immune to boredom, tiredness or fatigue. Therefore, these can perform repetitive functions effectively and are highly reliable.

iv) Easy availability of information – The data are easily available and can be communicated to different users at the same time.

v) Up-to-date information – Account balances will always be up to date since the records are automatically updated as and when accounting data are entered or stored.

vi) Efficiency – The computer-based accounting system ensures better use of time and resources.

vii) Storage and retrieval – Computer-based systems require a fractional amount of physical space as compared to the books of accounts in the form of journals, ledgers, and accounting registers.

viii) Works as a motivator to employees – Employees using computer systems feel more valued as they are trained and specialized for the job.

Question 13.
Explain the Components of the Computerised Accounting System.
Answer:
i) Hardware – The physical components of a computer constitute its hardware. The hardware consists of input devices and output devices that make a complete computer system. Examples of input devices are keyboard, optical scanner, mouse, joystick, touch screen, and stylus which are used to feed data into the computer. Output devices such as monitors and printers are media to get the output from the computer.

ii) Software – A set of programs that form an interface between the hardware and the user of a computer system are referred to as software.

iii) People – The most important element of a computer system is its users. They are also called live-ware of the computer system.

iv) Procedure – Procedure is a step-by-step series of instructions to perform a specific function and achieve the desired output.

v) Data – 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.

vi) Connectivity – When two or more computers are connected to each other, they can share information and resources such as sharing of files (data/music, etc), sharing of printers, sharing of facilities like the internet. This sharing is possible using wires, cables, satellite, infra-red, Bluetooth, microwave transmission, etc.

Question 14.
Differences between manual and computerized accounting systems.
Answer:

Question 15.
Compare ready-to-use software, customized software, and tailor-made software.
Answer: