Rajasthan Board RBSE Class 12 Accountancy Chapter 14 Computerised Accounting System
RBSE Class 12 Accountancy Chapter 14 Textbook Questions
RBSE Class 12 Accountancy Chapter 14 Multiple Choice Questions
Question 1.
Which is an input device in the following :
(a) Key-board
(b) Monitor
(c) Hard-disk
(d) Printer
Answer:
(a)
Question 2.
In the computer, memory’s prime work is :
(a) To run a programme
(b) To control hardware
(c) To storage
(d) All of these
Answer:
(c)
Question 3.
The full name of C.P.U. is :
(a) Control process unit
(b) Central production unit
(c) Central processing unit
(d) Central programme unit
Answer:
(c)
Question 4.
A computer is a group of instruction that called :
(a) Programme
(b) Information system
(c) Database
(d) Data
Answer:
(a)
Question 5.
The benefits of computerized accounting system :
(a) Speed
(b) Reliability
(c) Comfortable to read
(d) All of these
Answer:
(d)
Question 6.
A report of an organisation’s business accounts profit & loss account etc. is :
(a) Exceptional report
(b) Structure of report
(c) Responsive report
(d) Short report
Answer:
(d)
Question 7.
A management process is :
(a) Planning
(b) Instruction
(c) Controlling
(d) All of these
Answer:
(d)
Question 8.
A software is :
(a) Language
(b) Programme
(c) Physical part of computer
(d) None of these
Answer:
(b)
Question 9.
A computer takes directly which of the following language :
(a) Machine language
(b) Assembly language
(c) English language
(d) High level language
Answer:
(a)
Question 10.
Component of computerized accounting software is :
(a) Selling
(b) Buying
(c) Ledger
(d) All of these
Answer:
(c)
Question 11.
The quality of computerized accounting system is :
(a) Purchase-sales in printed
(b) Online Investment of accounts data
(c) Both (a) and (b)
(d) None of these
Answer:
(c)
RBSE Class 12 Accountancy Chapter 14 Very Short Answer Questions
Question 1.
Give the two features of computerized accounting system.
Answer.
- It facilitates online input and storage of accounting data.
- It generates a print out of purchase and sales invoices.
Question 2.
Define computerized accounting system.
Answer.
A computerized accounting system is that helps in processing the financial transaction and event as per the generally accepted accounting principal (GAAP) and leads to the generation of report as per the requirements of the users.
Question 3.
What do you know about management information system?
Answer.
A Management Information System (MIS) is a system that provides information needed to manage organisations effectively.
Management information system involve three primary resources, e.g., technology, information and people.
Question 4.
Define customized accounting software.
Answer.
Customized Accounting Software : We can ourselves prepare a software according to our requirement but, it does not mean that whole of the software is developed by the user groups. In fact, it is an improved form of “Ready made Software”. Here ready made software’s are changed a little to suit the needs of user. The word “customized” means making changes.
Question 5.
Write the name of various components of computer.
Answer.
Components of Computer:
- Input Unit
- Central Processing Unit (CPU)
- Control Unit
- Memory Unit
- Arithmetic and Logic Unit (ALU)
- Output Unit
Question 6.
What is central processing unit?
Answer.
Central Processing Unit (CPU): The CPU is the control center for a computer. It guides, directs and governs its performance. It is the brain of the computer. The main unit inside the computer is the central processing unit.
Question 7.
Define accounting information system.
Answer.
An accounting information system is one of the oldest and most popular information system. It is widely used in profit as well as non-profit organisations because the accounting information that provides its used not only by the accounts department but also other departments like sales department, production department, human resources.
RBSE Class 12 Accountancy Chapter 14 Short Answer Questions
Question 1.
Differentiate between hardware and software.
Answer.
1. Hardware : All the components of a computer discussed earlier are known as “Hardware”. These include keyboard, monitor, CPU, magnetic recorder, etc.
2. Software : In order to solve a problem with the help of computer a sequence of instructions written in a proper language will have to be fed into the computer. A set of such instructions is known as a “Program” and the set of programs is called “Software”. A computer machine (hardware) can be used for various purposes only by a change of program (software). For example, a computer by feeding a particular software can be used to prepare pay roll whereas by feeding a second software, it can be used to prepare accounts and similarly by feeding a third software, it can be used for inventory control and also by feeding a fourth software, it can be used for word processing. No change is to be effected in a computer (hardware) for putting it to various uses.
A very large number of software packages recorded on the floppy discs are available in the market. Each floppy disc is accompanied by a “Manual” wherein the details of the programmes recorded on the floppy disc and the method of its use is explained in detail.
Question 2.
Write limitations of computerized accounting system.
Answer.
Limitations of Computerized Accounting System : Despite many advantages offered by a computerized accounting system, it is not free from limitations. Various limitations of a computerized accounting system are as follows:
- Staff Opposition : Introduction of computers lead to a lot of retrenchment as well as complication of activities which result in resistance of the staff.
- High Cost of Training : The sophisticated computerized accounting packages generally require specialized staff personal, which leads to heavy amount of cost of training.
- Adverse Effects on Health : The excessive use of computers may lead to various health problems, like eye strains, back aches, muscular pains, etc.
- Security Problems : Fraud and embezzlement are usually committed on a computerized accounting system through alteration of data. People responsible for tampering of data cannot be located in a computerized setup whereas the same can be easily done in case of manual records.
- System Failure : System failure due to hardware failures, attack by viruses, system down etc. are the usual problems faced by a computerized system.
- Wastage of Time: A lot of significant time is wasted when an organisation switches over to the computerized accounting system due to the changes in the working environment and other adjustments.
- Lot of Errors: The computer software is unable to detect unknown and unanticipated errors.
Question 3.
Explain the characteristics of computerized accounting system.
Answer.
The computerized accounting system has various advantages over the manual system which are given below:
- High Speed: The accounting speed of a computer is much faster than that of a human being.
- High Reliability : The extent of reliability of the information generated by a computer is immense. The reliability remains the same despite the volume of the work whereas the reliability of a human work can be doubtful in case of voluminous work.
- Accuracy: The accuracy of a computer cannot be doubted once a particular program is fed. All the results based on such program would be 100% accurate whereas the results produced by a human being can vary due to fatigue, carelessness etc.
- Updation of Information : All the related records in a computer get automatically updated once any information is punched in whereas in case of manual accounts all the records will have to be altered one-by-one.
- Timely Reporting : The computerized accounting system facilitates the generation of the Management Information System (MIS) reports at a very high speed which enables the management to take quick decisions whereas the generation of the same reports manually is very time consuming and less accurate.
- Storage and Retrieval: It enables the users to store data in a manner that does not require a ‘ large amount of physical space which is in the form of hard disks CD ROM’s, floppies that occupy a fraction of physical space as compared to books of accounts in the form of ledger journal and other accounting registers.
- Security of Data: Under computerized accounting the accounting data is safer in comparison to manual system. Under computerized system secrecy of data can be maintained by using a password which means only authorized persons will have access to the data.
Question 4.
Explain the various parts of computer system.
Answer.
Parts of Computer : A computer consists of the major components, i.e., input unit, central processing unit, and output unit. Diagrammatically, these components may be presented as follows:
1. Input Unit: Input unit is controlling the various input devices which are used for entering data into the computer. The mostly used input devices are keyboard, mouse and scanner. Other such devices are magnetic tape, magnetic disk, light pen, bar code reader, smart card reader etc. Besides, there are other devices which respond to voice and physical touch. Physical touch system is installed at airport for obtaining the online information about departure and arrival of flight. The input unit is responsible for taking input and converting it into binary system.
2. Central Processing Unit (CPU) : The CPU is the control center for a computer. It guides, directs and governs its performance. It is the brain of the computer. The main unit inside the computer is the central processing unit. Central processing unit is to computer as the brain is to human body. This is used to store program, photos, graphic and data and obey the instructions in program. It is divided into three sub-units:
- Control Unit: Control unit controls and coordinates the activities of all the components of the computer. This unit accepts input data and converts it into computer binary system.
- Memory Unit: This unit stores data before being actually processed. The data so stored is accessed and processed according to instructions which are also stored in the memory section of computer well before such data is transmitted to the memory from input devices.
- Arithmetic and Logic Unit : It is responsible for performing all the arithmetical calculations and computations such as addition, subtraction, division and multiplication. It also performs logical functions involving comparisons among variable and data items.
3. Output Unit : After processing the data it ensures the convertibility of output into human readable form that is understandable by the user. The commonly used output devices include like monitor also called Visual Display Unit, printer, etc.
Question 5.
What is computerized accounting system? Write the importance of it.
Answer.
A computerized accounting system is that accounting information system that helps in processing the financial transactions and events as per the Generally Accepted Accounting Principles (GAAP) and leads to the generation of reports as per the requirements of the users.
Importance of Computerized Accounting System : The computerized accounting system has various Importance over the manual system which are given below:
- High Speed: The accounting speed of a computer is much faster than that of a human being.
- High Reliability : The extent of reliability of the information generated by a computer is immense. The reliability remains the same despite the volume of the work whereas the reliability of a human work can be doubtful in case of voluminous work.
- Accuracy : The accuracy of a computer cannot be doubted once a particular program is fed. All the results based on such program would be 100% accurate whereas the results produced by a human being can vary due to fatigue, carelessness etc.
- Updation of Information : All the related records in a computer get automatically updated once any information is punched in whereas in case of manual accounts all the records will have to be altered one-by-one.
- Timely Reporting : The computerized accounting system facilitates the generation of the Management Information System (MIS) reports at a very high speed which enables the management to take quick decisions whereas the generation of the same reports manually is very time consuming and less accurate.
- Storage and Retrieval : It enables the users to store data in a manner that does not require a large amount of physical space which is in the form of hard disks CD ROM’s, floppies that occupy a fraction of physical space as compared to books of accounts in the form of ledger journal and other accounting registers.
- Security of Data : Under computerized accounting the accounting data is safer in comparison to manual system. Under computerized system secrecy of data can be maintained by using a password which means only authorized persons will have access to the data.
Question 6.
Distinguish between manual accounting system and computerized accounting system.
Answer.
Comparison between Manual and Computerized Accounting: According by definition it is the process of identifying, recording, classifying and summarizing financial transactions to produce the financial reports for their ultimate analysis. Let us understand these activities in the context of manual and computerized accounting system.
1. Identifying : The identification of transactions, based on application of accounting principles is common to both manual and computerized accounting system.
2. Recording : The recording of financial transactions in manual accounting system is through books of original entries while the data content of such transactions is stored in a well-designed accounting database in computerized accounting system.
3. Classification : In a manual accounting system transactions recorded in the books of original entry are further classified by posting into ledger accounts. This results in transaction data duplicity. In computerized accounting no such data duplication is made to cause classification of transactions. In order to produce ledger accounts, the stored transaction data is processed to appear as classified so that the same is presented in the form of a report. Different forms of the same transaction data are made available for being presented in various reports.
4. Summarizing : The transactions are summarized to produce trial balance in manual accounting system by ascertaining the balances of various accounts. As a result preparation of ledger accounts becomes a prerequisite for preparing the trial balance. However, in computerized accounting the originally stored transactions data are processed to churn out the list of balances of various accounts to be finally shown in the trial balance report. The generation of ledger accounts is not a necessary condition for producing trial balance in a computerized accounting system.
5. Adjusting Entries : In a manual accounting system these entries are made to adhere to the principle of cost matching revenue. These entries are recorded to match the expenses of the accounting period with the revenues generated by them. Some other adjusting entries may be made as part of errors and rectification. However, in computerized accounting, journal vouchers are prepared and stored to follow the principle of cost matching revenue, but there is nothing like passing adjusting entries for errors and rectification except for rectifying an error of principle by having recorded a wrong voucher, such as using payment voucher for a receipt transaction.
6. Financial Statements : In a manual system of accounting the preparation of financial statements pre-supposes the availability of trial balance. However, in computerized accounting there is no such requirement. The generation of financial statements is independent of producing the trial balance because such statements can be prepared by direct processing of originally stored transaction data.
7. Closing the Books : After the preparation of financial reports the accountants make preparations for the next accounting period. This is achieved by posting of closing and reversing journal entries. In computerized accounting there is year end processing to create and store opening balances of accounts in database.
It may be observed that conceptually, the accounting process is identical regardless of the technology used.
Question 7.
What is accounting report?
Answer.
Accounting reports are compilations of financial information that are derived from the accounting records of a business. These can be brief, custom made reports that are intended for specific purposes; such as a detailed analysis of sales by region or the profitability of a specific product line.
Question 8.
Explain the importance of computer in accounting.
Answer.
Importance of Computer in Accounting
1. High Speed: The accounting speed of a computer is much faster than that of a human being.
2. High Reliability: The extent reliability of the information generated by a computer is immense. The reliability remains the same despite the volume of the work whereas the reliability of a human work can be doubtful in case of voluminous work.
3. Accuracy: The accuracy of a computer cannot be doubted once a particular program is feed. All the result based on such program would be 100% accurate, whereas the result produced by a human being can very due to fatigue, carelessness etc.
4. Updation of Information: All the related records in a computer get automatically updated once any information is punched whereas in case of manual accounts all the records will have to be altered one by one.
5. Timely Reporting : The computerized accounting system facilitates the generation of the management information system (MIS) reports at a very high speed which enables the management to take quick decision. Whereas the generation of the same reports manually is very time consuming and less accurate.
6. Storage and Retrieval: It enables the users to stores data in a manner that does not require a large amount of physical space which is in the form of hard disks, CD ROM’s, floppies that occupy a fraction of physical space as compared of books of accounts in the form of ledger journal and other accounting registers.
7. Security of Data: Under computerized accounting the accounting data is safer in comparison of manual system under computerized system secrecy of data can be maintained by using a password which means only authorized persons will have access to the data.
Question 9.
Explain the computer related various information systems.
Answer.
1. Management Information System (MIS) : An information system is any combination of information technology and people’s activities and using that technology to support operations and management. In a very broad sense the term information system is frequently used to refer to the interactions among people algorithmic processes data and technology. In this sense the term is used to refer not only to the Information and Communication Technology (ICT) an organisation uses, but also to the way in which people interact with this technology in support of business processes.
A Management Information System (MIS) is a system that provides information needed to manage organisations effectively. Management information system involve three primary resources, i.e., technology, information and people where
- Technology: It is any improvement in the existing set of operations.
- Information: It is nothing but processed data which is in useful form e.g., accounting data is an example of data and when processed and presented in the form of final accounts, ratio analysis or cash flow statements etc. becomes information.
- People : As already defined it refers to the system users. The people who are using the computer systems for entering and analyzing accounting data.
Earlier, business computers were mostly used for relatively simple operations such as tracking, sales or payroll data, often without much detail. Over the time these applications have become more complex and began to store increasing amount of information while also interlinking with previously separate information system. The term “MIS” arose to describe these kinds of applications, which were developed to provide managers with information about sales, inventories and other data that would help in managing the enterprise.
Features of MIS:
- Flexibility,
- Economy,
- Simplicity,
- Accuracy,
- Common Data Flows,
- Brevity,
- Relevance.
2. Accounting Information System: An accounting information system is one of the oldest and most popular information system. It is widely used in profit as well as non-profit organisations because the accounting information that it provides is used not only by the accounts department but also by other departments like sales department, production department, human resource department, etc.
An accounting information system gathers data describing the organisation’s activities, maintain a detailed financial record of the organisation operation, transforms the data into information and makes the information available to users both inside and outside the organisation. An accounting information system contributes to problem solving by:
- producing standard management reports that summaries the firm’s financial conditions.
- providing the database that is used by other information system.
An accounting and information system is a system of collecting, processing, summarizing and reporting information about a business organisation in monetary terms.
Features of AIS: An accounting information system is a transaction based information system. It caters to the accounting applications of an organisation.
The main characteristics of AIS are as follows :
- AIS helps in handling and manipulating accounting and financial transactions of an organisation.
- AIS is responsible for meeting information needs by generating reports.
- AIS is helpful in producing futuristic data in the form of budget forecasts etc.
- AIS is helpful in maintaining accounting information as per the guidelines of the law.
- AIS is highly crucial for the organisation and thus can easily be harmfully manipulated.
Thus, it is required to keep a highly safe and secure environment to ensure its safety.
Question 10.
How may types of software packages of accounting. Explain.
Answer.
Accounting software which is also called accounting packages are as follows:
Accounting Software : A variety of accounting software is available in the market. The most popular software used in India are Tally and Ex. An accounting software is an integral part of the computerized accounting system. But before acquiring any software it is very important to analyse the level of expertise of the people who would use it. Because eventually it is people and not the computer who are responsible for accounting. The need for the accounting software arises in two situation namely:
- When the computerized system is replacing the manual system.
- When the computerized system already exists in the organisation and it is to be altered according to the recent changes.
There are various types of accounting software available in the market. However, the choice of the accounting software would depend upon the suitability to the organisation in terms of its accounting needs. The accounting software are classified into the following categories :
- Ready to use software
- Customized software
- Tailor-made software
1. Ready to Use Software: It is also called as General Purpose Application Software as they are purchased from the market with no modifications.
Sometimes prepared program is more suitable than others. There are many types of software packages readily available in market. But the proper selection requires a lot of care and precautions, so that it should match our computer system, e.g., Tally.
2. Customized Software: We can ourselves prepare a software according to our requirement but, it does not mean that whole of the software is developed by the user groups. In fact, it is an improved form of “Ready made Software”. Here ready made software’s are changed a little to suit the needs of user. The word “customized” means making changes.
3. Tailor Made Software : Business enterprises usually employ a programmer for preparing a program. Until all bugs (errors) are not removed in the program prepared by him, he will continue to be employed in the enterprise. It will be quite expensive to afford even a little change in the earlier program. It may possible that the other programmer is not satisfied with the program prepared by first programmer. To avoid this problem business organisations first get the manuals (rule book) prepared according to the needs and nature of their business and then the programmer is instructed to follow the manual while preparing a program.