Question 1

Which of the following is an automated function provided by accounting software programs?
A) Bank feeds.
B) Online invoicing.
C) Payroll.
D) All of these are automated functions.

Accepted Answer

All of these functions are automated in accounting software programs. Bank feeds allow for automatic import of banking transactions, online invoicing generates and sends invoices automatically, and payroll calculations and payments are automated.

Question 2

Reduction in processing costs is an advantage/disadvantage of:
A) advantage of computerised accounting systems.
B) disadvantage of computerised accounting systems.
C) advantage of manual accounting systems.
D) disadvantage of manual accounting systems.

Accepted Answer

Computerised accounting systems can automate many accounting tasks, reducing the need for manual input and processing. This can lead to a significant reduction in processing costs, making it an advantage of computerised accounting systems.

Question 3

Which of the following are considered disadvantages of a computerised accounting system?
I. Inexperienced staff.
II. Slower processing.
III. Undetected viruses.
IV. Increase in processing errors.
V. Programs that are not suited to the business's needs.
A) I, II, III and IV.
B) II, III, IV, and V.
C) I, III, and V.
D) III, IV, and V.

Accepted Answer

The disadvantages of a computerized accounting system include inexperienced staff who may struggle to use the system effectively (I), undetected viruses that can corrupt data or steal information (III), and programs that are not suited to the business's needs, leading to inefficiencies or additional costs (V). Slower processing (II) and an increase in processing errors (IV) are typically not disadvantages of computerized systems; in fact, these systems are designed to be faster and more accurate than manual accounting.

Question 4

Accounting software systems based on Cloud technology:
A) can be accessed by anyone from any mobile device.
B) can be accessed anytime by authorised staff from the one desktop device only.
C) cannot be accessed anywhere, anytime through a mobile device.
D) can be accessed anywhere, anytime by authorised staff through various mobile technologies.

Accepted Answer

Cloud-based accounting software systems can be accessed from anywhere and at any time by authorized staff members using various mobile devices, such as smartphones and tablets. This flexibility allows for increased productivity, collaboration, and accessibility.

Question 5

Which module is central to all computerised accounting systems?
A) Sales modules.
B) Purchases module.
C) Payroll module.
D) General ledger module.

Accepted Answer

The general ledger module is central to all computerized accounting systems as it stores and summarizes all financial transactions in a company, which are then used to generate financial statements and reports. The sales, purchases and payroll modules are important but are not as central as the general ledger module.

Question 6

What advantage does the automatic production of documents and reports provide a business?
A) Processing of thousands of transactions at high speed.
B) Production of relevant reports in a timely manner.
C) Fast response time for customer queries.
D) Automatic posting of transactions to the general ledger.

Accepted Answer

The automatic production of documents and reports allows for relevant reports to be produced in a timely manner, providing the business with up-to-date information for decision-making and analysis. This can improve overall efficiency and productivity, as well as help identify areas for improvement or growth.

Question 7

Data input for each computerised accounting module is obtained from:
A) tax documents.
B) reporting documents.
C) source documents.
D) handwritten documents only.

Accepted Answer

Data input for computerised accounting modules is typically obtained from source documents such as invoices, receipts, and purchase orders. Tax or reporting documents may be generated from the data entered into the system, but they are not typically used as a primary source of input. Handwritten documents may be used, but they would need to be converted into digital format before being entered into the computerised accounting system.

Question 8

Which of the following is not an example of a module that can be found in most accounting software packages?
A) Reports.
B) Sales.
C) Payroll.
D) All of these options are examples of modules within an accounting software package.

Accepted Answer

All of these options (Reports, Sales, Payroll) are common modules found within most accounting software packages, making D the correct choice as it states that all the given options are indeed examples of modules within such software.

Question 9

Which automatic procedure is an advantage of computerised accounting systems?
A) Posting to general ledger.
B) Production of sales invoices.
C) Preparation of financial statements.
D) All of these options.

Accepted Answer

Computerised accounting systems automatically perform a variety of tasks, including posting to general ledger, producing sales invoices, and preparing financial statements, among others. Therefore, the correct answer is all of these options, or D.

Question 10

Which of the following statements relating to electronic spreadsheets is incorrect?
A) They can be used to analyse business data.
B) They can be used to develop business budgets.
C) They assist is determining 'what if' scenarios.
D) They are not used by accountants.

Accepted Answer

The statement "They are not used by accountants" is incorrect as electronic spreadsheets are frequently used by accountants for tasks such as bookkeeping, financial statement preparation, and financial analysis.

Question 11

Which of the following is not a problem of computerised accounting systems?
A) Computer viruses
B) Computer fraud
C) Power failures
D) Inability to network the systems

Accepted Answer

Computerised accounting systems can be easily networked and connected to other systems for increased efficiency and accuracy. Computer viruses, fraud, and power failures are common problems that may occur with computerised systems.

Question 12

Which of the following is not a general ledger software package?
A) Excel
B) Reckon
C) Xero
D) MYOB

Accepted Answer

Excel is a spreadsheet software, not specifically designed for general ledger accounting. Reckon, Xero, and MYOB are all software packages designed for general ledger accounting.

Question 13

The main reason a business may not fully realise the advantages of a computerised accounting system is due to:
A) lack of back-ups in instances of power failures.
B) undetected viruses from low security.
C) unauthorised access by hackers.
D) failed systems due to problems with the hardware, software or personnel.

Accepted Answer

Failed systems due to problems with the hardware, software, or personnel can prevent businesses from fully realising the advantages of a computerised accounting system. Issues with any of these components can lead to errors, delays, or even loss of data, which can negatively impact the effectiveness and efficiency of the system.

Question 14

Barry is both a debtor and a creditor of Allen Ltd. At the end of the period Barry owes Allen Ltd $1400 while Allen Ltd owes him $800. Allen Ltd should record which journal entry to offset the amounts against each other?
A) DR Accounts receivable $700; CR Accounts payable $700
B) DR Accounts receivable $2200; CR Accounts payable $2200
C) DR Accounts payable $800; CR Accounts receivable $800
D) DR Accounts payable $2200; CR Accounts receivable $2200

Accepted Answer

This journal entry will offset the amounts against each other by decreasing the accounts payable balance by $800 and decreasing the accounts receivable balance by $800, resulting in a net balance of $600 owed to Allen Ltd ($1400 - $800 = $600) by Barry. Option A and B are incorrect as they do not offset the amounts against each other and will result in incorrect balances for both accounts. Option D is incorrect as it overstates both the accounts payable and accounts receivable balances.

Question 15

Computerised accounting systems are collectively referred to as:
A) ledger systems.
B) accounting information systems.
C) software packages.
D) cloud systems.

Accepted Answer

Computerised accounting systems are commonly known as accounting information systems, which are software-based tools that help businesses to record and process accounting transactions. While ledger systems and software packages are subsets of accounting information systems, cloud systems may or may not be accounting-specific and are not necessarily synonymous with computerised accounting systems.

Question 16

______________procedures must exist to ensure the accuracy of data input into a computerised accounting system.
A) Automatic
B) Administrative
C) Control
D) Physical

Accepted Answer

Control procedures, such as data validation and verification, can help ensure the accuracy of data input into a computerised accounting system. While automatic procedures, administrative procedures, and physical procedures can also be helpful, control procedures specifically address the issue of ensuring data accuracy.

Question 17

Cathy is both a debtor and a creditor of Palm Ltd. At the end of the period Cathy owes Palm Ltd $500 while Palm Ltd owes Cathy $2000. After offsetting the amounts, Palm Ltd's books show a balance of how much as still owing to or from Cathy?
A) Cathy (creditor) is owed $1500
B) Cathy (debtor) owes $1500
C) Cathy (creditor) is owed $2500
D) Cathy (debtor) owes $2500

Accepted Answer

After offsetting the amounts, Cathy (creditor) is owed $1500. This is calculated by subtracting the amount that Cathy owes Palm Ltd ($500) from the amount that Palm Ltd owes Cathy ($2000), resulting in a net amount owed to Cathy of $1500.

Question 18

Which of the following is not an advantage of a computerised accounting system compared to a manual system?
A) Reduced processing costs
B) More timely reports
C) Greater possibility of a catastrophic systems failure
D) Faster response time to wide range of queries

Accepted Answer

A catastrophic systems failure is a disadvantage of a computerised accounting system, as it can cause data loss and disruption to business operations. The other options are advantages of a computerised accounting system.

Question 19

Unauthorised access to a business's computer files and/or confidential information would be performed by people known as:
A) hackers.
B) employees.
C) viruses.
D) fraudsters.

Accepted Answer

Hackers are individuals who attempt to gain unauthorized access to computer systems and networks in order to steal or manipulate data.

Answer: D 
 Fraudsters are individuals who use deception to gain unauthorized access to computer files and confidential information for their own benefit.

Therefore, the correct choices are A and D.

Question 20

Kingston Supplies bought $20 000 worth of goods from Princetown Pty Ltd on credit. Before payment was made Princetown, in turn, purchased $8000 worth of supplies on credit from Kingston Supplies. The general journal entry to be recorded in the books of Kingston Supplies to offset the amount owing to it against the amount it owes is:
A) Accounts receivable, Princetown Pty Ltd $8 000 Accounts payable, Princetown Pty Ltd $8 000
B) Accounts receivable, Princetown Pty Ltd 12 000 Accounts payable, Princetown Pty Ltd 12 000
C) Accounts payable, Princetown Pty Ltd 12 000 Accounts receivable, Princetown Pty Ltd 12 000
D) Accounts payable, Princetown Pty Ltd 8 000 Accounts receivable, Princetown Pty Ltd 8 000

Accepted Answer

Since Princetown owes Kingston $8,000, Kingston can offset that amount against the $20,000 that Princetown owes them. Therefore, Kingston only needs to record the net amount owed to them by Princetown, which is $12,000 ($20,000 - $8,000). This can be achieved by debiting Accounts payable, Princetown Pty Ltd $8,000 and crediting Accounts receivable, Princetown Pty Ltd $8,000.

Quiz 7: Accounting for Systems

Which of the following is an automated function provided by accounting software programs?

Reduction in processing costs is an advantage/disadvantage of:

Which of the following are considered disadvantages of a computerised accounting system? I. Inexperienced staff. II. Slower processing. III. Undetected viruses. IV. Increase in processing errors. V. Programs that are not suited to the business's needs.

Accounting software systems based on Cloud technology:

Which module is central to all computerised accounting systems?

What advantage does the automatic production of documents and reports provide a business?

Data input for each computerised accounting module is obtained from:

Which of the following is not an example of a module that can be found in most accounting software packages?

Which automatic procedure is an advantage of computerised accounting systems?

Which of the following statements relating to electronic spreadsheets is incorrect?

Which of the following is not a problem of computerised accounting systems?

Which of the following is not a general ledger software package?

The main reason a business may not fully realise the advantages of a computerised accounting system is due to:

Barry is both a debtor and a creditor of Allen Ltd. At the end of the period Barry owes Allen Ltd $1400 while Allen Ltd owes him $800. Allen Ltd should record which journal entry to offset the amounts against each other?

Computerised accounting systems are collectively referred to as:

______________procedures must exist to ensure the accuracy of data input into a computerised accounting system.

Cathy is both a debtor and a creditor of Palm Ltd. At the end of the period Cathy owes Palm Ltd $500 while Palm Ltd owes Cathy $2000. After offsetting the amounts, Palm Ltd's books show a balance of how much as still owing to or from Cathy?

Which of the following is not an advantage of a computerised accounting system compared to a manual system?

Unauthorised access to a business's computer files and/or confidential information would be performed by people known as: