NCERT MOST IMPORTANT QUESTIONS CLASS – 11 | ACCOUNTANCY IMPORTANT QUESTIONS | CHAPTER –12 Applications of Computers in Accounting| EDUGROWN |

NCERT Most important question:

Q1. Name the elements of computer system. 

Ans: The elements of computer system are as follows:

i. People

ii. Hardware

iii. Software

iv. Procedure

v. Data

vi. Connectivity

Q2. What are the capabilities of a computer? 

Ans: The capabilities of a computer are as follows:

i. Speed

ii. Accuracy

iii. Reliability

iv. Versatility

v. Data Storage

Q3. What do you understand by internal and external transactions? 

Ans: If material is provided from the shop to any department of the same company it’s thought of as internal dealings. Whereas if a department purchases any material from outside it’s thought of as external dealings.

Q4. What are the limitations of a computer system? 

Ans: The limitations of a computer system are as follows:

i. It doesn’t have any good judgment and it’s zero intelligence quotients (IQ)    

ii. It isn’t able to make decisions on its own.

Q5. State the activities involve in business process in the marketing department. 

Ans: The activities involve in business method within the marketing department are:

i. Contact creation

ii. Inquiry

iii. Entry of orders

iv. Billing to customers

v. Dispatch of goods

Q6. What are the advantages of computer accounting? 

Ans: The advantages of computer over accounting are as follows:

i. All calculations are done mechanically by a computer.

ii. It is more correct in minute details so it is more reliable.

iii. Computer storage is more secure.

iv. Through web connectivity, information will be accessed from anyplace.

v. It reduces human effort so it is also cost-effective.

Q7. State the features of computerized accounting system. 

Ans: The features of computerized accounting system are:

i. Printing sales and buying invoices.

ii. Storing accounting information online.

iii. Coding each account and transaction using unique code.

iv. Reporting all finances instantly.

v. Filing tax, return, GST, stock valuation and payroll report.

Q8. State the activities involve in business process in the production department. 

Ans: The activities involve in business method within the production department are:

i. Getting ready schedules and plans.

ii. Provision job cards and material requisition forms.

iii. Provision inventory.

iv. Issue orders for acquisition of raw materials.

v. Releasing payment of vendors.

Q9. What is the process of designing accounting reports from accounting data? 

Ans: The process of designing accounting reports from accounting data is:

i. Process the objective: Like the decision to be made from the report and who will be the user of the report.

ii. Report structure: the fashion of presenting the report, the knowledge that is needed within the report.

iii. Querying with the database: Queries associated with the accounting and methodology needed whereas interacting the database and.

iv.  Finalising the report.

Q10. What are the relationship between decision and information? 

Ans: Information is the fundamental necessity in facilitating the selection so information is one of the most valued resources of any organization. 

The management information system provides data for decision making and the decision support system helps in supporting decisions of the company.

Every organisation receives inputs and turns them into outputs like a system. Via a process of resource allocation, which is done through the process of management decision-making, every organisation system strives to achieve a certain goal. Information aids an organization’s pursuit of its goal by assisting decision-making on resource allocation.

Q11. Describe Management Information System and Accounting Information System. 

Ans: Management information system (MIS) may be a tool that helps the manager in higher cognitive processes by recording, gathering, coordinating, dominant, analysing, and visualizing info in a corporation. MIS is a computer-based system. MIS aids the company, particularly managers, in organising and evaluating data and information, as well as providing information in a timely and efficient manner. This also aids managers in making choices based on the data and analysis provided by the MIS.

Accounting Information System (AIS), like MIS, is a computer-based system that allows a company to make critical financial decisions. An AIS will gather, process, analyse, and store a company’s financial data. And it will extract and disclose such data to its users, such as accountants, consultants, financial officers, CFO, auditors, government tax authorities, and so on, as called upon.

MIS works in making a piece of information for future use by providing its accessibility to authorised persons whereas an accounting information system (AIS) may be a system the helps the organization in grouping, gathering, storing, managing, processing, consulting and retrieving accounting and monetary knowledge in order that the accountants, business analysts, consultants, chief money officers (CFOs), managers, auditors, tax agencies, and regulators will use it for higher cognitive process.

Q12. Why computerized accounting is needed? 

Ans: The various needs of computerized accounting is as follows:

i. Large corporations need varied transactions in common place with high speed and accuracy.

ii. Instant coverage of accounts is required for deciding computerised accounting to give instant coverage of information.

iii. It needs a computer therefore reducing paper work.

iv. Making charts, graphs and tables instantly.

v. Accounting queries associated with some external parameters like client due are often reported simply.

vi. Information is often unbroken confidential in an extremely secured system which may solely be accessed by a licensed person solely.

vii. Its requirement stems from the advantages of increased speed, accuracy, and decreased transaction costs. 

viii. It also has the capacity to accurately and quickly record a huge number of transactions. Because of its speed and precision, it provides for rapid and high-quality reporting.

Q13. Define the various types of Management information system report.

Ans: The various types of Management information system report are:

i. Summary report: It reports the whole summary of the corporate like profit and loss account and balance sheet.

ii. Client and provider report: Report of individual client and provider relating to sales and get account/ invoice, client reminder letters, purchase analysis.

iii. Demand report: it’s ready on condition that management needs it like stock valuation report, debt report.

iv. Exception report: Report like inventories, stock standing etc.

v. Management control reports: Budgets, cost centre reports, scenario reports, and other tools will be used to keep track of operations.

Q14. Describe the various component of the computer system. 

Ans: The Central Processing Unit, Input Devices, and Output Devices are the three components of a computer system. Input devices send data to the processor, which processes it and creates meaningful information for the user to see via output devices.

The various components of computer system in details:

i. Input unit: Input unit is the device to computer file into the pc system like keyboard, mouse, scanner, pen-drive, code and QR code scanner etc.

ii. Central process unit: it is the brain of the computer. It performs all the activities within a computer like reworking knowledge into helpful info. It consists of 3 units as management Unit Memory Unit Arithmetic Logic Unit (ALU).

iii. Output unit: once the info in the method by central process unit output is accessible to the finished user by the help of hardware devices like monitor, printer etc.

Q15. What are the roles of computer in accounting? 

Ans: The role of computer in accounting is as follows:

i. Recording transaction: It records daily transactions by either getting in it manually or by the help of a code or QR code scanner. It in addition assigns distinctive code to every account thus it’ll merely be better-known .

ii. Preparing accounting documents: It prepares bills, cash memos, sales invoice consumer vouchers etc. The manual method of documenting accounting transactions necessitates the keeping of account books such as three journals, a casebook, special purpose books, and a ledger, among others.

iii. Preparing budget: It transfers data into ledger automatically and prepares trial balance, profit and loss account and record .

iv. Storing data: It stores data for future use into a knowledge base management system.  With computerised accounting, it is now easier to keep track of accounting records.