Important Questions for CBSE Class 11 Accountancy Chapter 13 - Computerised Accounting System

A. Very short answer questions – 1 marks

1. Name the various types of accounting software.

Ans: Accounting software is divided into three categories:

1. Ready to use software

2. Individualized software

3. Tailored software

2. Fill in the blank:

a) _______ oriented applications are used in computerized accounting systems.

Ans:  Database oriented applications are used in computerized

accounting system.

b) For making a trial balance it is not necessary to make a ________ in computerized accounting system

Ans: For making a trial balance it is not necessary to make a ledger accounts

in computerized accounting system

c) ________ of transactions can be easily handled by computerized accounting system.

Ans:  Large number of transactions can be easily handled by computerized accounting system

3. True-false

a) Manual accounting is better superior than computerized accounting.

Ans: Accounting software not only analyses data and generates reports considerably more quickly than manual methods, but it also allows for quicker data entry. As a result, this sentence is false.

b) Data can be accessed by anywhere in computerized accounting system.

Ans: The above statement is True. As, we can access the data anywhere in a computerized accounting system.

c) Tailor made software are cheapest accounting software.

Ans: Tailor Made Accounting Software is both dependable and simple to use. Customers use this software because of its user-friendly interface. As a result, this statement is False.

d) Manual accounting is more famous than computerized

accounting system.

Ans: Manual accounting is more famous than computerized accounting systems. As a result, this statement is true.

4. What do you mean by accounting package?

Ans:  An accounting package is a collection of programmes that make up a computerised accounting system.

5. What is data processing?

Ans: The process of recording, classifying, and transforming data into meaningful information is known as data processing.

B. Short Answer Questions – 2 marks

1. What do you mean by operating environment?

Ans: The operating environment of a computerized accounting system is a collection of integrated software that allows users to work. An operating environment, also known as an integrated applications environment in computer software, is the context in which users operate application software.

2. What do you understand by manual accounting system?

Ans: A manual accounting system is a method of recording business transactions using bookkeeping techniques rather than a computer system. Financial statements are manually created in this case.

3. What do you understand by computerized accounting system?

Ans: Computerized Accounting System is a method of keeping track of transactions using a computer-based system that includes both hardware and software. It rapidly records transactions and generates financial statements.

4. What is a DBMS?

Ans: A database management system (DBMS) is software that stores and retrieves data for users while taking necessary security precautions. It is made up of a collection of applications that alter the database. The DBMS accepts an application's request for data and directs the operating system to supply the requested data. A database management system (DBMS) aids users and other third-party applications in storing and retrieving data in big systems.

5. How working on a computer effect the health of the user?

Ans: Working at a computer may result in back, neck, and shoulder discomfort, as well as headaches, eyestrain, and arm and hand overuse problems. Proper furniture, improved posture, and excellent working habits can all help you avoid computer-related injuries.

C. Short answer questions – 3 marks

1. Describe the advantages of ready-made accounting software.

Ans: The following are some of the benefits of ready-made accounting software are: 

1. It is quite inexpensive, even with simple standard features.

2. It requires very little training to learn.

3. It is usually appropriate for small businesses.

4. It does not necessitate the use of advanced computer equipment.

5. It is readily available on the market.

2. Describe the disadvantages of ready-made accounting software.

Ans: The following are some of the benefits of ready-made accounting software: 

1. It can only be used by a restricted number of people.

2. Because it is designed for small businesses, it will not meet the needs of medium and large businesses.

3. Data secrecy is low, allowing data to be easily disclosed to anyone.

4. Connectivity with other software is limited.

3. What are the advantages of customised accounting software?

Ans: The benefits of customised accounting software include: 

1. It is tailored to the company's specific needs.

2. While it will be more expensive than ready-made software, it will last longer.

3. It is more secure because just one organisation will use it.

4. It is designed to meet the company's changing needs.

5. It is better compatible with the company's other software.

4. What are the disadvantages of customized accounting software?

Ans: The downsides of customized accounting software are as follows: 

1. It necessitates a high degree of programming, thus it can only be built by a highly skilled programmer.

2. It takes time in developing such software.

3. Employees will need to be trained on how to use it.

4. It will be difficult to update or add new features.

5. What are the disadvantages of tailor made software?

Ans: The following are some of the drawbacks of custom software: 

1. It is expensive to maintain and install.

2. Learning it will be difficult for new employees.

3. It will necessitate extensive user training.

4. It is unaffordable for small businesses.

D. Long Answer Questions- 5 marks

1. Describe the two basic requirements of computerized accounting system.

Ans: Computerized accounting systems are software programmes kept on a company's computer, network server, or accessible remotely over the Internet. It is used by a company to create numerous reports.

As a result, it aids in the evaluation of the company's operations, efficiency, and profitability. Most significantly, under this system, companies produce their reports in accordance with Generally Accepted Accounting Principles (GAAP).

The following are the two essential requirements of a computerised accounting system: 

1. Accounting Framework: An accounting framework is made up of a set of accounting codes, principles, and grouping structure. In other words, they are a set of standards for recognizing, measuring, disclosing, and presenting information in a company's financial statement.

2. Accounting Procedure: The accounting system is designed to fit into the company's operating environment so that it can easily blend in and handle the company's complex routine operations

2. Describe the advantages of tailor made software.

Ans: Customized software (also known as bespoke software or tailor-made software) is software that is created specifically for a company or individual.

The Following are Some of the Benefits of Tailor-Made Software:

1. It is created to meet the specific requirements and needs of the firm that will be utilising it.

2. It is capable of meeting the needs of medium and large businesses.

3. It has a high level of security, reducing theft by allowing only authorised people access.

4. It improves accounting efficiency.

5. It will be very simple to link it with other information software because it is tailored to the needs of the firm.

6. The danger of spending a big sum of money is negligible.

3. Describe the problems adopting in Computerized Accounting System?

Ans: The following are some of the issues that arise while using a computerised accounting system:

1. Hardware Requirements: If a corporation intends to computerise its accounting system, it will need a computer system with printing capabilities.

2. User Training: Users must be properly trained in order to comprehend the fundamentals of computers, operating systems (such as Windows and IOS), accounting software, and data.

3. System Failure: In a computerised environment, a whole system or only a hard drive crash could be a significant concern. In the system of accounting Even if software fails or is lost, It is possible that a lack of connectivity will result in a major issue on a regular basis. This danger is possible to be diversified by keeping a copy of every data on hand. This is also known as technical failure.

4. Time Consuming: When there is a technical issue, a substitute arrangement requires to be made to prevent loss of work. This is so time consuming to get back to the regular processes.

5. Health Issues: Heavy uses of computers could lead to various health issues like: Muscular pain, eye sight problems, Ache etc. which leads to inefficiency in the work and expenses for the medicines increases as well.

4. Differentiate between manual and computerized accounting system.

Ans: The difference between a manual accounting system and a computerised accounting system are as follow:

Q5. What are the basic four requirement of use of computer in any database?

Ans: The following are the four basic requirements for using a computer in a database:

1. Database for the Back End: It is a data storage system that is concealed from the user and reacts to the user's needs to the degree that the user has been granted access. This can only be used by authorised users. Any other user cannot access the database since it is hidden.

2. User Interface: It's an interactive link or a conversation between a user and database-oriented software that allows the user to speak with the database on the back end. For example, a transaction involving the purchase of products may be handled by the accounting system via a purchase voucher, which displays on the computer monitor of the data input operator and is saved in the database once entered into the system. The same information may be accessed via a reporting system, such as a purchase analysis software application.

3. Data Processing: It is a set of procedures that are followed to convert data into meaningful information. i.e. this is the action of transforming, retrieving, or classifying data into meaningful information for decision-making.

4. Reporting System: The report is made up of an integrated set of items. i.e. it is the process of combining a set of objectives in order to collect data and generate reports using a management information system.