Chapter MCQ Test 2 — Introduction to Computerised Accounting
10 Questions • 12 min • Chapter MCQ
12:00
Question 1 of 10
A firm enters one sales voucher and finds its ledger, trial balance and balance sheet all updated at once. This is because the software is:
Database-driven, so linked tables update from a single entry
Doing the work by hand
Ignoring the entry
Using the cash basis
Explanation: Linked database tables let one voucher automatically update every related report.
Question 2 of 10
Why is correct data entry MORE critical in a CAS than the arithmetic itself?
The software's calculations are error-free, so wrong input is the main risk ('garbage in, garbage out')
The software cannot add
Arithmetic is always wrong
Data entry is unimportant
Explanation: Computation is reliable; the weak link is the human-entered data, so accuracy of input governs output quality.
Question 3 of 10
A fast-growing firm needs special features no package offers. The best choice is:
Tailor-made (bespoke) software
Free trial software
Manual books only
A calculator
Explanation: Unique requirements at scale justify bespoke software built for the organisation, despite higher cost.
Question 4 of 10
Goods sold intra-state for Rs 1,00,000 at 18% GST: the software records output tax of:
CGST 9,000 + SGST 9,000 = 18,000
IGST 18,000
CGST 18,000
No GST
Explanation: Intra-state 18% splits into CGST 9% (9,000) and SGST 9% (9,000), total 18,000 output tax.
Question 5 of 10
The chief role left to the human accountant in an automated system is:
Judgement — what to record, how to classify and interpret
Adding up columns
Posting by hand
Preparing the trial balance manually
Explanation: Machines handle the mechanics; humans supply the judgement the software cannot.
Question 6 of 10
In a database table of invoices, 'Invoice No.' that is unique for every invoice serves as the:
Primary key
Field with duplicates
Report
Macro
Explanation: A field that uniquely identifies each record is the primary key.
Question 7 of 10
A manual trial balance may fail to tally, but a computerised one always tallies because:
The software enforces equal debits and credits on every posting
It never makes errors of principle
It hides differences
It ignores credits
Explanation: Automatic double-entry posting keeps debits equal to credits, so the generated trial balance tallies (though errors of principle can still exist).
Question 8 of 10
Which limitation of a CAS is a genuine risk that manual systems largely avoid?
Loss of data through system crash or hacking
Slow speed
Inability to calculate
Untidy handwriting
Explanation: Electronic data is exposed to crashes and cyber-attacks, a risk paper records do not share.
Question 9 of 10
Input tax credit tracked by GST software lets a firm:
Reduce its GST payable by the GST already paid on purchases
Avoid all tax
Increase its sales
Skip filing returns
Explanation: Input tax credit offsets output GST with the GST paid on inputs, lowering the net tax payable.
Question 10 of 10
Learning Tally builds directly on this course because the software still uses:
Ledgers, vouchers, debit/credit and final accounts
Completely new accounting rules
No accounting at all
Only spreadsheets
Explanation: Tally automates the very concepts learned here — ledgers, vouchers, double entry and final accounts.