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Grouping and codification of accounting - class-XII

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Accounting information system is important component of the organisational MIS in an organisation. 

  1. True

  2. False


Correct Option: A
Explanation:

Accounting information system is important component of the organisational MIS in an organisation. It receives information and provides information and provides information to the other functional MIS.

___________ reports will be prepared only when the management requests them.

  1. Summary

  2. Exception

  3. Demand

  4. Customer/Supplier


Correct Option: C

One key control in the organization of the information systems department is the:

  1. Separation of the systems development group and the operations (data processing) group.

  2. Operating personnel should strictly control access to the client's database.

  3. Controller should manage the information system since it supplements the accounting work already done under the supervision of the controller.

  4. Information system department should be under the direction of systems development personnel since they are responsible for the overall performance of the system.


Correct Option: A

According to the specifications of the management summary report will be prepared.

  1. True

  2. False


Correct Option: B
Explanation:

According to the specifications of the management customer/ supplier report will be prepared. However, summary reports summaries all activities of the organisation and present in the form of summary reports. 

Which are the various steps involved in designing accounting reports from accounting data? 

  1. Definition of objective, Structure of the report, Querying with the database, finalising the report

  2. Definition of data, Structure of the data, Querying with the database, finalising data

  3. Definition of data, Structure of the report, Querying with the database, finalising report

  4. Definition of objective, Structure of the data, Querying with the database, finalising data


Correct Option: A
Explanation:

The various steps involved in designing accounting reports from accounting data are as follows:
1) Definition of objective: The objective of the report must be clearly defined.
2) Structure of the report: The information to be contained therein and the style of presentation.
3) Querying with the database: The accounting information queries must be clearly defined and methodology to be adopted while interacting with the database.
4) Finalising the report.

The reports prepared upon the conditions or exceptions are called as __________ reports.

  1. summary

  2. demand

  3. exception

  4. customer/supplier


Correct Option: C

Under _________________, the information to be contained therein and the style of the presentation is specified.

  1. definition of objectives

  2. structure of the report

  3. querying with the database

  4. finalizing of the report


Correct Option: B

Under _____________, the objectives of the report must be clearly defined, who are the users of the report and the decision to be taken on the basis of the report.

  1. structure of the report

  2. finalizing the report

  3. definition of objectives

  4. querying with the database


Correct Option: B

Which of the following criterion are needed to be fulfilled for every accounting report?

  1. Relevance

  2. Timeliness

  3. Accuracy

  4. All of the above


Correct Option: D

The accounting reports generated by the accounting software may be either routine reports or on the specific requirements of the user.

  1. True

  2. False


Correct Option: A
Explanation:

When the related information is summarized to meet a particular need, it is called as a Report. The content and design of the reports is expected to vary depending up on the level to which it is submitted and decision to made on the basis of the report. The accounting reports generated by the accounting software may be either routine reports or on the specific requirements of the user. For example, the ledger is a routine report while a report on supplies of a particular item by a given party is an on-demand report.

The MIS structure which specifies the premises of management responsibilities are called _________ reports.

  1. summary

  2. demand

  3. responsibility

  4. exception


Correct Option: C

Statement of account, Purchase Analysis and Vendor Analysis report are prepared under _________ reports.

  1. summary

  2. demand

  3. customer/supplier

  4. exception


Correct Option: C

When the related information is summarized to meet a particular need, it is called as a _________.

  1. statement

  2. summary

  3. database

  4. report


Correct Option: D
Explanation:

When the related information is summarized to meet a particular need, it is called as a Report. The content and design of the reports is expected to vary depending up on the level to which it is submitted and decision to made on the basis of the report. Hence, a report must be effective and efficient to the user and should substantiate the decision-making process.

Business process in the marketing and sales department involves which of the following activity?

  1. inquiry

  2. Entry of outputs

  3. Dispatch of bill

  4. Billing to supplier


Correct Option: A
Explanation:

The business process in the marketing and sales department involves the following activities:
1) Inquiry
2) Contact creation
3) Entry of orders
4) Dispatch of goods
5) Billing to customers

__________ reports summaries all activities of the organisation.

  1. Summary

  2. Demand

  3. Exception

  4. Responsibility


Correct Option: A

Which of the following criterion are required to be fulfilled by every accounting report?

  1. Reliability, Timeliness, Accuracy, Completeness, Summarisation

  2. Relevance, Timeliness, Accuracy, Completeness, Summarisation

  3. Relevance, Timeliness, Accountability, Completeness, Summarisation

  4. Reliability, Timeliness, Accountability, Completeness, Summarisation


Correct Option: B
Explanation:

When the related information is summarized to meet a particular need, it is called as a Report. The content and design of the reports is expected to vary depending up on the level to which it is submitted and decision to made on the basis of the report. Hence, a report must be effective and efficient to the user and should substantiate the decision-making process. Every accounting report must be able to fulfill the following criterion:
1) Relevance
2) Timeliness
3) Accuracy
4) Completeness
5) Summarisation

______________ reports will be prepared upon the specifications of the management.

  1. Summary

  2. Demand

  3. Customer/Supplier

  4. Exception


Correct Option: C

Querying with the database is the _______ step under the steps involved in designing accounting reports from the accounting data.

  1. first

  2. second

  3. third

  4. fourth


Correct Option: C

The _____________ department receives the list of workers from the ____________ department.

  1. manufacturing, human resource

  2. human resource, manufacturing

  3. manufacturing, finishing

  4. finishing, manufacturing


Correct Option: A

Finalizing the report is the _______ step in the steps involved in designing accounting reports from accounting data.

  1. first

  2. second

  3. third

  4. fourth


Correct Option: D

A report must be effective and efficient to the user and should substantiate the decision-making process.

  1. True

  2. False


Correct Option: A
Explanation:

When the related information is summarized to meet a particular need, it is called as a Report. The content and design of the reports is expected to vary depending up on the level to which it is submitted and decision to made on the basis of the report. Hence, a report must be effective and efficient to the user and should substantiate the decision-making process. Hence, a report must be effective and efficient to the user and should substantiate the decision-making process.

According to the conditions or exceptions the exception report is prepared.

  1. True

  2. False


Correct Option: A
Explanation:

According to the conditions or exceptions the exception report is prepared. for example, inventory report in short supplies, stock status query, over stocked status, etc.

The accounting Sub-system transaction cycle would not include the processing of purchase orders.

  1. True

  2. False


Correct Option: B
Explanation:

The accounting Sub-system transaction cycle would include the processing of purchase orders, advance to suppliers/vendors, inventory status updation, account payable etc.

Bad debts report for a given product, Stock valuation report are prepared under ________ reports.

  1. summary

  2. demand

  3. exception

  4. responsibility


Correct Option: B
Explanation:

 Demand Reports This reports are prepared only when the management request them, e.g,Bad Debts Report for a given product ,Stock Valuation Report.

Under ______________, the business process in the marketing and sales department involve functions such as inquiry, contact creation, entry of orders, etc.

  1. AIS and Marketing Information System

  2. AIS and Manufacturing Information System

  3. Accounting Information System

  4. Manufacturing Information System


Correct Option: A

Stock status query, over stocked status are to be prepared under ___________ reports.

  1. summary

  2. demand

  3. responsibility

  4. exception


Correct Option: D
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