RBSE Solutions Class 12 Accountancy Chapter 14 Computerised Accounting System

RBSE Class 12 Accountancy Chapter 14 Textbook Questions

RBSE Class 12 Accountancy Chapter 14 Multiple Choice Questions

 

Question 1. Which is an input device in the following:
(a) Key-board
(b) Monitor
(c) Hard-disk
(d) Printer
Answer: (a) Key-board
In simple words: An input device is used to put information into a computer. Among the given options, a key-board is what you use to type and give commands to the computer.

🎯 Exam Tip: Remember that input devices send data to the computer, while output devices display or produce data from it. Key-board and mouse are common examples of input devices.

 

Question 3. The full name of C.P.U. is:
(a) Control process unit
(b) Central production unit
(c) Central processing unit
(d) Central programme unit
Answer: (c) Central processing unit
In simple words: CPU stands for Central Processing Unit. It is the part of the computer that does all the thinking and calculations.

🎯 Exam Tip: Knowing common computer abbreviations like CPU, ALU, and RAM is fundamental for understanding computer basics.

 

Question 4. A computer is a group of instruction that called:
(a) Programme
(b) Information system
(c) Database
(d) Data
Answer: (a) Programme
In simple words: A programme is a set of step-by-step instructions that tells a computer what to do. Computers need programmes to work and perform tasks.

🎯 Exam Tip: Differentiate between a "programme" (the instructions) and "data" (the raw facts a programme works on).

 

Question 5. The benefits of computerized accounting system:
(a) Speed
(b) Reliability
(c) Comfortable to read
(d) All of the options
Answer: (d) All of the options
In simple words: Computerized accounting systems are good because they are fast, dependable, and make financial information easy to understand. All these benefits help businesses.

🎯 Exam Tip: When evaluating benefits of a system, consider how it improves efficiency, accuracy, and user experience. Computerized systems generally excel in all these areas.

 

Question 7. A management process is:
(a) Planning
(b) Instruction
(c) Controlling
(d) All of the options
Answer: (d) All of the options
In simple words: A management process includes planning what to do, giving instructions to people, and making sure everything is happening as planned. All these steps are important for good management.

🎯 Exam Tip: The core functions of management often involve planning, organizing, staffing, directing (instructing), and controlling. Identifying these key words is important.

 

Question 8. A software is:
(a) Language
(b) Programme
(c) Physical part of computer
(d) None of the options
Answer: (b) Programme
In simple words: Software is like the brain of the computer that tells the hardware what to do. It is a set of instructions, or a programme, that makes the computer perform tasks.

🎯 Exam Tip: Understand the basic difference between hardware (physical parts) and software (instructions/programmes). Hardware cannot function without software.

 

Question 9. A computer takes directly which of the following language:
(a) Machine language
(b) Assembly language
(c) English language
(d) High level language
Answer: (a) Machine language
In simple words: Computers understand a special language made of zeros and ones, called machine language. All other languages must be changed into machine language for the computer to understand them.

🎯 Exam Tip: Machine language is the most basic form of computer language, directly executable by the CPU. Higher-level languages need compilers or interpreters to translate them.

 

Question 11. The quality of computerized accounting system is:
(a) Purchase-sales in printed
(b) Online Investment of accounts data
(c) Both (a) and (b)
(d) None of the options
Answer: (c) Both (a) and (b)
In simple words: A good computerized accounting system helps with both printing purchase and sales records and managing account data online. These features make it efficient and easy to use.

🎯 Exam Tip: Modern accounting systems offer integrated features for both physical record-keeping (printed reports) and digital management (online data access).

RBSE Class 12 Accountancy Chapter 14 Very Short Answer Questions

 

Question 1. Give the two features of computerized accounting system.
Answer: Here are two main features of a computerized accounting system:

• It allows for online input and storage of accounting information.
• It automatically creates printouts of purchase and sales invoices. This makes record-keeping faster and more organized.

In simple words: It lets you put in and save accounting details using a computer, and it also prints out bills for sales and purchases.

🎯 Exam Tip: Focus on key advantages like ease of data entry and automated report generation when listing features.

 

Question 2. Define computerized accounting system.
Answer: A computerized accounting system helps process money transactions and events according to generally accepted accounting principles (GAAP). It then creates financial reports that users need. This system automates many tasks that would otherwise be done manually, increasing efficiency.
In simple words: It's a system that uses computers to manage all the money details of a business and creates reports as needed.

🎯 Exam Tip: Always include key terms like "processing financial transactions" and "generating reports" when defining an accounting system.

 

Question 3. What do you know about management information system?
Answer: A Management Information System (MIS) is a computer system that gives managers the information they need to run their organizations well. It helps in making smart decisions by providing timely and relevant data. An effective MIS combines technology, information, and people to support business goals. MIS helps in various functions like tracking performance, planning, and controlling operations.
In simple words: MIS is a computer system that gives important information to managers so they can make good decisions and run the business effectively.

🎯 Exam Tip: Highlight that MIS is about providing information for decision-making and efficient management, often combining technology, data, and human elements.

 

Question 5. Write the name of various components of computer.
Answer: The main components of a computer are:

• Input Unit: This includes devices like a keyboard or mouse for giving information to the computer.
• Central Processing Unit (CPU): This is the "brain" of the computer that processes information. It has three main parts:
  1. Control Unit: Manages and guides all parts of the computer.
  2. Memory Unit: Stores data and instructions temporarily.
  3. Arithmetic and Logic Unit (ALU): Performs calculations and logical comparisons.
• Output Unit: This includes devices like a monitor or printer for showing information from the computer.

These parts work together to make the computer functional and interactive.
In simple words: A computer has three main parts: an Input Unit to put in information, a Central Processing Unit (CPU) to do the work, and an Output Unit to show results.

🎯 Exam Tip: When describing computer components, always explain the function of each part briefly to show a complete understanding.

 

Question 6. What is processing unit?
Answer: The Central Processing Unit (CPU) is like the control center for a computer. It guides, directs, and manages how the computer works. The CPU is considered the brain of the computer, where all major calculations and decisions happen. The main part inside a computer that handles processing tasks is the central processing unit itself.
In simple words: The processing unit, or CPU, is the computer's brain that controls everything and does all the calculations.

🎯 Exam Tip: Emphasize the CPU's role as the "brain" and its functions of control and processing data.

 

Question 7. Define accounting information system.
Answer: An accounting information system is a very common and old system used by both profit and non-profit organizations. It provides accounting information that is useful not only to the accounts department but also to other departments like sales, production, and human resources. This system helps gather, store, and process financial data to provide accurate information for various business needs.
In simple words: It's a system that collects, processes, and shares financial information for a business to help different departments.

🎯 Exam Tip: Point out that an AIS serves multiple departments, not just accounting, highlighting its broad utility in an organization.

 

Question 2. Write limitations of computerized accounting system.
Answer: Even though computerized accounting systems have many benefits, they also have some limitations:

• Staff Opposition: When computers are introduced, staff might resist because it can lead to job cuts or changes in how they work.
• High Cost of Training: Using advanced computerized accounting software needs specially trained staff, which can be very expensive.
• Adverse Effects on Health: Spending too much time on computers can cause health issues like eye strain, backaches, and muscle pain.
• Security Problems: It's easier to commit fraud or steal money in a computerized system by changing data, and it can be hard to find who did it compared to manual records. Computer systems require robust cybersecurity measures.
• System Failure: Problems like hardware breaking down, virus attacks, or the system crashing can cause total system failure.

In simple words: Computerized accounting can lead to staff problems, costly training, health issues, security risks, and system breakdowns.

🎯 Exam Tip: When discussing limitations, provide specific, distinct points rather than general statements, and consider both human and technical challenges.

 

Question 3. Explain the characteristics of computerized accounting system.
Answer: A computerized accounting system offers several advantages over traditional manual accounting:

• High Speed: Computers perform accounting tasks much faster than humans can.
• High Reliability: The information generated by computers is extremely reliable, and this reliability stays consistent regardless of how much work is involved. This is a significant improvement over manual systems, which can be prone to human error.
• Accuracy: Once programmed correctly, a computer's results are 100% accurate, unlike human work which can vary due to tiredness or carelessness.
• Updation of Information: All related records in a computer are updated automatically as soon as new information is entered, saving time compared to manually changing each record one-by-one.
• Timely Reporting: It quickly generates Management Information System (MIS) reports, helping management make fast decisions, whereas manual report generation is slow and less accurate.
• Storage and Retrieval: It stores large amounts of data in a small physical space, like hard disks, unlike bulky physical ledgers and journals. This digital storage also allows for quick data retrieval.
• Security of Data: Accounting data in a computerized system is generally safer than in a manual system, as secrecy can be maintained with passwords, allowing only authorized people access.

In simple words: Computer accounting is fast, accurate, dependable, updates itself easily, gives quick reports, stores a lot of data in a small space, and keeps information safe with passwords.

🎯 Exam Tip: For characteristics, emphasize the contrast with manual systems (e.g., speed vs. manual speed, accuracy vs. human error) to demonstrate clear benefits.

 

Question 4. Explain the various parts of computer system.
Answer: A computer system is made up of several important parts that work together. These are:

1. Input Unit: This unit controls various input devices, like the keyboard, mouse, and scanner, which are used to enter data into the computer. It takes data from the outside world and changes it into a binary system that the computer understands.
2. Central Processing Unit (CPU): The CPU is the computer's control center, guiding and managing its operations. It acts as the brain, storing programs, pictures, graphics, and other data, and carrying out instructions. The CPU is divided into three smaller sub-units:
   • Control Unit: It oversees and organizes all activities of the computer's parts, receiving input data and changing it into a computer-readable binary system.
   • Memory Unit: This unit stores data before it is processed. The data kept here is accessed and used according to instructions also stored in this memory section, before being sent from input devices.
   • Arithmetic and Logic Unit (ALU): This part is responsible for all mathematical calculations, such as adding, subtracting, dividing, and multiplying. It also handles logical tasks, comparing different values and data items.
3. Output Unit: After data is processed, this unit makes sure the results are shown in a way that humans can understand. Common output devices include monitors (also called Visual Display Units) and printers.

Each component plays a vital role in enabling the computer to perform its functions effectively.
In simple words: A computer system has an Input Unit for giving information, a Central Processing Unit (CPU) for doing all the work (with its parts like Control, Memory, and ALU), and an Output Unit for showing the results.

🎯 Exam Tip: When explaining computer parts, describe their individual functions and how they collaborate to process information effectively, often including a simple diagram.

 

Question 6. Distinguish between manual accounting system and computerized accounting system.
Answer: Here's a comparison between manual and computerized accounting systems, focusing on how they handle financial transactions:

• Classification: In manual accounting, transactions are first recorded and then moved to ledger accounts, which means data is duplicated. In computerized accounting, there is no such duplication; stored transaction data is simply processed to create classified reports like ledger accounts.
• Summarizing: Manual systems summarize transactions to prepare a trial balance by finding account balances, so creating ledger accounts is a must. In computerized accounting, stored transaction data is processed to generate a list of account balances for the trial balance report directly, without needing to create ledger accounts first.
• Adjusting Entries: Manual systems use adjusting entries to match expenses with revenues for an accounting period. Computerized systems prepare and store journal vouchers for this principle, but they don't typically use adjusting entries for errors or corrections, except for rectifying a wrong voucher.
• Financial Statements: In a manual system, financial statements can only be prepared after the trial balance is ready. In computerized accounting, financial statements can be prepared directly from the stored transaction data, making the trial balance optional.
• Closing the Books: In manual accounting, accountants prepare for the next period by posting closing and reversing journal entries. In computerized accounting, opening balances of accounts are created and stored in a database directly.

Computerized systems offer significant efficiency and accuracy improvements over manual methods due to automation.
In simple words: Manual accounting involves writing everything down, which takes more steps and can have errors. Computerized accounting uses software to record, classify, and summarize information faster and more accurately, directly creating reports.

🎯 Exam Tip: When distinguishing between systems, focus on how key accounting steps (like classification, summarization, and reporting) are handled differently in each method, highlighting automation in computerized systems.

 

Question 8. Explain the importance of computer in accounting.
Answer: Computers play a very important role in accounting due to several benefits they offer:

• High Speed: Computers perform accounting tasks much quicker than people can.
• High Reliability: The information generated by a computer is highly dependable. Its accuracy stays consistent no matter how much work there is, unlike human work which can be unreliable when dealing with large volumes.
• Accuracy: Once a computer program is correctly set up, its results are 100% accurate. Human calculations can sometimes be wrong due to tiredness or mistakes.
• Updation of Information: All related records in a computer system are automatically updated as soon as any new information is entered. This saves time compared to manually changing each record one by one.
• Timely Reporting: Computerized accounting systems quickly generate management information system (MIS) reports. This allows management to make quick and informed decisions, which is much faster and more accurate than creating reports manually.
• Storage and Retrieval: Computers can store a vast amount of data in a small physical space, like hard disks, which is far less bulky than physical books of accounts. This also makes it very easy and fast to find old data.

These benefits make computerized accounting an essential tool for modern businesses.
In simple words: Computers make accounting fast, accurate, and reliable. They update information quickly, create reports on time, store lots of data in a small space, and keep information safe.

🎯 Exam Tip: When explaining importance, focus on how computers improve efficiency, accuracy, and decision-making in accounting processes.

Explain the Computer Related Various Information Systems.

 

There are various computer-related information systems that help organizations manage their operations:

1. Management Information System (MIS): An MIS is a system that combines information technology and people's activities to support business operations and management. It broadly refers to how people interact with technology to achieve business processes. An MIS provides information needed to manage organizations effectively and involves three main resources: technology (improvements in operations), information (processed data in a useful form), and people (system users who enter and analyze data). MIS applications help managers get data on sales, inventory, and other areas to manage the business.
   Features of MIS:
   • Flexibility: It can adapt to different needs.
   • Economy: It is cost-effective in the long run.
   • Completeness: It provides full information.
   • Timeliness: It provides information when needed.
   • Accuracy: The information provided is correct.
   • Simplicity: It is easy to use and understand.
2. Accounting Information System (AIS): An AIS is one of the oldest and most widely used information systems. It is crucial for both profit and non-profit organizations because it provides accounting information used by various departments, including sales, production, and human resources. An AIS collects data about an organization's activities, maintains detailed financial records, turns this data into information, and makes it available to internal and external users.
   An AIS helps solve problems by:
   • Producing standard management reports that summarize a firm's financial health.
   • Providing the database used by other information systems.
   An accounting and information system collects, processes, summarizes, and reports monetary information about a business.
   Features of AIS:
   • AIS handles and changes accounting and financial transactions.
   • AIS creates reports to meet information needs.
   • AIS helps produce future-looking data, like budget forecasts.
   • AIS maintains accounting information according to legal guidelines.
   • AIS is very important for the organization and can be easily misused, so it needs a very safe and secure environment.

Each of these systems plays a unique and essential role in helping businesses manage their data and make informed decisions.
In simple words: Management Information System (MIS) helps managers make decisions using technology, information, and people. Accounting Information System (AIS) collects and processes financial data for all parts of a business.

🎯 Exam Tip: When describing different information systems, clearly define each one, list its key functions, and mention its main features. Differentiate them by their primary purpose and the type of information they manage.

 

Question 10. How may types of software packages of accounting. Explain.
Answer: Accounting software, also known as accounting packages, comes in various types. The choice depends on what best suits an organization's specific accounting needs. These software packages are generally classified into three categories:

1. Ready-to-Use Software: This type is also called General Purpose Application Software. Businesses buy it directly from the market and use it without any changes or modifications. It is suitable for small businesses with basic accounting needs.
2. Customized Software: While we can create software to our specific needs, customized software isn't built entirely from scratch by the user. Instead, it's an improved version of "Ready-made Software" that has been slightly changed to better fit the user's requirements. The term "customized" means making adjustments to an existing program.
3. Tailor-Made Software: Large businesses often hire a programmer to create a unique program specifically for them. This process is expensive, and even small changes can be costly. To avoid issues with different programmers, organizations often create detailed manuals (rule books) first. The programmer then follows this manual to create the program, ensuring it matches the business's exact needs. This type of software is built from the ground up for a specific organization.

Each type offers different levels of flexibility and cost, depending on the business's complexity and budget.
In simple words: There are three kinds of accounting software: "Ready-to-use" which you buy and use as is; "Customized" which is ready-made but changed a little for you; and "Tailor-made" which is built completely from scratch for your business's exact needs.

🎯 Exam Tip: When explaining software types, clearly differentiate between them by how much modification is involved and the typical user size or complexity each type serves.