Question 1

Which one of the following is not an accounting software?

Accepted Answer

Tally, Oracle and SAP are some of best software available for accounting purposes. They all have some pros and cons of their own.GAAP is not an Accounting software. It stands for Generally Accepted Accounting principles.

Question 2

'Accounting software is an integral part of the computerised accounting system', Explain. Briefly list the generic considerations before sourcing accounting software.

Accepted Answer

The following factors are usually taken in considerations before sourcing accounting software.(i) Flexibility: Flexibility is the first and most important thing while selecting the accounting software. The flexibility must be there in data entry and the availability and design of various reports expected from it.(ii) Cost of Installation and Maintenance: The choice of the software obviously requires consideration of organisation ability to afford the hardware and software. A simple guideline to take such a decision is the cost benefit analysis of the available options and the financing opportunities available to the firm.(iii) Size of Organisation: The size of organisation and the volume of business transaction do affect the software choices. Small organisations, e.g.,  in non-profit organisations, where the number of accounting transactions is not so large, may opt for a simple, single user operated software. While, a large organisation may require sophisticated software to meet the multi-user requirements, geographically scattered and connected through complex networks.(iv) Ease of Adaptation and Training Needs: Some accounting software is user friendly requiring a simple training to the users. However, some other complex software packages linked to other information systems require intensive training on a continuous basis. The software must be capable of attracting users and if it requires simple training, should be able to motivate its potential users.(v) Utilities/MIS Reports: The MIS reports and the degree to which they are used in the organisation also determine the acquisition of software. e.g., software that requires simply producing the final accounts for cash flow/ratio analysis may be ready-to-use software. However, the software, which is expected to produce cost records, needs to be customized as per user requirements.

Question 3

An important consideration before sourcing an accounting software is ____.

Accepted Answer

An important consideration before sourcing an accounting software is flexibility, viz. data entry and the availability and design of various reports expected from it.

Question 4

The cost of installation and maintenance is relatively high because the high cost is to be paid to the vendor for _____.

Accepted Answer

The cost of installation and maintenance is relatively high because the high cost is to be paid to the vendor for customisation. the customisation includes modification and addition to the software content provisions for the specified number of users and their authentication, etc.

Question 5

The tailored software is designed to meet the specific requirements of the users and form an important part of the ______.

Accepted Answer

The tailored software is designed to meet the specific requirement of the users and form an important part of the organisational MIS (Management Information System). Tailored software can interact and share information with the various sub components of the organisational MIS.

Question 6

Which of the following softwares are used for data processing?(i) EXCEL (ii) ACCESS (iii) SPSS (iv) STAR (v) PASW.

Accepted Answer

SPSS, as the name suggests, is software for performing statistical procedures in the social sciences field. The major limitation of SPSS is that it cannot be used to analyze a very large data set.

Question 7

Language syntax is checked by software called ________ .

Accepted Answer

Language processor

Question 8

An appropriate accounting software for a small business organisation having only one user and single office location would be ___________.

Accepted Answer

Ready to use.Most of the automated accounting systems are inter-linked through a network of computers. This facilitates the availability of information to various users at the same time on a real time basis (that is spontaneously).

Question 9

Following factors are usually taken in considerations before sourcing accounting software:
1. Flexibility; Cost of Installation and Maintenance; Size of Organisation
2. Ease of Adoption and Training needs; Utilities/MIS reports; Expected Level of Secrecy (Software and Data)
3. Exporting/Importing Data Facility; Vendors Reputation and Capability
4. Recording; Customisation; Ready-to-use; Tailored

Accepted Answer

Flexibility, Cost of Installation and Maintenance; Size of Organisation; Ease of Adoption and Training needs; Utilities/MIS Reports; Expected level of Secrecy (Software and Data); Exporting/Importing Data Facility; Vendors Reputation and Capability are the factors usually taken in consideration before sourcing accounting software.

Question 10

Ready-to-use accounting software is suited to organisations running small/conventional business where the frequency or volume of accounting transaction is ________.

Accepted Answer

Ready-to-use accounting software is suited to organisations running small/conventional business where the frequency or volume of accounting transactions is very low. This is because the cost of installation is generally low and number of users is limited.

Sourcing an accounting software

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