Computer-based Accounting Systems and Data Coding Schemes

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What is the main function of a Computer-Based Accounting System (CBAS)?

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To record and process financial transactions quickly and accurately

Front

Which of the following best describes a batch processing system?
Transactions are entered and processed one at a time immediately
Transactions are stored and processed together at a later time
Transactions do not require validation before processing
Transactions are always processed in real time with no delay

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Transactions are stored and processed together at a later time

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What is the main benefit of using a modern accounting system over a legacy system?

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It allows better data integration and real-time access.

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Why are data coding schemes important in accounting systems?

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They help organize financial data for efficient tracking and retrieval

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Which of the following coding schemes is designed to group related data into specific ranges? a) Block coding, b) Sequential coding, c) Alphabetic coding, d) Mnemonic coding

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Block coding

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Why is block coding beneficial for audit trail purposes?

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It simplifies the process of finding errors within a specific category.

Front

Which of the following statements best describes real-time processing? Options: a) Transactions are entered, stored, and processed later, b) Transactions are recorded and updated instantly as they occur, c) Transactions must be manually reviewed before processing, d) Transactions are always processed in large groups for efficiency

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Transactions are recorded and updated instantly as they occur.

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Which of the following coding schemes is most useful for tracking missing transactions in an audit? a) Block coding, b) Mnemonic coding, c) Sequential coding, d) Alphabetic coding

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Sequential coding

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Which data coding scheme allows hierarchical classification of financial data, making detailed audits easier? Options: a) Alphabetic codes, b) Group codes, c) Mnemonic codes, d) Sequential codes

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Group codes

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Which of the following is an example of an alphanumeric coding system used in financial auditing? a) 1001, 1002, 1003 b) INV-2024, PAY-001, SUP-320 c) 0001, 0002, 0003 d) A, B, C, D

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INV-2024, PAY-001, SUP-320