MCQs - Chapter 2



Chapter 2 - Automated Business Processing

  MCQ Type Questions:

(1)Which of the following is not a part of Inventory Master Data?

(a)Storage Units
(b)Stock Items
(c)Warehouse
(d)Payroll Details


(2)Which of the following is wrong statement about Back End?

(a)direct communication with user
(b)involved in data processing
(c)direct communication with frond end
(d)report generation


(3)What is the impact if Cash ledger is grouped under other income:    

(a)It will appear in balance-sheet as it is cash ledger.
(b)It will appear in profit and loss account
(c)It will not appear anywhere.  It shall still be considered in balance sheet as it is a cash ledger
(d)Software will prevent such error.


(4)Which of the following is the first step of accounting flow process ?

(a)posting
(b)trial balance
(c)transactions
(d)voucher entry


(5)Which of the following is not the voucher type of  payroll module?

(a)attendance
(b)payroll
(c)purchase
(d)none of the above


(6)Which of the following is a foremost feature of Integrated ERP System?
(a)Decentralised data maintenance by each department
(b)Centralised Database
(c)Lack of direct inter department communication
(d)Not able to integrate various business modules


(7)What is the full form of ERP?

(a)Employee Resource Policy
(b)Enterprise Resource Points
(c)Enterprise Resource Policy
(d)Enterprise Resource Planning


(8)Software application is installed in:

(a)hard disk of the computer
(b)Web server
(c)cloud
(d)Website


(9)Which of the following is not the advantage of ERP system?

(a)ability to integrate different modules.
(b)ability to customize as per requirement.
(c)reduced data security and application controls.
(d)strong reporting capabilities.


(10)Which of the following is not the risk in an ERP environment?

(a)Risk of unauthorised changes in data.
(b)Risk of data leakage.
(c)Risk of decentralized database.
(d)Risk of loss of data.


(11)Which of the following is not the benefit of CRM module?
(a)Optimize marketing
(b)Better communication
(c)Improve cross-selling
(d)Estimate re-order level


(12)Which of the following is not the function of Human Resource module? 
(a)Employee database
(b)Database of high value customers
(c)Attendance record
(d)Payroll record


(13)Which of the following is not the sales & distribution process? 
(a)Sales order
(b)Material delivery
(c)Purchase requisition from production department

(14)Which of the following module tracks financial data across organization? 
(a)Sales & distribution module
(b)Material management module
(c)Financial accounting module
(d)Human Resource Module


(15)Which of the following module is somehow connected with all other modules? 
(a)Human Resource Module
(b)Purchase Module
(c)Financial accounting module
(d) Sales & distribution module


(16)Extract, Transform & Load (ETL) is a process followed in:

(a)Enterprise Reporting
(b)Stock Management
(c)Sales Accounting
(d)Financial Accounting


(17)Which of the following is not an attribute of Information?
(a)Availability
(b)Confidential
(c)Accurate        
(d)Inadequate


(18)Which of the following is not a criteria for making information useful? 
(a)Relevant
(b)Numerical 
(c)Accurate        
(d)Timely
(19)Which of the following is a criteria for making information useful? 

(a)Qualitative data
(b)Numerical data  
(c)Structured data          
(d)Quantitative data


(20)Full form of OLAP is:

(a)Online Analytical Price
(b)Offline Analytical Price
(c)Online Analytical Processing
(d)Offline Analytical Processing


(21)Which of the following is not an advantage of data analytics initiatives?

(a) driving new revenues
(b)improves operational efficiency
(c)improves decision making
(d)loosing competitive advantage


(22)Which of the following is not a BI tool?

(a)data mining
(b)predictive analysis    
(c)data capturing            
(d)text mining  


(23)Which of the following is not an advantage of BI tool?   

(a)improved decision making
(b)improved business processes
(c)driving new revenues
(d)improved employee turnover


(24)Which of the following uses XBRL: 

(a)Regulatory bodies only
(b)Data providers only
(c)Analyst & Investors only
(d)All of above


(25)What is XBRL tagging?

(a)XBRL Tagging is the process by which any financial data is tagged with the most relevant element in an accounting taxonomy.
(b) XBRL Tagging is the process by which any financial data is tagged in ascending order of appearance.
(c) XBRL Tagging is the process by which any financial data is tagged in descending order of appearance.
(d)XBRL Tagging is the process by which any financial data is tagged with random element in an accounting taxonomy.


(26)Which of the following is not a feature of XBRL?

(a)Clear Definitions
(b)Single language support
(c)Testable business rules
(d)Strong software support


(27)Generally, organizations do not communicate with their all stakeholders about:

(a)mission, vision, objectives, and strategy
(b)risk management & governance structure
(c)confidential business documents
(d)financial, social, and environmental performance.


(28)Which of the following is an advantage of integrated accounting & tax software ?

(a)more ease of operation as compared to only tax compliance software.
(b)more  system features as compared to only tax compliance software.
(c)more accurate flow of information as compared to only tax compliance software.
(d)less costly as compared to only tax compliance software.


(29)What is not a part of Inventory Master Data?

(a)Stock Item
(b)Stock Group
(c)Salary Structure
(d)Godowns

(30)Which of the following is a main characteristic of Integrated ERP System?

(a)Separate data maintenance by each department
(b)Centralised Database
(c)No direct inter department communication
(d)None of the above


(31)ERP stands for
                .
(a)Enterprise Resource Policy
(b)Enterprise Rating Points
(c)Enterprise Report Presentation
(d)Enterprise Resource Planning


(32)Which of the following about Back End is false?

(a)communicates with user directly
(b)Processes the data
(c)Communicates with front end directly
(d)Generates the report


(33)XBRL is used by
                .
(a)Government only
(b)Accountants only
(c)Investors only
(d)All of above


(34)If Cash ledger is grouped under Indirect income,     .

(a)It shall be displayed in profit and loss account
(b)It shall still be considered in balance sheet as it is a cash ledger
(c)Software shall show error message
(d)None of above


(35)Which sentence is true about installed software application?

(a)It is installed on the hard disc of the computer of the user
(b)It is installed on the web server
(c)It is installed on cloud
(d)It is installed on a website


(36)Extract Transform Load (ETL) is a part of        .

(a)Business Reporting
(b)Inventory Accounting
(c)Financial Accounting
(d) Payroll Accounting


(37)OLAP stands for        .

(a)Offline Analytical Processing
(b)Online Analytical Processing
(c)Online Analytical Product
(d)Offline Analytical Product


(38)Which of the following is not an attribute of Information?

(a)Availability
(b)Mode and Format
(c)Completeness
(d)Inadequacy