Practice MCQs - Set 5


CA Exam -  Chartered Accountant Study - CA Inter – Practice Questions – Enterprise Information System (EIS) - Multiple Choice Questions - MCQs

Practice MCQs - Set 5


(1) Which of the following is not true with respect to master data?
(A)Relatively permanent data not expected to change frequently.
(B)Non-permanent data and expected to change frequently.
(C)They are generally non-transaction related data.
(D)Master data entry is usually done less frequently say once in a year or when there is a need to update.




Answer: (B)Non-permanent data and expected to change frequently.




(2) Which of the following is not true with respect to non - master data?
(A)Relatively permanent data not expected to change frequently.
(B)Non-permanent data and expected to change frequently.
(C)They are generally transaction related data.
(D)Data entry is usually done more frequently.




Answer: (A)Relatively permanent data not expected to change frequently.




(3) Which of the following is not an advantage of ERP systems?
(A)Today’s ERP systems can cover a wide range of functions and integrate them into one unified database.
(B)Ability to customize an organization’s requirements.
(C)Ability to integrate business operations with accounting and financial modules.
(D)Ability to generate more sales.




Answer: (D)Ability to generate more sales.

(4) Which of the following is not a feature of ERP system?
(A)An Ideal ERP System satisfies all types of needs of an organization.
(B)An ideal ERP does not integrate business operations with accounting and financial modules.
(C)An ideal ERP provides right data at right point of time to right users for their purpose.
(B) An ideal ERP system is that system where a single database is used and stores all data for various modules.




Answer: (B)An ideal ERP does not integrate business operations with accounting and financial modules.




(5) Which of the following is not a feature of controlling module?
(A)This module helps in analysing the actual figures with the planned data and in planning business strategies.
(B)Controlling module replaces internal audit functions.
(C)Cost elements and revenue elements are managed in Controlling.
(D)Controlling module monitors profitability.




Answer: (B)Controlling module replaces internal audit functions.




 (6) Which of the following is not a feature of sales and distribution module?
(A)Following are some of the Key features of Sales and Distribution Module: Updating Organization Structure (creation of new company and other sales & distribution related components)
(B)Assigning Organizational Units (Assignment of individual components like company code to company, sales organization to company code, distribution channel to sales organization, etc.)
(C)Updating payroll details.        
(D)Setting up sales document types, billing types, and tax-related components.




Answer: (C)Updating payroll details.       



(7) Which of the following is not true with respect to ‘CRM module’?
(A)Implementing a CRM strategy is advantageous to both small-scale and large-scale business ventures.
(B)CRM exchange transactions with other modules.
(C)CRM stores information about customers which includes determining the requirements of high-value customers.
(D)CRM stores information about customers which includes determining the requirements of high-value customers.




Answer: (B)CRM exchange transactions with other modules.



 (8) Which of the following is not a benefit of CRM module?
(A)By using CRM, all dealings with customer for servicing, marketing, and selling can be carried out in an organized and systematic way. This in turn helps in increasing customer loyalty and decreasing customer agitation.
(B)By using a CRM strategy for any business, the revenue of the company can be increased.
(C) By using a CRM strategy for any business, payroll expense can be reduced.
(D)Up-selling and cross-selling can be improved by interacting with the customers and getting an idea about their wants, needs, and patterns of purchase.




Answer: (C) By using a CRM strategy for any business, payroll expense can be reduced.



 (9) Which of the following is not a criterion for making information useful?
(A)relevant
(B)costly
(C)timely
(D)structured




Answer: (B)costly



(10) Which of the following is not a benefit of business intelligence?

(A)replacing managerial staff
(B)improved decision making
(C)improved business processes
(D)improved operational efficiency




Answer: (A)replacing managerial staff



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

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




Answer: (c)transactions



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

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




Answer: (c)purchase



(13) What is the full form of ERP?

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




Answer: (d)Enterprise Resource Planning



(14) Software application is installed in:

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




Answer: (a)hard disk of the computer



(15) Which of the following is not the sales & distribution process?

(a)Sales order
(b)Material delivery
(c)Purchase requisition from production department
(d)Billing




Answer: (c)Purchase requisition from production department



(16) What is not a part of Inventory Master Data?
(a)Stock Item
(b)Stock Group
(c)Salary Structure
(d)Godowns




Answer: (c)Salary Structure



(17) 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




Answer: (b)Centralised Database


(18) 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




Answer: (a)communicates with user directly



(19) XBRL is used by                                                        .

(a)Government only
(b)Accountants only
(c)Investors only
(d)All of above




Answer: (d)All of above



(20) 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




Answer: (a)It shall be displayed in profit and loss account