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Q1. Computerised Accounting System (CAS) refers to which of the following?
Answer: A — CAS is specifically the automated processing of transactions through hardware and software to generate journals, ledgers, trial balance, and financial statements, while maintaining GAAP principles.
Q2. Which of the following is NOT one of the five pillars of Computerised Accounting System?
Answer: C — The five pillars are Procedure, Data, People, Hardware, and Software; 'Report' is an output, not a foundational pillar of CAS.
Q3. In the context of CAS, what is the main difference between 'data' and 'information'?
Answer: B — Data is raw input (e.g. days worked, rate per day); information is when that data is processed to answer a business question (e.g. wages payable).
Q4. Which of the following is an example of a 'data element' in an accounting transaction according to CAS concept?
Answer: B — A transaction in CAS consists of four data elements: account name, accounting code, transaction date, and amount—these are the smallest named units of data.
Q5. The accounting equation that forms the foundation of CAS is?
Answer: B — The extended accounting equation includes the income statement impact (Revenues − Expenses) to show how profit changes capital, and this is the basis for classifying accounts in CAS.
Q6. Which salient feature of CAS allows the software to handle both small and large business transaction volumes without requiring system changes?
Answer: C — Scalability specifically refers to CAS's ability to change data processing volume in tune with business growth without major system modifications.
Q7. Which of the following steps in the accounting cycle comes IMMEDIATELY after posting journal entries to the ledger?
Answer: B — The sequence is: Journal → Ledger → Trial Balance → Adjustments → Adjusted Trial Balance → Financial Statements.
Q8. According to the accounting equation A = L + C, if a business has Assets of ₹5,00,000 and Liabilities of ₹2,00,000, what is the Capital?
Answer: B — Capital = Assets − Liabilities = ₹5,00,000 − ₹2,00,000 = ₹3,00,000.
Q9. Which of the following pairs correctly represents the classification of an account under 'Current Liabilities' in CAS?
Answer: B — Current Liabilities include Short-term Borrowings, Trade Payables, Other Current Liabilities, and Short-term Provisions; Long-term items belong to Non-Current Liabilities.
Q10. Which statement is CORRECT regarding the relationship between CAS and Generally Accepted Accounting Principles (GAAP)?
Answer: B — CAS is a tool that speeds up and automates the accounting cycle, but it does not change the fundamental requirement that financial statements comply with GAAP.
What is a Computerised Accounting System (CAS)?
CAS is the processing of accounting transactions through hardware and software to produce accounting records and reports following GAAP principles.
Name the five pillars on which CAS rests.
Procedure, Data, People, Hardware, and Software are the five core components of a Computerised Accounting System.
What is the difference between data and information in accounting?
Data is raw facts (e.g. days worked, rate per day); information is processed data that answers a specific decision-making question (e.g. amount to pay).
Define the accounting equation used in CAS.
Assets = Liabilities + Capital + (Revenues − Expenses), where all components must balance under double-entry system.
What are the main phases of the accounting cycle in CAS?
Analyse transactions, record in journal, post to ledger, prepare trial balance, make adjustments, prepare adjusted trial balance, then generate financial statements.
What is meant by 'Scalability' in CAS?
Scalability means CAS can adjust its data processing volume to match changes in business size and transaction volume without requiring system overhaul.
Name three salient features of CAS software.
CAS must be Simple and Integrated, provide Transparency and Control, ensure Accuracy and Speed, be Scalable, and maintain Reliability of financial data.
How does CAS ensure accuracy in financial reporting?
CAS uses user-definable templates for fast and accurate data entry, automated processing, and validation rules to minimize manual errors and ensure control.
What is the purpose of grouping accounts in CAS?
Grouping accounts into Assets, Liabilities, and Equity classifications helps organise large volumes of transaction data according to the accounting equation and GAAP.
Which accounts fall under 'Current Liabilities' in CAS classification?
Current Liabilities include Short Term Borrowings, Trade Payables, Other Current Liabilities, and Short Term Provisions.
Define 'Computerised Accounting System' and state any two advantages of using CAS in modern business. [2 marks]
Define CAS as processing transactions via hardware/software; mention advantages like speed, accuracy, real-time access, reduced errors, or better decision-making.
Explain the five pillars of Computerised Accounting System with a brief example of each. How do these pillars work together to ensure effective financial accounting? [5 marks]
Describe each pillar (Procedure, Data, People, Hardware, Software) with one short example; then explain integration—e.g. software processes data (entered by people) following procedures using hardware to generate reports. Show how all five are interdependent.
The accounting equation is the foundation of CAS. Starting with the basic equation A = L + C, derive the extended equation that incorporates revenues and expenses, and explain how this extended equation helps in classifying accounts in a Computerised Accounting System according to Schedule III format. [6 marks]
Start with A = L + C; explain that capital changes due to profit/loss, so extend to A = L + C + (R − E); show how each component (Assets, Liabilities, Equity, Revenue, Expense) is classified into sub-groups (Non-Current/Current, Fixed/Current Assets, Shareholder Funds/Borrowings) in CAS, making data entry and report generation systematic and GAAP-compliant.
Q1. Assertion (A):
A Computerised Accounting System processes accounting transactions through hardware and software to produce accounting records such as journals, ledgers, and financial statements.
Reason (R):
CAS is designed to automate all business operations including sales, finance, purchase, inventory, and manufacturing in an integrated manner.
Answer: B — Both A and R are true, but R is NOT the correct explanation of A — Both statements are true. The assertion correctly defines CAS's primary function (processing transactions to produce records). The reason correctly describes a salient feature (simple and integrated design). However, the reason does not explain why CAS produces journals and ledgers—it merely describes an additional feature. The reason is not the correct explanation of the assertion.
Q2. Assertion (A):
Data items in a Computerised Accounting System are the smallest named units of data, such as account name, accounting code, date, and amount.
Reason (R):
Multiple data items combine to form a complete accounting transaction that is recorded in a journal.
Answer: A — Both A and R are true, and R is the correct explanation of A — Both the assertion and reason are true. The assertion correctly defines data items as the smallest units. The reason correctly explains why this matters—these items combine to form transactions. The reason directly supports why data items are important in CAS: they are the building blocks of transactions. This is a proper explanation.
Q3. Assertion (A):
In the fundamental accounting equation Assets = Liabilities + Capital, the Capital component represents only the initial investment by the owner.
Reason (R):
The expanded equation Assets = Liabilities + Capital + (Revenues − Expenses) shows that owner's equity changes due to business profitability or losses.
Answer: D — A is false but R is true — The assertion is false — Capital does not remain limited to the initial investment; it also absorbs accumulated profits and losses over time. The reason is true and correctly explains why: the expanded equation shows owner's equity changing with revenues and expenses, which is exactly what makes the assertion's 'only the initial investment' claim wrong.
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Case Study:
Rajesh & Co., a medium-sized manufacturing enterprise in Delhi, processes approximately 500 financial transactions daily across purchasing, sales, and inventory management. Previously, they maintained a manual accounting system requiring 8 staff members working 10 hours daily. After implementing a Computerised Accounting System, the company reports 95% reduction in data entry errors, 70% reduction in processing time, and only 3 staff members needed for financial operations. However, initial implementation faced delays due to staff resistance and lack of system integration with legacy databases. The firm's accountant noted that the CAS provides real-time access to trial balances and profit statements, enabling better decision-making.
Q1. Which salient feature of CAS is most directly responsible for Rajesh & Co.'s reduction in processing time and errors?
Answer: B
Q2. The real-time access to trial balances and profit statements mentioned in the case demonstrates which CAS feature?
Answer: B
Q3. Why did Rajesh & Co. face delays during CAS implementation despite choosing an appropriate system?
Answer: B
Q4. Based on the case, reducing the required accounting staff from 8 to 3 while handling 500 daily transactions demonstrates which component of CAS was most effective?
Answer: B
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Real CBSE board exam questions from past papers — free to attempt.
CBSE 2026 · Set 67/3/1 · 1 mark
Which of the following is not a benefit of Accounting Software?
CBSE 2026 · Set 67/3/1 · 1 mark
The ability to process large amounts of data processing in accordance with the size and growth of the business is the benefit being highlighted in the statement:
CBSE 2026 · Set 67/3/1 · 4 marks
List the necessary information to be filled by a user on company creation screen.
CBSE 2026 · Set 67/3/2 · 1 mark
[Diagram/Map-based question — skipped]
CBSE 2026 · Set 67/3/2 · 3 marks
What are the three categories in which accounting entries can be classified while entering them in vouchers?
CBSE 2026 · Set 67/3/2 · 3 marks
Explain Sequential codes and Block codes with the help of example.
CBSE 2026 · Set 67/3/3 · 1 mark
Which of the following is not Accounting Software?
CBSE 2026 · Set 67/3/3 · 1 mark
data processing in accordance with the size and growth of the being highlighted in the statement:
CBSE 2026 · Set 67/4/1 · 1 mark
Fixed Asset Accounting sub-system generates information about :
CBSE 2026 · Set 67/4/1 · 1 mark
It is a widely accepted security control. It uses binary encoding format of storage to offer access to database. It is known as :
CBSE 2026 · Set 67/4/1 · 1 mark
The accounting software which satisfies the requirement of large business organisations with multiusers and geographically scattered locations is :
CBSE 2026 · Set 67/4/1 · 3 marks
What are the three categories in which entries can be classified while making voucher entry ?
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