Core Banking Systems & Accounting in Computerised Environment
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Accounting and Financial Management for Bankers — JAIIB.
One-liners from this chapter
Free sample — 8 of 76 rapid-fire Q&A cards.
What are the two indispensable parts of a computerised accounting system?
Hardware (physical components like CPU, monitor, server) and software (instructions telling hardware what to do).
Define Computerised Accounting System (CAS).
System where transaction capture, entry posting, financial statement preparation, and report generation all performed via computer.
Name five defining features of computerised accounting.
Speed, accuracy, reporting capability, economy, and single-unit or multi-user configuration options.
What does 'garbage in, garbage out' mean in computerised accounting?
Accuracy depends on correct data entry; incorrect input produces incorrect output despite programmed accuracy.
What is the key advantage of computerised accounting regarding multiple reports?
Same accounting data set generates multiple reports without re-entering data — daily P&L, GL, statutory returns, MIS.
Why is computerised accounting more economical than manual labour?
Labour costs rise due to inflation and wages; per-transaction cost falls sharply as transaction volume grows.
What network types enable multi-user computerised accounting systems in banking?
LAN (Local Area Network), WAN (Wide Area Network), telephone lines, and satellites linking multiple terminals.
What is Core Banking Solutions (CBS)?
Integrated software platform linking every branch, ATM, and digital channel to a central data centre for unified operations.
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