JAIIB · AFM · Chapter 7

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.

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One-liners from this chapter

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Q

What are the two indispensable parts of a computerised accounting system?

A

Hardware (physical components like CPU, monitor, server) and software (instructions telling hardware what to do).

Q

Define Computerised Accounting System (CAS).

A

System where transaction capture, entry posting, financial statement preparation, and report generation all performed via computer.

Q

Name five defining features of computerised accounting.

A

Speed, accuracy, reporting capability, economy, and single-unit or multi-user configuration options.

Q

What does 'garbage in, garbage out' mean in computerised accounting?

A

Accuracy depends on correct data entry; incorrect input produces incorrect output despite programmed accuracy.

Q

What is the key advantage of computerised accounting regarding multiple reports?

A

Same accounting data set generates multiple reports without re-entering data — daily P&L, GL, statutory returns, MIS.

Q

Why is computerised accounting more economical than manual labour?

A

Labour costs rise due to inflation and wages; per-transaction cost falls sharply as transaction volume grows.

Q

What network types enable multi-user computerised accounting systems in banking?

A

LAN (Local Area Network), WAN (Wide Area Network), telephone lines, and satellites linking multiple terminals.

Q

What is Core Banking Solutions (CBS)?

A

Integrated software platform linking every branch, ATM, and digital channel to a central data centre for unified operations.

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