Sage Computerised Accounting - Qp6

The statement is true because money is essential for the survival and functioning of any organization. It is needed to pay for expenses, invest in resources, and generate profits. Without sufficient funds, an organization would struggle to operate effectively and may even face bankruptcy. Therefore, it is crucial for organizations to give special attention to their banking activities to ensure proper management and utilization of their financial resources.

The given statement is true because the Bank area allows the user to keep a record of all the payments made and received by the organization. This includes cash receipts and payments, as well as payments from debtors and to creditors. The Bank area serves as a central hub for tracking and managing all financial transactions related to the organization's banking activities.

The statement is true because computerised accounting systems have the ability to generate reports instantly, allowing users to access financial information whenever needed. Additionally, making changes or corrections to records in computerised accounting is relatively easy and straightforward compared to manual methods.

The statement is false because transferring money from one account to another is a common practice. Many people transfer money between their own accounts or to other people's accounts for various reasons, such as paying bills, making purchases, or sending money to family and friends. This can be done through online banking, mobile banking apps, or by visiting a bank branch.

Journals are indeed used when making entries to the accounts that are more unusual than the normal sales/purchases, payments/receipts transactions. Journals are used to record non-routine transactions such as adjusting entries, correcting errors, and recording unusual or infrequent transactions. These entries are then transferred to the general ledger accounts. Therefore, the statement "The Journals are used when making an entry to the accounts which are more unusual than the normal sales/purchases, payments/receipts transactions" is true.

Payments from debtors will not go into the 'Cash in Hand' account because the 'Cash in Hand' account is typically used for cash transactions, such as payments made with physical currency. Payments from debtors, on the other hand, are usually made through electronic transfers or checks, which are deposited into the 'Bank Current Account'. Therefore, it is true that payments from debtors will not go into the 'Cash in Hand' account.

The explanation for the given correct answer is that both types of receipts are not necessarily the same types of transactions and do not always need to be indicated as such. There can be different types of transactions that may require different types of receipts. Therefore, the statement is false.

To record a payment that you have made, for example a utility bill, you should not click on the 'Payment' icon along the top of the screen in the 'Creditor' area. This statement is false.

A bad debt is not created when a creditor has not paid their bill. Instead, a bad debt is created when a debtor is unable to repay their outstanding debt to a creditor. In this scenario, the debtor is the one who owes money to the creditor, and if they are unable to make the payment, it becomes a bad debt for the creditor. Therefore, the correct answer is False.

Regularly checking the accounts in 'Cash' may not necessarily help to reduce fraud. While regular monitoring of accounts can help identify suspicious activities, it is not a foolproof method to prevent fraud. Other measures such as implementing strong internal controls, segregation of duties, and conducting thorough audits are also essential in reducing the risk of fraud. Therefore, the statement is false as it oversimplifies the complexity of fraud prevention.