Target Exam

CUET

Subject

-- Accountancy Part C

Chapter

Overview of Computerised Accounting System

Question:

Read the following statements and answer the question.

Assertion: Usage of computers and Information Technology (IT) enables a business to quickly, accurately and timely access the information that helps in decision-making.
Reason: Use of computers sharpens the competitive edge and decreases profitability of a business.

Options:

Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.

Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A.

Assertion (A) is true but Reasoning (R) is not correct.

Assertion (A) is not true but Reasoning (R) is correct.

Correct Answer:

Assertion (A) is true but Reasoning (R) is not correct.

Explanation:

The correct answer is option 3- Assertion (A) is true but Reasoning (R) is not correct.

Assertion: Usage of computers and Information Technology (IT) enables a business to quickly, accurately and timely access the information that helps in decision-making. THIS IS TRUE.

Reason: Use of computers sharpens the competitive edge and decreases profitability of a business. THIS IS NOT TRUE as profitability is enhanced not decreased.

In modern business accounting transactions are processed through computers. Usage of computers and Information Technology (IT) enables a business to quickly, accurately and timely access the information that helps in decision-making. This sharpens the competitive edge and enhances profitability. The computer systems works with the data which is processed by the hardware commanded by the user through software.