Accountancy Part COverview of Computerised Accounting System

Which of the following is not the advantage of Computerised Accountin…

Which of the following is not the advantage of Computerised Accounting System (CAS):

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → Generation of non-programmed reports.

A computerised accounting system produces only the reports it has been programmed to produce. Reports that were not programmed or specified in advance cannot be generated, which is one of the limitations of CAS, not an advantage.

Option (1) Timely generation of reports and information in desired format. — An advantage of CAS. Reports are ready as soon as the data is entered.

Option (2) Ensures effective control over the system. — An advantage of CAS. Access rights and audit trails keep the records under control.

Option (3) Efficient record keeping. — An advantage of CAS. Large volumes of data are kept in order and found quickly.

NCERT (2026-27 edition):
ADVANTAGES OF CAS – “… Following are the advantages of Computerised Accounting System (CAS): 1. Timely generation of reports and information in desired format. 2. Efficient record keeping. 3. Ensures effective control over the system. 4. Economy in the processing of accounting data. 5. Confidentiality of data is maintained.”

NCERT (2026-27 edition):
LIMITATIONS OF CAS – “… Following are the limitation of CAS software: 1. Faster obsolescence of technology necessitates investment in shorter period of time. 2. Data may be lost or corrupted due to power interruptions. 3. Data are prone to hacking. 4. Un-programmed and un-specified reports cannot be generated.”