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Home Questions T3MYAFAR4P
Target Exam

CUET

Subject

Accountancy

Chapter

Overview of Computerised Accounting System

Question:
Which of the following is NOT a disadvantage of Computerized Accounting System?
Options:
Faster obsolescence of technology necessitates investment in shorter period of time
Data may be lost or corrupted due to power interruptions.
Un-programmed and un-specified reports cannot be generated.
Processing of Data is expensive.
Correct Answer:
Processing of Data is expensive.
Explanation:
Data is prone to hacking.
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.
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.

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