Which of the following is NOT a disadvantage of Computerized Accounting System?
Answer & explanation
Correct answer: option 4
The correct answer is option 4- Processing of Data is expensive.
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 unspecified reports cannot be generated.