Which of the following is an advantage of Computerized Accounting System?

Ensures effective control over the system

The correct answer is option 3: Ensures effective control over the system.

Option 1: Data is secure and difficult to hack. This is incorrect as data is prone to hacking.

Option 2: One time Investment only. This is incorrect as Faster obsolescence of technology necessitates investment in shorter period of time.

"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. "