Target Exam

CUET

Subject

-- Accountancy Part C

Chapter

Overview of Computerised Accounting System

Question:

What is a major security concern with CAS software?

Options:

It cannot store text data

It is too slow for modern businesses

Data is prone to hacking

Only manual data entry is supported

Correct Answer:

Data is prone to hacking

Explanation:

The correct answer is option 3- Data is prone to hacking.

A Computerised Accounting System (CAS) stores and processes financial data digitally. While this brings many benefits like speed, accuracy, and real-time reporting, it also introduces certain security risks—the most critical being data hacking.

 

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.