Accountancy Part COverview of Computerised Accounting System

Which of the following is not a subsystem of Accounting Information S…

Which of the following is not a subsystem of Accounting Information System?

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → Software Installation Sub-system

An Accounting Information System is made up of sub-systems, each handling one area of accounting work and producing reports for it.

Option (1) Costing Sub-system — A sub-system of the Accounting Information System. It works out the cost of products and activities.
Option (2) Budget Sub-system — A sub-system of the Accounting Information System. It prepares budgets and compares them with actual results.
Option (3) Cash and Bank Sub-system — A sub-system of the Accounting Information System. It records receipts and payments of cash, physical and electronic.

Software installation is a technical task of setting up programs on a computer. It processes no accounting data, so it is not a sub-system of the Accounting Information System.

NCERT (2026-27 edition):
Summary – “… • Accounting Information System is an integration of various sub-systems such as: (i) cash sub-system, (ii) sales and accounts receivable sub-system, (iii) inventory sub-system, (iv) purchase and accounts payable sub-system, (v) payroll accounting sub-system, (vi) fixed asset accounting sub-system, (vii) expense accounting sub-system, (viii) tax accounting sub-system, (ix) final accounts sub-system, (x) costing sub-system, (xi) budget sub-system, (xii) management information sub-system.”