1.

Define computerised accounting. List out various advantages and limitations of computerised accounting system.

Answer»

A computerised accounting system is an accounting information system that processes financial transactions and events to produce reports as per user requirements.

a. Advantages:

1. Speed

2. Accuracy

3. Reliability

4. Efficiency

5. Storage and Retrieval

6. Automated document production

7. Quality reports

8. Real-time user interface

b. Limitations:

1. Huge training costs

2. Staff opposition

3. System failure

4. Breaches of security

5. Inability to check unanticipated errors



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