Question

Which of the following is not the advantage of Computerised Accounting System (CAS)?

• A. Timely generation of reports and information in desired format.
• B. Efficient record keeping.
• C. Ensures effective control over the system.
• D. Economy in the processing of accounting data is minimised.

Hint:

CAS saves cost and effort in processing data. Look for the option that says the opposite.

Answer 1

The Correct Option is D

Step 1: Understand the question.
We must find the statement that is NOT a benefit of a computerised accounting system. So three options are real advantages and one is false or reversed.

Step 2: Check option 1.
A CAS can produce ledgers, trial balance and financial statements quickly and in any format the user needs. Timely reports are a real advantage. So option 1 is an advantage.

Step 3: Check option 2.
Data is stored in files and databases. It is easy to search, update and keep safe, so record keeping is efficient. Option 2 is an advantage.

Step 4: Check option 3.
A CAS gives control through passwords, user rights and audit trails. This ensures effective control over the system. Option 3 is an advantage.

Step 5: Check option 4.
A CAS makes the processing of accounting data cheaper and faster. Economy is increased, not minimised. Saying the economy is minimised turns the benefit into its opposite. So option 4 is NOT an advantage.

Final Answer:
The statement that is not an advantage of CAS is option 4.
\[ \boxed{\text{Option 4}} \]