Question:
Which of the following is not a limitation of Computerised Accounting System?
Which of the following is not a limitation of Computerised Accounting System?
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A limitation highlights a disadvantage. Be careful to distinguish it from advantages when questions ask for \textit{not a limitation}.
Updated On: Jul 17, 2025
- Faster obsolescence.
- Economy in processing of accounting data.
- Data are prone to hacking.
- Data may be lost or corrupted due to power interruptions.
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The Correct Option is B
Solution and Explanation
Computerised Accounting Systems offer various advantages but also face certain limitations.
Let’s examine each option:
- (A) Faster obsolescence is a limitation because technology becomes outdated quickly.
- (B) Economy in processing of accounting data is an advantage, not a limitation. Computerised systems reduce manual effort and save time.
- (C) Data are prone to hacking — yes, this is a risk in any digital system.
- (D) Data loss due to power interruptions — this is a potential limitation if proper backup is not maintained.
Therefore, the correct answer is option (B) because it is not a limitation.
Let’s examine each option:
- (A) Faster obsolescence is a limitation because technology becomes outdated quickly.
- (B) Economy in processing of accounting data is an advantage, not a limitation. Computerised systems reduce manual effort and save time.
- (C) Data are prone to hacking — yes, this is a risk in any digital system.
- (D) Data loss due to power interruptions — this is a potential limitation if proper backup is not maintained.
Therefore, the correct answer is option (B) because it is not a limitation.
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