Question

State any three limitations of Computerised Accounting System.

Hint:

While computerized accounting systems offer efficiency, it is important to consider their cost, technical requirements, and security risks.

Answer 1

1. Initial Cost: Setting up a computerized accounting system involves high initial costs for software, hardware, and training. 
2. Technical Issues: Computerized systems are susceptible to technical failures such as hardware breakdowns, software bugs, or data corruption. 
3. Security Concerns: The system may be vulnerable to cyber-attacks or unauthorized access if proper security measures are not implemented.