State any three limitations of Computerised Accounting System.
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Solution and Explanation
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.
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