Question

Which of the following is not a limitation of Computerised Accounting System?

• A. Faster obsolescence.
• B. Economy in processing of accounting data.
• C. Data are prone to hacking.
• D. Data may be lost or corrupted due to power interruptions.

Hint:

Computerised accounting systems offer speed and accuracy, but they also carry risks like data loss, security threats, and high maintenance — always distinguish advantages from limitations.

Answer 1

The Correct Option is B

Let’s examine each option:
(A) Faster obsolescence
\(\Rightarrow\) True. Technology and software systems become outdated quickly, making this a limitation.
(B) Economy in processing of accounting data
\(\Rightarrow\) False. This is actually an advantage, as computerised systems reduce manual effort and time.
\(\Rightarrow\) So this is not a limitation.
(C) Data are prone to hacking
\(\Rightarrow\) True. Cybersecurity risks are inherent to digital systems. Limitation.
(D) Data may be lost or corrupted due to power interruptions
\(\Rightarrow\) True. This is a technical vulnerability in computerised systems. Limitation.
\(\Rightarrow\) Only Option (B) is not a limitation — it is a benefit.