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:

A limitation highlights a disadvantage. Be careful to distinguish it from advantages when questions ask for \textit{not a limitation}.

Answer 1

The Correct Option is B

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- (A) Faster obsolescence is a limitation because technology becomes outdated quickly.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.