Computers in Accounting

Question 1

Name the ADVANTAGES of a computerised system

Answer 1

• Accurate and TIME SAVING
• Processing of transactions is QUICKER
• Info easily STORED and retrieved
• Saves SPACE
• BACK UPS and copies prevent loss of info
• COMPARISONS with previous years
• Can easily DETECT ERRORS
• Better SUPERVISION with linked computers
• Improves decision making, info INSTANTLY available

Question 2

Name and explain the APPLICATIONS of a computerised system

Answer 2

• TIME SAVING: No need to go to a bank
• EMAILS are quicker
• Credit transfers can be done ELECTRONICALLY at any time
• Payments are done electronically: LOWER bank charges