Introduction To Accounting - Computers And Accounting

Question 0

Accounting is an

Answer 0

integral part of the world, computers are used to record, store and retrieve accounting information effectively.

Question 1

Computers are used in every sphere of society and all over the

Answer 1

world

Question 2

Computers are used for the following applications

Answer 2

• Computerised ledgers and sets of books
• Spreadsheets
• Data Base
• Stock Handling
• Reports

Question 3

Name Advantages of a computerized system

Answer 3

• Accurate and time-saving
• Processing of transactions quicker
• Info easily stored + retrieved
• Saves space
• Back-up copies assure that info is not lost
• Comparisons with previous years
• Can easily detect errors
• Better supervision when computers are linked
• Improve better decision-making - info instantly available

Question 4

Name and explain the application and advantages of computers as tools for communication technology

Answer 4

Time-saving: Do not physically have to go to the bank and stand in long ques for the items such as bank statements
Post office is not used so much. E-mails are sent quickly and answers are received almost immediately
Credit transfers can be done electronically at any time.
Payments are done electroncally-limited amount of cheques are written out which lead to lower bank charges