Computerised Accounting System Summary with Reference to Learning Objectives Computerised Accounting System : A computerised accounting system is an accounting information system that processes the financial transactions and events to produce reports as per user requirements. It is based on the concept of database and has two basic requirements: (a) Accounting framework and (b) Operating Procedure. Advantages of Computerised Accounting System : • Speed • Accuracy • Reliability • Up-to-date • Scalability • Legibility • Efficiency • Quality Report • MIS Reports • Real time user interface • Storage and Retrieval • Motivation and Employees interest • Automated document production Limitations of Computerised Accounting System : • Cost of training • Staff Opposition • Disruption • System failure • Breache of security • Ill-effects on health • Inability to check unanticipated errors Categories of Accounting Packages : • Ready-to-Use • Customised • Tailored Questions for Practice Short Answers . State the four basic requirements of a database applications.
. Name the various categories of accounting package. . Give examples of two types of operating systems.
. List the various advantages of computerised accounting systems. . Give two examples each of the organisations where ‘ready-to-use’, ‘customised’, and ‘tailored’ accounting packages respectively suitable to perform the accounting activity.
. Distinguish between a ‘ready-to-use’ and ‘tailored’ accounting software. Long Answers . Define a computerised accounting system.
Distinguish between a manual and computerised accounting system. . Discuss the advantages of computerised accounting system over the manual accounting system. .
Describe the various types of accounting software along with their advantages and limitations. . ‘Accounting software is an integral part of the computerised accounting system’ Explain. Briefly list the generic considerations before sourcing an accounting software.
. ‘Computerised Accounting Systems are best form of accounting system’. Do you agree? Comment.
Checklist to Test Your Understanding . Operating environment . DBMS . Data Processing .
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