While manual accounting systems rely on handwritten ledgers and physical books of original entry, computerized accounting systems process accounting data electronically. Which of the following represents a primary operational advantage of a computerized accounting system over a manual accounting system?
- Immediate and automatic updating of ledger accounts and financial statement generation upon transaction inputAnswer
- BComplete elimination of internal control policies and security checks
- CTotal replacement of human professional judgment and financial data interpretation
- DAutomatic correction of incorrect source data entered into the system by data entry operators
Answer
Immediate and automatic updating of ledger accounts and financial statement generation upon transaction input
The correct answer highlights the major efficiency gain of computerized accounting systems: transaction inputs instantly update subsidiary ledgers, general ledgers, and final financial reports without needing manual double-entry posting steps.
Step-by-Step Solution
Key Concept
Operational Speed and Automation in Computerized Accounting Systems