Which of These Is Not an Advantage of a Computerised

question 50

Multiple Choice

Which of these is not an advantage of a computerised accounting system compared to a manual system?

• A) A reduction in processing costs
• B) More up-to-date reports
• C) Greater possibility of a catastrophic systems failure
• D) Improved reporting and decision making

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Definitions:

Inventory Turnover

A measure of how frequently a company sells and replaces its stock of goods during a certain period of time.

Inventory Balance

The quantity of goods or materials on hand at any given time within a business.

COGS Formulation

The calculation method used to determine the Cost of Goods Sold, indicating the direct costs attributable to the production of the goods sold by a company.

Sustainable Growth Rate

The maximum rate at which a company can grow its earnings without needing to increase its equity or take on new debt.