Which of the Following Is a Disadvantage of a Computerized

question 61

Multiple Choice

Which of the following is a disadvantage of a computerized accounting system?

• A) It makes the accounting process complicated and extensive.
• B) It produces financial reports that meet legal requirements.
• C) It reduces the accuracy of the accounting information.
• D) It makes the process of error checking complicated.

---

Definitions:

Merchandise Purchases

Transactions involving the buying of goods intended for sale, usually in a retail or wholesale context.

Ending Merchandise Inventory

The value of goods available for sale at the end of an accounting period, before any year-end adjustments.

Accrued Salaries Expense

Refers to the salaries that have been incurred by the business but have not yet been paid or recorded in the financial statements.

Completed-Contract Method

An accounting method used where revenue and profit are deferred until a contract is completed, particularly useful in long-term projects.