Which of the following is true of the comparison between a manual and a computerized accounting information system?
A)In both manual and computerized systems, reports and financial statements must be created using Word documents, Excel spreadsheets, or PowerPoint.
B)In a computerized system, the software can generate financial reports instantaneously that can never be manipulated.
C)In a manual system, data are contained in paper documents that are often stored in filing cabinets and off-site document warehouses; whereas in a computerized system, data are stored on a main computer called a server.
D)In both manual and computerized systems, processing data includes manually journalizing transactions and posting to the accounts.

Question

Quizplus · Accepted Answer

Option A is false because while computerized systems can generate financial reports automatically, they do not necessarily require Word, Excel, or PowerPoint to do so. Option B is incorrect as computerized systems can manipulate financial reports if proper controls and security measures are not in place. Option D is also inaccurate since processing in a computerized system involves entering data into the system, which can be done through a variety of means (e.g., scanning, typing, importing, etc.), and not just journalizing transactions and posting to accounts. Therefore, the correct answer is C, which correctly distinguishes between how data is stored in manual and computerized systems.

Which of the Following Is True of the Comparison Between