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 cannot be formatted.
C) In a manual system, data are contained in paper documents, which 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

This statement accurately describes the differences between manual and computerized accounting information systems. In a manual system, data is stored in physical documents, while in a computerized system, data is stored digitally on a server or cloud-based system. Option A is false because while Microsoft Office software (such as Word, Excel or PowerPoint) may be used to supplement either system, neither system relies on them to generate financial reports. Option B is incorrect because computerized systems generate financial reports that can be formatted, and option D is incorrect because manual accounting systems require that transactions be recorded and posted by hand.

Which of the Following Is TRUE of the Comparison Between