Question

Which is probably the most immediate and significant effect of database technology on accounting?

a. change in the nature of financial reporting
b. elimination of traditional records such as journals and ledgers
c. replacement of the double entry-system
d. quicker access to and greater use of accounting information in decision-making

Answer 1

Answer: quicker access to and greater use of accounting information in decision-making

Explanation: Database technology is used in accounting to easily carry out accounting calculations for income, expenses, and tax and also database technology helps to keep financial records of an organization overtime all done on a computer or the mobile application.

Database technology helps organization to easily access financial data stored on their database, which would have taken longer time using previous database storage methods.