Question

Converting to a new computerized system will typically entail large dollar expenditures to make the new system operative. These monetary expenditures normally are incurred for:

a) Transferring a company's financial data from its present storage media to computerized storage media
b) Testing the operations of the new system before it replaces the old system
c) Establishing good internal controls for the new computerized system
d) all of the above

Answer 1

The necessary expenditures for converting to a new computerized system include transferring financial data, testing the new system's operations, and establishing good internal controls, which means the correct answer is d) all of the above.

Step-by-step explanation:

When converting to a new computerized system, firms will typically incur large monetary expenditures for several reasons. These expenditures are generally multifaceted, encompassing various aspects such as:

• Transferring financial data from the current storage media to a new computerized format.
• Testing the operations of the new system thoroughly before it is fully implemented.
• Establishing strong internal controls to ensure that the new system runs securely and efficiently.

Thus, the correct answer to the original question is d) all of the above, meaning that converting to a new computer system involves spending on data transfer, system testing, and the establishment of internal controls.

Therefore, the correct answer is d) all of the above.