Question

Provide an example of how paper-based accounting information systems are different from computerized systems.

a) Paper-based systems are faster.
b) Computerized systems use physical ledgers.
c) Manual systems require handwritten entries.
d) Both systems are identical.

Answer 1

Paper-based accounting information systems differ from computerized systems in terms of speed, data storage, and manual entries.

Step-by-step explanation:

Paper-based accounting information systems differ from computerized systems in several ways:

1. Speed: Paper-based systems are generally slower than computerized systems. For example, manually calculating and recording transactions can take more time compared to automated data entry and calculations performed by computerized systems.
2. Data Storage: Paper-based systems use physical ledgers, such as books or files, to store and organize accounting information. On the other hand, computerized systems store data electronically, typically in databases or cloud storage.
3. Manual Entries: Paper-based systems require handwritten entries for transactions, which can be time-consuming and prone to errors. In contrast, computerized systems enable users to enter data through keyboards or other input devices, reducing the likelihood of errors.