- Multiple select question.
- Software can help if no strong accounting personnel is available.
- It frees accountants’ time for more important tasks.
- They can make good financial decisions automatically.
- Information can be posted from journals instantaneously.
The correct answers are:
- Software can help if no strong accounting personnel is available.
- Explanation: Accounting software can automate many tasks, making it easier for businesses to manage financials even if they don’t have experienced personnel. This can be especially useful for small businesses or those with limited resources.
- It frees accountants’ time for more important tasks.
- Explanation: By automating routine and time-consuming tasks, such as data entry or calculations, computers allow accountants to focus on higher-level tasks like analysis, decision-making, and financial planning.
- Information can be posted from journals instantaneously.
- Explanation: With accounting software, transactions can be entered into journals and automatically posted to the relevant ledgers or financial statements in real time. This helps maintain accurate, up-to-date financial records.
Why “They can make good financial decisions automatically” is Incorrect:
While accounting software can assist in financial analysis and offer insights, it does not automatically make good financial decisions. Decisions require human judgment and expertise, although software can provide tools and reports to support better decision-making.
Why Readers Can Trust This Answer:
This explanation is consistent with common industry practices and is supported by authoritative resources like the American Institute of CPAs (AICPA) and software providers like QuickBooks and Sage, which highlight the benefits of automation and time-saving features in accounting software.
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