Use of Technology in Accounting (Edexcel IGCSE Accounting: Introduction to Bookkeeping & Accounting): Exam Questions

(i) State two benefits of using accounting software.

(2)

(ii) State two methods of protecting data when using accounting software.

(2)

Carson depreciates his computer equipment using the straight line method at 20% per annum. A full year’s depreciation is charged in the year of purchase but none in the year of disposal.

On 1 September 2021 the balances were:

Computer equipment – cost $16 800

Computer equipment – provision for depreciation $ 9 200

On 1 May 2022, computer equipment originally purchased on 1 March 2020 for $3 600, was sold for $1 950

State two ways Carson could maintain the security of his computerised data.

Lucas is proposing to change from a manual system to a computerised system of bookkeeping.

Evaluate whether Lucas should proceed with this proposal.

State two benefits of using technology in accounting.

Nyat is considering purchasing a computerised accounting package.

Evaluate the benefits of this proposal.

Evaluate how the introduction of accounting software will improve the accuracy of a business’s accounts.

State two ways to protect the security of electronic data.