Does not require as stringent a set of internal controls
Will produce a more accurate set of financial statements
Eliminates the need to reconcile control accounts and subsidiary ledgers
Will be more efficient at producing financial statements
Answer is Right!
Answer is Wrong!
The correct answer is: D. Will be more efficient at producing financial statements.
A computer-based transaction processing system is a system that uses computers to record and process financial transactions. This type of system can be very efficient at producing financial statements, as it can automate many of the tasks that are involved in the process. For example, a computer-based system can automatically generate journal entries, post transactions to ledgers, and prepare financial statements. This can save a significant amount of time and effort, and can help to ensure that financial statements are accurate and up-to-date.
The other options are incorrect for the following reasons:
- Option A: A computer-based transaction processing system does not necessarily require as stringent a set of internal controls, but it is still important to have strong internal controls in place to protect the integrity of financial data.
- Option B: A computer-based transaction processing system can produce a more accurate set of financial statements, but it is important to ensure that the system is properly designed and implemented.
- Option C: A computer-based transaction processing system does not eliminate the need to reconcile control accounts and subsidiary ledgers. This is an important step in ensuring the accuracy of financial statements.