Question
How are computers useful in processing the accounting data?
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Answer
Data processing is a process of collecting, storing, summarising, analysing and interpreting the data and facts so as to represent reliable information for efficient and effective decision making. Data processing, in short, is a transformation of raw data into useful information. Computer system plays a very important role in processing the accounting data. Data processing requires a mechanism to store data content in a manner that allows easy and convenient retrieval of data as and when required. This can be easily done with the help of computers by designing suitable database for accounting. Moreover, computers also help in eliminating the duplication of data. Unlike the manual accounting system, computers are not subject to tiredness, boredom or fatigue, therefore; the reliability of data processed by computers is very high. Besides reliability, computers can process data at comparatively higher speed and with great degree of precision and accuracy.
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