Q.Which of the following is a genuine LIMITATION (not an advantage) of a Computerised Accounting System?
(A) Instant generation of the Trial Balance and Final Accounts
(B) Elimination of arithmetical/totalling errors
(C) Risk of data loss without a disciplined backup routine
(D) Easier storage and retrieval of past records

A CAS's data exists only in digital form, so without a proper backup discipline, that data can be lost far more completely than a paper ledger, which does not simply vanish.

Work through each option against the rule stated above; instant reports, error elimination, and easy storage are all genuine ADVANTAGES, not limitations.

Unlike a physical ledger, which survives independently of any single piece of equipment, digital accounting data can be lost entirely to a hardware failure, virus, or accidental deletion unless the business maintains a disciplined, regular backup routine — this genuine risk is a real limitation of computerisation, not a strength.

Option-by-option analysis:

• (A) Incorrect — instant report generation is a genuine advantage of CAS.
• (B) Incorrect — eliminating arithmetical errors is a genuine advantage of CAS.
• (C) Correct — the risk of data loss without proper backup is a real limitation.
• (D) Incorrect — easier storage and retrieval is a genuine advantage of CAS.