In a computerized accounting system, each transaction that is analyzed must be entered by hand into the appropriate journal and posted to the appropriate ledger.

The statement is FALSE

False

Explanation:

An effective financial management system is based on the availability of reliable, accurate and timely financial data. Usually this data is provided by the accounting system of an organization. In response to factors such as expansion, new reporting requirements, the need to work towards greater self-sufficiency and the availability of relatively low cost technology, an increasing number of organizations are adopting computerized accounting systems that they will provide the data they need, at the time they need it.

Most organizations go through a progression of accounting systems. They usually start with a manual system (using paper), then advance to a mix of paper and tools based on computerized spreadsheets, and finally adopt a simple computerized system.