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Which of the following correctly represents the five foundational components of a Computerised Accounting System (CAS)?

Solution

✅ Correct Option: 2

A Computerised Accounting System (CAS) is built on five fundamental components that work together to process accounting information. These components form the basic framework of any accounting information system.

People are the users who operate the system - accountants, data entry operators, managers, and auditors who interact with the system to input data and generate reports.

Data represents the raw financial information that needs to be processed - transactions, vouchers, invoices, and other accounting records that serve as input to the system.

Procedure refers to the rules, methods, and instructions that govern how data is processed, including accounting principles, internal controls, and operational guidelines that ensure systematic processing.

Hardware consists of the physical equipment required to run the system - computers, servers, printers, scanners, and storage devices that provide the infrastructure.

Software comprises the accounting programs and applications that process the data according to defined procedures - this includes the accounting package, operating system, and related utilities.

Option 1 includes "Report," "Coding," and "Output" which are outcomes or processes rather than foundational components. Option 3 treats "Input" and "Output" as components when they are actually functions of the system. Option 4 confuses "Analysis" and "Report" as components when these are results generated by the system.

Option 2 correctly identifies all five foundational components that form the core structure of any computerised accounting system, following the standard information systems framework.

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