7.1 Technological Advancements

• Technological advancements in accounting include automation, data analytics, cloud computing, and cybersecurity
• Traditional accounting methods rely on manual data entry and paper-based records.
• Match the accounting method with its key characteristic:

  Traditional Accounting ↔️ Labor-intensive, paper-based

  Modern Accounting ↔️ Automated, digital databases
• Arrange the following aspects in the order they are impacted by technological advancements in accounting:

  1️⃣ Efficiency

  2️⃣ Accuracy

  3️⃣ Data Analysis

  4️⃣ Collaboration

  5️⃣ Security
• What does automation in accounting reduce?

  Labor costs
• Cloud computing in accounting ensures data accessibility from anywhere.
• Cybersecurity in accounting protects financial data from cyber threats and data breaches
• Match the technological advancement with its primary benefit:

  Cloud Computing ↔️ Scalability and accessibility

  Artificial Intelligence ↔️ Predictive insights

  Blockchain ↔️ Transparency and fraud reduction

  Cybersecurity ↔️ Data integrity and confidentiality
• What is the main purpose of data analytics in accounting?

  Detailed analysis and forecasting
• Artificial Intelligence in accounting enhances accuracy and provides predictive insights
• Match the technological advancement with its key function:

  Artificial Intelligence ↔️ Detect anomalies in datasets

  Blockchain ↔️ Create a secure, decentralized ledger

  Cloud Computing ↔️ Store data remotely over the internet

  Cybersecurity ↔️ Protect financial data from threats
• What type of data storage is used in cloud computing in accounting?

  Remote servers
• Cloud computing allows accountants to access data from any location.
• One key benefit of cloud computing in accounting is reduced infrastructure and maintenance expenses
• Arrange the following features of cloud computing in accounting in order of their importance:

  1️⃣ Data backup

  2️⃣ Real-time updates

  3️⃣ Integration
• Match the accounting method with its key characteristic:

  Traditional Accounting ↔️ Local server storage

  Cloud Computing ↔️ Remote server storage
• What is the primary purpose of blockchain technology in accounting?

  Secure financial transactions
• Transactions in blockchain are cryptographically secured to enhance transparency.
• Blockchain technology eliminates intermediaries and reduces processing time
• Match the accounting method with its key characteristic:

  Traditional Accounting ↔️ Manual data entry

  Modern Accounting ↔️ Automated systems
• Order the following technological advancements in accounting from most basic to most advanced:

  1️⃣ Automation

  2️⃣ Cybersecurity

  3️⃣ Artificial Intelligence (AI)

  4️⃣ Blockchain
• Traditional accounting relies on manual data entry and paper-based records.
• Modern accounting methods use automated systems and digital databases
• Technological advancements have improved the accuracy of accounting practices by minimizing manual intervention.
• What type of analysis is common in modern accounting but limited in traditional accounting?

  Proactive insights
• Modern accounting allows for easy collaboration via the cloud
• Match the accounting aspect with its technological improvement:

  Security ↔️ Enhanced cybersecurity

  Collaboration ↔️ Easy collaboration via cloud

  Accuracy ↔️ Improved accuracy with minimal manual intervention
• Traditional accounting systems are prone to physical data loss, while modern systems use enhanced cybersecurity measures.
• Modern accounting provides extensive data analytics for proactive insights
• What is the primary benefit of technological advancements in accounting for stakeholders?

  More valuable insights
• Key technological advancements in accounting include automation, artificial intelligence, cloud computing, blockchain, and cybersecurity.
• Blockchain in accounting creates a secure, decentralized ledger to verify financial transactions.
• Blockchain transactions are cryptographically secured
• What is machine learning used for in AI in accounting?

  Enhancing decision-making
• AI in accounting automates repetitive tasks to improve efficiency and reduce errors.
• The implementation cost is a major limitation of using AI in accounting
• Order the following aspects of AI in accounting from least to most advanced:

  1️⃣ Data Bias

  2️⃣ Efficiency

  3️⃣ Accuracy

  4️⃣ Insight
• Predictive analytics identifies potential fraud by analyzing transaction patterns
• The implementation cost of AI in accounting is low due to its simplicity.

  False
• Reliance on technology in AI may reduce human oversight