Question Tag: Digital Records

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Which of the following best describes the concept of digitisation in accounting?

A. Digitisation is the process of converting digital files into physical formats for easier storage and retrieval.
B. Digitisation refers to the use of digital technologies to create invoices and receipts.
C. Digitisation involves converting physical accounting records, such as invoices and receipts, into a computer-readable format using digital technologies.
D. Digitisation is the practice of manually entering accounting data into a computer system to ensure accuracy.
E. Accounting digitisation is solely focused on minimising human involvement in financial processes to increase efficiency.

Answer: C

Explanation: The correct answer is C. Digitisation in accounting refers to converting physical accounting records (e.g., invoices, receipts) into a digital, computer-readable format using technologies such as scanners, optical character recognition (OCR), and accounting software. This process facilitates easier access, storage, and management of financial records.