What is the biggest advantage of electronic bookkeeping?

• A. It eliminates the need for any accounting knowledge.
• B. It allows for faster and more accurate processing of financial data.
• C. It guarantees that no errors will ever occur.
• D. It makes paper records completely obsolete.

Answer: (B)

Verified step by step guidance

1. Understand the context of the question: The problem is asking about the primary advantage of electronic bookkeeping compared to traditional methods.
2. Analyze the options provided: Evaluate each statement to determine its validity and relevance to the advantages of electronic bookkeeping.
3. Option 1: 'It eliminates the need for any accounting knowledge.' - This is incorrect because while electronic bookkeeping simplifies processes, a basic understanding of accounting principles is still necessary.
4. Option 2: 'It allows for faster and more accurate processing of financial data.' - This is correct because electronic systems automate calculations and reduce manual errors, significantly improving speed and accuracy.
5. Option 3: 'It guarantees that no errors will ever occur.' and Option 4: 'It makes paper records completely obsolete.' - These are incorrect because errors can still occur due to incorrect data entry, and paper records may still be used for backup or legal purposes.