Question

Some people believe database technology may eliminate the need for double-entry accounting. This creates three possibilities: (1) the double-entry model will be abandoned; (2) the double-entry model will not be used directly, but an external-level schema based on the double-entry model will be defined for accountants’ use; or (3) the double-entry model will be retained in database systems. Which alternative do you think is most likely to occur? Why?

Answer 1

1. t is important to note that technological disruption in the marketplace is “a process that plays out over time, sometimes quickly and completely, but other times slowly and incompletely.”

2. Despite the existence of digital video recorders and Blu-ray players, “box office receipts are still an enormous component of film revenues & despite the “invention of air transport, cargo ships still crisscross the globe

3. Even though database information systems can record, organize and produce most of the necessary data accountants need in order to produce the financial statements, there remain many nuanced aspects of accounting that demand human intervention. Such things as accruing expenses and recognizing revenues appropriately in a closing period

To this end, option number two or option number three seems the most plausible for the near future.