Password secures authorized access in accounting systems

Steps:

• Recognize password as an authentication tool in computerized ledgers to verify user identity.
• Assess statement 1: It prevents unauthorized access by ensuring only authorized clerks like the purchases ledger clerk can view or edit data—core purpose.
• Assess statement 2: It does not perform calculations or data processing; that's software functionality.
• Assess statement 3: It does not encrypt or backup data; those are separate security measures.

Why B is correct:

• Per information security standards (e.g., CIA triad), passwords enforce access control to protect confidential financial data from breaches.

Why the others are wrong:

• A includes incorrect 3 (e.g., unrelated to data recovery).
• C combines wrong 2 and 3 (neither ties to authentication).
• D selects only wrong 2 (misattributes processing role).

Final answer: B