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Flashcards in ACC200 Ch2 Set 1 Deck (20)
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Data processing cycle

the operations performed on data to generate meaningful & relevant information 


Data processing cycle


Data input - first step in processing input

to capture transaction data & enter them into a system


Data must be collected about three facets of each business activity?

1) each activity of interest 2) the resource(s) affected by each activity 3) the people who participated in each activity


Data needed for a revenue cycle

- date & time a sale occurred - employee who made a sale & a sales assistant who processed a sale - checkout register where a sale was processed - item(s) sold - quantity of each item sold - list price & actual price of each time sold - total amount of a sale - delivery instructions & - for credit sales: customer name, customer bill-to & ship-to addresses


Source documents

a document in which data collected for a clinical trial is first recorded.


Turnaround documents

company outputs sent to an external party, who often adds data to a document, & then are returned to the issuing company as input documents. 


Source data automation

The use of automated methods of data entry that attempt to reduce or eliminate many of the activities, people, and data media required by traditional data entry methods. - devices capture transaction data in machine-readable form at the time & place of their origin


Data input - second step in processing input?

is to make sure captured data are accurate & complete


Data input - third step in processing input

to make sure company policies are followed, such as those associated with approving or verifying transactions


Data storage components

- Ledgers - Coding techniques - Chart of accounts - Journals - Audit trail - Computer-based storage concepts


Cumulative accounting information is stored in?

general & subsidiary ledgers


General ledger

contains summary-level data for every asset, liability, equity, revenue & expense account


Subsidiary ledger

contains detailed data for any general ledger account with many individual sub accounts


Control account

the general ledger account corresponding to a subsidiary ledger


Data in ledgers is organised logically using?

coding techniques



the systematic assignment of numbers or letters to items to classify & organise them


Sequence codes

items are numbered consecutively to account for all items. Any missing items cause a gap in the numerical sequence


Block code

blocks of numbers are reserved for specific categories of data


Group codes

two or more subgroups of digits used to code items, are often used in conjunction with block codes