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Flashcards in Chapter 2 Deck (37):
1

source document

a record that captures the key data of a transaction, serves three functions
1. provides the data necessary to record a transaction
2. triggers business processes to begin
3. serves as a part of the permanent audit trail

2

turnaround document

an output of the accounting system that can be used as an input in a different part of the accounting system

3

general ledgers

provides details for the entire set of accounts used in the organizations accounting system

4

general journal

the place of original entry for any transactions that are not recorded in special journals

5

subsidiary ledgers

maintain detailed info regarding routine transactions, with an account established for each entry

6

legacy system

an existing system in operation within an organization

7

advantages to a legacy system

customized, support unique processes, historical data, supported and understood by existing personel

8

disadvantages to a legacy system

1.costly to maintain
2.lack adequate, up to date supporting documentation
3 are not compatible with newer software
4. are not scalable

9

screen scrapers(frontware)

adds modern user friendly screen interfaces to legacy systems

10

enterprise application integration

software that bridges legacy systems to new hardware and software systems and interfaces

11

advantages to purchasing vs developing software

lower cost, shorter implementation time, and fewer bugs

12

accounting software market segments

small company systems
midmarket company systems
beginning ERP systems
tier 1 ERP systems

13

small company systems income segment

<$250000

14

Midmarket

250000-10M

15

Beginning ERP

10M-100M

16

High End or Tier 1: ERP

>100M

17

source document controls

documents are numbered to prevent duplication or loss of

18

bar code

a printed code consisting of a series of vertical machine readable bars

19

point of sale system

method of using hardware and software that captures retail sales information by standard bar codes

20

electronic data interchange

intercompany computer to computer transfer of business documents in a standard business format

21

batch processing

all similar transactions are grouped together for a specified period of time and then this is processed as a batch

22

advantages to batch processing

efficient for large volumes
audit trail is maintained
use less costly software
personnel become specialized and efficient in processing

23

disadvantages batch processing

1. processing can take longer tan normal if the master files are too large
2. adding or deleting records takes much time and computer maintenance
3. data duplication is likely
4. Integration across business processes is difficult in legacy systems that involve batching
5. there is a lag between what is current
6. older systems are difficult to maintain

24

real time processing

processing at real time

25

advantages of real time processing

1. errors are easy to correct
2. info is on a timely basis
3. all files are up to date
4. the business processes are integrated into a single database so that a single system is achieved

26

disadvantages of real time processing

1. more expensive hardware
2. single database is more prone to unauthorized access of data unless there are extensive controls
3. Real-time systems can be difficult to audit because of the complexity of the system

27

general categories of output

1. trading partner documents such as checks, invoices, and statements
2. Internal documents
3. internal reports
4. external reports

28

process maps

pictorial representations of business processes in which the actual flow ad sequence of events in the process are presented in diagram form
oval - start and/or finish
rectangle - a tack or activity in process
diamond - represents a point in the process when a decision must be made
arrow - shows the direction of the flow
circle with a letter - used as a connector

29

system flowchart

intended to depict the entire system, including inputs, manual and computerized processes, and outputs.
process - rectangle
data - a diagonal rectangle
document - rectangle with a swirl on the bottom
on page connector - circle
off page connector - rectangle on top of triangle
magnetic tape - looks like magnetic tape
terminator - oval
manual input - rectangle with a crooked line on top
manual process - look on page
direct access storage - pipe
etc.
look on page 58

30

document flowchart

shows the flow of documents and information among departments or units within an organization

31

data flow diagram

used by systems professionals to show the logical design of a system
square - terminator
rectangle with rounded corner - process
open ended rectangle - storage of data
arrow - shows the direction of data flow

32

entity relationship diagrams

pictorial representations of the logical structure of databases

33

entities

items in a database

34

attributes

characteristics of an entity

35

cardinality

how many instances of an entity relate to each instance of another entity

36

client server

two types of computers are networked together to accomplish the application processing

37

distributed presentation

the client PC manipulates data for presentation, but does not do any other significant processing