Chapter 2

Question 1

the four operations (data input, data storage, data processing, and information output) performed on data to generate meaningful and relevant information

Answer 1

data processing cycle

Question 2

data must be collected about three facets of each business activity

Answer 2

1. Each activity of interest
2. The resources affected by each activity
3. the people who participate in each activity

Question 3

documents used to capture transaction data at its source-when the transactions takes place. Examples include sales orders, and employee time cards.

Answer 3

source documents

Question 4

records of company data sent to an external party and then returned to the system as input. They are machine readable form to facilitate their subsequent processing as input records. Ex. utility bill

Answer 4

turnaround document

Question 5

the collection of transaction data in machine readable form at the time and place of origin. Examples are point of sale terminals and ATMs

Answer 5

source data automation

Question 6

there are 3 steps in processing data input

Answer 6

1. Capture transaction data and enter them into the system
2. Make sure captured data are accurate and complete
3. Make sure company policies are followed, such as approving or verifying a transaction

Question 7

a ledger that contains summary level data for every asset, liability, equity, revenue, and expense account of the organization

Answer 7

general ledger

Question 8

a ledger used to record detailed data for a general ledger account with many individual subaccounts, such as accounts receivable, inventory, and accounts payable.

Answer 8

subsidiary ledger

Question 9

a title give to a general ledger account that summarizes the total amounts recorded in a subsidiary ledger. For example, the accounts receivable control account in the general ledger represents the total amount owed by the customers. The balances in the accounts receivable subsidiary ledger indicate the amount owed by each specific customer

Answer 9

control ledger

Question 10

the systematic assignment of numbers or letter to items to classify and organize them.

Answer 10

coding

Question 11

items are numbered consecutively so that gap in the sequence code indicate missing items that should be investigated. Examples include pre-numbered checks, invoices, and purchase orders.

Answer 11

sequence codes

Question 12

blocks of numbers that are reserved for specific categories of data, thereby helping to organize the data. An example is a chart of accounts

Answer 12

block codes

Question 13

two or more subgroups of digits that are used to code an item. A group code is often used in conjunction with a block code

Answer 13

group codes

Question 14

letters and numbers that are interspersed to identify an item. this code is derived from the description of the item and is usually easy to memorize.

Answer 14

mnemonic code

Question 15

a listing of all the numbers assigned to balance sheet and income statement accounts. The account numbers allow transaction data to be coded, classified, and entered into the proper accounts. They also facilitate financial statement and report preparation

Answer 15

chart of accounts

Question 16

a journal used to record infrequent or non-routine transactions, such as loan payments and end of period adjusting and closing entries.

Answer 16

general journal

Question 17

a journal used to record a large number of repetitive transactions such as credit sales, cash receipts, purchases and cash disbursements.

Answer 17

specialized journal

Question 18

a path that allows a transaction to be traced through a data processing system from point of origin to output or backwards from output to point of origin.

Answer 18

Audit trail

Question 19

Audit trails are used for

Answer 19

checking the accuracy and validity of ledger postings and tracing changes in general ledger accounts from their beginning balance to their ending balance

Question 20

the item about which information is stored in a record. Examples include an employee, an inventory item, and a customer

Answer 20

entity

Question 21

the properties, identifying numbers, and characteristics of interest of an entity that is stored in a database. Examples are employee number, pay rate, name and address.

Answer 21

attributes

Question 22

the portion of data record where the data value for a particular attribute is stored. For example, in a spreadsheet each row might represent a customer and each column is an attribute of the customer. Each cell in a spreadsheet is a

Answer 22

field

Question 23

a set of fields whose data values describe specific attributes of an entity, such as all payroll data relating to a single employee. An example is a row in a spreadsheet.

Answer 23

record

Question 24

the actual value stored in a field. it describes particular attribute of an entity. For example, the customer name field would contain “XYZ company”

Answer 24

data value

Question 25

a set of logically related records, such as the payroll records of all employees.

Answer 25

file

Question 26

a permanent file of records that stores cumulative data about an organization. As transactions take place, individual records within a _________ are updated to keep them current

Answer 26

master file

Question 27

a file that contains the individual business transactions that occur during a specific fiscal period A _________ is conceptually similar to a journal in a manual AIS

Answer 27

transaction file

Question 28

a set of interrelated, centrally controlled data files that are stored wth as little data redundancy as possible. consolidates records previously stored in separate files into a common pool and serves a variety of users and data processing applications

Answer 28

database

Question 29

Four different types of data processing

Answer 29

1. Creating new records like adding new employees to payroll database 2. Reading, retrieving, or viewing existing data 3. Updating previously stored data 4. Deleting data, like purging the master file of vendors no longer do business with.

Question 30

accumulating transaction records into groups for processing at a regular interval such as daily or weekly. Records usually sorted in some kind of sequence (numerically or alphabetically)

Answer 30

batch processing

Question 31

the computer system processes data immediately after capture and provides updated information to users on a timely basis

Answer 31

online, real-time processing

Question 32

record of a transaction or other company data. Examples include checks, invoices, receiving reports, and purchase requisitions

Answer 32

documents

Question 33

system output, organized in a meaningful fashion, that is used by employees to control operational activities, by managers to make decisions and design strategies, and by investors and creditors to understand a company's business activities.

Answer 33

reports

Question 34

a request for the database to provide the information needed to deal with a problem or answer a question. The information is retrieved, displayed or printed and/or analyzed as requested

Answer 34

queries