chapter 2

Question 1

data processing cycle

Answer 1

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

Question 2

source documents

Answer 2

documents used to capture transaction data at its source-when the transaction takes place

Question 3

turnaround documents

Answer 3

are company output sent to an external party, who often adds data to the document and then are returned to the company as an input document.

Question 4

data input

Answer 4

steps

1. capture transaction data triggered by a business activity
2. make sure captured data are accurate and complete
3. ensure company policies are followed

Question 5

source data automation

Answer 5

devices capture transaction data in machine-readable form at the time and place of their origin (cash register)

Question 6

data storage

Answer 6

• important to understand how data is organized

ex. chart of accounts, transaction journals, ledgers

Question 7

general ledger

Answer 7

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

Question 8

subsidiary ledger

Answer 8

contains very detailed information for any general ledger account with many individual accounts

Question 9

control accounts

Answer 9

a title given to a general ledger account that summarizes the total accounts recorded in a subsidiary ledger

Question 10

coding

Answer 10

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

Question 11

sequence codes

Answer 11

items are numbered consecutively so that gaps in the sequence code indicate missing items that should be investigated

Question 12

block code

Answer 12

blocks of numbers that are reserved for specific categories of data, thereby helping to organize the data.

Question 13

group code

Answer 13

two or more subgroups of digits that are used to code an item.

Question 14

chart of accounts

Answer 14

which is a list of the numbers assigned to the balance sheet and income statement accounts

Question 15

information output

Answer 15

the data stored in the databases files can be viewed

Question 16

general journal

Answer 16

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

Question 17

specialized journals

Answer 17

a journal used to record a large number of repetitive transaction such as credit sales etc

Question 18

audit trail

Answer 18

is a traceable path of a transaction through a data processing system from point of origin to final output or backward from final output to point of orgin

Question 19

entity

Answer 19

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

Question 20

attributes

Answer 20

the properties, identifying numbers and characteristics of interest of an entity that is stored in a database

Question 21

field

Answer 21

the portion of a data record where the data value for a particular attribute is stored
ex each cell

Question 22

record

Answer 22

a set of fields whose data values describe specific attributes of an entity
ex each row

Question 23

data value

Answer 23

the actual value stored in a field

Question 24

file

Answer 24

a set of logically related recoreds

Question 25

master file

Answer 25

a permanent file of records that stores cumulative data about an organization

Question 26

transaction

Answer 26

a file that contains the individuals business transaction that occur doing a specific fiscal period

Question 27

database

Answer 27

a set of interrelated centrally controlled data files that are stored with as little data redundancy as possible

Question 28

data processing

Answer 28

1. creating 2. reading 3. updating 4. deleting

Question 29

enterprise resource planning (ERP)

Answer 29

integrates activities from the entire organization

Question 30

batch processing

Answer 30

accumulating transaction records into groups or batches for processing at a regular interval such as daily or weekly

Question 31

online, real-time processing

Answer 31

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