Chapter 2 (Introduction to Transaction Processing) Flashcards

(39 cards)

1
Q

an economic event that affects the assets and equities of the firm, is reflected in its accounts, and is measured in monetary terms.

A

financial transaction

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2
Q

Financial transactions are captured in cycles known as transaction cycles which are addressed in AIS which are:

A
  1. the expenditure cycle
  2. the conversion cycle
  3. the revenue cycle
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3
Q

involves the acquisition of materials, property, & labor in exchange for cash. It generally has subsystems such as Purchasing / Accounts Payable , Cash Disbursement, Payroll, and Fixed Assets.

A

expenditure cycle

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4
Q

where we plan, schedule and control the physical product through the manufacturing process and account for the cost of these events.

A

conversion cycle

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5
Q

processes our cash and credit sales as well as the receipt of cash

A

revenue cycle

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6
Q

So we get a SALES ORDER from the CUSTOMER’S ORDER, we then post it into the ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER which the reconcile subsidiary ledger is periodically sent to the GENERAL LEDGER. Also, from the SALES ORDER a journal entry is made to the SALES JOURNAL which is then posted to the GENERAL LEDGER.

A

sales order; customer’s order; accounts receivable subsidiary ledger; general ledger; sales order; sales journal; general ledger

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7
Q

What are the records in a manual system?

A
  • documentation
  • journal
  • ledger
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8
Q

What are the 3 types of documents?

A
  • source documents (sale to a customer = sale order)
  • product documents (documents that result from transaction processing; invoice to customer)
  • turnaround documents (product documents of one system that become source documents in another system; documents that are the primary source for all journals)
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9
Q

What are the 2 types of journals?

A
  • special journals

- general journals

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10
Q

What are the 2 types of ledgers?

A
  • general ledger

- subsidiary ledger

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11
Q

your first step into the general model for AIS

A

data collection

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12
Q

records of company data sent to a third party and then returned to the system as input

A

turnaround document

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13
Q

specific classes of transactions that occur in high frequency

examples:
- sales
- payroll
- cash receipt
- cash disbursement
- purchases

A

special journal

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14
Q

non-recurring, infrequent, and dissimilar transactions

examples:

  • depreciation
  • adjusting entries
  • reclassifications
A

general journal

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15
Q

shows activity for each account listed on the chart of accounts

A

general ledger

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16
Q

shows activity by detail for each account type

  • A/R
  • A/P
  • fixed assets
  • inventory
  • payroll
A

subsidiary ledger

17
Q

What are the digital accounting records?

A
  • master file
  • transaction file
  • reference file
  • archive files
18
Q

contains account data

examples:

  • general ledger
  • subsidiary ledger
  • updated transactions
19
Q

temporary file used to update the master file

examples:
- sales order
- cash receipts

A

transaction file

20
Q

stores data that is used as a standard for processing transactions

example:
- tax table

A

reference file

21
Q

records for past transactions that are retained for future reference and audit

examples:

  • journals
  • list of prior employees
  • prior period ledgers
A

archive files

22
Q
  • allows tracking back to source documents
  • relied upon by external auditors when doing their audit
  • ensures validity, accuracy, completeness
  • less observable in computer based systems
23
Q

excessive storage costs of paper documents and/or magnetic form

24
Q

changes or additions must be performed multiple times

A

data updating

25
potential problem of failing to update all affected files
currency of information
26
user's inability to obtain additional information as needs change
task data dependency
27
separate files are difficult to integrate across multiple users
data integration
28
each data element is stored only one time thus eliminating the data redundancy and reducing the collection and storage issues
data redundancy eliminated
29
because each data element exists in only one place, you only need to update the data one time and it is current
single update
30
an change is available for all to see, thus the database is always the most current
current values
31
Documentation in a digital environment is necessary for many reasons. Common documentation techniques are:
- entity relationship diagram - data flow diagrams - system flowcharts - program flowcharts
32
in the transaction processing model, what is the gathering transactions into groups or batches and processing the entire batch as a single event
batch
33
in the transaction processing model, what is the processing or each individual transaction continuously as they occur
real-time
34
What are the types of Coding?
- sequential - block - group - alphabetic - mnemonic
35
represents items in sequential order
sequential
36
represent whole classes by assigning each class a specific range within the coding schem
block
37
represen complex items or events involving two or more pieces of data using fields with specific meaning
group
38
use letters in place of numbers
alphabetic
39
alphabetic characters used as abbreviations, acronyms, and other types of combinations
mnemonic