2. Overview of Transaction Processing and Enterprise Resource Planing Systems.

Question 1

Describe the main goal of the data processing cycle used to process transaction

Answer 1

There are four operations performed on data to generate meaningful and relevant information

Question 2

What are the operations in the data processing cycle?

Answer 2

Data input, data storage, data processing and information output.

Question 3

Describe data input

Answer 3

Data that are entered into the system. Data comes from source documents.

Question 4

Describe data processing

Tip CRUD

Answer 4

Creating, Reading, updating and deleting data (CRUD)

Question 5

Describe data storage and where does data get stored? Main and sub ledger?

Answer 5

A general ledger contains summary-level data.

Subsidiary ledger contains detailed data e.g. account receivable
(important to notice that they all contain trails that can be audited).

Question 6

Describe information output

Answer 6

The data stored in the database files can be viewed as information.

Question 7

Discuss how organizations use enterprise resource planning (ERP) systems to process transactions

Tip ERP all aspect
Cycles og mere

Answer 7

A system that integrates all aspects of an organization’s activities into one system, including revenue, expenditure, production, payroll and finance cycles, and general ledger and reporting system.

Question 8

Which system is more complex, ERP or AIS?

Answer 8

ERP

Question 9

What are the advantages of ERP

Answer 9

Integrated enterprise-wide single view of the organization’s data which streamlines the flow of information.

Greater visibility and monitoring capabilities for management

Standardization of procedures and reports

Question 10

What are the disadvantages of ERP system

Answer 10

Costly, complex, significant amount of time to implement

Question 11

What are the difference between master files and transaction files? and what do they contains?

Answer 11

“Master files” are permanent; they exist across fiscal periods as ledgers. Changes may come from updating, adding, or deleting.

”Transaction files” contain data originating from one of the five transaction cycles (Revenue, Expenditure, Production, HR/Payroll, and Financing).

Master files usually include “resource” and “people” data, and the transaction file is the activity or event data that is captured.

Question 12

What is an AIS

Tip: financial data

Answer 12

A transaction processing system concerned with financial data and accounting transaction.