AIS Ch. 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. Examples include: sales orders, purchase orders, and employee time cards.

Question 3

Turnaround Documents

Answer 3

Records of company data sent to an external party and then returned to the system as input. Turnaround documents are in machine-readable form to facilitate their subsequent processing as input records. An example is a utility bill.

Question 4

Source Data Automation

Answer 4

The collection of transaction data in machine-readable form at the time and place of origin. Example are pos terminals and ATMs.

Question 5

General Ledger

Answer 5

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

Question 6

Subsidiary Ledger

Answer 6

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

Question 7

Control Account

Answer 7

A title given 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 all customers. The balances in the accounts receivable subsidiary ledger indicate the amount owed by each specific customer.

Question 8

Coding

Answer 8

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

Question 9

Sequence Codes

Answer 9

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

Question 10

Block Code

Answer 10

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

Question 11

Group Codes

Answer 11

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

Question 12

Mnemonic Code

Answer 12

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

Question 13

Chart of Accounts

Answer 13

A listing of all 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.

Question 14

General Journal

Answer 14

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

Question 15

Specialized Journal

Answer 15

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

Question 16

Audit Trail

Answer 16

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. It is used to check the accuracy and validity of leger postings and to trace changes in general ledger accounts from their beginning balance to their ending balance.

Question 17

Entity

Answer 17

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

Question 18

Attributes

Answer 18

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.

Question 19

Field

Answer 19

The portion of a 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 the spreadsheet is a field.

Question 20

Record

Answer 20

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.

Question 21

Data Value

Answer 21

The actual value stored in a field. It describes a particular attribute of an entity. For example, the customer name field would contain “ZYX Company” if that company was a customer.

Question 22

File

Answer 22

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

Question 23

Master File

Answer 23

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

Question 24

Transaction File

Answer 24

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

Question 25

Database

Answer 25

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

Question 26

Batch Processing

Answer 26

Accumulating transaction records into groups or batches for processing at a regular interval such as daily or weekly. The records are usually sorted into some sequence (such as numerically or alphabetically) before processing.

Question 27

Online, Real-time Processing

Answer 27

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

Question 28

Document

Answer 28

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

Question 29

Reports

Answer 29

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 company’s business activities.

Question 30

Query

Answer 30

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.

Question 31

Enterprise Resource Planning

Answer 31

A system that integrates all aspects of an organization’s activities - such as accounting, finance, marketing, human resources, manufacturing, inventory management into one system. An ERP system is modularized; companies can purchase the individual modules that meet their specific needs. An ERP system is modularized; companies can purchase the individual modules that meet their specific needs. An ERP facilitates information flow among the company’s various business functions and manages communications with outside stakeholders.