Chapter 2

Question 1

source document

Answer 1

a record that captures the key data of a transaction, serves three functions

1. provides the data necessary to record a transaction
2. triggers business processes to begin
3. serves as a part of the permanent audit trail

Question 2

turnaround document

Answer 2

an output of the accounting system that can be used as an input in a different part of the accounting system

Question 3

general ledgers

Answer 3

provides details for the entire set of accounts used in the organizations accounting system

Question 4

general journal

Answer 4

the place of original entry for any transactions that are not recorded in special journals

Question 5

subsidiary ledgers

Answer 5

maintain detailed info regarding routine transactions, with an account established for each entry

Question 6

legacy system

Answer 6

an existing system in operation within an organization

Question 7

advantages to a legacy system

Answer 7

customized, support unique processes, historical data, supported and understood by existing personel

Question 8

disadvantages to a legacy system

Answer 8

1.costly to maintain
2.lack adequate, up to date supporting documentation
3 are not compatible with newer software
4. are not scalable

Question 9

screen scrapers(frontware)

Answer 9

adds modern user friendly screen interfaces to legacy systems

Question 10

enterprise application integration

Answer 10

software that bridges legacy systems to new hardware and software systems and interfaces

Question 11

advantages to purchasing vs developing software

Answer 11

lower cost, shorter implementation time, and fewer bugs

Question 12

accounting software market segments

Answer 12

small company systems
midmarket company systems
beginning ERP systems
tier 1 ERP systems

Question 13

small company systems income segment

Answer 13

<$250000

Question 14

Midmarket

Answer 14

250000-10M

Question 15

Beginning ERP

Answer 15

10M-100M

Question 16

High End or Tier 1: ERP

Answer 16

> 100M

Question 17

source document controls

Answer 17

documents are numbered to prevent duplication or loss of

Question 18

bar code

Answer 18

a printed code consisting of a series of vertical machine readable bars

Question 19

point of sale system

Answer 19

method of using hardware and software that captures retail sales information by standard bar codes

Question 20

electronic data interchange

Answer 20

intercompany computer to computer transfer of business documents in a standard business format

Question 21

batch processing

Answer 21

all similar transactions are grouped together for a specified period of time and then this is processed as a batch

Question 22

advantages to batch processing

Answer 22

efficient for large volumes
audit trail is maintained
use less costly software
personnel become specialized and efficient in processing

Question 23

disadvantages batch processing

Answer 23

1. processing can take longer tan normal if the master files are too large
2. adding or deleting records takes much time and computer maintenance
3. data duplication is likely
4. Integration across business processes is difficult in legacy systems that involve batching
5. there is a lag between what is current
6. older systems are difficult to maintain

Question 24

real time processing

Answer 24

processing at real time

Question 25

advantages of real time processing

Answer 25

1. errors are easy to correct
2. info is on a timely basis
3. all files are up to date
4. the business processes are integrated into a single database so that a single system is achieved

Question 26

disadvantages of real time processing

Answer 26

1. more expensive hardware
2. single database is more prone to unauthorized access of data unless there are extensive controls
3. Real-time systems can be difficult to audit because of the complexity of the system

Question 27

general categories of output

Answer 27

1. trading partner documents such as checks, invoices, and statements
2. Internal documents
3. internal reports
4. external reports

Question 28

process maps

Answer 28

pictorial representations of business processes in which the actual flow ad sequence of events in the process are presented in diagram form
oval - start and/or finish
rectangle - a tack or activity in process
diamond - represents a point in the process when a decision must be made
arrow - shows the direction of the flow
circle with a letter - used as a connector

Question 29

system flowchart

Answer 29

intended to depict the entire system, including inputs, manual and computerized processes, and outputs.
process - rectangle
data - a diagonal rectangle
document - rectangle with a swirl on the bottom
on page connector - circle
off page connector - rectangle on top of triangle
magnetic tape - looks like magnetic tape
terminator - oval
manual input - rectangle with a crooked line on top
manual process - look on page
direct access storage - pipe
etc.
look on page 58

Question 30

document flowchart

Answer 30

shows the flow of documents and information among departments or units within an organization

Question 31

data flow diagram

Answer 31

used by systems professionals to show the logical design of a system
square - terminator
rectangle with rounded corner - process
open ended rectangle - storage of data
arrow - shows the direction of data flow

Question 32

entity relationship diagrams

Answer 32

pictorial representations of the logical structure of databases

Question 33

entities

Answer 33

items in a database

Question 34

attributes

Answer 34

characteristics of an entity

Question 35

cardinality

Answer 35

how many instances of an entity relate to each instance of another entity

Question 36

client server

Answer 36

two types of computers are networked together to accomplish the application processing

Question 37

distributed presentation

Answer 37

the client PC manipulates data for presentation, but does not do any other significant processing