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. Examples include sales orders, purchase orders, and employee time cards

Question 3

turnaround document and give an example

Answer 3

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

Question 4

source data automation and give an example

Answer 4

the collection of transaction data in machine-readable form at the time and place of origin. Examples are point-of-sale 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 for the org

Question 6

subsidiary ledger and give an example

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 and give an example

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 code

Answer 11

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

Question 12

chart of accounts

Answer 12

a listing of all the numbers assigned to balance sheet and income statement accounts. the account number allow transaction data to be coded, classified, and entered into the proper accounts. they also facilitate financial statements and report preparation

Question 13

general journal

Answer 13

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

Question 14

specialized journals

Answer 14

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

Question 15

audit trial

Answer 15

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 ledger postings and to trace changes in GL accounts from their beg bal to their end bal

Question 16

entity

Answer 16

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

Question 17

attributes

Answer 17

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 18

field

Answer 18

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 a spreadsheet is a field

Question 19

record

Answer 19

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 20

data value

Answer 20

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

Question 21

file

Answer 21

a set of logically related records such as the payroll records of all employees

Question 22

master file

Answer 22

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

Question 23

transaction file

Answer 23

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 24

database

Answer 24

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

Question 25

batch processing

Answer 25

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 26

online, real-time processing

Answer 26

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

Question 27

document

Answer 27

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

Question 28

report

Answer 28

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 a company’s business activities

Question 29

query

Answer 29

a request for the data base 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 30

enterprise resource planning (ERP) system

Answer 30

a system that integrates all aspects of an organizations 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 facilitates information flow among the company’s various business functions and manages communications with outside stakeholders