chapter 2 Flashcards
data processing cycle
the four operations(data input, data storage, data processing and information output) performed on data to generate meaningful and relevant information
source documents
documents used to capture transaction data at its source-when the transaction takes place
turnaround documents
are company output sent to an external party, who often adds data to the document and then are returned to the company as an input document.
data input
steps
- capture transaction data triggered by a business activity
- make sure captured data are accurate and complete
- ensure company policies are followed
source data automation
devices capture transaction data in machine-readable form at the time and place of their origin (cash register)
data storage
- important to understand how data is organized
ex. chart of accounts, transaction journals, ledgers
general ledger
contains summary-level data for every asset,liability, equity, revenue and expense account
subsidiary ledger
contains very detailed information for any general ledger account with many individual accounts
control accounts
a title given to a general ledger account that summarizes the total accounts recorded in a subsidiary ledger
coding
the systematic assignment of numbers or letters to items to classify and organize them
sequence codes
items are numbered consecutively so that gaps in the sequence code indicate missing items that should be investigated
block code
blocks of numbers that are reserved for specific categories of data, thereby helping to organize the data.
group code
two or more subgroups of digits that are used to code an item.
chart of accounts
which is a list of the numbers assigned to the balance sheet and income statement accounts
information output
the data stored in the databases files can be viewed
general journal
a journal used to record infrequent or non routine transaction such as loan payments and end-of-period adjusting and closing entries
specialized journals
a journal used to record a large number of repetitive transaction such as credit sales etc
audit trail
is a traceable path of a transaction through a data processing system from point of origin to final output or backward from final output to point of orgin
entity
the item about which information is stored in a record like an employee, inventory item and a customer
attributes
the properties, identifying numbers and characteristics of interest of an entity that is stored in a database
field
the portion of a data record where the data value for a particular attribute is stored
ex each cell
record
a set of fields whose data values describe specific attributes of an entity
ex each row
data value
the actual value stored in a field
file
a set of logically related recoreds
master file
a permanent file of records that stores cumulative data about an organization
transaction
a file that contains the individuals business transaction that occur doing a specific fiscal period
database
a set of interrelated centrally controlled data files that are stored with as little data redundancy as possible
data processing
- creating
- reading
- updating
- deleting
enterprise resource planning (ERP)
integrates activities from the entire organization
batch processing
accumulating transaction records into groups or batches for processing at a regular interval such as daily or weekly
online, real-time processing
the computer system processes data immediately after capture and provides updated information to users on a timely basis
