Chapter 2 - Data Processing Cycle

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 in machine-readable form. 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. 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 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.

Question 8

Coding

Answer 8

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

Question 9

Sequence Code

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 reserved for specific categories of data to help organize the data. An example is a chart of accounts.

Question 11

Group Codes

Answer 11

Two or more subgroups of digits used to code an item, often in conjunction with a block code.

Question 12

Mnemonic Code

Answer 12

Letters and numbers interspersed to identify an item, usually derived from the description of the item and easy to memorize.

Question 13

Chart of Accounts

Answer 13

A listing of all numbers assigned to balance sheet and income statement accounts, allowing data to be coded, classified, and entered into the proper accounts.

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

Audit Trail

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, used to check accuracy and validity of ledger postings.

Question 16

Entity

Answer 16

The item about which information is stored in a record, such as an employee, an inventory item, or a customer.

Question 17

Attributes

Answer 17

The properties, identifying numbers, and characteristics of interest of an entity stored in a database, like 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, such as a cell in a spreadsheet.

Question 19

Record

Answer 19

A set of fields whose data values describe specific attributes of an entity, like all payroll data relating to a single employee.

Question 20

Data Value

Answer 20

The actual value stored in a field, describing a particular attribute of an entity, like ‘ZYX Company’ in the customer name field.

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 storing cumulative data about an organization, updated as transactions occur.

Question 23

Transaction File

Answer 23

A file containing individual business transactions occurring during a specific fiscal period, conceptually similar to a journal in a manual AIS.

Question 24

Database

Answer 24

A set of interrelated, centrally controlled data files stored with minimal redundancy, consolidating records into a common pool for various users and processing applications.

Question 25

Batch Processing

Answer 25

Accumulating transaction records into groups or batches for processing at regular intervals, such as daily or weekly, often sorted before processing.

Question 26

Real-Time Processing

Answer 26

The immediate processing of data after capture, providing updated information to users promptly.

Question 27

Documents

Answer 27

Records of transaction or other company data, like checks, invoices, receiving reports, and purchase requisitions.

Question 28

Reports

Answer 28

System output organized for control, decision-making, and understanding business activities by employees, managers, investors, and creditors.

Question 29

Query

Answer 29

A request for the database to provide information needed to address a problem or question, retrieved, displayed, printed, and/or analyzed as requested.

Question 30

Smart Contract

Answer 30

A regular contract with terms and details built into the blockchain, enabling automation and execution based on external triggers.

Question 31

Enterprise Resource Planning Systems

Answer 31

Systems integrating all aspects of an organization’s activities into one system, modularized for specific needs, facilitating information flow among business functions and external communications.