Chapter 2: Introduction to Transaction Processing

Question 1

This is an economic event that affects the assets and equities of the firm, is reflected in its accounts, and is measured in monetary terms.

Answer 1

Financial transaction

Question 2

What are the three transaction cycles?

Answer 2

1. The expenditure cycle
2. The conversion cycle
3. The revenue cycle

Question 3

This cycle includes the acquisition of goods and the cash disbursements to the supplier.

Answer 3

Expenditure cycle

Question 4

This cycle includes the planning, scheduling, and control of the physical product through the manufacturing process and the monitoring of the flow of cost information related to production.

Answer 4

Conversion cycle

Question 5

This includes sales order processing and cash receipts.

Answer 5

Reveue cycle

Question 6

This is used to capture and formalize transaction data needed for transaction processing.

Answer 6

Source documents

Question 7

This is the result of transaction processing.

Answer 7

Product documents

Question 8

This is a product document of one system that becomes a source document for another system

Answer 8

Turnaround documents

Question 9

This is a record of chronological entry.

Answer 9

Journal

Question 10

This kind of journal has specific classes of transactions that occur in high frequency

Answer 10

General journal

Question 11

This includes nonrecurring, infrequent, and dissimilar transactions.

Answer 11

Special journal

Question 12

This is a book of financial accounts.

Answer 12

Ledger

Question 13

This shows activity for each account listed on the chart of accounts.

Answer 13

General ledger

Question 14

This shows activity by detail for each account type.

Answer 14

Subsidiary ledger

Question 15

This generally contains account data.

Answer 15

MAster file

Question 16

This is a temporary file containing transactions since the last update.

Answer 16

Transaction file

Question 17

This contains relatively constant information used in processing

Answer 17

Reference file

Question 18

This contains past transactions for reference purposes.

Answer 18

Archive file

Question 19

This is a documentation technique to represent the relationship between entities in a system.

Answer 19

Entity relationship diagram

Question 20

What are the 3 types of entities of REA?

Answer 20

Resources
Events
Agents

Question 21

This represents the numerical mapping between entities

Answer 21

Cardinalities

Question 22

This use symbols to represent the processes, data sources, data flows, and entities in a system. They represent the logical elements of the system and do not represent the physical system.

Answer 22

Data flow diagrams

Question 23

This illustrate the relationship among processes and the documents that flow between them. They contain more details than data flow diagrams and they clearly depict the separation of functions in a system.

Answer 23

Documents flowcharts

Question 24

draw the 10 symbol set of document flowcharts with their function.

Question 25

These are used to represent the relationship between the key elements--input sources, programs, and output products--of computer systems. They depict the type of media being used

Answer 25

System flowcharts

Question 26

Draw the symbols of system flowchart and write their function.

Question 27

Draw the program flowchart symbols with their functions.

Question 28

This is a group of similar transactions that are accumulated over time and then processed together.

Answer 28

Batch

Question 29

What exists between the event and the processing?

Answer 29

Time lag

Question 30

This means that source documents are transcribed by clerks to magnetic tape for processing later

Answer 30

Keystroke

Question 31

This identifies clerical errors in the batch and places them into an error file.

Answer 31

Edit run

Question 32

This places the transaction file in the same order as the master file using a primary key.

Answer 32

Sort run

Question 33

This changes the value of appropriate fields in the master file to reflect the transaction

Answer 33

Update run

Question 34

This is means that the original master continues to exist and a new master file is created.

Answer 34

Backup procedure

Question 35

This process transactions individually at the moment the economic event occurs. They require greater resources and have no time lag between the economic event and the processing.

Answer 35

Real-time system