Module 2 Flashcards
(35 cards)
In manual systems, data are entered into journals and ledgers maintained on paper.
In computer-based systems, data are entered into computers and stored in files and databases.
Transaction Processing
It is the operations performed on data to generate meaningful and relevant information.
Data Processing Cycle
Steps in Processing Input are:
i. Capture transaction data triggered by a business activity (event)
ii. Make sure captured data are accurate and complete.
iii. Ensure company policies are followed (e.g., approval of transaction)
Information collected for an activity includes: Activity of interest (e.g., sale), Resources affected (e.g., inventory and cash), People who participated (e.g., customer and employee).
Information comes from source document.
Data Capture
Starting point for collecting accounting data. Documents used to capture transaction data at its source — when the transaction takes place. These are human-readable and they can be completed by the user. They provide an evidence of a transaction’s authenticity —cam serve as a backup in the event that an AIS is damaged/destroyed/corrupted.
Source Documents
Records of company data sent to an external party and then returned to the system as input. These are machine-readable form to facilitate their subsequent processing as input records.
Turnaround Documents
These devices capture transaction data in machine-readable form at the time and place of their origin.
Source Data Automation
Important to understand how data is organized: Transaction Journals, General Ledger, Subsidiary Ledgers.
Data Storage
A journal used to record infrequent or nonroutine transactions, such as loan payments and end-of-period adjusting and closing entries.
General Journal
A journal used to record a large number of repetitive transactions.
Specialized Journal
A ledger that contains summary-level data for every asset, liability, equity, revenue, and expense account of the organization.
General Ledger
a ledger used to record detailed data for a general ledger account with many individual subaccounts.
Subsidiary Ledger
A title given to a general ledger account that summarizes the total amounts recorded in a subsidiary ledger.
Control Account
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 general ledger accounts from their beginning balance to their ending balance.
Audit Trail
Data is stored in master files or transaction files.
Computer-Based Storage
The item about which information is stored in a record.
Entity
The properties, identifying numbers, and characteristics of interest of an entity that is stored in a database.
Attributes
The portion of a data record where the data value for a particular attribute is stored.
Field
A set of fields whose data values describe specific attributes of an entity.
Record
The actual value stored in a field. It describes a particular attribute of an entity.
Data Value
A set of logically related records.
File
A permanent file of records that stores cumulative data about an organization.
Master File
A file that contains the individual business transactions that occur during a specific fiscal period.
Transaction File
A set of interrelated, centrally controlled data files that are stored.
Database
