prelims Flashcards
Agreement between two entities to exchange goods or services or other events that can be measured in economic terms.
Transaction
Involves transactions with customers.
Revenue cycle
Involves interactions with suppliers.
Expenditure cycle
When raw materials and labor are transformed into finished goods.
Production cycle
When employees are trained, hired, paid, evaluated, promoted, their benefits, and terminated.
Payroll cycle
Involves interactions with investors and creditors.
Financing cycle
To efficiently and effectively process the data about a company’s transactions.
Data processing
Data is entered into paper journals and ledgers
Manual systems
Series of operations performed on data.
Computer-based systems
Any data or instructions you enter into a computer.
Data input
What data input is about:
events, esources, agents
Manipulating input (data) to produce output (information
Data process
When data has been processed into information
Data output
Recording data in the journal
Data storage
Ways to improve data input
Turnaround documents, source data automation, well-designed source documents data entry screens, using pre-numbered documents
When the customer account number is coded on the document in machine-readable form, reduces the probability of human error in applying the check to the correct account.
Turnaround documents
Captures data with minimal human intervention.
Source data automation
File used to store cumulative information about resources and agents.
Ledger
Where we keep track of the beginning balance, increases, decreases, an ending balance for each asset, owner’s equity, revenue, expense, gain, loss, and dividend account
T-accounts
Summary level information for all accounts.
General ledger
Contains detail accounts associated with related general ledger account.
Subsidiary ledger
Group coding schemes are often used in assigning general ledger accounts.
Coding techniques
List of general ledger accounts an organization uses.
Chart of accounts
First place that transactions are entered
Journals
Sufficient documentation to allow the tracing of a transaction from beginning to end or vice versa.
Audit trail
Special Journals
Routine transactions are recorded, transactions are totaled, individual line items are posted in subsidiary ledgers.
General ledgers
non-routine transactions are recorded, summary entries, items are posted on the general ledger account.
Something about which information is stored.
Entity
Characteristics of interest with respect to the entity.
Attributes
Physical space where an attribute is stored.
Field
The set of attributes stored for a particular instance of an entity.
Record
Intersection of the row and column.
Data value
Group of related records
File
File that stores cumulative information about the organization’s entities
Master file
File that contains records of individual transactions that occur in a fiscal period.
Transaction file
