Transaction Processing

Question 1

Define “online, real-time (OLRT) processing.

Answer 1

Continuous, immediate transaction processing method in which transactions are processed individually as they occur.

Question 2

Define “ batch processing”.

Answer 2

Periodic transaction processing method in which transactions are processed in groups.

Question 3

What are subsidiary ledgers (sub-ledgers)?

Answer 3

These ledgers classify transactions by alternative accounts (e.g., customer accounts, vendor accounts, product accounts).

Question 4

Define “transaction files”.

Answer 4

Computerized data files equivalent to the journals found in a manual accounting system.

Question 5

What are “time lags” in batch processing systems?

Answer 5

This is an inherent part of batch processing. There is always a time delay between the time the transaction occurs, the time that the transaction is recorded, and the time that the master file is updated.

Question 6

What are point-of-sale (POS) systems?

Answer 6

Combined on-line, real-time processing with automated data capture technology, resulting in a system that is highly accurate, reliable, and timely.

Question 7

Define “master files”.

Answer 7

Computerized data files equivalent to the ledgers found in manual accounting system.

Question 8

What is the Accounts Receivable (A/R) sub-ledger?

Answer 8

This ledger classifies A/R transactions (credit sales and customer payments) by Customer