Acc info systems ch 2

Data processing cycle

Data input > Data processing / storage > information output

Steps in data input

Capturing transaction data

Varifying data’s completeness and accuracy

Approval of transaction (and other company policies)

Data Capture

Information collected for an activity

Source Documents

Captures data at the source when the transaction takes place

Data Storage

Data is organized based on chart of ledger accounts by #

Transaction journals

General journal

Specialized journal (ex: sales)

Ledgers

General ledger

Subsidiary ledgers (ex: Acc recievable)

Audit trail (recording/posting credit sales)

tracing the path of the transaction/invoice

Data is stored in

master/transaction files

Sequence codes

items numbered consecutively to account for all items (i.e., prenumbered forms)

Block code

blocks of numbers reserved for specific categories of data

Group code

A type of group code

Mnemonic codes

letters and numbers to identify an item

Mnemonic codes example

Dry300W05

low end (300), white (W) dryer (DRY) made by Sears (05)

CRUD

4 types of processing

C of CRUD

Creating new records (e.g., adding a customer)

R of CRUD

Reading existing data

U of CRUD

Updating previous record or data

D of CRUD

Deleting data

Batch processing

Processing data at predetermined date

(ex: posting records at the end of a business day)

Real-time processing

Data is processed as it occurs

(ex: invoice transactions are entered immediately)

he data stored in the database files can be viewed:

Online (soft copy)

Printed (hard copy)

Types of hard copies

Documents (ex: sales invoices)

Reports (ex: monthly sales reports)

Queries

Query

question for specific information in a database

Query example

Which division had the most sales for the month?

Enterprise Resource Planning (ERP) Systems

Integrates activities from the entire organization

ex: All business processes, general legers, and reporting system

Advantages of ERP

• Streamlined flow of information

• Data only captured once

• Monitoring

• Security settings

• Standardization of procedures and reports

• Improves customer service

• Increases productivity through automation

Disadvantages of ERP

• Costly

• Significant amount of time to implement

• Customizing or standardizing a business process

• Complexity

• User resistance (learning new things is sometimes hard for employees)

Which of the following is not a step in the data processing cycle?

data collection

Which of the items below are not an attribute of a smart contract?

Must use cryptocurrency