AIS Chapter 2

Turnaround documents

Records of company data sent to an external party and then returned to the system as input. Turnaround documents are in machine-readable form to facilitate their subsequent processing as input records. An example is a utility bill.

source data automation

The collection of transaction data in machine-readable form at the time and place of origin. Examples are point-of-sale terminals and RFID scanners.

general ledger

A ledger that contains summary-level data for every asset, liability, equity, revenue, and expense account of the organization.

subsidary ledger

A ledger used to record detailed data for a general ledger account with many individual subaccounts, such as accounts receivable, inventory, and accounts payable.

control account

A title given to a general ledger account that summarizes the total amounts recorded in a subsidiary ledger. For example, the accounts receivable control account in the general ledger represents the total amount owed by all customers. The balances in the accounts receivable subsidiary ledger indicate the amount owed by each specific customer.

coding

(1) The systematic assignment of numbers or letters to items to classify and organize them. (2) Writing program instructions that direct a computer to perform specific data processing tasks.

sequence codes

Items are numbered consecutively so that gaps in the sequence code indicate missing items that should be investigated. Examples include prenumbered checks, invoices, and purchase orders.

block code

Blocks of numbers reserved for specific categories of data, thereby helping to organize the data. An example is a chart of accounts.

group codes

Two or more subgroups of digits used to code an item. A group code is often used in conjunction with a block code.

mnemonic coding

Letters and numbers interspersed to identify an item. The mnemonic code is derived from the description of the item and is usually easy to memorize. For example, Dry300W could represent a dryer (Dry), model number 300, that is white (W).

chart of accounts

A listing of all the numbers assigned to balance sheet and income statement accounts. The account numbers allow transaction data to be coded, classified, and entered into the proper accounts. They also facilitate financial statement and report preparation.

general journal

A journal used to record infrequent or nonroutine transactions, such as loan payments and end-of-period adjusting and closing entries.

specialized journal

A journal used to record a large number of repetitive transactions such as credit sales, cash receipts, purchases, and cash disbursements.

attributes

The properties, identifying numbers, and characteristics of interest of an entity stored in a database. Examples are employee number, pay rate, name, and address.

fields

The portion of a data record where the data value for a particular attribute is stored. For example, in a spreadsheet, each row might represent a customer and each column an attribute of the customer. Each cell in a spreadsheet is a field.

file

A set of logically related records, such as the payroll records of all employees.

master file

A permanent file of records that stores cumulative data about an organization. As transactions take place, individual records within a master file are updated to keep them current.

transaction file

A file that contains the individual business transactions that occur during a specific fiscal period. A transaction file is conceptually similar to a journal in a manual AIS.

database

A set of interrelated, centrally controlled data files stored with as little data redundancy as possible. A database consolidates records previously stored in separate files into a common pool and serves a variety of users and data processing applications.

batch processing

Accumulating transaction records into groups or batches for processing at a regular interval such as daily or weekly. The records are usually sorted into some sequence (such as numerically or alphabetically) before processing.

real-time processing

The computer system processes data immediately after capture and provides updated information to users on a timely basis.

documents

Records of transaction or other company data. Examples include checks, invoices, receiving reports, and purchase requisitions.

reports

System output organized in a meaningful fashion used by employees to control operational activities, by managers to make decisions and design strategies, and by investors and creditors to understand a company’s business activities.

queries

A request for the database to provide the information needed to deal with a problem or answer a question. The information is retrieved, displayed or printed, and/or analyzed as requested.

application programming interfaces

(API) A structured interface that allows one system to interact with another system offering a data service to other systems. The interface is often operationalized in JSON or XML.

enterprise resource planning systems

Systems that integrate all aspects of an organization’s activities—such as accounting, finance, marketing, human resources, manufacturing, inventory management—into one system. An ERP system is modularized; companies can purchase the individual modules that meet their specific needs. An ERP facilitates information flow among the company’s various business functions and manages communications with outside stakeholders