AIS chapter2

Data Processing Cycle

The process of inputting, processing, storing, and outputting data.

Data Input

Capturing transaction data when a business activity occurs and making sure it is accurate, complete, and authorized.

Data Capture

Collecting data about a business activity.

Attributes of Activity

Details describing what happened, such as date, time, total, or location.

Resources Affected

Assets/resources changed by a transaction, such as cash, credit, or inventory.

People/Entities Participating

The people or organizations involved in a transaction, such as customers or employees.

Source Document

A document that captures data at the source when a transaction takes place

Turnaround Document

A source document that is sent to an outside party and later returned to the organization as input.

Source Data Automation

capturing transaction data automatically rather than manually entering it

Batch Processing

Transactions are grouped together and processed periodically, such as daily or weekly.

Online Batch Processing

Transactions are entered as they occur but processed together later.

Real-Time Processing

Transactions are processed immediately as they occur, and related files are immediately updated.

CRUD

The four basic data-processing operations: Create, Read, Update, Delete.

Chart of Accounts

A list of all general ledger accounts used by an organization, with each assigned a specific number.

transaction Journal

records transactions before they are entered into a ledger

General Jorunal

a journal used for infrequent or non- routine transactions

Sales Journal

records sales on credit

Purchase Journal

records purchases on credit

Cash receipts Journal

Records cash received

Subsidiary Ledger

Contains detailed data for a general ledger account that has many individual subaccounts.

General Ledger

Contains summary-level data for the organization's asset, liability, equity, revenue, and expense accounts.

Audit Trail

The path that allows a transaction to be followed from source documents through the accounting records to financial statements.

ERP System

An integrated system that processes transactions and provides information across business areas.

Integrated ERP Database

A shared database connecting the organization's different business cycles.