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    Ais-Ch 2

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    Chua Kimberly
    Transaction processing systems process financial transactions through transaction cycles like expenditure, revenue, and conversion. There are three types of accounting records used - documents, journals, and ledgers. Documents provide evidence of economic events and are used to initiate transactions. Journals chronologically record transactions, and ledgers reflect the financial effects of transactions in accounts. Accounting records in computer systems are stored in master, transaction, reference, and archive files. Properly documenting systems using tools like data flow diagrams, entity relationship diagrams, and flowcharts is important for accountants. Computer-based accounting systems can be batch or real-time, with batch processing having fewer resources but potential time delays, while real-time processing handles large volumes but with operational in

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    Ais-Ch 2

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    Chua Kimberly
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    Transaction processing systems process financial transactions through transaction cycles like expenditure, revenue, and conversion. There are three types of accounting records used - documents, journals, and ledgers. Documents provide evidence of economic events and are used to initiate transactions. Journals chronologically record transactions, and ledgers reflect the financial effects of transactions in accounts. Accounting records in computer systems are stored in master, transaction, reference, and archive files. Properly documenting systems using tools like data flow diagrams, entity relationship diagrams, and flowcharts is important for accountants. Computer-based accounting systems can be batch or real-time, with batch processing having fewer resources but potential time delays, while real-time processing handles large volumes but with operational in

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    Transaction processing systems process financial transactions through transaction cycles like expenditure, revenue, and conversion. There are three types of accounting records used - documents, journals, and ledgers. Documents provide evidence of economic events and are used to initiate transactions. Journals chronologically record transactions, and ledgers reflect the financial effects of transactions in accounts. Accounting records in computer systems are stored in master, transaction, reference, and archive files. Properly documenting systems using tools like data flow diagrams, entity relationship diagrams, and flowcharts is important for accountants. Computer-based accounting systems can be batch or real-time, with batch processing having fewer resources but potential time delays, while real-time processing handles large volumes but with operational in

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    © All Rights Reserved
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    63 views3 pages

    Ais-Ch 2

    Uploaded by

    Chua Kimberly
    Transaction processing systems process financial transactions through transaction cycles like expenditure, revenue, and conversion. There are three types of accounting records used - documents, journals, and ledgers. Documents provide evidence of economic events and are used to initiate transactions. Journals chronologically record transactions, and ledgers reflect the financial effects of transactions in accounts. Accounting records in computer systems are stored in master, transaction, reference, and archive files. Properly documenting systems using tools like data flow diagrams, entity relationship diagrams, and flowcharts is important for accountants. Computer-based accounting systems can be batch or real-time, with batch processing having fewer resources but potential time delays, while real-time processing handles large volumes but with operational in

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    of 3

    .

    Chapter 2/ The Information System: An Accountant’s Perspective


    Reporters:
    1.
    2.
    3.
    4.
    5.
    6.
    Reactors:
    1.
    2.
    3.
    4.
    5.
    6.
    Summary Report

    Transaction Processing System is an applications process financial transactions. A


    financial transaction is an economic event that affects the asset & equities of the firm,
    reflected in accounts, & is measured in monetary terms. To deal efficiently with the
    transactions, business firms group similar types into transaction cycles. There are 3
    transaction cycle namely, expenditure cycle, revenue cycle, & conversion cycle, this
    cycles exists in profit/non-profit business.
    There are 3 types of accounting record used in transaction cycles. Documents, journals,
    & ledgers. Document provides evidence of an economic event & may be used to initiate
    transaction processing. Three types of documents are source document, product
    document, & turnaround document. Source documents are created at the beginning of
    transaction, while product document is the result of transaction processing, lastly
    turnaround document become source document for another system. Journals is a
    record of a chronological event. It holds complete record of transaction. There are 2
    kinds of journal, special journal & general journal. Special journals records most
    frequently occurring transactions, as well as high volume while general journal records
    non-recurring transactions. Ledger is a book of accounts that reflects the financial
    effects of the firm’s transactions after they are posted from the various journals. There
    are 2 kinds of ledgers also, general ledger which contains firm’s account information in
    the form of summarized control accounts, another one is subsidiary ledger which
    contains the detailed account information, it’s like a breakdown of general ledger.
    For tracing transactions from source documents to the financial statements, these
    records provide an audit trail. It provides record of changes that’ve been made to
    database/file.
    Accounting records in computer-based systems are represented by four different types
    of magnetic files: master file which generally contains the original data, transaction files
    which is temporary file of transaction records used to change/update data in master file,
    reference file that stores data that are used as standards for processing transactions,
    last is archive file that contains records of past transactions & retained for future
    reference.
    The ability to document systems in graphic form is thus an important skill for
    accountants to master. So it’s important to have documentation techniques: data flow
    diagrams, entity relationship diagrams, system flowcharts, program flowcharts, & record
    layout diagrams. Data flow diagram (DFD) uses symbols to represent that pertain to a
    system. Entity relationship (ER) diagrams are used to represent the relationship
    between physical resources. System flowchart is the graphical representation of the
    physical relationships among key elements of a system.
    Computer-based accounting systems fall into two broad classes: batch systems and
    real-time systems. Batch systems assemble transactions into groups for processing,
    while real-time systems process transactions individually at the moment the event
    occurs. When it comes to resources, batch processing has fewer resources than real-
    time. Real-time processing in systems that handle large volumes of transactions each
    day can create operational inefficiencies.
    Finally, data coding schemes and their role in transaction processing and AIS as a
    means of coordinating and managing a firm’s transactions. There’s numeric and
    alphabetic coding schemes: sequential codes, block codes, group codes, alphabetic
    codes, mnemonic codes, with their own advantages & disadvantages.
    Summary of discussion:
    Q: Among the 4 kinds of codes, which will be the most useful when it comes to
    business?
    A: It depends on company & its situation, example when a company has more sales, it
    will be more useful to use the alphanumeric, there’s more combination than other
    codes.
    Q: Give a problem that batch processing may encounter.
    A: There may be a problem with regards to time lapse.
    Q: Give 1 advantage of real-time processing.
    A: The process is easier, due to the fact that you just encode, no need to sort it.
    Q: Do we need to learn the transaction cycle if we’re going to have a business?
    A: Yes, so you will know when to spend, when to produce goods, and to know if you’re
    profiting.
    Q: Aside from the disadvantages ,in topic of computer-based vs manual-based, that
    you’ve given what other disadvantages can you give to us.
    A: Manual-based needs more time & man-power, while in computer-based it costs
    millions, and when you commit mistake, it will be costly.

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