CHAPTER 1: FINANCIALAPPLICATIONS

Fundamentals of accounting

Definition of accounting-It is a systematic process of identifying, recording, measuring,

classifying, verifying, summarizing, interpreting and communicating financial information. It
reveals profit or loss for a given period, and the value and nature of a firm's assets, liabilities and
owners' equity. Accounting provides information on the. Basic Accounting Principles
Accounting assumptions and principles provide the bases in preparing, presenting and
interpreting general-purpose financial statements. The basic principles that accountants follow
include:1.Accrual – Income is recognized when earned regardless of when collected, and
expenses are recognized when incurred regardless of when paid.2.Going Concern – Also known
as continuing concern concept or continuity assumption, it means that a business entity will
continue to operate indefinitely.3.Accounting Entity Concept – A specific business enterprise is
treated as one accounting entity, separate and distinct from its owners.4.Time Period Assumption
– The indefinite life of an enterprise is subdivided into time periods or accounting periods which
are usually of equal length for the purpose of preparing financial reports.5.Monetary Unit
Assumption – Transactions are recorded in terms of money (quantifiability). The currency used
has a stable purchasing power (stability).Elements of Accounting the elements of accounting
pertain to assets, liabilities, and capital. Assets are resources owned by a company; liabilities are
obligations to creditors and lenders; and capital refers to the interest of the owners in the business
after deducting all liabilities from all assets (or, what is left for the owners after all company
obligations are paid).Assets: Assets can be classified as current or non-current. An asset is
considered current if it is for sale, if it can be realized within 12 month from the end of the
accounting period or within the company's normal operating cycle if it exceeds 12 months. In
addition, cash is generally considered current asset. Current assets include: Cash and Cash
Equivalents, Marketable Securities, Accounts Receivable, Inventories, and Prepaid Expenses.
Assets that do not meet the criteria to be classified as current are, by default, non-current assets.
Examples of non-current assets are:

Long-term Investments; Property, Plant and Equipment; and Intangibles.

Liabilities: Liabilities can also be classified as current or non-current. A liability is considered

current of they are payable within 12 months from the end of the accounting period, or within the
company's normal operating cycle if the cycle exceeds 12 months. Current liabilities include:
Accounts Payable, Short-term Notes Payable, Tax Payable, Accrued Expenses, and other short-
term obligations. Non-current liabilities include those that do not meet the above criteria.
Examples of non-current liabilities are: Loans Payable and Bonds Payable which are long-term
in nature, and Deferred Tax Liabilities. Capital: Capital refers to the interest of the owner/s of the
business. The owner's interest is the value of total assets left after all liabilities to creditors and
lenders are settled. Capital is increased by contributions by the owner/s and income. It is
decreased by withdrawals by owners (dividends in corporations) and expenses. Income: Income
refers to an increase in assets or decrease in liability, and an increase in capital other than that
arising from contributions made by owner/s. Examples of income accounts include: Sales,
Service Revenue, Professional Fees, Interest Income, Rent Income, and others. Expense:
Expenses result in decrease in assets or increase in liabilities, and decrease in capital other than
those arising from withdrawals of the owner/s. Some examples are: Cost of Sales, Salaries
Expense, Rent Expense, Utilities Expense, Delivery Expense, and others. Accounting Equation
The accounting equation shows the relationships between the accounting elements: assets,
liabilities and capital. The basic accounting equation is: Assets = Liabilities + Capital list shows
that assets owned by a company are coupled with claims by creditors and lenders, and by the
owners of the business.When business transactions take place, the values of the elements in the
accounting equation change. Nonetheless, the equation always stays in balance. This is due to the
two-fold effect of transactions. The total change on the left side is always equal to the total
change on the right. Thus, the resulting balances of both sides are equal. The accounting equation
may be rewritten as: Liabilities = Assets - Capital, or Capital = Assets - Liabilities. The capital
element may also be spread-out into its components, and thus resulting into the expanded
accounting equation :Assets = Liabilities + Capital - Withdrawals + Income - Expenses or Assets
= Liabilities + (Capital, beginning + Additional Contributions - Withdrawals + Income -
Expenses)Double Entry Accounting System The double entry accounting system recognizes a
two-fold effect in every transaction. Thus, business transactions are recorded in at least two
accounts. Under the double entry accounting system, transactions are recorded through debits
and credits. Debit means left. Credit means right. The effect of recording in debit or credit
depends upon the normal balance of the account debited or credited. The general rules are: to
increase an asset, you debit it; to decrease an asset, you credit it. The opposite applies to
liabilities and capital: to increase a liability or a capital account, you credit it; to decrease a
liability or a capital account, you debit it. Expenses are debited when incurred, and income is
credited when earned. The Accounting Cycle The accounting cycle is a sequence of steps in the
collection, processing, and presentation of accounting information. It is made up of the following
steps:1.Identifying and analyzing business transactions and events2.Recording transactions in the
journals3.Posting journal entries to the ledger4.Preparing an unadjusted trial balance5.Recording
and posting adjusting entries6.Preparing an adjusted trial balance7.Preparing the financial
statements8.Recording and posting closing entries9.Preparing a post-closing trial balance
Reversing entries may be prepared at the beginning of the new accounting period to enable a
smoother recording process. In this step, some adjusting entries are simply reversed.
Nevertheless, reversing entries are optional. Bookkeeping vs Accounting It is very common for
non-accountants to think that bookkeeping and accounting are of the same thing. Although they
both involve the process of recording the financial transactions of a business, bookkeeping and
accounting are two different topics. Bookkeeping is the process of recording, in chronological
order, the daily transactions of a business entity. It forms part of the accounting information
system.

Accounting is an information system – includes the process of recording, classifying,

summarizing, reporting, analyzing and interpreting the financial condition and performance of a
business – in order to communicate it to stakeholders for business decision making.IllustrationTo
provide a clear understanding of the difference between bookkeeping and accounting, take a look
at this sample illustration. Imagine there‘s one piece of apple pie divided into 6 slices. Each slice
was given a corresponding name as recording, classifying, summarizing, reporting, analyzing,
and interpreting. The whole one piece of apple pie is called the accounting information system
which represents accounting. On the other hand, bookkeeping represents one slice of the apple
pie which is recording. The Accounting Process Bookkeeping and Transaction Entry system
Systematic recording of financial aspects of business transactions in appropriate books of
account Bookkeeping is the recording, on a day-today basis of the financial transactions and
information pertaining to a business. Entry systems: Two common bookkeeping systems used by
businesses and other organizations are the single-entry bookkeeping system and the double-entry
bookkeeping system. Single-entry bookkeeping uses only income and expense accounts,
recorded primarily in a revenue and expense journal. Single-entry bookkeeping is adequate for
many small businesses. Double-entry bookkeeping requires posting (recording) each transaction
twice, using debits and credits. Page 9 of 129Single-entry system The primary bookkeeping
record in single-entry bookkeeping is the cash book, which is similar to a checking (cheque)
account register but allocates the income and expenses to various income and expense accounts.
Separate account records are maintained for petty cash, accounts payable and receivable, and
other relevant transactions such as inventory and travel expenses. These days, single entry
bookkeeping can be done with DIY bookkeeping software to speed up manual calculations.
Double-entry system a double-entry bookkeeping system is a set of rules for recording financial
information in a financial accounting system in which every transaction or event changes at least
two different nominal ledger accounts. Double-entry bookkeeping, in accounting, is a system of
bookkeeping so named because every entry to an account requires a corresponding and opposite
entry to a different account. For instance, recording earnings of $100 would require making two
entries: a debit entry of $100 to an account called "Cash" and a credit entry to an account called
"Income. “In the double-entry accounting system, two accounting entries are required to record
each financial transaction. These entries may occur in asset, liability, income, expense, or capital
accounts. Recording of a debit amount to one or more accounts and an equal credit amount to
one or more accounts results in total debits being equal to total credits for all accounts in the
general ledger. If the accounting entries are recorded without error, the aggregate balance of all
accounts having positive balances will be equal to the aggregate balance of all accounts having
negative balances. Accounting entries that debit and credit related accounts typically include the
same date and identifying code in both accounts, so that in case of error, each debit and credit
can be traced back to a journal and transaction source document, thus preserving an audit trail.
The rules for formulating accounting entries are known as "Golden Rules of Accounting". The
accounting entries are recorded in the "Books of Accounts". Regardless of which accounts and
how many are impacted by a given transaction, the fundamental accounting equation A = L + OE
will hold, i.e. assets equals liabilities plus owner's equity.

Ledgers A ledger is a record of accounts. These accounts are recorded separately showing their
beginning/ending balance. A journal lists financial transactions in chronological order without
showing their balance but showing how much is going to be charged in each account. A ledger
takes each financial transaction from the journal and records it into the corresponding account for
every transaction listed. The ledger also sums up the total of every account which is transferred
into the balance sheet and income statement. There are 3 different kinds of ledgers that deal with
book-keeping. Ledgers include: Sales ledger, which deals mostly with the accounts receivable
account. This ledger consists of the financial transactions made by customers to the
business.Purchase ledger is a ledger that goes hand and hand with the Accounts Payable
account. This is the purchasing transaction a company does.General ledger representing the
original 5 main accounts: assets, liabilities, equity, income, and expenses The ledger is a special
book in which transactions are recorded. In other words, a book in which accounts are kept. The
ledger differs from other books in the way columns are drawn to record transactions as
follows:DrThe LedgerCrDateDetailsFolioAmountDateDetailsFolioAmount$$Types of ledger: In
a real business, there are so many accounts to keep and each account may need lots of space to
record transactions for the whole accounting year. For this reason, a business usually keeps, not
one, but several ledgers. These ledgers are classified into three types:

Sales Ledger

The book (or set of books) in which the personal accounts of credit customers are kept. A credit
customer is also called a debtor. The balance of a customer‘s account shows the amount that the
customer owes the business. Therefore, the total of balances in the sales ledger is the total
amount the business is owed by its credit customers. This amount is called trade receivables or
accounts receivables. Trade receivables is shown as a current asset in the balance sheet.

Purchases Ledger

The book (or set of books) in which the personal accounts of credit suppliers are kept. A credit
supplier is also called a creditor. The balance of a supplier‘s account shows the amount that
the business owes the supplier. Therefore, the total of balances in the purchases ledger is the
total amount the business owes by its credit suppliers. This amount is called trade payables or
accounts payables. Trade payables is shown as a current liability in the balance sheet.

General Ledger

The book (or set of books) in which all other accounts are kept.

Account categories and debits and credits

The kind of impact (debit or credit) that a transaction makes on each ledger account depends on
which of five chart of account categories the accounts belong to. First, there are the so-called
"balance sheet" account categories: 1. Asset accounts: Things of value that are owned and used
by the business. Example: Cash on hand Example: Accounts receivable2. Liability accounts:
Debts that are owed by the business. Example: Accounts payable Example: Salaries
payable3. Equity accounts: The owner's claim to business assets.

Example: Owner capital

Example: Retained earnings Secondly, there are the so-called "income statement" account
categories: 4. Revenue accounts: The amounts earned from the sale of goods and services, or
investment income, or extraordinary income. Example: Product sales revenues

Example: Interest earned revenues5. Expense accounts: Costs incurred in the course of business.
Example: Direct labor costs Example: Advertising expenses in practice, even a small
organization may list a hundred or more such accounts as the basis for its accounting system, and
very large and complex organizations may use many more. Nevertheless, for bookkeeping and
accounting purposes, all named accounts fall into one of the five categories above. Every
financial transaction brings as a journal entry, then becomes a ledger entry, with at least two
equal and offsetting account changes. The change in one account is called a debit (DR) and the
change in another account called a credit (CR). Whether a debit or a credit increases or decreases
the account balance depends on the kind of account involved.

Recording TransactionsCredit an entry in the right hand column of an account; credits increase
liability, income, and equity accounts and decrease asset and expense accountsDebit an entry in
the left hand column of an account to record a debt; debits increase asset and expense accounts
and decrease liability, income, and equity accountsAccount A registry of pecuniary
transactions; a written or printed statement of business dealings or debts and credits, and also of
other things subjected to a reckoning or review Accounts The simplest ledger account structure is
shaped like the letter T. The account title and account number appear above the T. Debits
(abbreviated Dr.) always go on the left side of the T, and credits (abbreviated Cr.) always go on
the right. Accountants‘record increases in asset, expense, and owner's drawing accounts on the
debit side, and they record increases in liability, revenue, and owner's capital accounts on the
credit side. An account's assigned normal balance is on the side where increases go because the
increases in any account are usually greater than the decreases. Therefore, asset, expense, and
owner's drawing accounts normally have debit balances. Liability, revenue, and owner's capital
accounts normally have credit balances. To determine the correct entry, identify the accounts
affected by a transaction, which category each account falls into, and whether the transaction
increases or decreases the account's balance. You may find the following chart helpful as a
reference. Occasionally, an account does not have a normal balance. For example, a company's
checking account (an asset) has a credit balance if the account is overdrawn.

Page 14 of 129The way people often use the words debit and credit in everyday speech is not
how accountants use these words. For example, the word credit generally has positive
associations when used conversationally: in school you receive credit for completing a course, a
great hockey player may be a credit to his or her team, and a hopeless romantic may at least
deserve credit for trying. Someone who is familiar with these uses for credit but who is new to
accounting may not immediately associate credits with decreases to asset, expense, and owner's
drawing accounts. If a business owner loses $5,000 of the company's cash while gambling, the
cash account, which is an asset, must be credited for $5,000. (The accountant who records this
entry may also deserve credit for realizing that other job offers merit consideration.) For
accounting purposes, think of debit and credit simply in terms of the left‐hand and right‐hand
side of a T account. Working Example of Account transaction Suppose, for example, that a
company acquires assets valued at $100,000. The journal entry for the acquisition will show that
an asset account increases $100,000, perhaps asset account "factory manufacturing equipment."
Because this is an asset account, its balance increase is called a debit. However, the balance sheet
may now be temporarily out of balance until there is an offsetting credit of $100,000 to another
account, somewhere in the system. This could be, for instance:  A credit of $100,000 to another
asset account, reducing that account value by $100,000. This could be the asset account "cash on
hand."If instead of cash, the asset purchase is financed with a bank loan, the offsetting
transaction in the journal entry could be a credit to a liability account such as "bank loans
payable," increasing that account value by $100,000.The debit and the credit from the acquisition
will be shown together in the journal entry, but when transferred to the ledger, they will each
impact a different account summary (see the journal and ledger entry examples below).When the
journal entry is complete, the basic accounting equation holds and the balance sheet stays
balanced: Assets = Liabilities + Equities And, for the account journal entries that follow from a
single transaction: Debits = Credits The bookkeeper or accountant dealing with journal and
ledger entries faces one complication, however, in that not all accounts work additively with
each other on the primary financial accounting reports—especially on the income statement and
balance sheet. There are cases where one account offsets the impact of another account in the
same category. These are the contra accounts that "work against" other accounts in their own
categories. In some cases, the contra accounts reverse the debit and credit rules in Exhibit 3
above.

Page 15 of 129For example, an "accounts receivable" account and an "allowance for doubtful
accounts" account are both asset accounts. Accounts receivable is said to carry a debit balance,
meaning that debits to this account increase the account balance. "Allowance for doubtful
accounts," however, is a contra asset account that ultimately reduces the impact (balance)
contributed by "accounts receivable." "Allowance for doubtful accounts" carries a credit balance,
meaning that its value is increased by a credit transaction. When these journal entries make their
way into the ledger and then the financial reports, the balance sheet result is a "net accounts
receivable" less than the "accounts receivable" value. In any case, the bookkeeper or accountant
working with journal entries needs to have a complete knowledge of the organization's chart of
accounts and a solid command of double entry bookkeeping rules—or else, accounting software
that provides clear guidance and good error checking. Bookkeeping Basics to Remember When
recording an Accounting transaction or journal entry in accounting software such as QuickBooks
Pro or Sage Accounting (Peachtree), program, one account is debited and another account is
credited. In some cases, two accounts may receive the debit or credit. But the total amount of the
debit must equal the total amount of the credit. For some transactions, the Accounting software
available today automatically chooses one of the accounts to either debit or credit, and the user
need only select the other account. For instance, when writing a check, the software knows to
credit Cash (or Checking), and the user just needs to know which account should receive the
debit. However, when posting journal entries, one must know which accounts both debit and
credit. If you're new to Accounting or Bookkeeping, check out some of our beginners' tutorials
on the right sidebar - especially accounting: Making Sense of Debits and Credits. Now, let's
begin! Example 1: Owner invests $5,000 in the company. Analysis: Since money is deposited
into the checking account, Cash is debited (the balance increased by $5,000). What account
receives a credit? An Equity account called Owner‘s Equity or Capital Contribution. Since
Equity accounts are ̳negative‘accounts, crediting this Equity account increases its balance by
$5,000.Debit Cash (increase its balance) Credit Owner‘s Equity (increases its balance) Page 16
of 129Example 2: The Company borrowed $8,000 from a bank. Analysis: Since the money will
be deposited into the checking account, Cash is debited (the balance increased by $8,000.) The
account to receive the credit is a Liability account called Loans Payable (you may create a
separate account or sub-account for each loan). Liability accounts are credit accounts, so
crediting the Liability account increases its negative balance by $8,000 (move to the left on the
number line).Debit Cash (increases its balance)Credit Loans Payable (increases its
balance)Example 3: Your bank charges you a $14 a month statement fee. Analysis: This
transaction is entered via a journal entry each month when the statement fee is identified on the
bank statement. Since money was removed from the checking account, Cash must be credited
(the balance decreased by $14). The Expense account called Bank Service Charges will receive
the debit. Debit Bank Fees (increases its balance) Credit Cash (decreases its balance) Example 4:
You pay $540, via check, on the $8,000 loan acquired in Example 2. Of this amount, $500 is
applied to the principal, and $40 is loan interest. Analysis: Since a check is being written, the
Accounting software will automatically credit Cash. In this case the debit is split between two
accounts. To reflect the $500 that has been applied to the loan balance, debit the loan account.
(Since it is a liability account, a debit will reduce its balance, which is what you want.) The $40
interest paid is an expense, so debit the expense account called Interest. Remember that even
though the debit is split between two accounts, the total debit must always equal the total credit.
Debit Loans Payable $500 (decreases its balance) Debit Interest Expense $40 (increases its
balance) Credit Cash $540 (decreases its balance) Example 5: the Company wrote a check for
$8,500 of equipment. Analysis: Since a check was written, QBP will automatically credit Cash.
We will debit an Asset account called Equipment or something similar. Note: Remember, if you
purchase an item for more than about $500, you should depreciate the item; not expense it. ($500
is a "rule of thumb," but I am not suggesting you use it.) So the Asset account receives the debit
instead of an expense account. To record the depreciation, journal entries would be entered for
one or more years. Always consult with your Accountant when purchasing company assets.
Debit Equipment (increases its balance) Credit Cash (decreases its balance) [Remember: A debit
adds a positive number and a credit adds a negative number. But you NEVER put a minus sign
on a number you enter into QBP.]

Page 17 of 129Example 6: the Company wrote a check for $318 of office supplies. Analysis:
Since a check was written, QBP will automatically credit Cash. We debit the Expense account
called Office. Debit Office (increases its balance) Credit Cash (decreases its balance) Example 7:
the Company purchased $300 of office supplies on credit and you entered a bill into QBP.
Analysis: When you enter a bill, QBP automatically credits the Liability account called Accounts
Payable. And since you purchased office supplies, the Office expense account is debited. Debit
Office (increase its balance) Credit Accounts Payable (increases its balance) Example 8: You
paid the bill for $300 of office supplies purchased in Example 7. Analysis: When the bill was
entered, Office was debited and A/P was credited. Now as we write a check to pay the bill, QBP
will automatically credit Cash. And QBP will debit Accounts Payable - in effect, reversing the
earlier credit. Debit Accounts Payable (decreases its balance) Credit Cash (decrease its balance)
Example 9: the Company paid $450 cash for Product A - a COGS part. Analysis: When you
write the check, QBP will automatically credit Cash. In the check window, choose the COGS
account from the Expenses tab, or choose an Item from the Items tab and then the COGS account
associated with the Item will be debited. Debit COGS (increase its balance) Credit Cash
(decrease its balance) Example 10: the Company sold Product A for $650 cash. Analysis: When
you enter the cash sale, QBP automatically debits Cash (or you could choose to deposit to
Undeposited Funds - see Example 14). You will have to choose an Item for the sale ... it might
be ―Prod A income‖ and associated with the Sales account. Debit Cash (increases its balance)
Credit Sales (increases its balance)

Page 18 of 129Example 11: the Company sold Product A for $650 on credit. Analysis: When
you create an invoice, you must specify an Item for each separate charge on the invoice. QBP
will automatically credit the revenue account(s) associated with these Items. And QBP
automatically debits the Invoice amount to A/R. Debit Accounts Receivable (increases the
balance) Credit Sales (increases the balance) Example 12: the Company received a payment for
the $650 invoice above. Analysis: When you created the invoice, QBP automatically debited the
A/R account. When you post the invoice payment, QBP will automatically credit A/R - in effect
reversing the earlier debit. QBP will debit Cash. Debit Cash (increases the balance) Credit A/R
(decreases the balance) Example 13: The owner’s writes himself a check for $1,000. Analysis:
Since a check was written, QBP will automatically credit Cash. The account you chose for the
debit is and Equity account called Draw (Sole Proprietor) or Distribution (Corporation). Note:
These are the only non-contra Equity accounts that are positive accounts and receive debits.
Debit Owner‘s Draw (increases its balance)Credit Cash (decrease its balance)Ledger accounts
and their balancing Cash A/C Dr Cr Particular Amount Particular Amount Investment Loan
Sales 50008000650Equipment Bank charge Loan payment Office supply Debtor Purchases Bal
c/d85001454031830045035281012210122Bal b/

Figure 2. Marking a list item inactive only removes it from drop-down lists, not reports.
However, do not make an inventory type inactive if QuickBooks still shows available inventory
quantity.3.ClassAnother method for segmenting your QuickBooks financial information is by
using classes. The use of classes is a preference setting and must first be enabled by logging in to
the data file as the Admin or External Accountant user. To enable classes, follow these steps:
1.From the menu bar, select Edit, Preferences. 2. In the Preferences dialog box, select the
Accounting preference on the left.3.Select the Company Preferences tab.4.Select the Use Class
Tracking for Transactions checkbox, as shown in Figure 3 below. Figure 3. Class tracking
provides another method for financial reporting for management purposes.5.Click OK to save
your changes and close the dialog box. Classes are typically used when a company has multiple
revenue-generating business types or multiple profit centers. These class list items are then
assigned to each transaction, as in Figure 4. Examples of classes might be a construction
company that offers either new construction or remodeling services, or a restaurant with multiple
locations. In both examples, using classes that are assigned to each transaction line for both
revenue and costs enables you to report profit and loss by class. Figure 4. Assigning a class list
item to a check transaction line provides additional management-reporting
capabilities.4.Customer/Supplier Type You can use customer types to categorize your customers
in ways that are meaningful to your business. A retailer might use customer types to track retail
versus wholesale; a medical office might track types of services; a service company might track
what marketing event brought in the customer. You can filter certain reports by these customer
types, giving you critical information for making business management decisions. These
customer types can also be useful for marketing purposes when you want to direct a letter to a
specific customer type. To create or edit a customer record and assign a customer type, follow
these steps: 1.On the Home page, click the Customers button. Optionally, use the shortcut
Ctrl+J.2.Double-click to select a customer name in the list that displays.3.In the Edit Customer
dialog box, click the Additional Info tab and select a type from the Type drop-down list.
Optionally, select <Add New> from the drop-down list to add a new type, as shown in Figure 5.
Figure 5. Assign a customer type for additional segmented reporting.4.Click OK to save your
changes. Many of the customer reports can be filtered by customer type, making it another useful
list for management reporting.

Transactions in QuickBooks

1. Buying and selling

A sale is the exchange of a commodity or money as the price of a good or a service with a
customer. Sales (plural only) is activity related to selling or the amount of goods or services sold
in a given time period as recorded in the book/QuickBooks system.

A Purchase is the exchange of a commodity or money as the price of a good or a service with a
seller. Purchases (plural only) is activity related to buying or the amount of goods or services
bought in a given time period as recorded in the book/QuickBooks system. All buying and
selling is done in QuickBooks from the Supplier and customer area respectively (Supplier/
Customer menu or Group on the Home navigation area) Purchases in QuickBooks we can buy in
two ways (use two document of transaction)

1)Purchase order: Used if the transaction involved an order issued for items that will be
delivered and payment made on delivery or after Procedure: Make a Purchase order for good
ordered – Receive good with/without Bill for goods received – Pay bill(then/Later) for bill
received

2)Bill: Used if the transaction involved items received on the counter on request and payment
made on promptly or after Procedure: Enter a bill of good bought – Enter payment if good were
paid or let the bill outstand till when it will be paid
Sales

In QuickBooks we can buy in two ways (use two document of transaction) 3)

Invoice: Used if the transaction involved items given on the counter (or on sale order) on request
and payment made after.

Procedure: Make an Invoice to outstand debt with customer – Enter Receive payment for
amount cleared by a customer – Record deposit to bank4)

Receipt: Used if the transaction involved items given on the counter on request and payment
made promptly

Procedure: Make an Receipt for items sold cash to a customer – Record deposit to bank

QuickBooks Account Activities

a) Journal entry- journal entry is the record of a financial transaction entered into a journal. The
journal details all the financial transactions of the business and it makes note of which accounts
these transactions affected. All journal entries are made using either the double entry or single
entry method of bookkeeping.

The Purpose of Journal Entries

 Journal entries provide foundational information for all of a business's other financial
reports. They're used by auditors to analyze how financial transactions impact a business.
 Each entry should include the date of the transaction, the parties involved, a debit from at
least one account, a credit to at least one other account, a receipt or check number, and a
memo describing other details involved in the transaction– anything you might not be
likely to remember months or years later.
 If you purchase and use accounting system software, it will most likely take care of all
these details for you. But you should be able to handle your journal entries and ledger
yourself with some basic understanding of the process if you don't think that kind of
expense is necessary quite yet because you're just starting out.
Double Entry Accounting with Journal entry

A journal entry using the double entry method of accounting includes a variety of information in
various columns on the same line. In a double entry system, you might have a debit for the
computer purchase, then a credit or increase to your overall office equipment expenses would
appear on the same line but in a different column to offset the debit. These columns should be
equal, such as -$2,000 as the debit and +$2,000 for the credit.

You might have to use even more columns depending on the nature of your entry, but at a
minimum, there should be two, one each for debits and credits. Double entry accounting
typically makes a journal entry not for the transaction itself, but for the account it affects: assets,
liabilities, equity, revenue and expenses. Debits and credits to each are all noted on the same line.

At the end of the year or any other accounting period you select, all your journal entries for
debits should correspond to and equal your journal entries for total credits. This means your
account is "balanced."

b) Moving Money between Accounts

Note, the process of moving cash from one bank account to another within the same business is
NOT income when it comes to recording the transaction in QuickBooks (though that would be
nice for sure!).

Rather, all that is being done in this case is the transfer of funds from one asset account to
another within the same business. Example - a business transfers $10,000 from a Checking
account into a Savings account to put the money away for a rainy day.

c) To make deposit, follow these steps:

1. Choose Banking → Make Deposits. ...

2. Select the payments that you want to deposit. ...

3. Click OK. ...

4. Tell QuickBooks into which bank account you want to deposit the money. ...

5. Specify the deposit date. ...

6. (Optional) Add a memo description if you want to.

7. Specify the cash-back amount.

Reporting on Lists

With a QuickBooks file created and lists entered, you can now review the efforts of your work.
Let’s start with a simple listing of your vendors.

1. From the menu bar select Reports, List. Take a moment of your time to review the many lists
available for reporting on in this menu. Some lists will display only if the associated preference
in QuickBooks is enabled.
2. Select the Vendor Contact List. Optionally, click the Customize Report button.
3. The Modify Report dialog opens with the Display tab selected. From the Columns listing, add
or remove checkmarks to include or exclude information from the list report.
4. Click OK when finished.
Reviewing your lists before you begin entering transactions can ensure that the information
provided in reports is correct. Types of report likely to matter in a business and procedure to
access them

Trial balance– A list of all business account balancing

CHAPTER 2: COMPUTER AIDED DESIGN (CAD)

Fundamental of technical drawing Technical drawing, also known as drafting or draughting, is

the act and discipline of composing plans that visually communicate how something functions or
is to be constructed. Technical drawing is essential for communicating ideas in industry and
engineering. To make the drawings easier to understand, people use familiar symbols,
perspectives, units of measurement, notation systems, visual styles, and page layout. Together,
such conventions constitute a visual language, and help to ensure that the drawing is
unambiguous and relatively easy to understand. This need for precise communication in the
preparation of a functional document distinguishes technical drawing from the expressive
drawing of the visual arts. Artistic drawings are subjectively interpreted; their meanings are
multiply determined. Technical drawings are understood to have one intended meaning. A
drafter, draftsperson, or draughtsman is a person who makes a drawing (technical or expressive).
A professional drafter who makes technical drawings is sometimes called a drafting technician.
Methods of technical drawing1. Sketching A sketch is a quickly executed, freehand drawing that
is not intended as a finished work. In general, sketching is a quick way to record an idea for later
use. Architect's sketches primarily serve as a way to try out different ideas and establish a
composition before undertaking a more finished work, especially when the finished work is
expensive and time consuming. Architectural sketches, for example, are a kind of diagrams.
These sketches, like metaphors, are used by architects as a means of communication in aiding
design collaboration. This tool helps architects to abstract attributes of hypothetical provisional
design solutions and summarize their complex patterns, hereby enhancing the design process.2.
Manual or by instrument The basic drafting procedure is to place a piece of paper (or other
material) on a smooth surface with right-angle corners and straight sides—typically a drawing
board. A sliding straightedge known as a T-square is then placed on one of the sides, allowing it
to be slid across the side of the table, and over the surface of the paper. "Parallel lines" can be
drawn simply by moving the T-square and running a pencil or technical pen along the T-square's
edge. The T-square is used to hold other devices such as set squares or triangles. In this case the
drafter places one or more triangles of known angles on the T-square—which is itself at right
angles to the edge of the table—and can then draw lines at any chosen angle to others on the
page. Modern drafting tables come equipped with a drafting machine that is supported on both
sides of the table to slide over a large piece of paper. Because it is secured on both sides, lines
drawn along the edge are guaranteed to be parallel. In addition, the drafter uses several technical
drawing tools to draw curves and circles. Primary among these are the compasses, used for
drawing simple arcs and circles, and the French curve, for drawing curves. A spline is a rubber
coated articulated metal that can be manually bent to most curves.

Types of technical drawings

The two types of technical drawings are based on graphical projection. This is used to create an
image of a three-dimensional object onto a two-dimensional surface.Two-dimensional
representation: uses orthographic projection to create an image where only two of the three
dimensions of the object are seen.Three-dimensional representation: also referred to as a
pictorial, all three dimensions of an object are visible.Views1. A section, or cross-section, is a
view of a 3-dimensional object from the position of a plane through the object.A cross section is
a common method of depicting the internal arrangement of a 3-dimensional object in two
dimensions. It is often used in technical drawing and is traditionally crosshatched. The style of
crosshatching indicates the type of material the section passes through.A 2-D cross-sectional
view of a compression seal.2. An elevation is a view of a 3-dimensional object from the position
of a vertical plane beside an object. In other words, an elevation is a side-view as viewed from
the front, back, left or right (and referred to as a front elevation, [left/ right] side elevation, and a
rear elevation). It is the corollary to the concept of a "view" (which is always overhead and is
therefore referred to as an overhead view). An elevation is a common method of depicting the
external configuration and detailing of a 3-dimensional object in two dimensions. Building
façades are shown as elevations in architectural drawings and technical drawings. Elevations are
the most common orthographic projection for conveying the appearance of a building from the
exterior. Perspectives are also commonly used for this purpose. A building elevation is typically
labeled in relation to the compass direction it faces; the direction from which a person views it.
E.g. the North Elevation of a building is the side that most closely faces true north on the
compass.- A developed elevation is a variant of a regular elevation view in which several
adjacent non-parallel sides may be shown together, as if they have been unfolded. For example,
the north and west views may be shown side-by-side, sharing an edge, even though this does not
represent a proper orthographic projection.3. A plan is a view of a 3-dimensional object from the
position of a horizontal plane through, above, or below the object. In such views, the portion of
the object in front of the plane is omitted to reveal what lies beyond. In the case of a floor plan,
the roof and upper portion of the walls may be omitted. Elevations, top (roof) plans, and bottom
plans are orthographic projections, but they are not sections as their viewing plane is outside of
the object.A plan is a common method of depicting the internal arrangement of a 3-dimensional
object in two dimensions. It is often used in technical drawing and is traditionally cross-hatched.
The style of crosshatching indicates the type of material the section passes through.4. An
auxiliary view is a view taken from an angle that is not one of the primary views. An auxiliary
view is a view at an angle used to give deeper insight into the actual shape of the object. An
auxiliary view is used to show a slanted surface in true size and shape. This is accomplished by
providing a view that is perpendicular to the slanted surface
Meaning and importance of computer-aided design

Introduction to CAD (Computer aided design)Computer-aided design (CAD) is the use of

computer systems to assist in the creation, modification, analysis, or optimization of a design.
CAD software is used to increase the productivity of the designer, improve the quality of design,
improve communications through documentation, and to create a database for manufacturing.
CAD output is often in the form of electronic files for print, machining, or other manufacturing
operations. Computer-aided design is used in many fields. Its use in designing electronic systems
is known as electronic design automation, or EDA. In mechanical design it is known as
mechanical design automation (MDA) or computer-aided drafting (CAD), which includes the
process of creating a technical drawing with the use of computer software.CAD software for
mechanical design uses either vector-based graphics to depict the objects of traditional drafting,
or may also produce raster graphics showing the overall appearance of designed objects.
However, it involves more than just shapes. As in the manual drafting of technical and
engineering drawings, the output of CAD must convey information, such as materials, processes,
dimensions, and tolerances, according to application-specific conventions.CAD may be used to
design curves and figures in two-dimensional (2D) space; or curves, surfaces, and solids in three-
dimensional (3D) space.CAD is an important industrial art extensively used in many
applications, including automotive, shipbuilding, and aerospace industries, industrial and
architectural design, prosthetics, and many more. CAD is also widely used to produce computer
animation for special effects in movies, advertising and technical manuals, often called DCC
digital content creation. The modern ubiquity and power of computers means that even perfume
bottles and shampoo dispensers are designed using techniques unheard of by engineers of the
1960s. Because of its enormous economic importance, CAD has been a major driving force for
research in computational geometry, computer graphics (both hardware and software), and
discrete differential geometry.The design of geometric models for object shapes, in particular, is
occasionally called computer-aided geometric design (CAGD). Uses/importance of
CADComputer-aided design is one of the many tools used by engineers and designers and is
used in many ways depending on the profession of the user and the type of software in
question.CAD is one part of the whole Digital Product Development (DPD) activity within the
Product Lifecycle Management (PLM) processes, and as such is used together with other tools,
which are either integrated modules or stand-alone products, such as:Computer-aided
engineering (CAE) and Finite element analysis (FEA)Computer-aided manufacturing (CAM)
including instructions to Computer Numerical Control (CNC) machinesPhoto realistic
rendering and Motion Simulation.Document management and revision control using Product
Data Management (PDM).CAD is also used for the accurate creation of photo simulations that
are often required in the preparation of Environmental Impact Reports, in which computer-aided
designs of intended buildings are superimposed into photographs of existing environments to
represent what that locale will be like, where the proposed facilities are allowed to be built.
Potential blockage of view corridors and shadow studies are also frequently analyzed through the
use of CAD.CAD has been proven to be useful to engineers as well. Using four properties which
are history, features, parameterization, and high level constraints. The construction history can be
used to look back into the model's personal features and work on the single area rather than the
whole model. Parameters and constraints can be used to determine the size, shape, and other
properties of the different modeling elements. The features in the CAD system can be used for
the variety of tools for measurement such as tensile strength, yield strength, electrical or electro-
magnetic properties. Also its stress, strain, timing or how the element gets affected in certain
temperatures, etc.Types of CADThere are several different types of CAD, each requiring the
operator to think differently about how to use them and design their virtual components in a
different manner for each.There are many producers of the lower-end 2D systems, including a
number of free and open source programs. These provide an approach to the drawing process
without all the fuss over scale and placement on the drawing sheet that accompanied hand
drafting, since these can be adjusted as required during the creation of the final draft.3D
wireframe is basically an extension of 2D drafting (not often used today). Each line has to be
manually inserted into the drawing. The final product has no mass properties associated with it
and cannot have features directly added to it, such as holes. The operator approaches these in a
similar fashion to the 2D systems, although many 3D systems allow using the wireframe model
to make the final engineering drawing views.3D "dumb" solids are created in a way analogous to
manipulations of real world objects (not often used today). Basic three-dimensional geometric
forms (prisms, cylinders, spheres, and so on) have solid volumes added or subtracted from them,
as if assembling or cutting real-world objects. Two-dimensional projected views can easily be
generated from the models. Basic 3D solids don't usually include tools to easily allow motion of
components, set limits to their motion, or identify interference between components.Solid
Modeling There are two types of solid modeling1). 3D parametric solid modeling allows the
operator to use what is referred to as "design intent". The objects and features created are
modifiable. Any future modifications can be made by changing how the original part was
created. If a feature was intended to be located from the center of the part, the operator should
locate it from the center of the model. The feature could be located using any geometric object
already available in the part, but this random placement would defeat the design intent. If the
operator designs the part as it functions the parametric modeler is able to make changes to the
part while maintaining geometric and functional relationships.2). Explicit Modellers or Direct
3D CAD Modelers provide the ability to edit geometry without a history tree. With direct
modeling once a sketch is used to create geometry the sketch is incorporated into the new
geometry and the designer just modifies the geometry without needing the original sketch. As
with Parametric modeling, Direct modeling has the ability to include relationships between
selected geometry (e.g., tangency, concentricity).Top end systems offer the capabilities to
incorporate more organic, aesthetics and ergonomic features into designs. Freeform surface
modeling is often combined with solids to allow the

designer to create products that fit the human form and visual requirements as well as they
interface with the machine.AutoCADAutoCAD stands for Automatic Computer Aided
Design.AutoCAD is a computer-aided drafting software program used to create blueprints for
buildings, bridges, and computer chips, among other things. Discover how AutoCAD is used by
drafters and other professionals. AutoCAD is a commercial software application for 2D and 3D
computer-aided design (CAD) and drafting — available since 1982 as a desktop application and
since 2010 as a mobile web- and cloud-based app marketed as AutoCAD.Developed and
marketed by Autodesk, Inc. and is used across a wide range of industries, by architects, project
managers, engineers, designers, and other professionals.Career and application Information of
AutoCADWhile drafters work in a number of specialties, the five most common specialization
areas are as follows: mechanical, architectural, civil, electrical, and electronics. Mechanical
drafters prepare plans for machinery and mechanical devices. Architectural drafters draw up
plans for residential and commercial buildings. Civil drafters draw up plans for use in the
design and building of roadways, bridges, sewer systems, and other major projects. Electrical
drafters work with electricians to prepare diagrams of wiring electrical system layouts.
Electronics drafters also prepare wiring diagrams for use in the making, installing, and repairing
of electronic gadgets. Applications for technical drawingArchitecture:To plan a renovation, this
architect takes measurements, which he later enters into his computer-aided design software.The
art and design that goes into making buildings is known as architecture. To communicate all
aspects of the shape or design, detail drawings are used. In this field, the term plan is often used
when referring to the full section view of these drawings as viewed from above. Architectural
drawings describe and document an architect's design.Engineering: Engineering can be a very
broad term. It stems from the Latin ingenerare, meaning "to create". Because this could apply to
everything that humans create, it is given a narrower definition in the context of technical
drawing. Engineering drawings generally deal with mechanical engineered items, such as
manufactured parts and equipment.Engineering drawings are usually created in accordance with
standardized conventions for layout, nomenclature, interpretation, appearance (such as typefaces
and line styles), size, etc.Its purpose is to accurately and unambiguously capture all the
geometric features of a product or a component. The end goal of an engineering drawing is to
convey all the required information that will allow a manufacturer to produce that component.

Advantages of a CAD system

Decrease in error percentage: As the CAD software makes use of some of the best tools, the
percentage of error that occurred because of manual designing is significantly reduced.

Decrease in effort: When it comes to the amount of effort that was needed for the sake of
designing the different models, it has been reduced significantly because the software automates
most of the task.

Saves time: When you are using the computer aided design software, it will save your time and
you can make better and more efficient designs in shorter time duration.

Easy to edit: When you are making designs, you may find the need to make alterations. When
you are using computer aided design software, it will be much easier to make any changes
because you can fix the errors and modify the drawings easily.
Code re-use: As the entire task is carried out with the help of computer tools, it removes the
problem of duplication of labor, you can copy the different parts of code and design which can
then be reused multiple times over and over again.

Improved accuracy: There is absolutely no doubt about the fact that the kind of accuracy that
CAD software will offer can never be achieved by opting for manual drawings. You have tools
to measure the precision, skill and accuracy level of the designs

.Easy to share: The CAD tools make it easier to save the files and store it in a way that you can
use it time and again and send it without any unwanted hassles too.Features of a CAD
systemKey Features and BenefitsDocumentAutoCAD is synonymous with documentation for
good reason.Drive your projects from concept to completion with the powerful documentation
tools in AutoCAD. Work faster with automation, management, and editing tools that minimize
repetitive tasks and speed your time to completion. No matter your project‘s size or scope, y
AutoCAD can help you meet the challenge with AutoCAD— continuously leading and
innovating documentation for over 25 years. CommunicateWith AutoCAD, communication is a
seamless operation.Share critical design data securely, efficiently, and accurately with
AutoCAD.Experience the benefits of native DWG™ support, the worlds most widely used
design data format, allowing you to keep everyone in the loop at all times. Take your ideas to the
next level with presentation-ready graphics, rendering tools, and some ofthe best plotting and 3D
printing capabilities in the business. It‘s communication at its best.ExploreAutoCAD gives you
3D power to explore your ideas in almost any shape imaginable.AutoCAD and a blank canvas
have a lot in common. Both give you the ability to create the previously unimaginable. But
AutoCAD provides the flexibility to explore design ideas in both 2D and 3D, with intuitive tools
that help your concepts become real. The world is your canvas—what will you create next?
Customize Customize and configure AutoCAD in ways you never thought possible.Your job is
unique. Your software should be as well. Customizing AutoCAD to meet your unique needs is
easier than you ever thought possible. Configure your settings, extend the software, build custom
workflows, develop your own application or leverage one already built. Some think you have to
choose between flexibility and power. With AutoCAD, you can have
both.DocumentFeatureBenefitParametric DrawingDramatically slash your design revision time
with parametric drawing. By defining persistent relationships between objects,parallel lines
remain parallel and concentric circles remain centered, all automatically.Sheet SetsOrganization
isn‘t a luxury. The AutoCAD Sheet Set Manager organizes your drawing sheets, reduces steps to
publish, automatically creates layout views, links sheet set information into title blocks and plot
stamps, and performs tasks across a sheet set so everything is in one convenient place.Annotation
ScalingSpend less time creating and managing multiple items across multiple layers. With
annotation scaling tools, you can create a single annotative-type object that automatically resizes
to reflect the current viewport or model-space scale. Text EditingNow you can easily manipulate
text by viewing, sizing, and positioning text as you type. Adjust thetext‘s appearance as needed
using familiar tools common in text-editing applications, including paragraph and column tools
to achieve professional-quality formatting. Multiple LeadersWith multileader tools, creating and
editing leaders is a breeze. Define multileader styles to provide consistency across leaders, add
multiple leader lines to a single leader object, and even include bubbles or blocks as leader
content.TablesIncrease your productivity by automating the tedious task of creating and
maintaining tables. You can define table styles to easily apply consistent table formatting
including fonts, colors, borders, and much more. Data Extraction Quickly and easily extract
property data from objects in drawings (including blocks and attributes)and drawing information
with the Data Extraction wizard. The extracted data can then be automatically output to a table or
an external file.Data LinkingEasily link Microsoft®Office Excel®data to your AutoCAD
designs for consistency and efficiency. Datalinks can be updated in both directions, reducing the
need to update tables or external spreadsheets independently. All linked information can easily
be kept current and in sync automatically.Dynamic Blocks Save time and standardize drawings
with ease.With Dynamic Blocks, you no longer have to redraw repetitive standard components,
and you can reduce your cumbersome block libraries in the process. Dynamic Blocks make
individual block geometry editable and reduce the need to define a new block for everyvariation
of shape and size. Layer ManagementCreate and edit layer properties faster, and reduce errors at
the same time. With the Layer Dialog box, changes are instantly reflected in the drawing as they
are made in the dialog. Prompts and EditingFocus on the design, not the tools. Dynamic Input
displays a command line type of prompt right at the cursor so you can launch commands, view
dimensions, and enter values without even having to look at the command line. With the Quick
Properties menu you can dramatically save time by viewing and modifying relevant object
properties right at your cursor.Efficient User Interface Working with several files doesn‘t have to
be painful anymore. The Quick View feature uses thumbnails in addition to file names, so you
can visually find and open the correct drawing file and layout even faster than before. Within the
Menu Browser you can also quickly browse files, examine thumbnail images, and get detailed
information about file size and file creator. CommunicateFeatureBenefitDWGSave and share
files with confidence. DWG technology from Autodesk is the genuine and one of the most
accurate ways to store and share design data when working with anyone in the industry. PDF
IntegrationSharing and reusing designs has never been easier in AutoCAD thanks to a long list of
upgrades made in the name of streamlined communication. Publish PDF files directly from
AutoCAD drawings and attach and snap to PDF files as underlays. Autodesk Design
ReviewWith built-in toolsto publish and import DWF™ files within AutoCAD, collaborating on
projects is more seamless than ever. Autodesk®Design Review software is the free, integrated,
digital solution for clients or vendors to view, print, and mark up designs without needing
theoriginal software. Autodesk Impression 3 (Available to subscription customers
only)Supercharge your design presentations with a hand-drawn look. Autodesk® Impression
software lets you create compelling presentation-ready graphics directly from your DWGand
DWF files. Photo-realistic RenderingWith the latest in rendering technology, you can create
stunning models in less time. Capabilities include a slider control that graphically displays the
trade-off between time and rendering quality.3D Printing Do more than just visualize your
designs—make them real. Your design can now sit in the palm of your hand with your 3D printer
or through a connected service provider. ShowMotion With ShowMotion®technology, you have
the power to create camera animations to navigate through your design. The Show Motion
control panel displays thumbnail images of the view categories and view shots saved in the
drawing.ExploreFeatureBenefitFree-Form DesignYou now have the power to design ideas in
almost any form you can imagine. Simply push/ pull faces, edges, and vertices to model complex
shapes, add smooth surfaces, and much more.Solid and Surface ModelingShape your ideas in 3D
just like you have in 2D. With an easy-to-learn environment for creating both solids and
surfaces, you can now create and edit 3D shapes with the familiarity of 2D
tools.VisualizationVisualize your ideas like never before. Choose from over 300 materials, apply
photometric lighting, and control the display to create highly accurate, photo-realistic rendered
images. 3D NavigationWalk or fly through a model with the click of a button. Quickly rotate and
orient any solid or surface model with the ViewCube®tool, or pan, center, and zoom on Page 48
of 129any object with the SteeringWheels®tool.CustomizeFeatureBenefitProgramming
InterfaceTake advantage of our flexible development platform to boost your productivity. With
direct access to database structures, the graphics system, and native command definitions, you
can specialize design anddrafting applications to perfectly fit your needs. Action RecorderSave
time and increase productivity by automating repetitive tasks without requiring the assistance of
a CAD manager. Now you can record tasks, add text messages, and request user input, then
quickly select and play back recorded macros.Autodesk Partner Products and ServicesGet the
most out of thousands of Autodesk‘s software partners from around the world. These partners
can further enhance your software with a broad range of fully integrated and interoperable
solutions no matter what you‘re designing.Autodesk Developer NetworkIf you‘re creating
innovative software built on AutoCAD, you‘ll want to join the

Autodesk®Developer Network.-Training and support enables your software orplug-in to tightly

integrate with your workflow with the latest AutoCAD release.

Ribbon User Interface-Pump up overall drafting productivity with the ribbon interface. The
ribbon is both easily customizable and expandable so that it can be optimized foreach user and
can help meet each company‘s standards.

Basic AutoCAD Commands

These commands may be used at any time, but are mainly called upon more during the beginning
of the drawing process.

Commands for Setting the Drawing Environment

These commands may be used at any time, but are mainly called upon more during the beginning
of the drawing process.Units: Specifies the display format and precision. This command
dictates whether the units are displayed as decimals or as a fraction, as well as how many
decimal places the number will go. Also specifies how angles will be represented, either as
decimal degrees, radians, etc., as well as how angles will be measured, i.e. clockwise vs.
counterclockwise.

Page 57 of 129Limits: Sets limits to the boundary and size of the current drawing. The user
must specify the lower left-hand corner and the upper right-hand corner. This setting may be
turned on or off – when on, points may not be specified outside the currently set limits.Qtext:
Quick text – may be turned on or off, like the Limits command. When switched on, text is
displayed in rectangles, showing the extent of the text. When off, just the text is displayed,
without the rectangle.Viewres: Performs two functions: first, it lets the user disable fast zoom,
which makes sense when conforming a more modern version of AutoCAD to an earlier one that
lacks the fast zoom capability. Second, Viewres allows the user to control the smoothness and
speed of circles and arcs drawn in the display. The user does this by choosing the number of
sides circles will have. It is recommended this value be set at 2000.Blipmode: Blips are small
crosses used to mark screen positions that the user has pointed to. They can be useful reference
points, but too many of them can crowd the screen, making it difficult for the user to see.
Engaging Blipmode allows the small crosses to stay up in the wake of the pointer, and turning it
off makes them disappear. Blips are not part of the final drawing and are removed when the
drawing is complete.Fill: When this command is engaged, solids, traces, wide polylines, and
donuts that are drawn are then filled in with color, as opposed to just being outlines. This
command does not affect the drawing’s plotted output, and, when using this command, there is a
trade-off between regeneration time and the image’s quality.Status: This command simply lists,
on the Text Screen, the current drawing environment, the modes, and statuses that are engaged
for this drawing.

Commands for Drawing Entities

Once the drawing environment has been set, these commands are used to actually draw the
entities.Line: Allows for the sequential drawing of one or more straight lines. Once engaged,
this command elicits a prompt of “From point:”, at which point the user specifies a starting point
for a line, or they may press RETURN, which starts the line at the end of the previous line or arc
that was drawn. Next, the prompt “To point:” is displayed, allowing the user to specify a
sequence of points to which the line will extend. They may also type the letter C to close the
polygon, or the letter U to undo the previous line segment, or they may simply press RETURN to
complete the command.Point: Draws a single marker/point, which is, by default, a single dot,
but may be changed to something else if desired.Circle: Draws a circle by letting the user
specify the center point, then dictating the circle’s size by entering a value for either the circle’s
radius or its diameter. Another option to creating a circle with this command is to specify three
points on the circle’s circumference, two end-points of its diameter, or its radius along with two
other lines or circles to which the new circle will be tangential.Arc: This command draws arcs,
and, like circles, may be dictated in one of several ways. The various methods for constructing
arcs with this command are as follows: (1) specify three different points, (2) starting point,
center, and end point, (3) starting point, center, and included angle, (4) starting point, center, and
length of chord, (5) starting point, ending point, and radius, (5) starting point, ending point, and
included angle, (6) starting point, ending point, and starting direction, and finally, (7) starting
point and direction of previous line or arc, plus ending point.Ellipse: Ellipses are constructed by
specifying the two end points of one of the major or minor axes, followed by a distance value
defining half the length of the other axis.

Pline: Draws 2D polylines, which are continuous sequences of straight lines and/or arc
segments with varying line length, dictated by the user. You are able to close a polyline to form a
polygon. It also may be helpful to know that polylines may be exploded into separate line and arc
entities if necessary.

Polygon: Draws regular polygons by entering the number of edges, then specifying the shape’s
center and radius, or by locating the endpoints of any of its edges. Once created, polygons are to
be treated as closed polylines.Hatch: Within one or many closed boundaries, a cross-hatch
pattern may be created with the Hatch command. The boundaries must be well-defined,
otherwise, the cross-hatch may leak out unexpectedly. The user may select pre-determined
patterns supplied by AutoCAD, or they may enter their own and add them to the set that’s
already there.

Bhatch: A newer command in the AutoCAD quiver, it helps the user to better use the previously
discussed Hatch command. It supports boundary hatching, allowing the user to pick a point that
is adjacent to the boundary they wanted, and this new command lets AutoCAD search for the
nearest entity, then constructs a closed boundary by tracing in a counterclockwise fashion to look
for intersection points as well as connecting lines or arcs. Bhatch is convenient in that it allows
the user to preview adjustments without having to start over each time.
Dtext: Allows you to draw text dynamically, changing text height and rotation, allowing it to be
moved, centered, stretched between two points, aligned, overscored, underscored, have symbols
added, fonts changed, etc.

Utility Commands

These are some basic and useful commands that may be used more than other more specific
commands.Redraw: Refreshes the program and re-displays the graphics on the screen, but
without extraneous graphics, such as blips, that may have been left behind from earlier
operations.Save: Saves all current changes and drawings to be saved to the disk. As with any
important project done on a computer, it’s best to get into the habit of saving regularly,
especially during long drawing sessions, to prevent any work from being lost.End:Finishes the
current session, saves the work, and takes you back to AutoCAD’s main menu.Quit: Finishes
the current session, but does NOT save the changes that were made to the current drawing, then
returns you to the main menu.

Drawing and Manipulation Commands

These commands alter your drawings, allowing you to enlarge and reduce views, maintain
graphic accuracy, and manipulate space and viewports, among other things. Moving Around the
Drawing Area

Zoom Scale: Allows the user to enter a magnification or reduction factor. Numbers less than 1
will reduce the drawing, those greater than 1 will expand it. The Zoom Scale amount is applied
to the entire drawing, and doesn’t change the actual size of the entities, simply the magnification.

Zoom Extents: Commands AutoCAD to display all of the current drawing’s graphics, using the
largest possible image, not necessarily extending it to the user-defined limits.

Zoom All: Displays the drawing to the drawing limits.

Zoom Window: Prompts the user to define which part of the drawing is to be magnified, by
defining the lower left-hand and upper right-hand corners of the box to be zoomed in on
Deletion Commands

Only two commands are in this group, used to delete objects and entities.Erase: This removes a
selected group of entities, which may be entered before or after the command itself is
entered.Oops: Restores the most recently deleted object group from using the previous Erase
command. This command may not be repeated, as it only restores one group of deleted objects.

Transformation Commands

The following group of commands allows the user to select a group of objects that need to be
transformed in one way or another.Move: The user may dictate the direction and length of a
move of specified objects by indicating two points which define a vector between the
objects.Copy: Similar to the Move command, Copy does not affect the original group of
objects, with the copied objects being completely independent of the original objects.Rotate:
Providing a specific base point and angle, the user may rotate an object of their choosing with
this command. Negative angles will provide a clockwise rotation, while a positive angle gives a
counterclockwise rotation.Scale: Enlarge or shrink a selected group of objects by selecting a
base point for the scaling as well as applying a factor for which to scale.Mirror: This command
produces a mirror copy of a selected object group by specifying the two ends of the mirror line.
Then, the mirrored objects may be deleted or kept, depending upon the user’s
preference.Stretch: Allows the user to move a portion of a drawing while retaining its
connections to other parts of the drawing, thus stretching it out. Blocks, Hatch patterns, and Text
entities may NOT be stretched.Array: Produces multiple copies of selected objects that are
arranged in a rectangular or circular pattern.Offset: Constructs a new entity parallel to an
existing one. This could be a single line, polyline, arc, circle, or curve.

Error Recovery Commands

These commands bring back errors made during the editing process.

U: The U command undoes the most recent drawing or editing and may be used repeatedly, all
the way back to the beginning of the session.

Redo: This command is used immediately after an error to redo what was undone
.Undo: This is like the U command but a bit more complicated. It is able to undo several
commands at once, allows the user to set mark points and later undo back to those points, and to
group operations together and undo them simultaneously.

Commands that Change Existing Entities

These commands allow different editing changes to be made to existing entities.

Change: This command covers a lot of ground, with two basic main capabilities: first, use this
command to change properties that all entities possess, for example, layer name, color, line type.
Second, change the geometry and attributes of specific types of entities.

Pedit: This is the command used to make changes to polylines, such as width, taper, closing
anopening, breaking one into two, moving, adding, and deleting vertices.

Break: This command splits an already existing line, arc, circle, or polyline into two separate
parts, producing an erased portion in between them.

Trim: This command trims parts of certain objects in a drawing in order to finish them precisely
at some cutting edge (or edges) that are established by one or more other objects. One or several
lines, arcs, circles or polylines must first be identified to serve as cutting edges, which may be
selected by any of the methods available. Next, pointing is used to select the parts of the objects
that are to be trimmed. Many objects may be selected in this way for trimming, including ones
that had been specified as cutting edges.

Extend: Complementing the Trim command, Extend operates similarly, but the selected lines
are extended to end exactly at the specified boundary edges.

Fillet: This command connects two existing lines, circles, or arcs by adding an arc with a
specific radius (a fillet), and allows the user to change the current default radius prior to filleting.

Chamfer: Like the Fillet command, this one chamfers, or cuts away, as in carpentry, corners
with a straight edge.

Divide: Divides an object into a specified number equal parts, from 2 to 32,767 parts.

Measure: This measures an object, from one end to the other.

Enquiry Commands

This final group of AutoCAD commands are used to obtain information a drawing‘s object‘s
position and nature.

List: Lists stored information about any selected entities found within the current drawing.

Dist: Calculates and displays the distance and angle between two points in a drawing.

Area: Calculates and displays any region’s area and perimeter, as long as it is defined by a
sequence of specified points on the drawing, as long as they form a closed polygon.

Note: The command are to be used in the command line, this commands may be accessed in
respective tool bars as tools.
CHAPTER 3: GEOGRAPHYCALINFORMATION SYSTEM (GIS)

What is GIS – Definition?

Geographic Information System (GIS) is a computer system build to capture, store,

manipulate, analyze, manage and display all kinds of spatial or geographical data. GIS
applications are tools that allow end users to perform spatial query, analysis, edit spatial data and
create hard copy maps. In simple way GIS can be define as an image that is referenced
to the earth or has x and y coordinate and it‘s attribute values are stored in the table. These x
and y coordinates are based on different projection system and there are various types of
projection system. Most of the time GIS is used to create maps and to print. To perform
the basic task in GIS, layers are combined, edited and designed. GIS can be used to solve the
location based question such as ―What is located here‖ or Where to find particular features? GIS
User can retrieve the value from the map, such as how much is the forest area on the land use
map. This is done using the query builder tool. Next important features of the GIS is the
capability to combine different layers to show new information. For example, you can
combine elevation data, river data, land use data and many more to show information
about the landscape of the area. From map you can tell where is high lands or where is the best
place to build house, which has the river view . GIS helps to find new information.Figure: Gis
ModelHow GIS Works:Visualizing Data: The geographic data that is stored in the
databases are displayed in the GIS software. Page 76 of 129Combining Data: Layers are
combined to form a maps of desire.The Query: To search the value in the layer or making a
geographic queries.Definition by others:A geographic information system (GIS) lets us visualize,
question, analyze, and interpret data to understand relationships, patterns, and trends. (ESRI)In
the strictest sense, a GIS is a computer system capable of assembling, storing, manipulating, and
displaying geographically referenced information (that is data identified according to their
locations). (USGS)

Advantage of GIS

Better decision made by government people

Improve decision making with the help of layered information

Citizen engagement due to better system

Help to identify communities that is under risk or lacking infrastructure

Helps in identifying criminology matters

Better management of natural resources

Better communication during emergency situation

Cost savings due to better decision

Finding different kinds of trends within the community

Planning the demographic changes

Component of GIS:

Hardware: Hardware is the physical component of the computer and GIS runs on it. Hardware
may be hard disk, processor, motherboard and so on. All these hardware work together
to function as a computer. GIS software run on these hardware. Computer can be standalone
called desktop or server based. GIS can run on both of them.

Software: GIS Software provides tools and functions to input and store spatial data or
geographic data. It provides tool to perform geographic query, run analysis model and
display geographic data in the map form. GIS software uses Relation Database
Management System (RDBMS) to store the geographic data. Software talks with the database
to perform geographic query.

Data: Data are the fuel for the GIS and the most important and expensive component.
Geographic data are the combination of physical features and it‘s information which is stored in
the tables. These tables are maintained by the RDBMS. The process of capturing the geographic
data are called digitization which is the most tedious job. It is the process of converting scanned
hardcopy maps into the digital format. Digitization is done by tracing the lines along the
geographic features for example to capture a building you will trace around the building on the
image.
People: People are the user of the GIS system.People use all above three component to run a GIS
system. Today‘s computer are fast and user friendly which makes it easy to perform geographic
queries, analysis and displaying maps. Today everybody uses GIS to perform their daily job.Area
of GIS ApplicationsMajor areas of GIS application can be grouped into five categories as
follows.Facilities Management: Large scale and precise maps and network analysis are used
mainly for utility management. AM/FM is frequently used in this area.Environment and Natural
Resources Management: Medium or small scale maps and overlay techniques in combination
with aerial photographs and satellite images are used for management of natural resources and
environmental impact analysis.Street Network: Large or medium scale maps and spatial analysis
are used for vehicle routing, locating house and streets etc.Planning and Engineering: Large or
medium scale maps and engineering models are used mainly in civil engineering.Land
Information System: Large scale cadastre maps or land parcel maps and spatial analysis are used
for cadastre administration, taxation etc.

GIS Data ModelsA GIS stores information about the world as a collection of thematic layers that
can be linked together by geography. This simple but extremely powerful and versatile concept
has proven invaluable for solving many real-world problems from tracking delivery vehicles, to
recording details of planning applications, to modeling global atmospheric circulation. The
thematic layer approach allows us to organize the complexity of the real world into a simple
representation to help facilitate our understanding of natural relationships.The thematic layer
approach allows us to organize the complexity of the real worldGIS Data TypesThe basic data
type in a GIS reflects traditional data found on a map. Accordingly, GIS technology utilizes two
basic types of data. These are:Spatial data: describes the absolute and relative location of
geographic features.Attribute data: describes characteristics of the spatial features. These
characteristics can be quantitative and/or qualitative in nature. Attribute data is often referred to
as tabular data. The coordinate location of a forestry stand would be spatial data, while the
characteristics of that forestry stand, e.g. cover group, dominant species, crown closure, height,
etc., would be attribute data. Other data types, in particular image and multimedia data, are
becoming more prevalent with changing technology. Depending on the specific content of the
data, image data may be considered either spatial, e.g. photographs, animation, movies, etc., or
attribute, e.g. sound, descriptions, narration's, etc. Spatial Data Models Traditionally spatial data
has been stored and presented in the form of a map. Three basic types of spatial data models
have evolved for storing geographic data digitally. These are referred to as: 1.Vector; 2.Raster;
3.Image

Vector Data Formats

All spatial data models are approaches for storing the spatial location of geographic features in a
database. Vector storage implies the use of vectors (directional lines) to represent a geographic
feature. Vector data is characterized by the use of sequential points or vertices to define a linear
segment. Each vertex consists of an X coordinate and a Y coordinate.Vector lines are often
referred to as arcs and consist of a string of vertices terminated by a node. A node is defined as a
vertex that starts or ends an arc segment. Point features are defined by one coordinate pair, a
vertex. Polygonal features are defined by a set of closed coordinate pairs. In vector
representation, the storage of the vertices for each feature is important, as well as the
connectivity between features, e.g. the sharing of common vertices where features connect. Page
80 of 129Vector Data: There are three types of vector data, points, lines and polygons.
These data are created by digitizing the base data. They store information in x, y
coordinates. Vectors models are used to store data which have discrete boundaries like
country borders, land parcels and roads.Several different vector data models exist, however
only two are commonly used in GIS data storage. The most popular method of retaining spatial
relationships among features is to explicitly record adjacency information in what is known as
the topologic data model. Topology is a mathematical concept that has its basis inthe principles
of feature adjacency and connectivity. The topologic data structure is often referred to as an
intelligent data structure because spatial relationships between geographic features are easily
derived when using them. Primarily for this reason the topologic model is the dominant vector
data structure currently used in GIS technology. Many of the complex data analysis functions
cannot effectively be undertaken without a topologic vector data structure. Topology is reviewed
in greater detail later on in the book.The secondary vector data structure that is common among
GIS software is the computer-aided drafting (CAD) data structure. This structure consists of
listing elements, not features, defined by strings of vertices, to define geographic features, e.g.
points, lines, or areas. There is considerable redundancy with this data model since the boundary
segment between two polygons can be stored twice, once for each feature. The CAD structure
emerged from the development of computer graphics systems without specific considerations of
processing geographic features. Accordingly, since features, e.g. polygons, are self-contained
and independent, questions about the adjacency of features can be difficult to answer. The CAD
vector model lacks the definition of spatial relationships between features that is defined by the
topologic data model.

Raster Data Formats

Raster data models incorporate the use of a grid-cell data structure where the geographic area is
divided into cells identified by row and column. This data structure is commonly called raster.
While the term raster implies a regularly spaced grid other tessellated data structures do exist in
grid based GIS systems. In particular, the quadtree data structure has found some acceptance as
an alternative raster data model.Raster Data: Raster data store information of features in
cell based manner. Satellite images, photogrammetry and scanned maps are all raster based
data. Raster model are used to store data which varies continuously as in aerial photography, a
satellite image or elevation values (DEM- Digital Elevation Model).The size of cells in a
tessellated data structure is selected on the basis of the data accuracy and the resolution needed
by the user. There is no explicit coding of geographic coordinates required since that is implicit
in the layout of the cells. A raster data structure is in fact a matrix where any coordinate can be
quickly calculated if the origin point is known, and the size of the grid cells is known. Since grid-
cells can be handled as two-dimensional arrays in computer encoding many analytical operations
are easy to program. This makes tessellated data structures a popular choice for many GIS
software. Topology is not a relevant concept with tessellated structures since adjacency and
connectivity are implicit in the location of a particular cell in the data matrix.Several tessellated
data structures exist, however only two are commonly used in GIS's. The most popular cell
structure is the regularly spaced matrix or raster structure. This data structure involves a division
of spatial data into regularly spaced cells. Each cell is of the same shape and size. Squares are
most commonly utilized.Since geographic data is rarely distinguished by regularly spaced
shapes, cells must be classified as to the most common attribute for the cell. The problem of
determining the proper resolution for a particular data layer can be a concern. If one selects too
coarse a cell size then data may be overly generalized. If one selects too fine a cell size then too
many cells may be created resulting in a large data volume, slower processing times, and a more
cumbersome data set. As well, one can imply accuracy greater than that of the original data
capture process and this may result in some erroneous results during analysis. As well, since
most data is captured in a vector format, e.g. digitizing, data must be converted to the raster data
structure. This is called vector-raster conversion. Most GIS software allows the user to define the
raster grid (cell) size for vector-raster conversion. It is imperative that the original scale, e.g.
accuracy, of the data be known prior to conversion. The accuracy of the data, often referred to as
the resolution, should determine the cell size of the output raster map during conversion.Most
raster based GIS software requires that the raster cell contain only a single discrete value.
Accordingly, a data layer, e.g. forest inventory stands, may be broken down into a series of raster
maps, each representing an attribute type, e.g. a species map, a height map, a density map, etc.
These are often referred to as one attribute maps. This is in contrast to most conventional vector
data models that maintain data as multiple attribute maps, e.g. forest inventory polygons linkedto
a database table containing all attributes as columns. This basic distinction of raster data storage
provides the foundation for quantitative analysis techniques. This is often referred to as raster or
map algebra. The use of raster data structures allow for sophisticated mathematical modelling
processes while vector based systems are often constrained by the capabilities and language of a
relational DBMS.

This difference is the major distinguishing factor between vector and raster based GIS software.
It is also important to understand that the selection of a particular data structure can provide
advantages during the analysis stage. For example, the vector data model does not handle
continuous data, e.g. elevation, very well while the raster data model is more ideally suited for
this type of analysis. Accordingly, the raster structure does not handle linear data analysis, e.g.
shortest path, very well while vector systems do. It is important for the user to understand that
there are certain advantages and disadvantages to each data model.The selection of a particular
data model, vector or raster, is dependent on the source and type of data, as well as the intended
use of the data. Certain analytical procedures require raster data while others are better suited to
vector data. Image DataImage data is most often used to represent graphic or pictorial data. The
term image inherently reflects a graphic representation, and in the GIS world, differs
significantly from raster data. Most often, image data is used to store remotely sensed imagery,
e.g. satellite scenes or orthophotos, or ancillary graphics such as photographs, scanned plan
documents, etc. Image data is typically used in GIS systems as background display data (if the
image has been rectified and georeferenced); or as a graphic attribute. Remote sensing software
makes use of image data for image classification and processing. Typically, this data must be
converted into a raster format (and perhaps vector) to be used analytically with the GIS.

Image data is typically stored in a variety of de facto industry standard proprietary formats.
These often reflect the most popular image processing systems. Other graphic image formats,
such as TIFF, GIF, PCX, etc., are used to store ancillary image data. Most GIS software will read
such formats and allow you to display this data.Image data is most often used for remotely
sensed imagery such as satellite imagery or digital orthophotos

Vector Data

Advantages :

1)Data can be represented at its original resolution and form without generalization.

2)Graphic output is usually more aesthetically pleasing (traditional cartographic representation)

3)Since most data, e.g. hard copy maps, is in vector form no data conversion is required.

4)Accurate geographic location of data is maintained.

5)Allows for efficient encoding of topology, and as a result more efficient operations that require
topological information, e.g. proximity, network analysis.

Disadvantages:

1)The location of each vertex needs to be stored explicitly.

2)For effective analysis, vector data must be converted into a topological structure. This is often
processing intensive and usually requires extensive data cleaning. As well, topology is static, and
any updating or editing of the vector data requires re-building of the topology.

3)Algorithms for manipulative and analysis functions are complex and may be processing
intensive. Often, this inherently limits the functionality for large data sets, e.g. a large number of
features.

4) Continuous data, such as elevation data, is not effectively represented in vector form. Usually
substantial data generalization or interpolation is required for these data layers.

5) Spatial analysis and filtering within polygons is impossible

Raster Data Advantages:

1)The geographic location of each cell is implied by its position in the cell matrix. Accordingly,
other than an origin point, e.g. bottom left corner, no geographic coordinates are stored.

2)Due to the nature of the data storage technique data analysis is usually easy to program and
quick to perform.

3)The inherent nature of raster maps, e.g. one attribute maps, is ideally suited for mathematical
modeling and quantitative analysis.

4)Discrete data, e.g. forestry stands, is accommodated equally well as continuous data, e.g.
elevation data, and facilitates the integrating of the two data types.

5)Grid-cell systems are very compatible with raster-based output devices, e.g. electrostatic
plotters, graphic terminals.

Disadvantages:

1)The cell size determines the resolution at which the data is represented.

2)It is especially difficult to adequately represent linear features depending on the cell resolution.
Accordingly, network linkages are difficult to establish.

3)Processing of associated attribute data may be cumbersome if large amounts of data exists.
Raster maps inherently reflect only one attribute or characteristic for an area.

4)Since most input data is in vector form, data must undergo vector-to-raster conversion. Besides
increased processing requirements this may introduce data integrity concerns due to
generalization and choice of inappropriate cell size.

5)Most output maps from grid-cell systems do not conform to high-quality cartographic needs.
Attribute Data Models

A separate data model is used to store and maintain attribute data for GIS software. These data
models may exist internally within the GIS software, or may be reflected in external commercial
Database Management Software (DBMS). A variety of different data models exist for the storage
and management of attribute data. The most common are:TabularHierarchialNetwork

RelationalObject OrientedThe tabular model is the manner in which most early GIS software
packages stored their attribute data. The next three models are those most commonly
implemented in database management systems (DBMS). The object oriented is newer but rapidly
gaining in popularity for some applications. A brief review of each model is provided.Tabular
ModelThe simple tabular model stores attribute data as sequential data files with fixed formats
(or comma delimited for ASCII data), for the location of attribute values in a predefined record
structure. This type of data model is outdated in the GIS arena. It lacks any method of checking
data integrity, as well as being inefficient with respect to data storage, e.g. limited indexing
capability for attributes or records, etc.Hierarchical ModelThe hierarchical database organizes
data in a tree structure. Data is structured downward in a hierarchy of tables. Any level in the
hierarchy can have unlimited children, but any child can have only one parent. Hierarchial
DBMS have not gained any noticeable acceptance for use within GIS. They are oriented for data
sets that are very stable, where primary relationships among the data change infrequently or
never at all. Also, the limitation on the number of parents that an element may have is not always
conducive to actual geographic phenomenon. Network Model The network database organizes
data in a network or plex structure. Any column in a plex structure can be linked to any other.
Like a tree structure, a plex structure can be described in terms of parents and children. This
model allows for children to have more than one parent.Network DBMS have not found much
more acceptance in GIS than the hierarchical DBMS. They have the same flexibility limitations
as hierarchical databases; however, the more powerful structure for representing data
relationships allows a more realistic modelling of geographic phenomenon. However, network
databases tend to become overly complex too easily. In this regard it is easy to lose control and
understanding of the relationships between elements. Relational ModelThe relational database
organizes data in tables. Each table, is identified by a unique table name, and is organized by
rows and columns. Each column within a table also has a unique name. Columns store the values
for a specific attribute, e.g. cover group, tree height. Rows represent one record in the table. In a
GIS each row is usually linked to a separate spatial feature, e.g. a forestry stand. Accordingly,
each row would be comprised of several columns, each column containing a specific value for
that geographic feature. The following figure presents a sample table for forest inventory
features. This table has 4 rows and 5 columns. The forest stand number would be the label for the
spatial feature as well as the primary key for the database table. This serves as the linkage
between the spatial definition of the feature and the attribute data for the feature.

The relational DBMS is attractive because of its:

1)simplicity in organization and data modelling.

2)flexibility - data can be manipulated in an ad hoc manner by joining tables.

3)efficiency of storage - by the proper design of data tables redundant data can be minimized.

4)the non-procedural nature - queries on a relational database do not need to take into account
the internal organization of the data.

Object-Oriented ModelThe object-oriented database model manages data through objects. An

object is a collection of data elements and operations that together are considered a single entity.
The object-oriented database is a relatively new model. This approach has the attraction that
querying is very natural, as features can be bundled together with attributes at the database
administrator's discretion. To date, only a few GIS packages are promoting the use of this
attribute data model. However, initial impressions indicate that this approach may hold many
operational benefits with respect to geographic data processing. Fulfilment of this promise with a
commercial GIS product remains to be seen.Sources of DataAs previously identified, two types
of data are input into a GIS, spatial and attribute. The data input process is the operation of
encoding both types of data into the GIS database formats.The creation of a clean digital
database is the most important and time consuming task upon which the usefulness of the GIS
depends. The establishment and maintenanceof a robust spatial database is the cornerstone of a
successful GIS implementation.As well, the digital data is the most expensive part of the GIS.
Yet often, not enough attention is given to the quality of the data or the processes by which they
are prepared for automation.The general consensus among the GIS community is that 60 to 80 %
of the cost incurred during implementation of GIS technology lies in data acquisition, data
compilation and database development.A wide variety of data sources exist for both spatial and
attribute data. The most common general sources for spatial data are:hard copy maps;aerial
photographs;remotely-sensed imagery;point data samples from surveys; andexisting digital
data files.Existing hard copy maps, e.g. sometimes referred to as analogue maps, provide the
most popular source for any GIS project.Potential users should be aware that while there are
many private sector firms specializing in providing digital data, federal, provincial and state
government agencies are an excellent source of data. Because of the large costs associated with
data capture and input, government departments are often the only agencies with financial
resources and manpower funding to invest in data compilation. British Columbia and Alberta
government agencies are good examples. Both provincial governments have defined and
implemented province wide coverage of digital base map data at varying map scales, e.g.
1:20,000 and 1:250,000. As well, the provincial forestry agencies also provide thematic forest
inventory data in digital format. Federal agencies are also often a good source for base map
information. An inherent advantage of digital data from government agencies is its cost. It is
typically inexpensive. However, this is often offset by thedata's accuracy and quality. Thematic
coverages are often not up to date. However, it is important to note that specific characteristics of
government data varies greatly across North America.Attribute data has an even wider variety of
data sources. Any textual or tabular data than can be referenced to a geographic feature, e.g. a
point, line, or area, can be input into a GIS. Attribute data is usually input by manual keying or
via a bulk loading utility of the DBMS software. ASCII format is a de facto standard for the
transfer and conversion of attribute information.The following figure describes the basic data
types that are used and created by a GIS.The basic data types that are used and created by a GIS
(after Berry).Data Input Techniques Since the input of attribute data is usually quite simple, the
discussion of data input techniques will be limited to spatial data only. There is no single method
of entering the spatial data into a GIS. Rather, there are several, mutually compatible methods
that can be used singly or in combination. The choice of data input method is governed largely
by the application, the available budget, and the type and the complexity of data being
input.There are at least four basic procedures for inputting spatial data into a GIS. These
are:Manual digitizing;Automatic scanning;Entry of coordinates using coordinate geometry;
and theConversion of existing digital data.DigitizingWhile considerable work has been done
with newer technologies, the overwhelming majority ofGIS spatial data entry is done by manual
digitizing. A digitizer is an electronic device consisting of a table upon which the map or
drawing is placed. The user traces the spatial features with a hand-held magnetic pen, often
called a mouse or cursor. While tracing the features the coordinates of selected points, e.g.
vertices, are sent to the computer and stored. All points that are recorded are registered against
positional control points, usually the map corners, that are keyed in by the user at the beginning
of the digitizing session. The coordinates are recorded in a user defined coordinate system or
map projection. Latitude and longitude and UTM is most often used. The ability to adjust or
transform data during digitizing from one projection to another is a desirable function of the GIS
software. Numerous functional techniques exist to aid the operator in the digitizing
process.Digitizing can be done in a point mode, where single points are recorded one at a time,
or in a stream mode, where a point is collected on regular intervals of time or distance, measured
by an X and Y movement, e.g. every 3 metres. Digitizing can also be done blindly or with a
graphics terminal. Blind digitizing infers that the graphic result is not immediately viewable to
the person digitizing. Most systems display the digitized linework as it is being digitized on an
accompanying graphics terminal.Most GIS's use a spaghetti mode of digitizing. This allows the
user to simply digitize lines by indicating a start point and an end point. Data can be captured in
point or stream mode. However, some systems do allow the user to capture the data in an
arc/node topological data structure. The arc/node data structure requires that the digitizer identify
nodes.Data capture in an arc/node approach helps to build a topologic data structure
immediately. This lessens the amount of post processing required to clean and build the
topological definitions. However, most often digitizing with an arc/node approach does not
negate the requirement for editing and cleaning of the digitized linework before a complete
topological structure can be obtained. The building of topology is primarily a post-digitizing
process that is commonly executed in batch mode after data has been cleaned. To date, only a
few commercial vector GIS software offerings have successfully exhibited the capability to build
topology interactively while the user digitizes.Manual digitizing has many advantages. These
include:1.Low capital cost, e.g. digitizing tables are cheap;2.Low cost of labour;3.Flexibility and
adaptability to different data types and sources;4.Easily taught in a short amount of time - an
easily mastered skill5.Generally the quality of data is high;6.Digitizing devices are very reliable
and most often offer a greater precision that the data warrants; and7.Ability to easily register and
update existing data.For raster based GIS software data is still commonly digitized in a vector
format and converted to a raster structure after the building of a clean topological structure. The
procedure usually differs minimally from vector based software digitizing, other than some raster
systems allow the user to define the resolution size of the grid-cell. Conversion to the raster
structure may occur on-the-fly or afterwards as a separate conversion process.Automatic
ScanningA variety of scanning devices exist for the automatic capture of spatial data. While
several different technical approaches exist in scanning technology, all have the advantage of
being able to capture spatial features from a map at a rapid rate of speed. However, as of yet,
scanning has not proven to be a viable alternative for most GIS implementation. Scanners are
generally expensive to acquire and operate. As well, most scanning devices have limitations with
respect to the capture of selected features, e.g. text and symbol recognition. Experience has
shown that most scanned data requires a substantial amount of manual editing to create a clean
data layer. Given these basic constraints some other practical limitations of scanners should be
identified. These include :1.hard copy maps are often unable to be removed to where a scanning
device is available, e.g. most companies or agencies cannot afford their own scanning device and
therefore must send their maps to a private firm for scanning;2.hard copy data may not be in a
form that is viable for effective scanning, e.g. maps are of poor quality, or are in poor
condition;3.geographic features may be too few on a single map to make it practical, cost-
justifiable, to scan;4.often on busy maps a scanner may be unable to distinguish the features to be
captured from the surrounding graphic information, e.g. dense contours with labels;5.with raster
scanning there it is difficult to read unique labels (text) for a geographic feature effectively;
and6.scanning is much more expensive than manual digitizing, considering all the
cost/performance issues.Consensus within the GIS community indicates that scanners work best
when the information on a map is kept very clean, very simple, and uncluttered with graphic
symbology. The sheer cost of scanning usually eliminates the possibility of using scanning
methods for data capture in most GIS implementations. Large data capture shops and
government agencies are those most likely to be using scanning technology.Currently, general
consensus is that the quality of data captured from scanning devices is not substantial enough to
justify the cost of using scanning technology. However, major breakthroughs are being made in
the field, with scanning techniques and with capabilities to automatically clean and prepare
scanned data for topological encoding. These include a variety of line following and text
recognition techniques. Users should be aware that this technology has great potential in the
years to come, particularly for larger GIS installations.Coordinate GeometryA third technique for
the input of spatial data involves the calculation and entry of coordinates using coordinate
geometry (COGO) procedures. This involves entering, from survey data, the explicit
measurement of features from some known monument. This input technique is obviously very
costly and labour intensive. In fact, it is rarely used for natural resource applications in GIS. This
method is useful for creating very precise cartographic definitions of property, and accordingly is
more appropriate for land records management at the cadastral or municipal scale. Page 93 of
129Conversion of Existing Digital DataA fourth technique that is becoming increasingly popular
for data input is the conversion of existing digital data. A variety of spatial data, including digital
maps, are openly available from a wide range of government and private sources. The most
common digital data to be used in a GIS is data from CAD systems. A number of data
conversion programs exist, mostly from GIS software vendors, to transform data from CAD
formats to a raster or topological GIS data format. Several ad hoc standards for data exchange
have been established in the market place. These are supplemented by a number of government
distribution formats that have been developed. Given the wide variety of data formats that exist,
most GIS vendors have developed and provide data exchange/conversion software to go from
their format to those considered common in the market place. Most GIS software vendors also
provide an ASCII data exchange format specific to their product, and a programming subroutine
library that will allow users to write their own data conversion routines to fulfil their own
specific needs. As digital data becomes more readily available this capability becomes a
necessity for any GIS. Data conversion from existing digital data is not a problem for most
technical persons in the GIS field. However, for smaller GIS installations who have limited
access to a GIS analyst this can be a major stumbling block in getting a GIS operational.
Government agencies are usually a good source for technical information on data conversion
requirements
CHAPTER 4: ARTIFICIAL INTELLIGENCE

What is Artificial Intelligence?According to the father of Artificial Intelligence, John McCarthy,

it is “The science and engineering of making intelligent machines, especially intelligent
computer programs”.Artificial Intelligence is a way of making a computer, a computer-
controlled robot, or a software think intelligently, in the similar manner the intelligent humans
think.AI is accomplished by studying how human brain thinks, and how humans learn, decide,
and work while trying to solve a problem, and then using the outcomes of this study as a basis of
developing intelligent software and systems.Goals of AITo Create Expert Systems− The
systems which exhibit intelligent behavior, learn, demonstrate, explain, and advice its users.To
Implement Human Intelligence in Machines− Creating systems that understand, think, learn, and
behave like humans.Benefits and Challenges of Artificial IntelligencePeople fear artificial
intelligence, but balancing AI pros and cons suggests it's a necessary evil –and even vital in
places.

Pros of Artificial Intelligence:

The pros of artificial intelligence are numerous.1)Mundane tasks: humans get bored, machines
don't. Let them do the humdrum jobs. "A.I. allows for more intricate process automation, which
increases productivity of resources and takes repetitive, boring labor off the shoulders of
humans. They can focus on creative tasks instead," said Felicia Schneiderhan, CEO of
30SecondToFly, an AI virtual travel assistant.2)Faster actions and decisions: A.I. and cognitive
technologies help in making faster actions and decisions. "Areas like automated fraud detection,
planning and scheduling further demonstrate this benefit," said Kalyan Kumar, executive vice
president at HCL Technologies, an IT services provider in India.3)Machine Learning:Big Data
means datasets in the petabytes, far too much for a human to sift through. AI can chew through
that data as fast as the Xeon processors in the servers can go and derive insights from the data
much faster than any human could.CloudPassage co-founder and CTO Carson Sweet argues this
isn‘t actual AI. "A lot of the big data processing and analysis being attributed to AI is really just
the work of machine learning. True AI would need to take things so much further; toward
genuine self-learning using artificial neural networks that emulate the structure and functions of
neural networks in human brains," he said.
4)Error-Free Processing: To error is human. Computers don't. The only mistakes they make is
when you don't program them properly. AI processing will insure error-free processing of data,
no matter how large the dataset. Judgement calls, however, are a different matter."Computers are
'stupid,' but that is their brilliance - they demand such a high level of rigor and AI adds
quantitative rigor on top of that, that to use AI at all you first have to ask yourself the very
challenging but stimulating question of what you're trying to do, with a new level of acuity," said
Dr. Nathan Wilson, CTO and co-founder of Nara Logics, synaptic intelligence
company.5)Taking the Risk: AI-powered machines are doing jobs humans either can't do or
would have to do very carefully. Space exploration is one of them. The Mars rover Curiosity is
an example. It is freely roaming Mars because it examines the landscape as it explores and
determines the best path to take. The result is that Curiosity is learning to think for itself.6)Better
research outcomes: "AI-based technologies like computer vision help in achieving better
outcomes through improved prediction, which can include medical diagnosis, oil exploration and
demand forecasting," said Kumar.The Cons of Artificial IntelligenceThe Cons of Artificial
Intelligence provoke a gut-level response.1)Job losses: There is no way around it, AI will cost
lesser-skilled people their jobs. Robots have already taken many jobs on assembly lines and as
AI gets better at doing complex tasks, even more low-skill jobs will be taken."AI will create
much more wealth than it destroys, but it will not be equitably distributed, especially at first,"
said Wilson. Driverless cars is one obvious singular tech that will displace millions of human
drivers fairly quickly, although the recent fatality involving a Tesla car on auto-drive may have
set the whole effort back a bit.The changes will be subliminally felt and not overt, said Wilson.
"Atax accountant won‘t one day receive a pink slip and meet the robot that is now going to sit at
her desk. Rather, the next time the tax accountant applies for a job, it will be a bit harder to find a
job."2)A concentration of power: AI could mean a lot of power will be in the hands of a few who
are controlling it. "AI de-humanizes warfare as the nations in possession of advanced AI
technology can kill humans without involving an actual human to pull the trigger," said
Schneiderhan.3)Bad calls: AI does not have the ability to make a judgement call and may never
get that ability. A really good example happened in Sydney, Australia in 2014, when there was a
shooting and hostage drama downtown. People began ringing up Uber to get out of the affected
area, and because of the surge in demand in a concentrated area, Uber's algorithms fell back on
the trusted economics of supply-and-demand and ride rates skyrocketed. The Uber algorithms
didn't take into account the violent crisis impacting downtown, and affected riders didn't care.
They were livid that they had been gouged at a time of crisis. It forced Uber to reevaluate how it
handles such emergencies. Perhaps in the future it will handle them better, but for a few Aussies,
it left a bad taste in their mouths."There is nothing artificial about intelligence," said Kartik
Iyengar, senior vice president of IoT & Skylab at VirtusaPolaris, a global IT consulting and
technology services company. "Intelligence is a fine balance of emotions and skill that is
constantly developing. Today, shades of gray exist when we make judgements. Our behavior is
an outcome of the world around us –the more artificial it becomes, the more our definitions are
subject to deciding on simply right or wrong, rather than the quick mid-course corrections that
make us human. Replacing adaptive human behavior with rigid, artificial intelligence could
cause irrational behavior within ecosystems of people and things."4)Judgement calls, part 2: The
Uber situation highlights the fact that unless all such solutions are anticipated and specifically
programmed to be out of bounds, an AI can arrive at a situation and implement it to the
detriment of people or the environment. Dr. Tim Lynch, who has a doctorate in the psychology
of computers and intelligent machines, calls this "Perverse Instantiation."What that means is an
AI can be programmed with a benign goal but implement it in a perverse manner just because the
solution is logical and expeditious. "So if there is a problem with the food supply, an AI's
solution may be to reduce the population by any means available rather than find ways to
increase food production or decrease food waste," he said.In short, an ultimate pro and con of
artificial intelligence: AI still isn't all that smart.

What Contributes to AI?

Artificial intelligence is a science and technology based on disciplines such as Computer

Science, Biology, Psychology, Linguistics, Mathematics, and Engineering. A major thrust of AI
is in the development of computer functions associated with human intelligence, such as
reasoning, learning, and problem solving. Out of the following areas, one or multiple areas can
contribute to build an intelligent system

ApplicationsofAIAI has been dominant in various fields such as −Gaming− AI plays crucial
role in strategic games such as chess, poker, tic-tac-toe, etc., where machine can think of large
number of possible positions based on heuristic knowledge.Natural Language Processing− It is
possible to interact with the computer that understands natural language spoken by
humans.Expert Systems− There are some applications which integrate machine, software, and
special information to impart reasoning and advising. They provide explanation and advice to the
users.Vision Systems− These systems understand, interpret, and comprehend visual input on the
computer.

oA spying aeroplane takes photographs, which are used to figure out spatial information or map
of the areas.oDoctors use clinical expert system to diagnose the patient.oPolice use computer
software that can recognize the face of criminal with the stored portrait made by forensic
artist.Speech Recognition− Some intelligent systems are capable of hearing and comprehending
the language in terms of sentences and their meanings while a human talks to it. It can handle
different accents, slang words, noise in the background, change in human‘s noise due to cold,
etc.Handwriting Recognition− The handwriting recognition software reads the text written on
paper by a pen or on screen by a stylus. It can recognize the shapes of the letters and convert it
into editable text.Intelligent Robots− Robots are able to perform the tasks given by a human.
They have sensors to detect physical data from the real world such as light, heat, temperature,
movement, sound, bump, and pressure. They have efficient processors, multiple sensors and
huge memory, to exhibit intelligence. In addition, they are capable of learning from their
mistakes and they can adapt to the new environment.History of AIHere is the history ofAI during
20th century −YearMilestone / Innovation1923Karel Čapek play named ―Rossum's Universal
Robots‖ (RUR) opens in London, first use of the word "robot" in English.1943Foundations for
neural networks laid.1945Isaac Asimov, a Columbia University alumni, coined the term
Robotics.1950Alan Turing introduced Turing Test for evaluation of intelligence and published
Computing Machinery and Intelligence.Claude Shannon published Detailed Analysis of Chess
Playingas a search.1956John McCarthy coined the term Artificial Intelligence. Demonstration of
the first running AI program at Carnegie Mellon University.1958John McCarthy invents LISP
programming language for AI.1964Danny Bobrow's dissertation at MIT showed that computers
can understand natural language well enough to solve algebra word problems
correctly.1965Joseph Weizenbaum at MIT built ELIZA, an interactive problem that carries on a
dialogue in English.1969Scientists at Stanford Research Institute Developed Shakey, a robot,
equipped with locomotion, perception, and problem solving.1973The Assembly Robotics group
at Edinburgh University built Freddy, the Famous Scottish Robot, capable of using vision to
locate and assemble models.1979The first computer-controlled autonomous vehicle, Stanford
Cart, was built.1985Harold Cohen created and demonstrated the drawing program,
Aaron.1990Major advances in all areas of AI −Significant demonstrations in machine learning

Composition of Intelligence The intelligence is intangible. It is composed of

−ReasoningLearningProblem SolvingPerceptionLinguistic Intelligence Let us go through
all the components briefly −Reasoning− It is the set of processes that enables us to provide
basis for judgement, making decisions, and prediction. There are broadly two types –

Inductive Reasoning

 It conducts specific observations to makes broad general statements

 Even if all of the premises are true in a statement, inductive reasoning allows for the
conclusion to be false

Deductive Reasoning

 It starts with a general statement and examines the possibilities to reach a specific, logical
conclusion.
 If something is true of a class of things in general, it is also true for all members of that
class..

Learning− It is the activity of gaining knowledge or skill by studying, practising, being

taught, or experiencing something. Learning enhances the awareness of the subjects of the
study.The ability of learning is possessed by humans, some animals, and AI-enabled systems.
Learning is categorized as −oAuditory Learning− It is learning by listening and hearing. For
example, students listening to recorded audio lectures.oEpisodic Learning− To learn by
remembering sequences of events that one has witnessed or experienced. This is linear and
orderly.oMotor Learning− It is learning by precise movement of muscles. For example,
picking objects, Writing, etc.oObservational Learning− To learn by watching and imitating
others. For example, child tries to learn by mimicking her parent.oPerceptual Learning− It is
learning to recognize stimuli that one has seen before. For example, identifying and
classifying objects and situations.oRelational Learning− It involves learning to differentiate
 among various stimuli on the basis of relational properties, rather than absolute properties.
For Example, Adding ̳little less‘ salt at the time of cooking potatoes that came up salty last
time, when cooked with adding say a tablespoon of salt.oSpatial Learning− It is learning
through visual stimuli such as images, colors, maps, etc. For Example, A person can create
roadmap in mind before actually following the road.oStimulus-Response Learning− It is
learning to perform a particular behavior when a certain stimulus is present. For example, a
dog raises its ear on hearing doorbell.Problem Solving− It is the process in which one
perceives and tries to arrive at a desired solution from a present situation by taking some
path, which is blocked by known or unknown hurdles.Problem solving also includes decision
making, which is the process of selecting the best suitable alternative out of multiple
alternatives to reach the desired goal are available.Perception− It is the process of acquiring,
interpreting, selecting, and organizing sensory information.Perception presumes sensing. In
humans, perception is aided by sensory organs. In the domain of AI, perception mechanism
puts the data acquired by the sensors together in a meaningful manner.Linguistic
Intelligence− It is one‘s ability to use, comprehend, speak, and write the verbal and written
language. It is important in interpersonal communication.Difference between Human and
Machine IntelligenceHumans perceive by patterns whereas the machines perceive by set of
rules and Humans store and recall information by patterns, machines do it by searching
algorithms. For example, the number 40404040 is easy to remember, store, and recall as its
pattern is simple.Humans can figure out the complete object even if some part of it is
missing or distorted; whereas the machines cannot do it correctly

Robotics

Robotics is a domain in artificial intelligence that deals with the study of creating intelligent and
efficient robots.What are Robots?

Robots are the artificial agents acting in real world environment.

Objective

Robots are aimed at manipulating the objects by perceiving, picking, moving, modifying the
physical properties of object, destroying it, or to have an effect thereby freeing manpower from
doing repetitive functions without getting bored, distracted, or exhausted.
What is Robotics?

Robotics is a branch of AI, which is composed of Electrical Engineering, Mechanical

Engineering, and Computer Science for designing, construction, and application of
robots.Aspects of RoboticsThe robots have mechanical construction, form, or shape designed to
accomplish a particular task.They have electrical components which power and control the
machinery.They contain some level of computer program that determines what, when and how
a robot does something.Difference in Robot System and Other AI ProgramHere is the difference
between the two −AI ProgramsRobotsThey usually operate in computer-stimulated worlds.They
operate in real physical worldThe input to an AI program is in symbols and rules.Inputs to robots
is analog signal in the form of speech waveform or imagesThey need general purpose computers
to operate on.They need special hardware with sensors and effectors.

Robot Locomotion

Locomotion is the mechanism that makes a robot capable of moving in its environment. There
are various types of locomotion:

−Legged

Wheeled

Combination of Legged and Wheeled Locomotion

Tracked slip/skid

Fuzzy Logic Systems

Fuzzy Logic Systems (FLS) produce acceptable but definite output in response to incomplete,
ambiguous, distorted, or inaccurate (fuzzy) input.

What is Fuzzy Logic?Fuzzy Logic (FL) is a method of reasoning that resembles human
reasoning. The approach of FL imitates the way of decision making in humans that involves all
intermediate possibilities between digital values YES and NO.The conventional logic block that
a computer can understand takes precise input and produces a definite output as TRUE or
FALSE, which is equivalent to human‘s YES or NO.The inventor of fuzzy logic, Lotfi Zadeh,
observed that unlike computers, the human decision makingincludes a range of possibilities
between YES and NO, such as −CERTAINLY YESPOSSIBLY YESCANNOT SAYPOSSIBLY
NOCERTAINLY NOThe fuzzy logic works on the levels of possibilities of input to achieve the
definite output.ImplementationIt can be implemented in systems with various sizes and
capabilities ranging from small micro-controllers to large, networked, workstation-based control
systems.It can be implemented in hardware, software, or a combination of both.Why Fuzzy
Logic?Fuzzy logic is useful for commercial and practical purposes.It can control machines and
consumer products.It may not give accurate reasoning, but acceptable reasoning.Fuzzy logic
helps to deal with the uncertainty in engineering. Page 108 of 129Fuzzy Logic Systems
ArchitectureIt has four main parts as shown −Fuzzification Module− It transforms the system
inputs, which are crisp numbers, into fuzzy sets. It splits the input signal into five steps such as
−LPx is Large PositiveMPx is Medium PositiveSx is SmallMNx is Medium NegativeLNx is
Large NegativeKnowledge Base− It stores IF-THEN rules provided by experts.Inference
Engine− It simulates the human reasoning process by making fuzzy inference on the inputs and
IF-THEN rules.Defuzzification Module− It transforms the fuzzy set obtained by the inference
engine into a crisp value

AI - Natural Language ProcessingNatural Language Processing (NLP) refers to AI method of

communicating with an intelligent systems using a natural language such as English.Processing
of Natural Language is required when you want an intelligent system like robot to perform as per
your instructions, when you want to hear decision from a dialogue based clinical expert system,
etc.The field of NLP involves making computers to perform useful tasks with the natural
languages humans use. The input and output of an NLP system can be −SpeechWritten text

Components of NLP

There are two components of NLP as given –

1.Natural Language Understanding (NLU)Understanding involves the following tasks

−Mapping the given input in natural language into useful representations.Analyzing different
aspects of the language.
2.Natural Language Generation (NLG)It is the process of producing meaningful phrases and
sentences in the form of natural language from some internal representation.It involves −Text
planning− It includes retrieving the relevant content from knowledge base.Sentence planning−
It includes choosing required words, forming meaningful phrases, setting tone of the
sentence.Text Realization− It is mapping sentence plan into sentence structure. The NLU is
harder than NLG.Difficulties in NLUNL has an extremely rich form and structure.It is very
ambiguous. There can be different levels of ambiguity −Lexical ambiguity− It is at very
primitive level such as word-level.For example, treating the word ―board‖ as noun or verb?
Syntax Level ambiguity− A sentence can be parsed in different ways.For example, ―He lifted
the beetle with red cap.‖ − Did he use cap to lift the beetle or he lifted a beetle that had red cap?
Referential ambiguity− Referring to something using pronouns. For example, Rima went to
Gauri. She said, ―I am tired.‖ − Exactly who is tired?One input can mean different
meanings.Many inputs can mean the same thing.NLP TerminologyPhonology− It is study of
organizing sound systematically.Morphology− It is a study of construction of words from
primitive meaningful units.Morpheme− It is primitive unit of meaning in a language.Syntax−
It refers to arranging words to make a sentence. It also involves determining the structural role of
words in the sentence and in phrases

Semantics− It is concerned with the meaning of words and how to combine words into
meaningful phrases and sentences.Pragmatics− It deals with using and understanding sentences
in different situations and how the interpretation of the sentence is affected.Discourse− It deals
with how the immediately preceding sentence can affect the interpretation of the next
sentence.World Knowledge− It includes the general knowledge about the world.Steps in
NLPThere are general five steps −Lexical Analysis− It involves identifying and analyzing the
structure of words. Lexicon of a language means the collection of words and phrases in a
language. Lexical analysis is dividing the whole chunk of txt into paragraphs, sentences, and
words.Syntactic Analysis (Parsing)− It involves analysis of words in the sentence for grammar
and arranging words in a manner that shows the relationship among the words. The sentence
such as ―The school goes to boy‖ is rejected by English syntactic analyzer.Semantic Analysis−
It draws the exact meaning or the dictionary meaning from the text. The text is checked for
meaningfulness. It is done by mapping syntactic structures and objects in the task domain. The
semantic analyzer disregards sentence such as ―hot ice-creamDiscourse Integration− The
meaning of any sentence depends upon the meaning of the sentence just before it. In addition, it
also brings about the meaning of immediately succeeding sentence.Pragmatic Analysis− During
this, what was said is re-interpreted on what it actually meant. It involves deriving those aspects
of language which require real world knowledge

Expert SystemsExpert systems (ES) are one of the prominent research domains of AI. It is
introduced by the researchers at Stanford University, Computer Science Department.What are
Expert Systems?The expert systems are the computer applications developed to solve complex
problems in aparticular domain, at the level of extra-ordinary human intelligence and
expertise.Characteristics of Expert SystemsHigh performanceUnderstandableReliableHighly
responsiveCapabilities of Expert SystemsThe expert systems are capable of
−AdvisingInstructing and assisting human in decision makingDemonstratingDeriving a
solutionDiagnosingExplaining

Interpreting inputPredicting resultsJustifying the conclusionSuggesting alternative options to

a problemThey are incapable of −Substituting human decision makersPossessing human
capabilitiesProducing accurate output for inadequate knowledge baseRefining their own
knowledgeComponents of Expert SystemsThe components of ES include −Knowledge
BaseInference EngineUser Interface

Knowledge BaseIt contains domain-specific and high-quality knowledge. Knowledge is required

to exhibit intelligence. The success of any ES majorly depends upon the collection of highly
accurate and precise knowledge.What is Knowledge?The data is collection of facts. The
information is organized as data and facts about the task domain. Data, information, and past
experience combined together are termed as knowledge.

Components of Knowledge BaseThe knowledge base of an ES is a store of both, factual and

heuristic knowledge.Factual Knowledge− It is the information widely accepted by the
Knowledge Engineers and scholars in the task domain.Heuristic Knowledge− It is about
practice, accurate judgement, one‘s ability of evaluation, and guessing.Knowledge
representationIt is the method used to organize and formalize the knowledge in the knowledge
base. It is in the form of IF-THEN-ELSE rules.
Knowledge Acquisition

The success of any expert system majorly depends on the quality, completeness, and accuracy of
the information stored in the knowledge base.The knowledge base is formed by readings from
various experts, scholars, and the Knowledge Engineers. The knowledge engineer is a person
with the qualities of empathy, quick learning, and case analyzing skills.He acquires information
from subject expert by recording, interviewing, and observing him at work, etc. He then
categorizes and organizes the information in a meaningful way, in the form of IF-THEN-ELSE
rules, to be used by interference machine. The knowledge engineer also monitors the
development of the ES.Inference EngineUse of efficient procedures and rules by the Inference
Engine is essential in deducting a correct, flawless solution.In case of knowledge-based ES, the
Inference Engine acquires and manipulates the knowledge from the knowledge base to arrive at a
particular solution.In case of rule based ES, it −Applies rules repeatedly to the facts, which are
obtained from earlier rule application.Adds new knowledge into the knowledge base if
required.Resolves rules conflict when multiple rules are applicable to a particular case.To
recommend a solution, the Inference Engine uses the following strategies –

Forward Chaining

Backward Chaining

Forward Chaining

It is a strategy of an expert system to answer the question, “What can happen next?”Here, the
Inference Engine follows the chain of conditions and derivations and finally deduces the
outcome. It considers all the facts and rules, and sorts them before concluding to a solution.This
strategy is followed for working on conclusion, result, or effect. For example, prediction of share
market status as an effect of changes in interest rates.

Backward Chaining

With this strategy, an expert system finds out the answer to the question, “Why this
happened?”On the basis of what has already happened, the Inference Engine tries to find out
which conditions could have happened in the past for this result. This strategy is followed for
finding out cause or reason. For example, diagnosis of blood cancer in humans.
User Interface

User interface provides interaction between user of the ES and the ES itself. It is generally
Natural Language Processing so as to be used by the user who is well-versed in the task domain.
The user of the ES need not be necessarily an expert in Artificial Intelligence. It explains how the
ES has arrived at a particular recommendation. The explanation may appear in the following
forms Page 117 of 129Natural language displayed on screen.Verbal narrations in natural
language.Listing of rule numbers displayed on the screen.The user interface makes it easy to
trace the credibility of the deductions.Requirements of Efficient ES User InterfaceIt should help
users to accomplish their goals in shortest possible way.It should be designed to work for user’s
existing or desired work practices.Its technology should be adaptable to user’s requirements;
not the other way round.It should make efficient use of user input.

Expert Systems Limitations

No technology can offer easy and complete solution. Large systems are costly, require
significant development time, and computer resources. ESs have their limitations which include
−Limitations of the technologyDifficult knowledge acquisitionES are difficult to
maintainHigh development costs

Development of Expert Systems:

General StepsThe process of ES development is iterative.

Steps in developing the ES include –

Identify Problem Domain

The problem must be suitable for an expert system to solve it.

Find the experts in task domain for the ES project.

Establish cost-effectiveness of the system.

Design the System

Identify the ES Technology

Know and establish the degree of integration with the other systems and databases.

Realize how the concepts can represent the domain knowledge best.

Develop the Prototype

From Knowledge Base: The knowledge engineer works to –

Acquire domain knowledge from the expert.

Represent it in the form of If-THEN-ELSE rules.

Test and Refine the Prototype

The knowledge engineer uses sample cases to test the prototype for any deficiencies in
performance.End users test the prototypes of the ES.

Develop and Complete the ES

Test and ensure the interaction of the ES with all elements of its environment, including end
users, databases, and other information systems.

Document the ES project well.

Train the user to use ES.

Maintain the ES

Keep the knowledge base up-to-date by regular review and update.

Cater for new interfaces with other information systems, as those systems evolve.

AI - Agents & Environments

An AI system is composed of an agent and its environment. The agents act in their environment.
The environment may contain other agents.

What are Agent and Environment?

An agent is anything that can perceive its environment through sensors and acts upon that
environment through effectors.A human agent has sensory organs such as eyes, ears, nose,
tongue and skin parallel to the sensors, and other organs such as hands, legs, mouth, for
effectors.A robotic agent replaces cameras and infrared range finders for the sensors, and
various motors and actuators for effectors.A software agent has encoded bit strings as its
programs and actions.

Agent TerminologyPerformance Measure of Agent− It is the criteria, which determines how

successful an agent is.Behavior of Agent− It is the action that agent performs after any given
sequence of percepts.Percept− It is agent‘s perceptual inputs at a given instance.Percept
Sequence− It is the history of all that an agent has perceived till date.Agent Function− It is a
map from the precept sequence to an action.

Rationality

Rationality is nothing but status of being reasonable, sensible, and having good sense of
judgment.Rationality is concerned with expected actions and results depending upon what the
agent has perceived. Performing actions with the aim of obtaining useful information is an
important part of rationality.

What is Ideal Rational Agent?

An ideal rational agent is the one, which is capable of doing expected actions to maximize its
performance measure, on the basis of –

Its percept sequence

Its built-in knowledge base Rationality of an agent depends on the following four factors –

The performance measures, which determine the degree of success.

Agent‘s Percept Sequence till now.

The agent‘s prior knowledge about the environment.

The actions that the agent can carry out.A rational agent always performs right action, where
the right action means the action that causes the agent to be most successful in the given percept
sequence. The problem the agent solves is characterized by Performance Measure, Environment,
Actuators, and Sensors (PEAS).The Structure of Intelligent AgentsAgent‘s structure can be
viewed as −Agent = Architecture + Agent ProgramArchitecture = the machinery that an agent
executes on.Agent Program = an implementation of an agent function.Simple Reflex
AgentsThey choose actions only based on the current percept.They are rational only if a
correct decision is made only on the basis of current precept.

Their environment is completely observable.Condition-Action Rule− It is a rule that maps a

state (condition) to an action

Model Based Reflex AgentsThey use a model of the world to choose their actions. They
maintain an internal state.Model− The knowledge about ―how the things happen in the
world‖.Internal State− It is a representation of unobserved aspects of current state depending on
percept history.Updating the state requires the information about −How the world
evolves.How the agent’s actions affect the world.

Goal Based AgentsThey choose their actions in order to achieve goals. Goal-based approach is
more flexible than reflex agent since the knowledge supporting a decision is explicitly modeled,
thereby allowing for modifications.Goal− It is the description of desirable situations