Chapter-2

1. A ___ is a set of information which processes the data transaction in database system that monitors
transaction programs.
A. Operating System
B. Decision Support System
C. Transaction Processing System
D. None of the mentioned above

2. A Transaction Processing System is also known as real-time processing system.

A. True
B. False

3. ____ is a way of computing that divides work into individual, indivisible operations.
A. Executive Support System
B. Decision Support System
C. Transaction Processing System
D. None of the mentioned above

4. A TPS is a set of information which processes the ____ in database system.

A. Information management
B. Data transaction
C. Scheduling
D. None of the mentioned above

5. ____ processes multiple transactions at the same time.

A. Batch Processing
B. Real-time Processing
C. Distributed System
D. None of the mentioned above

6. In ___ the results of each transaction are not immediately available.

A. Batch processing
B. Real-time processing
C. Transaction processing
D. All of the mentioned above

7. A transaction processing system helps user's to process data transactions within a ___ that tracks
transaction programs.

A. Transaction system
B. Batch system
C. Database system
D. None of the mentioned above
8. A ___ utilizes both software and hardware to manage thousands of business and user data.

A. Decision Support System

B. Transaction Processing System
C. Executive Support System
D. None of the mentioned above

9. Transaction Processing System components are ____.

A. Processing system
B. Storage device
C. I/O
D. All of the mentioned above

10. In ___, all transactions are automatically processed.

A. Real-Time Processing
B. Executive Support System
C. Decision Support System
D. None of the mentioned above

11. ____ deal with one transaction at a time.

A. Batch Processing System

B. Real-time Processing System
C. Distributed System
D. None of the mentioned above

12. A ___ consists of a sequence of query and / or update statements.

A. System
B. Transaction
C. Maintenance
D. All of the mentioned above

13. A transaction completes its execution is said to be,

A. Commit
B. Rollback
C. Backup
D. None of the mentioned above

14. Information is a -

A. Processed Data
B. Data
C. Input
 D. Output

15. Volume of strategic information is,

A. Detailed
B. Summarized
C. Condensed
D. Irrelevant

16. Which of the following is not associated with Transaction Processing System?

A. To produce detail, summary, reports

B. To record a business transaction activity
C. Triggering a response
D. Maintaining data

17. A TPS generally,

A. Processes a low volume of business transactions

B. Supports single users in routine, everyday transactions.
C. Uses relatively simple procedures to control processing and to ensure accuracy
D. None of the mentioned above

18. Which of the following is a system used to present information to drill down to details for executives
of the company?

A. Decision Support System

B. Executive Support System
C. Expert System
D. Transaction-Processing System

19. Strategic information is needed for ___ in the organizations.

A. Long term planning

B. Short term planning
C. Regular / daily operations
D. All of the mentioned above

20. Which of the following information systems allows people to work together as a group is called:

A. Transaction Processing System

B. Management Information System
C. Group Support System
D. Decision Support System
1. Processing more transactions at a lower unit cost makes batch processing more efficient than real-
time systems. ANS: T

2. The process of acquiring raw materials is part of the conversion cycle. ANS: F

3. Directing work-in-process through its various stages of manufacturing is part of the conversion cycle.
ANS: T

4. The portion of the monthly bill from a credit card company is an example of a turn-around
document. ANS: T

5. The general journal is used to record recurring transactions that are similar in nature. ANS: F

6. Document flowcharts are used to represent systems at different levels of detail. ANS: F

7. Data flow diagrams represent the physical system. ANS: F

8. System flowcharts are often used to depict processes that are handled in batches. ANS: T

9. Program flowcharts depict the type of media being used (paper, magnetic tape, or disks) and
terminals. ANS: F

10. System flowcharts represent the input sources, programs, and output products of a computer
system. ANS:T

11. Program flowcharts are used to describe the logic represented in system flowcharts. ANS: T

12. Batch processing systems can store data on direct access storage devices. ANS: T

13. Backups are automatically produced in a direct access file environment. ANS: F

14. The box symbol represents a temporary file. ANS: F

15. Auditors may prepare program flowcharts to verify the correctness of program logic. ANS: T

16. A control account is a general ledger account which is supported by a subsidiary ledger. ANS: T

17. The most significant characteristic of direct access files is access speed. ANS: T

18. Real time processing is used for routine transactions in large numbers. ANS: F

19. Batch processing is best used when timely information is needed because this method processes
data efficiently. ANS: F

20. An inverted triangle with the letter “N” represents a file in “name” order. ANS: F

21. Real-time processing in systems that handle large volumes of transactions each day can create
operational inefficiencies. ANS: T

22. Operational inefficiencies occur because accounts unique to many concurrent transactions need to
be updated in real time. ANS: F

23. Operational inefficiencies occur because accounts common to many concurrent transactions need
to be updated in real time. ANS: T
 24. Batch processing of non-critical accounts improves operational efficiency. ANS: T

25. Batch processing of accounts common to many concurrent transactions reduces operational
efficiency. ANS: F

26. The block code is the coding scheme most appropriate for a chart of accounts. ANS: T

27. Sequential codes may be used to represent complex items or events involving two or more pieces
of related data. ANS: F

28. Block codes restrict each class to a pre-specified range. ANS: T

29. For a given field size, a system that uses alphabetic codes can represent far more situations than a
system with that uses numeric codes. ANS: T

30. Mnemonic codes are appropriate for items in either an ascending or descending sequence, such as
the numbering of checks or source documents. ANS: F

31. The flat-file approach is most often associated with so-called legacy systems. ANS: T

32. In a flat-file system, files are easily shared by users. ANS: F