ABUBAKAR TAFAWA BALEWA UNIVERSITY, BAUCHI

FACULTY OF MANGEMENT SCIENCES

DEPARTMENT OF ACCUNTING AND FINANCE

16th April, 2017

COURSE: MAT 615 (Accounting Information System)
CREDIT HOURS: 3 Credits
CLASS: M. Sc. Accounting
SEMESTER /SESSION: 1st Semester, 2016/2017 Session
LECTURER: Kabir Tahir Hamid, PhD
CONSULTATION: Tuesday and Wednesday 10-2pm
OFFICE: Department of Accounting and Finance, ATBU, Bauchi

A. COURSE DESCRIPTION
Computer is an information processor capable of performing some computations, including
numerous arithmetical and logic operations without human intervention. Therefore, there is need
to prepare Accounting students for practical application of computer in various aspects of
accounting. This course is, therefore, designed to introduce students to the history of computer,
system theory, system design and analysis, data network, file structure and file organization,
principles of data design, essential elements of accounting information, data manipulation and
administration, methods of data collection, data coding and output, principles of programme
stored instructions and languages, models and structured programmes, memory and backing
store, input and output devices and data communication.

B.COURSE OBJECTIVES
The main objective of this course is to introduce students to accounting information system. It is
expected that on completion of this course, the students should be able to:
i) understand the definition of computer, its historical development and generations;
ii) know the different types of computers and their uses and application in business;
iii) understand computer input and output devices;
iv) appreciate the relevance of system theory in Accounting information;
v) understand system analysis and design;
vi) learn the basic elements of data communication system and identify different types of
network;
vii) describe communication protocols and data transmission modes;
viii) explain the use of computer network and describe different components of computer
network;
ix) explain the types of data network, and communication;
x) understand the principles of file structure and file organization;
xi) appreciate the principles of data design;
xii) learn the essential elements of accounting information;
xiii) understand data manipulation and administration;
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xiv) explain methods of data collection;
xv) explain the types of data coding and output;
xvi) appreciate the principles of programme stored instructions and languages;
xvii) explain models and structured programmes;
xviii) understand memory and backing store; and
xix) explain computer input and output devices.

C. COURSE CONTENTS
1. History and Development of Computer Technology (1st Week)
1.1 Introduction
1.2 Evolution of Computer
2. Generations of Computers (2nd Week)
2.1 First Generation Computers (1940-1955)-Vacuum Tubes
2.2 Second Generation Computers (1956-1963)-Transistors
2.3 Third Generation Computers (1964-1971)-Integrated Circuits
2.4 Fourth Generation Computers (1972-2010)-Microprocessors
2.5 Fifth Generation Computers (2011-Beyond)-Artificial Intelligence
3. Why and How of Computers (3rd Week)
3.1 Basic Computer Operations
3.2 Functional Units of the Computer
3.2.1 Arithmetic Logical Unit (ALU)
3.2.2 Control Unit (CU)
3.2.3 Central Processing Unit (CPU)
4. Classification of Computers (4th Week)
4.1 Purpose Based Classification (General and Specific Purpose Computers)
4.2 Functionality Based Classification (Analog, Digital and Hybrid Computers)
4.3 Size Based Classification (Super, Mainframe, Mini and Micro Computers)
4.4 Model Based Classification (XT, AT and PS/2 Computers)
4.5 Brand Based Classification (IBM, IBM Compatible and Apple Macintosh Computers)
5. Computer Input and Output Devices (5th Week)
5.1 Computer Input Devices
5.2 Computer Output Devices
5.3 Computer Input-Output Devices
6. Computer Data (6th Week)
6.1 Nature Data
6.2 Speed of Data
6.3 Data Capture
6.4 Methods of Data
7. System Theory (7th Week)
7.1 Introduction
7.2 System Environment
7.3 Sub-systems
7.4 Coupling and Decoupling of Systems i. e. (Integration and Disintegration)
7.5 Components of a System
7.6 Types of Systems
7.7 Classification of Open Systems
7.8 Control Systems
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7.8.1 Elements of Control
7.8.2 Types of Control Systems
7.8.3 Feedback Control System
7.8.4 Feedforward control system
8. System Design and Analysis (8th Week)
8.1 System Analysis
8.2 System Design
9. Data Transmission and Validation (8th Week)
9.1 Data Transmission
9.2 Data Validation
10. Data Communication and Networking (9th Week)
10.1 Introduction
10.2 Data Communication
10.3 Communication Media
10.4 Types of Communication Services
10.5 Types of Communication Services
10.6 Computer Network
10.7 Benefits of Network
10.8 Types of Network
10.9 Important Terms Used In Networking
10.10 Teleconferencing
11. Memory and Backing Store (10th Week)
11.1 Main memory
11.2 ROM and RAM
11. 3 Memory Sizes
11.4 Backing Storage Devices
11.5 Relationship between the Backing Store and the Main Memory
12. File Organization and Structure (11th Week)
12.1 Types of File Organization
12.2 Type of File
13. Principles of Data Design (12th Week)
13.1 Database Design
13.2 Determining Data to be Stored
13.3 Determining Data Relationship
13.4 Logically Structuring Data
13.5 Design Process foe Microsoft Access
13.6 Normalization
13.7 Schema refinement
13.8 Physical design
14. Essential Elements of Accounting Information (13th Week)
14.1 The Concept of Accounting
14.2: Information System
14.3 An accounting information system (AIS)
14.4 Qualities of Good Accounting Information
15. Data Coding (14th Week)
15.1 AIS and Data Coding
15.2 A System without Codes
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15.3 A System with Codes
15.4 Computer Coding and Types of Codes
16. Revision /General Overview (15th Week)
13. Revision /General Overview (15th Week)

D. RECOMMENDED TEXT BOOKS

1. Basic Computer Applications, First Edition by Doyin, T., 2005, Published by Datalink
Associates Limited, Block 3, House 6B, Howson Wright Estate Olusegun Ojota-
Lagos.ISBN:978-057-488-3
2. An introduction to Computing, by Wooldridge, R., 1966, London Oxford University Press.
New York Toroto
3. Design of information systems: A Modern Approach, by Jibitesh, M. and Ashok, M., 2007,
Publishing House, 22, Delhi Medical Association Road, Dayaganj, New Delhi
4. Auditing Automatic Data Processing, by A.B. Frielink, Elsevier Publishing Company,
Netherlands, 1959 (this book contains information about ways to make data more safe and
secure in the computer).
5. The Beginners Guide To Computers, by Robin Bradbeer, Peter DeBono, & Peter Laurie,
Addison Wesley Publishing Co. Reading, Mass, 1982 (this book explains the many uses of the
computer, including all aspects of Accounting).
6. Breakthrough To Computer Age, by Harry Wulforst, Charles Scribner & Sons, New York,
1982 (this book deals with the history of computers).
7. Computer: The Mind Stretcher, by Weyman Jones, The Dial Press, New York, 1969 (this
bock deals with the uses of computers).
8. Computer Insecurity, by Adrian R. D. Norman. London and New York, Chapman & Hall,
1983 (this book deals with the ways to make the use of computers more safe and secure).
9. Computers and People, by John A. Postley, McGraw-Hill, New York, 1960 (this book deals
with how people use the computers).
10. Computers, Teaching & Learning, by Jerry W. Willis, Johnson, D. LaMont, Dixon,
Dilithium Press, Beaverton, Orgeon, 1983 (this book deals with ways that teachers use
computers in the classroom).
11. Computers: Their Impact and Use, by Robert E. Lynch, Robert R. Rice, Holt, Rinehard &
Winston, 1977 (this book deals with uses of the computer, including Accounting uses).
12. Computers & Their Uses, by William H. Desmonde, Prentice Hall, Inc., 1964 (this book
deals with uses of the computer, including Accounting uses).
13.Computerize Your Business, by Phillip I. Goodod, Chilton Book. Co., Radnor, PA, 1984 (this
book includes ways to use the computer in Accounting).
14. Computers: Their History and How They Work, by Richard B. Rusch, Simons & Schuster,
1969 (this book deals with the history of the computer).
15. Computer Abuse: Risks and Defensive Measures, by Rainer von zur Muhlen and V.
Hamann, Bit, April 1973 (this book deals with problems that one occurs when using a
computer).
16. The Making of the Micro, Christopher Evans, Van Nostrand Reinhold, New York, 1981 (this
book deals with the history of the computer).
17. Programming Computers for Business Applications, Ned Chapin, McGraw-Hill, New York,
1961 (this book deals with uses of the computer in Accounting).

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E. COURSE REQUIREMENTS
Every student is required to attend the class regularly and participate actively in group
discussions and study group activities. Attendance at lecture is compulsory and at least 75%
attendance record is mandatory for a student to qualify to sit for the end of semester
examination. Students are also expected to sign up for an email account for effective e–
discussions.

F. COURSE DELIVERY STRATEGIES/METHODOLOGY

Face to face lectures, class discussion, group work, and online interaction. The course outline
along with the complete lecture notes would be made available to the class and would be posted
onto the internet. Students are expected to photocopy (and or download) and read the notes
before each lecture for better understanding and effective participation during class discussion.

G. BREAK-DOWN OF GRADING

S/No. Type Scores (%)

1 Assignments 20
2 Continuous Assessment 20
(Tests)
3 Final Examination 60
Total Score 100

The continuous assessment marks are to be absorbed through snap test (s) to be given without
notice, scheduled test (s) and/or paper presentation.

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1. HISTORY AND DEVELOPMENT OF COMPUTER TECHNOLOGY

1.1 Introduction
The term computer is derived from the Latin term ‘computare’, this means to calculate or
programmable machine. A computer is a set of electronic device that can systematically and
sequentially follow a set of instructions called a program to perform high-speed arithmetic and
logical operations on data. Nothing epitomizes modern life better than the computer. In other
words, a computer is an advanced electronic device that takes raw data as input from the user
and processes these data under the control of set of instructions (called program) and gives the
result (output) and saves output for the future use. It can process both numerical and non-
numerical (arithmetic and logical) calculations.

Today computers do much more than simply computing: supermarket scanners calculate grocery
bill while keeping store inventory; and Automated Teller Machines (ATM) let us conduct
banking transactions from virtually anywhere in the world. But where did all this technology
come from and where is it heading to? To fully understand and appreciate the impact computers
have on accounting and promises they hold for the future, it is important to understand its
historical evolution.

1.2 Evolution of Computer

The abacus, which emerged about 5,000 years ago in Asia and is still in use today in places like
China, Japan and Russia, may be considered the first computer. The word Abacus is said to
have been derived from the Greek word ‘abax’, meaning ‘calculating board’ or ‘calculating
table’. This device allows users to make computations using a system of sliding beads arranged
on a rack. Early merchants used the abacus to keep trading transactions. But as the use of paper
and pencil spread, particularly in Europe, the abacus lost its importance. It took nearly 12
centuries, however, for the next significant advance in computing devices to emerge.
Figure I. Abacus Device

In 1642, Blaise Pascal (1623-1662), the 18-year-old son of a French tax collector, invented
what he called a numerical wheel calculator (popularly known as the Pascaline) to help his
father with his duties. This brass rectangular box, called the Pascaline, used eight movable dials
to add sums up to eight figures long only. Pascal's device used a base of ten to accomplish this.
The drawback to the Pascaline, however, was its limitation to addition and its inability to
perform other arithmetic operations of multiplication, division and subtraction.
Figure II: Pascaline

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In 1694, a German mathematician and philosopher, Gottfried Wilhem von Leibniz (1646-1716),
improved the Pascaline by creating a machine that could also multiply. Like its predecessor,
Leibniz's mechanical multiplier worked by a system of gears and dials. Partly by studying
Pascal's original notes and drawings, Leibniz was able to refine his machine. It was not until
1820, however, that mechanical calculators gained widespread use. Charles Xavier Thomas de
Colmar, a Frenchman, invented a machine that could perform the four basic arithmetic
functions. Colmar's mechanical calculator, the arithometer, presented a more practical
approach to computing because it could add, subtract, multiply and divide. With its enhanced
versatility, the arithometer was widely used up until the First World War. Although later
inventors refined Colmar's calculator, together with fellow inventors Pascal and Leibniz, he
helped define the age of mechanical computation.
Figure III. Leibniz Machine

The real beginnings of computers as we know them today, however, lay with an English
mathematics professor, Charles Babbage (1791-1871) who is called the "Grand Father" of the
computer. Frustrated at the many errors he found while examining calculations for the Royal
Astronomical Society, Babbage begun the automation of computers by 1812. Babbage noticed a
natural harmony between machines and mathematics: machines were best at performing tasks
repeatedly without mistake; while mathematics, particularly the production of mathematics
tables, often required the simple repetition of steps. The problem centered on applying the
ability of machines to the needs of mathematics. Babbage's first attempt at solving this problem
was in 1822 when he proposed a machine to perform differential equations, called a Difference
Engine. After working on the Difference Engine for 10 years, Babbage was suddenly inspired to
begin work on the first general-purpose computer, which he called the Analytical Engine.
Babbage's assistant, Augusta Ada King, Countess of Lovelace (1815-1842) was instrumental in
the machine's design. One of the few people who understood the Engine's design as well as
Babbage, she helped revise plans, secure funding from the British government, and
communicate the specifics of the Analytical Engine to the public. Also, Lady Lovelace's fine
understanding of the machine allowed her to create the instruction routines to be fed into the
computer, making her the first female computer programmer. In the 1980's, the U.S. Defense
Department named a programming language ADA in her honor.
Figure IV. Babbage Machine (the Analytical Engine)

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Babbage's engine outlined the basic elements of a modern general purpose computer and was a
breakthrough concept. Consisting of over 50,000 components, the basic design of the Analytical
Engine included input devices in the form of perforated cards containing operating instructions
and a "store" for memory of 1,000 numbers of up to 50 decimal digits long. It also contained a
"mill" with a control unit that allowed processing instructions in any sequence, and output
devices to produce printed results.

In 1889, an American inventor, Herman Hollerith (1860-1929) found a faster way to compute
the U.S. census. The previous census in 1880 had taken nearly seven years to count and with an
expanding population, the bureau feared it would take 10 years to count the latest census.
Unlike Babbage's idea of using perforated cards to instruct the machine, Hollerith's method used
cards to store data information which he fed into a machine that compiled the results
mechanically. Instead of ten years, census takers compiled their results in just six weeks with
Hollerith's machine. In addition to their speed, the punch cards served as a storage method for
data and they helped reduce computational errors. Hollerith brought his punch card reader into
the business world, founding Tabulating Machine Company in 1896, later to become
International Business Machines (IBM) in 1924 after a series of mergers.
Figure V. Hollerith Machine

In the ensuing years, several engineers made other significant advances. Vannevar Bush (1890-
1974) developed a calculator for solving differential equations in 1931. The machine could
solve complex differential equations that had long left scientists and mathematicians baffled.
Similarly, John V. Atanasoff, a professor at Iowa State College (now called Iowa State
University) and his graduate student, Clifford Berry, envisioned an all-electronic computer that
applied Boolean algebra to computer circuitry. By extending this concept to electronic circuits in
the form of on or off, Atanasoff and Berry had developed the first all-electronic computer by
1940. Their project, however, lost its funding and their work was overshadowed by similar
developments by other scientists.

2. GENERATIONS OF COMPUTERS
The history of the computer goes back several decades however and there are five definable
generations of computers. Each generation is defined by a significant technological development
that changes fundamentally how computers operate-leading to more compact, less expensive,
but more powerful, efficient and robust machines. The following are the five generations of
computers.

2.1 First Generation (1940-1955) – Vacuum Tubes

With the onset of the Second World War, governments sought to develop computers to exploit
their potential strategic importance. This increased funding for computer development projects
hastened technical progress. By 1941 German engineer Konrad Zuse had developed a
computer, the Z3, to design airplanes and missiles. The Allied forces, however, made greater

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strides in developing powerful computers. In 1943, the British completed a secret code-breaking
computer called Colossus to decode German messages. The Colossus's impact on the
development of the computer industry was rather limited for two important reasons. First,
Colossus was not a general-purpose computer; it was only designed to decode secret messages.
Second, the existence of the machine was kept secret until decades after the war. American
efforts produced a broader achievement. Howard H. Aiken (1900-1973), a Harvard engineer
working with IBM, succeeded in producing an all-electronic calculator by 1944. The purpose of
the computer was to create ballistic charts for the U.S. Navy.

Figure VI. Colossus Machine

It was about half as long as a football field and contained about 500 miles of wiring. The
machine was slow (taking 3-5 seconds per calculation) and inflexible (in that sequences of
calculations could not change); but it could perform basic arithmetic as well as more complex
equations.

Another computer development spurred by the war was the Electronic Numerical Integrator and
Computer (ENIAC), produced by a partnership between the U.S. government and the University
of Pennsylvania. Consisting of 18,000 vacuum tubes, 70,000 resistors and 5 million soldered
joints, the computer was such a massive piece of machinery that it consumed 160 kilowatts of
electrical power, enough energy to dim the lights in an entire section of Philadelphia.
Developed by John Presper Eckert (1919-1995) and John W. Mauchly (1907-1980), ENIAC,
unlike the Colossus it was a general-purpose computer that computed at high speed.

Figure VII: ENIAC Computer

In the mid-1940's John von Neumann (1903-1957) joined the University of Pennsylvania team
and designed the Electronic Discrete Variable Automatic Computer (EDVAC) in 1945 with a
memory to hold both a stored program as well as data. The key element to the von Neumann
architecture was the central processing unit, which allowed all computer functions to be
coordinated through a single source. In 1951, the UNIVAC I (Universal Automatic Computer),

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built by Remington Rand, became one of the first commercially available computers to take
advantage of these advances.

Figure VIII: EDVAC Computer

These early computers used vacuum tubes as circuitry and magnetic drums for memory as a
result taking up entire rooms and costing a fortune to run. These were inefficient materials
which generated a lot of heat, sucked huge electricity and subsequently generated a lot of heat
which caused ongoing breakdowns. These first generation computers relied on ‘machine
language’ (which is the most basic programming language that can be understood by
computers). These computers were limited to solving one problem at a time. Input was based on
punched cards and paper tape. Output came out on print-outs. The two notable machines of this
era were the UNIVAC and ENIAC machines – the UNIVAC is the first every commercial
computer which was purchased in 1951 by a business – the US Census Bureau.

2.2 Second Generation Computers (1956-1963) – Transistors

By 1948, the invention of the transistor greatly changed the computer's development. The
transistor replaced the large, cumbersome vacuum tube in televisions, radios and computers. As
a result, the size of electronic machinery has been shrinking ever since. The transistor was at
work in the computer by 1956. Coupled with early advances in magnetic-core memory,
transistors led to second generation computers that were smaller, faster, more reliable and
more energy-efficient than their predecessors. The first large-scale machines to take advantage
of this transistor technology were early supercomputers. These computers, developed for atomic
energy laboratories, could handle an enormous amount of data, a capability much in demand by
atomic scientists. The machines were costly, however, and tended to be too powerful for the
business sector's computing needs, thereby limiting their attractiveness. Only two LARCs were
ever installed: one in the Lawrence Radiation Labs in Livermore, California and the other at the
U.S. Navy Research and Development Center in Washington, D.C. Second generation
computers replaced machine language with assembly language, allowing abbreviated
programming codes to replace long, difficult binary codes.

Throughout the early 1960's, there were a number of commercially successful second
generation computers used in business, universities, and government from companies such as
Burroughs, Control Data, Honeywell, IBM, Sperry-Rand, and others. These second generation
computers contained all the components associated with the modern day computer: printers,
tape storage, disk storage, memory, operating systems, and stored programs. One important
example was the IBM 1401, which was universally accepted throughout industry, and is
considered by many to be the Model T of the computer industry. By 1965, most large business
routinely processed financial information using second generation computers. More
sophisticated high-level languages such as COBOL (Common Business-Oriented Language)
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and FORTRAN (Formula Translator) came into common use during this time, and have
expanded to the current day. These languages replaced binary machine code with words,
sentences, and mathematical formulas, making it much easier to program a computer. New types
of careers (programmer, analyst, and computer systems expert) and the entire software industry
began with second generation computers. The second generation computers were smaller,
faster, cheaper and less heavy on electricity use. They still relied on punched card for
input/printouts. Transistor-driven machines were the first computers to store instructions into
their memories – moving from magnetic drum to magnetic core ‘technology’.

2.3 Third Generation Computers (1964-1971) – Integrated Circuits

Though transistors were clearly an improvement over the vacuum tube, they still generated a
great deal of heat, which damaged the computer's sensitive internal parts. The quartz rock
eliminated this problem. Jack Kilby, an engineer with Texas Instruments, developed the
integrated circuit (IC) in 1958. The IC combined three electronic components onto a small
silicon disc, which was made from quartz. Scientists later managed to fit even more components
on a single chip, called a semiconductor. As a result, computers became ever smaller as more
components were squeezed onto the chip. Another third-generation development included the
use of an operating system that allowed machines to run many different programs at once with a
central program that monitored and coordinated the computer's memory.

2.4 Fourth Generation (1972– 2010) – Microprocessors

After the integrated circuits, the only place to go was down-in size. Large Scale Integration
(LSI) could fit hundreds of components onto one chip. By the 1980's, Very Large Scale
Integration (VLSI) squeezed hundreds of thousands of components onto a chip. Ultra-Large
Scale Integration (ULSI) increased that number into the millions, thus helping to diminish the
size and price of computers. It also increased their power, efficiency and reliability. The Intel
4004 chip, developed in 1971, took the integrated circuit one step further by locating all the
components of a computer (central processing unit, memory, and input and output controls) on a
minuscule chip. Whereas previously the integrated circuit had had to be manufactured to fit a
special purpose, now one microprocessor could be manufactured and then programmed to meet
any number of demands. Soon everyday household items such as microwave ovens, television
sets and automobiles with electronic fuel injection incorporated microprocessors.

Such condensed power allowed everyday people to harness a computer's power. They were no
longer developed exclusively for large business or government contracts. By the mid-1970's,
computer manufacturers sought to bring computers to general consumers. These minicomputers
came complete with user-friendly software packages that offered even non-technical users an
array of applications, most popularly word processing and spreadsheet programs. Pioneers in
this field were Commodore, Radio Shack and Apple Computers. In the early 1980's, arcade
video games such as Pac Man and home video game systems such as the Atari 2600 ignited
consumer interest for more sophisticated, programmable home computers.

In 1981, IBM introduced its Personal Computer (PC) for use in the home, office and schools.
The 1980's saw an expansion in computer use in all three arenas as clones of the IBM PC made
the personal computer even more affordable. The number of personal computers in use more
than doubled from 2 million in 1981 to 5.5 million in 1982. Ten years later, 65 million PCs were
being used. Computers continued their trend toward a smaller size, working their way down
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from desktop to laptop computers (which could fit inside a briefcase) to palmtop (able to fit
inside a breast pocket). In direct competition with IBM's PC was Apple's Macintosh line,
introduced in 1984. Notable for its user-friendly design, the Macintosh offered an operating
system that allowed users to move screen icons instead of typing instructions. Users controlled
the screen cursor using a mouse, a device that mimicked the movement of one's hand on the
computer screen.

As computers became more widespread in the workplace, new ways to harness their potential
developed. As smaller computers became more powerful, they could be linked together, or
networked, to share memory space, software, information and communicate with each other. As
opposed to a mainframe computer, networked computers allowed individual computers to form
electronic co-ops. Using either direct wiring, called a Local Area Network (LAN), or telephone
lines, these networks could reach enormous proportions. A global web of computer circuitry, the
Internet, for example, links computers worldwide into a single network of information. The two
most popular use of computer for networks today are the Internet and electronic mail, or E-mail,
which allow users to send messages through networked terminals across the office or across the
world.

What filled a room in the 1940s now fit in the palm of the hand. The Intel chip housed
thousands of integrated circuits. The year 1981 saw the first ever computer (IBM) specifically
designed for home use and 1984 saw the MacIntosh introduced by Apple. Microprocessors even
moved beyond the realm of computers and into an increasing number of everyday products. The
increased power of these small computers meant they could be linked, creating networks, which
ultimately led to the development, birth and rapid evolution of the Internet. Other major
advances during this period have been the Graphical user interface (GUI), the mouse and more
recently the astounding advances in lap-top capability and hand-held devices.

2.5 Fifth Generation (2011 and Beyond) – Artificial Intelligence

Many advances in the science of computer design and technology are coming together to enable
the creation of fifth-generation computers. Two such engineering advances are parallel
processing, which replaces single central processing unit design with a system harnessing the
power of many CPUs to work as one. Another advance is superconductor technology, which
allows the flow of electricity with little or no resistance, greatly improving the speed of
information flow. Using recent engineering advances, computers are able to accept spoken word
instructions (voice recognition) and imitate human reasoning. The ability to translate a foreign
language is also moderately possible with fifth generation computers. Computers today have
some attributes of fifth generation computers. For example, expert systems assist doctors in
making diagnoses by applying the problem-solving steps a doctor might use in assessing a
patient's needs. It will take several more years of development before expert systems are in
widespread use.

Computer devices with artificial intelligence are still in development, but some of these
technologies are beginning to emerge and be used such as voice recognition. Leaning to the
future, computers will be radically transformed again by quantum computation, molecular and
nano technology. The essence of fifth generation will be using these technologies to ultimately
create machines which can process and respond to natural language, and have capability to learn
and organise themselves.
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3. WHY AND HOW OF COMPUTERS
3.1 Basic Computer Operations

Figure IX: Basic Computer Operations

i. Input: This is the process of entering data and programs in to the computer system. The
computer is an electronic machine like any other machine which takes as inputs raw data and
performs some processing giving out processed data. Therefore, the input unit takes data to the
computer in an organized manner for processing.
ii. Storage: The process of saving data and instructions permanently is known as storage. Data
has to be fed into the system before the actual processing starts. It is because the processing
speed of Central Processing Unit (CPU) is so fast that the data has to be provided to CPU with
the same speed. Therefore, the data is first stored in the storage unit for faster access and
processing. The storage unit or the primary storage of the computer system provides space for
storing data and instructions before and after processing and the results of processing.
iii. Processing: The task of performing operations like arithmetic and logical operations is
called processing. The Central Processing Unit (CPU) takes data and instructions from the
storage unit and makes all sorts of calculations based on the instructions given and the type of
data provided. It is then sent back to the storage unit.
iv. Output: This is the process of producing results from the data for getting useful information.
Similarly the output produced by the computer after processing must also be kept somewhere
inside the computer before being given out in human readable form. Again the output is also
stored inside the computer for further processing.
v. Control: Controlling of all operations like input, processing and output are performed by the
control unit. It takes care of step by step processing of all operations inside the computer.

3.2 Functional Units of the Computer

In order to carry out the operations mentioned above the computer allocates the task between its
various functional units. The computer system is divided into three separate functional units for
its operation. They are: (i) arithmetic logical unit, (ii) control unit and (iii) central processing
unit.

3.2.1 Arithmetic Logical Unit (ALU)

After data is entered through the input device it is stored in the primary storage unit. The actual
processing of the data and instruction are performed by Arithmetic Logical Unit. The major
operations performed by the ALU are addition, subtraction, multiplication, division, logic and
comparison. Data is transferred to ALU from storage unit when required. After processing the
output is returned back to storage unit for further processing or getting stored.
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3.2.2 Control Unit (CU)
The next component of computer is the Control Unit, which acts like the supervisor seeing that
things are done in proper fashion. Control Unit is responsible for coordinating the various
operations using time signal. The control unit determines the sequence in which computer
programs and instructions are executed. Things like processing of programs stored in the main
memory, interpretation of the instructions and issuing of signals for other units of the computer
to execute them. It also acts as a switch board operator when several users access the computer
simultaneously, thereby, coordinating the activities of computer’s peripheral equipment as they
perform the input and output.

3.2.3 Central Processing Unit (CPU)

The ALU and the CU of a computer system are jointly known as the central processing unit
(CPU). The CPU is the brain of any computer system. It is just like brain that takes all major
decisions, makes all sorts of calculations and directs different parts of the computer functions by
activating and controlling the operations.

4. CLASSIFICATION OF COMPUTERS
Generally, computers can be classifieds on the basis of purpose, work, size, model and brand.
4.1 Purpose Based Classification
According to purpose, computers are classified into two (2) namely general purpose or specific
purpose computers.
(i) General Purpose Computers: General purpose computers are designed to perform a range
of tasks, provided that the correct instructions are loaded in the computer They have the
ability to store numerous programs, but lack in speed and efficiency.

(ii) Specific Purpose Computers: These are built to solve only one particular task. VCR and
Optical recorders/players, Auto-pilot, Automatic Washing Machines, Mobile Phones, GPS,
etc. will have an embedded computer to control them. The program for these computers is
normally ‘hard coded’ that is built in the machine’s ROM (Read Only Memory).
Embedded systems controlling common appliances are one form of dedicated computers –
they have a CPU, Input Output devices, software stored in ROM and some RAM (Random
Access Memory) as workspace.

4.2 Work (Functionality) Based Classification

According to work (functionality), computers are classified into three (3), Analog, Digital
and Hybrid computers.
i) Analog Computers: An analog computer (spelt analogue in British English) is a form of
computer that uses continuous physical phenomena such as electrical, mechanical, or
hydraulic quantities to model the problem being solved. Analog computers are used to
process analog data. Analog data is of continuous nature and which is not discrete or
separate. Such type of data includes temperature, pressure, speed weight, voltage, depth
etc. These quantities are continuous and having an infinite variety of values. It measures
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 continuous changes in some physical quantity e.g. the Speedometer of a car measures
speed, the change of temperature is measured by a Thermometer and the weight is
measured by Weights machine. Analog computer measures continuous type of data and
uses a physical quantity like electric current, voltage, temperature, etc. to present and
process the data. It represent numbers by a physical quantity; that is, they assign numeric
values by physically measuring some actual property, such as the length of an object, an
angle created by two lines, or the amount of voltage passing through a point in an electric
circuit.

Analog computers are widely used for certain specialized engineering and scientific
applications, for calculation and measurement of analog quantities. They are frequently
used to control process such as those found in oil refinery where flow and temperature
measurements are important. They are used for example in paper making and in chemical
industry. Analog computers do not require any storage capability because they measure and
compare quantities in a single operation. Output from an analog computer is generally in
the form of readings on a series of dial (Speedometer of a car) or a graph on strip chart.
(iii) Digital Computers: A Digital Computer, as its name implies, works with digits to
represent numerals, letters or other special symbols. Digital Computers operate on inputs
which are ON-OFF type and its output is also in the form of ON-OFF signal. Normally, an
ON is represented by a 1 and an OFF is represented by a 0. So we can say that digital
computers process information which is based on the presence or the absence of an
electrical charge or we prefer to say a binary 1 or 0.
A digital computer can be used to process numeric as well as non-numeric data. It can
perform arithmetic operations like addition, subtraction, multiplication and division and also
logical operations. Most of the computers available today are digital computers. The most
common examples of digital computers are accounting machines and calculators. The
results of digital computers are more accurate than the results of analog computers. Analog
computers are faster than digital. Analog computers lack memory whereas digital computers
store information. One can therefore say that digital computers count and analog computers
measures.
(iv) Hybrid Computers (Analog + Digital): A combination of computers that are capable
of inputting and outputting in both digital and analog computers. It combines the best
features of both types of computers, i-e. it has the speed of analog computer and the
memory and accuracy of digital computer. Hybrid computers are used mainly in
specialized applications where both kinds of data need to be processed. Therefore, they
help the user, to process both continuous and discrete data. For example a petrol pump
contains a processor that converts fuel flow measurements into quantity and price
values. In hospital Intensive Care Unit (ICU), an analog device is used which measures
patient's blood pressure and temperature etc, which are then converted and displayed in
the form of digits. Hybrid computers for example are used for scientific calculations, in
defense and radar systems.

4.3 Size Based Classification

According to size, computers are classified into four (4) namely super, mainframe, mini and
microcomputers.

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i) Super Computers: Supercomputers are the fastest and most powerful type of computers
with large storage capacity that are very expensive and are employed for specialized
applications that require immense amounts of mathematical calculations. For example,
weather forecasting requires a supercomputer. Other uses of supercomputers include space
exploration, earthquake studies, weather forecasting (hurricanes, tsunami, rainfall,
windstorm forecast etc), nuclear weapons testing (testing the range, accuracy and impact of
nuclear weapons), animated graphics, and natural resources exploration (natural gas,
exploration, and other minerals). The chief difference between a supercomputer and a
mainframe is that a supercomputer channels all its power into executing a few programs as
fast as possible, whereas a mainframe uses its power to execute many programs
concurrently.

Figure X: Super Computers

The most powerful computers in terms of performance and data processing that performed
specialized/specific task used by large organizations. NASA (National Air Space Agency)
uses supercomputers for launching space shuttles, controlling them and for space
exploration purpose. They are very expensive and very large in size which can span an
entire building.

ii) Mainframe Computers: A very large, high speed, large storage capacity and expensive
computer capable of supporting hundreds, or even thousands, of users simultaneously.
Many large firms & government organizations use Mainframes to run their business
operations and to process & store large amount of data. It occupies space of about 100 sq.
feet. Banks educational institutions & insurance companies use mainframe computers to
store data about their customers, students & insurance policy holders. They are also used for
population census, result publication etc. In some ways, mainframes are more powerful than
supercomputers because they support more simultaneous programs. But supercomputers can
execute a single program faster than a mainframe.
iii) Mini Computers: Minicomputers are used by small businesses & firms. Minicomputers are
also called as “Midrange Computers”. They are small machines that do not have
processing and data storage capabilities as super-computers & Mainframes. These
computers are not designed for a single user and are capable of supporting from 4 to about
200 users simultaneously. Individual departments of a large company or organizations use
Mini-computers for specific purposes. For example, a production department can use Mini-
computers for monitoring certain production process.
iv) Micro Computers: The micro-computers are widely used & the fastest growing computers.
These computers are the cheapest among the other three types of computers. The Micro-
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 computers are specially designed for general usage like entertainment, education and work
purposes and are small in size and are portable. It features are increasing rapidly. They are
used for multi-purposes and include desktop computer (a personal or micro-mini computer
sufficient to fit on a desk), Laptop Computer (a portable computer complete with an
integrated screen and keyboard. It is generally smaller in size than a desktop computer and
larger than a notebook computer, Palmtop Computer/Digital Diary /Notebook /PDAs (a
hand-sized computer) which has no keyboard but the screen serves both as an input and
output device and workstations (a terminal or desktop computer in a network). Desktop
computers, laptops, personal digital assistant (PDA), tablets & smartphones are all types of
microcomputers. Well known manufacturers of Micro-computer are Dell, Apple, Samsung,
Sony & Toshiba. Desktop computers, Gaming consoles, Sound & Navigation system of a
car, Netbooks, Notebooks, PDA’s, Tablet PC’s, Smartphones, Calculators are all type of
Microcomputers.

4.4 Model Based Classification

On the basis of model, computers are classified into three (3) namely XT, AT and PS/2
computers.
i) XT computers (Extra Technology): XT is abbreviated form of Extended/Extra
Technology. It cannot support GUI based operating system. Its processing speed is 4.77
MHz and Intel 8080, 8086, 8088 series of microprocessors is used.
ii) AT Computers (Advance Technology): AT is abbreviated form of Advanced
Technology. It supports GUI based operating systems. Its speed is 2 GHz and word length
64 bits. Its processors are Intel series of 80286, 80386, Pentium II etc.
iii) PS/2 Computers: It is a laptop computer which is rechargeable and battery based system.
It is operated with OS/2 operating system.

4.5 Brand Based Classification

On the basis of brand, computers are classified into three (3) namely IBM PC, IBM
Compatible and Apple Macintosh.
i) IBM PC: This stands for International Business Machine Personal Computer and developed
by IBM Company. It is commonly known as the IBM PC. IBM Company is the first
company that manufactured computer. It was founded by a team of engineers and designers.
It has given the new technology on the basis of Charles Babbage principal. Examples are
original IBM PC, XT and AT.

ii) IBM Compatible: They have similar features of IBM computers and are called duplicate of
IBM PC. The term compatible means 'Able to exist together and successfully'. IBM
compatible computer system is assembled form of different components developed by
different companies. It is based on IBM principle that can use standard hardware and
software designed for the IBM PC and its own additional features. Examples are IBM PC
compatible computers that are generally similar to the original IBM PC, XT, and AT.

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 iii) Apple Macintosh: These are computers developed by Apple Industry which used a
standard microprocessor chips.

The chip used by apple computers enabled them to put together a complete computer, a
keyboard for input, and processors in memory and screen all in small box. Apple II is known
as personal computer. IBM PC and its compatible version have largest scope in PC market.
Most of the users of the world have IBM PC than these computers but Apple has its own
users, mostly people interested in graphic works, documentation and publishing sectors.
Study Questions
1. Mention and briefly explain the various types of computers you were taught in the class.
2. How is digital computer different from hybrid computer?
3. List and explain the factors used in classifying computer by size.
4. Write short notes on the following:
(i) Mainframe
(ii) Minicomputer
(iii) Microcomputer
5. Differentiate between the categories of computer.
6. Identify the kind of computer with high and low capacity.

5. INPUT AND OUTPUT DEVICES

The processor or Central Processing Unit (CPU) makes all the calculations of the computer. In
order for a process to be possible we need to feed in data to the computer through the input
devices. The computer will then process the data according to a particular program and finally
deliver information through the output devices. If the information produced needs to be stored
for the future, we will store this into a secondary storage peripheral device.

Any information or data that is entered or sent to the computer to be processed is considered
input and anything that is sent from the computer to an internal or external device is output. An
input device, such as a computer keyboard or mouse, can send information (input) to the
computer, but it cannot receive information (output) from the computer. An output device, such
as a computer monitor or printer, can receive information (output) from the computer, but it
cannot send information (input) to the computer. An input/output device, such as a CD-RW
drive or USB flash drive, can send information (input) to a computer and receive information
(output) from a computer.

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Before a computer can process any data, a method is needed to input the data into the machine.
The device to be used will depend on what form this data takes (be it text, sound, artwork, etc.).
Similarly, after the computer has processed the data, often there may be the need to produce
output of the results. This output could be displayed on the computer screen, hardcopy on
printed pages, or even the audio playback of music that was composed on the computer. The
variety of peripheral devices used for computer input and output include the following:

5.1 Input Devices

a) Keyboard: The computer keyboard is used to enter text information into the computer.
The keyboard can also be used to type commands directing the computer to perform certain
actions. Commands are typically chosen from an on-screen menu using a mouse, but there
are often keyboard shortcuts for giving these same commands. In addition to the keys of
the main keyboard (used for typing text), keyboards usually also have a numeric keypad
(for entering numerical data efficiently), a bank of editing keys (used in text editing
operations), and a row of function keys along the top (to easily invoke certain program
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 functions). There are different types of keyboards but the QWERTY keyboard is the most
widely used. Apart from the normal alphabetical keys, the keyboard has: A Numeric
Keypad, Navigation Keys and Function Keys

b) Graphics Tablets: A graphics tablet consists of an electronic writing area and a special
“pen” that works with it. A graphics tablet allows artists to create graphical images with
motions and actions similar to using more traditional drawing tools. The pen of the
graphics tablet is pressure sensitive, so pressing harder or softer can result in brush strokes
of different width (in
c) Trackballs: Some sub-notebook computers (such as the IBM ThinkPad), which lack room
for even a touch pad, incorporate a trackpoint, a small rubber projection embedded between
the keys of the keyboard. The trackball has the same basic functions of the mouse. The
only difference is that the trackball is stationary and one doesn’t need to move it on a
mouse pad.

d) Joystick: This device is well known with young people as it is mainly used for playing
computer games. As the name implies, it is like a stick connected to a platform, which can
be moved in all directions. These movements in turn will move something on screen
depending on the game. Usually joysticks have buttons also called triggers.

e) Mouse (pointing device): The mouse helps the user to point and access items on the
computer. Its main function is to control the cursor or pointer on the computer’s screen.
The mouse can have 2 or 3 buttons, used according to the software application being used.
Today, most mice also have a scroll wheel which is used mainly to scroll through
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 documents. The traditional PC mouse has two buttons, while the traditional Macintosh
mouse has one button.
Two-button mouse with scroll wheel Wireless Macintosh mouse

f) Touchpads: Most laptop computers today have a touch pad pointing device. This is a small
sensitive pad used on portable computers (laptops). The touch pad is used as a pointing
device. The pointer is moved on screen by touching the touch pad with the finger. Tapping
on the touch pad will give the same results as when using the mouse buttons. The touchpad
is particularly useful for persons with disability whom can have limitations in moving their
hand.

g) Touch screen: Some computers, especially small hand-held PDAs (Personal Data
Assistants), have touch sensitive display screens. The user can make choices and press
button images on the screen. One often uses a stylus, which he holds like a pen, to “write”
on the surface of a small touch screen.
h) Barcode reader: When we buy products from shops we usually see small labels containing
white and black stripes called barcodes. These labels contain information on the product. In
order to read this information, one must pass the barcode in front of a special reader. This
reader can be in a form of a pen or installed on the shop’s counter. The barcode reading
consists of a light emitting diode that will emit light on the code. The reflected light from
the barcode is translated to the computer by a light sensitive diode.

i) Scanner: The scanner is a device that transfers printed text and images to a computer.
Today, most home users have a scanner connected to their computers. These are generally
called flatbed (others less common such as barcode readers are called handhelds). The
scanner alone is not enough to capture the data and transform it to a format that can be
understood by the computer.

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j) Pen Input: Pens are used on hand held computers such as PDAs (Personal Data Assistants).
These hand held computers have a special sensitive screen. When the user touches the
screen it will interact with the computer.

k) Graphics Table: Professionals, such as draftsmen and engineers, usually use this input
device. It is used to speed up their drawing work. The device consists of a hand held
operated device (similar to a pen) used to trace diagrams placed on a digitized table. The
drawing will then be transferred to the computer.

l) Magnetic Ink Character Reader (MICR): This system uses special ink to write numbers
with coded magnetic ink. This special ink contains the written numbers magnetically. This
system is widely used on cheques issued by banks. The MICR is much faster than OCR
(Optical Character Recognition) or other methods when reading codes and thus identifying
cheques.

m) Optical Mark Reader: This device reads marks in predetermined places on specially
prepared cards. These are usually used in multiple-choice questions. The student will have
to fill a space with a pencil, usually HB. The filled examination paper is then inserted into
the OMR so as to enable it to read the answers marked.

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 n) Digital camera: A digital camera or digicam is a camera that encodes digital images and
videos digitally and stores them for later reproduction. Digital cameras are incorporated
into many devices ranging from PDAs and phones to vehicles.
o) Video Capture Hardware: Video capture is the process of converting an analog video
signal—such as that produced by a video camera or DVD player—to digital video. The
resulting digital data are computer files referred to as a digital video stream, or more often,
simply video stream.
p) Microphone: Sometimes abbreviated as mic, a microphone is a hardware peripheral
originally invented by Emile Berliner in 1877 that allows computer users to input audio
into their computers.
q) Webcam: A webcam is a hardware camera connected to a computer that allows anyone
connected to the Internet to view either still pictures or motion video of a user or other
object.

r) Electronic Whiteboard: An electronic whiteboard is a hardware device that is similar to

a whiteboard that is found in schools and businesses. It transmits any information written it
to a computer or multiple computers. It also allows live interaction with digital objects on
the screen.

5.2 Output Devices

Output device. An output device is any peripheral that receives data from a computer, usually
for display, projection, or physical reproduction. For example, the image shows an inkjet printer,
an output device that can make a hard copy of any information shown on the monitor. After
processing the inputted data, the computer will give its output. This output can be in two
different formats:

(i) Softcopy – Visual (monitor) or Sound (speakers)

(ii) Hardcopy – Output on a tangible (something you can touch) such as a printer printout.

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a) Printers (all types): A printer is an external output device that takes data from a
computer and generates output in the form of graphics / text on a paper. Printers can be
divided into two categories Impact and Non-Impact: Impact – refers to all those printers
whose printing heads touch the paper. An example is the Dot matrix printer. Non-Impact
– are all those printers whose printing heads do not touch the paper. An example is a
Laser or an Ink-Jet printer.

b) Monitor: The monitor is the most common type of output device and is also called
Visual Display Unit (VDU).

c) Plotters: The plotter uses pens to write on paper and is usually used for engineering
drawings. There are two types of plotters: Flatbed Plotter – This uses a flat paper which
is fixed, and pens (or styluses) that move on it draw the required design. Drum Plotter –
Here the paper moves along a drum vertically while pens move side to side horizontally.

d) Projector: A projector or image projector is an optical device that projects an image (or
moving images) onto a surface, commonly a projection screen. Most projectors create an
image by shining a light through a small transparent lens, but some newer types of
projectors can project the image directly, by using lasers.

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 e) LCD Projection Panels: An LCD projector is a type of video projector for displaying
video, images or computer data on a screen or other flat surface. It is a modern equivalent
of the slide projector or overhead projector.
f) Computer Output Microfilm (COM): This is a computerized system that converts online
or stored data directly into microfilm, as images for archiving.

g) Speaker(s): These devices are used to produce sound from the computer system. The
soundcard is a card installed in the tower case of the computer. Its role is to convert the
signal coming out of the computer to a format that can be reproduced by the external
speakers.

5.3 Input-Out Put Devices

a) Modem: A modem is a device that enables a computer to transmit data over, for example,
telephone or cable lines.

b) Network cards: A Network interface card, NIC, or Network card is an electronic device
that connects a computer to a computer network, usually a LAN. It is considered a piece
of computer hardware.

c) Touch Screen: A touch screen is a computer display screen that is also an input device.
The screens are sensitive to pressure; a user interacts with the computer
by touching pictures or words on the screen.
d) Headsets: Headsets consists of speakers and microphone. speaker act as output device
and microphone act as input device.
e) Facsimile (FAX): This is a device that has scanner to scan the document and also have
printer to Print the document)
f) Audio Cards/Sound Card: A sound card is an expansion card or IC for
producing sound on a computer that can be heard through speakers or headphones.

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 Study Questions
1. Clearly differentiate between computer input and output devices?
2. What are the uses of input and output devices you were taught in the Class?
3. Mention and briefly explain five (5) input and output devices you know?
4. Write short notes on the following:
(i) Mouse
(ii) Monitor
(iii) Printer
(vi) Joy Stick
(vii)Graphics Tablet
(viii) Trackballs
(ix) Touch screen
(x) Projector
(xi) Headsets
(xii)Fax

6. COMPUTER DATA
6.1 The Nature of Data: Data means information or ‘known facts or things used as basis for
inference or reckoning’. Strictly speaking, data is the plural of datum, so is always treated as
plural. Data are not only elusive (intangible), but also ephemeral (transient). If the data collected
is meaningless, then the information will have no use either [Garbage In = Garbage Out
(GIGO)]. Organisations therefore, need to ensure that appropriate data is available at the time of
processing. When data is entered into information system it is organised into different data
types including images, audio, video, text and numbers. Information will be valuable if it is
relevant, accurate, timely, organised and cost-effective.

6.2 Speed of Data: The speed with which data can be transmitted from one device to another is
often measured in megabits (million bits) or megabytes (million bytes) per second. These are
usually abbreviated as Mbps and MBps, respectively. Another term for data transfer rate is
throughput.

6.3 Data Capture: Data capture is the conversion of data to electronic media. This is a process
for achieving the extraction of relevant data while the related transaction or operation is
occurring. An example is a supermarket checkout equipped with point-of-sale terminals. The
transaction is primarily concerned with the sale to the customer but while the purchased items
are being entered onto the bill it is usual for the machine to record, and thus capture data that
will allow calculation of stock movement and other information. If the equipment for data
capture is online to a computer system, it is part of a data collection process and may be referred
to as either data capture or data collection equipment. The term data capture is often used where
a computer system monitors (or controls) laboratory instruments, process parameters. In this
context it is also known as data logging

6.3.1 Methods of Data Capture

Data may be captured by many automated methods without traditional key entry. As technology
advances, many more tools will become available for data capture. Multiple methods are
available for capturing data from unstructured documents (letters, invoices, email, fax, forms
etc). As one considers the method of data capture, due consideration of the origins of the
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documents(s) that need to be captured must done, to see if the documents are available in their
original electronic format which, has the potential to massively increase data capture accuracy
and remove the need for printing and scanning. The following are the common methods of data
capture:

Manual Input Methods

Keyboard A very familiar input device. Typically used to input data into personal
computer applications such as databases and spreadsheets

Touch- Developed to allow computer monitors to be used as an input device. Selections

sensitive are made by users touching areas of a screen. Sensors, built into the screen
screens surround, detect what has been touched. These screens are increasingly used to
help external customers input transactional data - e.g. buying transport tickets,
paying for car parking or requesting information

Automated Input Methods

Magnetic MICR involves the recognition by a mchine of specially-formatted characters

ink printed in magnetic ink. This is an expensive method to set up and use - but it is
character accurate and fast. A good example is the use of magnetic ink characters on the
recognition bottom of each cheque in a cheque book.
(MICR)

Advantages
(i) Data is easily read by humans as well as the computer
(ii) Little training is required – you just feed the cheques into the machine
(iii) It’s difficult for forgers to change details
Disadvantages
(i) Specialist high-quality printing equipment is required – this obviously
costs more!

Optical Optical Mark Reading (OMR) uses paper based forms which users simply mark
mark (using a dash) to answer a question. OMR needs no special equipment to mark
reading a form other than a pen/pencil. Data can be processed very quickly and with
(OMR) very low error rates. An OMR scanner then processes the forms directly into the
required database. An example you are probably familiar with is answer sheets
for those dreaded multiple choice exam papers!

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Optical OCR is the recognition of printed or written characters by software that
character processes information obtained by a scanner. Each page of text is converted to a
recognition digital using a scanner and OCR is then applied to this image to produce a text
(OCR) and file. This involves complex image processing algorithms and rarely achieves
scanners 100% accuracy so manual proof reading is recommended.

Text is scanned then converted into real, editable text as follows:

Advantages
(i) No special data-preparation equipment required – it just uses text on
ordinary paper
(ii) Data is easily read by humans as well as the computer
Disadvantages
(i) Recognition is not 100% accurate
(ii) Converted documents will need to be checked
(iii) Dirty or damaged documents are difficult to read

Intelligent Intelligent Character Recognition (ICR) again uses paper based forms which
Character respondees can enter handprinted text such as names, dates etc. as well as dash
Recognition marks with no special equipment needed other than a pen/pencil. An ICR
(ICR) scanner then processes the forms, which are then verified and stored the
required database.

Bar coding A very important kind of data collection method - in widespread use.
and EPOS
Bar codes are made up of rectangular bars and spaces in varying widths. Read
optically, these enable computer software to identify products and items
automatically. Numbers or letters are represented by the width and position of
each code's bars and spaces, forming a unique 'tag'. Bar codes are printed on
individual labels, packaging or documents. When the coded item is handled, the
bar code is scanned and the information gained is fed into a computer. Codes
are also often used to track and count items.

Businesses of all types and sizes use bar code systems. Best known are retailers
using Electronic Point of Sale (EPOS) technology, familiar in supermarkets and
many retail operations. Not only saving time at checkout, EPOS cuts

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 management costs by providing an automatic record of what is selling and stock
requirements. Customers receive an accurate record of prices and items
purchased. Producers use bar coding for quick and accurate stock control,
linking easily to customers. Distributors use bar codes as a crucial part of
handling goods. Larger businesses and those with high security requirements
can use bar codes for personnel identification and access records for sensitive
areas.

EFTPOS EFTPOS stands for Electronic Funds Transfer at Point Of Sale. You will find
EFTPOS terminals at the till in certain shops. An EFTPOS terminal
electronically prints out details of a plastic card transaction. The computer in
the terminal gets authorisation for the payment amount (to make sure it's within
the credit limit) and checks the card against a list of lost and stolen cards.

Magnetic A card (plastic or paper) with a magnetic strip of recording material on which
stripe cards the magnetic tracks of an identification card are recorded. Magnetic stripe cards
are in widespread use as a way of controlling access (e.g. swipe cards for doors,
ticket barriers) and confirming identity (e.g. use in bank and cash cards).

Smart cards A smart card (sometime also called a "chip card") is a plastic card with an
embedded microchip. it is widely expected that smart crads will eventually
replace magnetic stripe cards in many applications. The smart chip provides
significantly more memory than the magnetic stripe. The chip is also capable of
processing information. The added memory and processing capabilities are
what enable a smart card to offer more services and increased security. Some
smart cards can also run multiple applications on one card, this reducing the
number of cards required by any one person. One of the key functions of the
smart card is its ability to act as a stored value card, such as Mondex and Visa
cash. This enables the card to be used as electronic cash. Smart cards can also
allow secure information storage, making them ideal as ID cards and security
keys.

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Voice A data collection technology that converts speech into text or interprets it as a
recognition sequence of computer commands. Voice recognition is most common in data
entry and word processing environments, and fields where a user needs to
interact with a computer without using their hands.
Advantages
(i) No special data-preparation equipment required – you just say the data
(ii) Data is easily understood by humans as well as the computer
(iii) Little training is required

Disadvantages
(i) Recognition is not 100% accurate
(ii) Dictation systems need to be trained
(iii) Not everything – e.g. mathematical formulae – are easy to
describe in words

Web Data Web data capture use electronic forms on either on an Intranet or Internet. They
Capture are becoming increasingly popular and have the advantage of being accessible
by any user having access to a computer. Users complete the questions online
and the returned data is then imported in electronic format to the required
database.

7. SYSTEM THEORY
7.1 Introduction
Systems theory provides a general analytical framework (perspective) for viewing an
organization. It provides a spectrum of scientific principles, concepts and philosophy which
may be applied to the study of systems of all types. It embraces all types of business systems
including control systems relating to quality control, production control, budgetary control, cost
control, financial and cash control.

It shows the need for synergy, interdependence and interconnections both within the
organization and between the organization and the environment. It sees organization as
ORGANISM “a set of elements standing in inter-relations”.

A system may be defined as a combination of interrelated elements, called subsystems,

organized in such a way so as to ensure the efficient functioning of the system as a whole. This
necessitates a high degree of coordination between the subsystems, each of which is designed to
achieve a specific purpose. A system element can be a tangible object (such as data,
information) or an event (such as an anniversary day). Examples of systems include:
(i) Business systems
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(ii) Manufacturing systems
(iii) Service systems
(iv) Information systems
(v) Computer-based management information systems
(vi) Stock control systems.

A system must have an objective or goal. It is probably true to say that all systems have more
than one objective. A business organization, for example, might have the following objectives:
(i) Generate a reasonable financial return for shareholders;
(ii) Maintain a high market share;
(iii) Increase productivity annually;
(iv) Offer an up-to-date product range of high quality and proven reliability;
(v) Develop a reputation as responsible employers;
(vi) Acknowledge social responsibilities;
(vii)Grow and survive autonomously.

In most cases, the differing objectives of a system will be conflicting, so that some form of
compromise or trade-off between them must be reached. A system will not operate as efficiently
as it should if these compromises are not reached in a satisfactory manner. For example, the
wish to reduce production cost might conflict with any of the following:
High measure against health and safety conditions at work;
The high costs used for the treatment of waste and effluent from production;
The quality of goods produced;
Depending on new technology or research and development (R & D).

7.2 System Environment

The environment of a system consists of elements which surround the system and interact with
it. The environment is not part of the system. For example, the environment of a business system
consists of the government and the competitors.

A system is normally delimited by a boundary, which separates the system from its
environment. Anything within the boundary is part of the system; while anything outside the
boundary is part of the environment. Elements included in the system and the elements included
in the environment depend on the particular problem being studied. For example, consider the
problem of determining the turnaround time in Batch processing. The system elements will
include people (in the form of the speed of data entry operators and the schedule established by
the computer operator). On the other hand, if the problem is to study how to make a particular
computer program execute more efficiently on a given computer, the system elements will
include purely technical details as the program, system software routines, the data used and the
hardware, while people will be in the system’s environment. Just as every system has an
objective which ought to be identified and specific, so too will every system have constraints or
limiting factors, which restrict its capacity to achieve its objectives. In a business system,
constraints restricting the objective of profit maximization might include any of the following:
(i) Scarcity of key resources such as cash or skilled labour;
(ii) Technological constraints limiting what goods and services can be produced;
(iii) Economic constraints;
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(iv) Political and legal constraints;
(v) Product completion time;
(vi) Responsibilities towards society and for preserving the environment from pollution.

7.3 Sub-systems
Every system can be broken down into subsystems (elements) and in turn, each subsystem can
be further broken into sub-subsystems. Separate subsystems interact with each other and
respond to each other by means of communication or observation. Subsystems may be
differentiated from each other by
(i) Function (e.g. in a manufacturing system, we might have, production, finance, marketing,
sales, personnel etc);
(ii) Space (e.g. Northern area and southern area sales managers;
(iii) Time (e.g. morning shift, afternoon shift, and evening shift managers);
(iv) People;
(v) Formality;
(vi) Automation

For example a manufacturing organization is a system with subsystems such as personnel

department, marketing department, audit department, production department, Information
Technology (I.T.), maintenance department and purchasing department. The manufacturing
organization has been divided into subsystems (elements) by the functions undertaken by the
elements. The production subsystem can be further divided into sub-subsystems such as
machine operations control, work-handling, power supply, and material production.

7.4 Coupling and Decoupling of Systems i. e. (Integration and Disintegration)

A system is a combination of subsystems (elements), which are integrated to each other by
means of their inputs and outputs. Coupling is a measure of the degree or extent of the
dependence of the subsystems on one another. If subsystems are over integrated, they may
become too complex to understand and operate and if one part of the system ceases to function
correctly, the other elements are affected and may cease to function completely.

Decoupling, both in a physical and information sense, allows subsystems more independence in
planning and control. When systems are decoupled, it is easier to administer them in some cases
as they become less complex and more flexible. This enables them to react to random influences
as they occur without too much disruption. Decoupling generally leads to system stability which
is essential for continued operation and survival in a dynamic environment. Decoupling creates a
situation whereby subsystems exist separately on a functional basis but are coordinated by the
chief executive for the achievement of the overall objectives. Each functional sub-system has
more independence even though they are still interrelated in reality, but loosely connected for
administrative convenience.

7.5 Components of a System

When classifying systems, distinction is made between a system’s logical description and
physical description. The logical description of a system is a representation that specifies
essential system elements in respective of how these elements may be implemented. The
physical description addresses implementation. For example, in a computer-based management

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information system (CBIS), the terms input, processing and output are logical descriptions of the
general transformation process. However, during implementation, keyboard can be used as an
input device while the monitor or printer can be used as output devices. The three logical
components of a system are INPUT, PROCESS and OUTPUT.

Input provide the system with what it needs to be able to operate. Input may include matter,
energy, human, data or information. Processes transform the input into output, such as task
performed by human, plant, machines etc. While Output are the results of processing e.g.
finished products, and work-in-progress,

7.6 Types of Systems

One way of classifying systems is the way in which they interact with the environment such as
open and closed systems.
(i) Open System: Open systems are those, which interact with their environment for the
collection of information on business transaction with suppliers, customers, the general
public, government departments, trade organization etc. Such system adapts to changes in
the environment in order to survive which requires speedy reactions to competitive
situations and other threats in the most effective way. All business systems are open
systems.
(ii) Closed System: A Closed system does not interact with its environment either for the
exchange of information or business transaction. A closed system has neither an input nor
output, i.e. it is self-contained. In fact, no such system exists, but the term is used for
systems that interact only partially with their environment. An approximation is the
reaction in a sealed, insulated container.

7.7 Classification of Open Systems

Open systems may be classified according to the degree of reaction to their environment in the
production of output as Deterministic or Mechanistic, Probabilistic or Stochastic, and Adaptive
(self-organizing) or cybernetic.
( i) Deterministic or Mechanistic systems: A deterministic or mechanistic system is one in
which various states or activities follow each other in a completely predictable way. It is
designed to operate on the basis of standardized rules and regulations which restrict its
ability to react to its environment. A deterministic system enables the outputs generated
from specific inputs to be measured without any error. An example is a computer system.
Business and economic systems are not deterministic systems, since they are highly
unpredictable.
( ii) Probabilistic or Stochastic Systems: A probabilistic or stochastic system is one in which
some states or activities can be predicted with varying degree of probabilities. Business and
economic systems are probabilistic systems since they are subjected to random influences
from the environment. The state of such systems can therefore be defined or known only
within specified limits even when they are subject to control. For examples, stocks of raw
materials, parts and finished goods are influenced by changes in demand and variations in
supply. Generally in probabilistic systems, the outputs from specific inputs are not certain
because it is not possible to ascertain what events will occur outside their boundaries.
( iii) Adaptive or Cybernetic System: Cybernetics is defined as the science of communication
and control in man and machine systems. The term is derived from the Greek word

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 “Kybernetes”, the derivation of the Latin work, “gubernator” meaning governor or
controller. An adaptive or cybernetic system is one, which adapts and reacts to a stimulus.
The way in which it adapts is uncertain as the same input (stimulus) to the system will not
always produce the same output (response). An adaptive system responses to changing
situation by adjusting its behaviour on a self-organizing basis. The system alters its inputs
as a result of measuring its outputs. It attempts to optimize its performance by monitoring
its own behaviour. Animals, human beings and business organizations are examples. A
physical example is the thermostat controlled heating system in water boilers which cuts
off current when temperature is high in order to maintain a steady water temperature. Also
computerized stock ordering system is adaptive in nature.

7.8 Control Systems

A system must be controlled to keep it steady or enable it to change safely. Control is required
because unpredictable disturbances may arise and enter the system, so that actual results deviate
from the expected objective. For example, in a business organization, such disturbances could be
(i) Entry of a powerful and advanced technology new computer into the market;
(ii) An unexpected rise in labour costs;
(iii) The failure of a supplier to deliver promised raw materials;
(iv) Government legislation etc.

Control systems are often separately structured from the systems which they control. For
example
(i) The production control system controls the production quantity;
(ii) The quality control system controls the production quality;
(iii) The cost control system controls the cost of production.

These control systems are basically administrative systems for monitoring the results and
modifying the state of the physical systems to which they relate. Control is for the purpose of
detecting variations in the behaviour of a system so that control signals can be communicated to
the appropriate manager.

7.8.1 Elements of Control

The basic elements of control in a business system are:
(i) Planning: This is the determination of objectives, or parameters such as standard times for
an operation, level of production activity required, level of sales required, maximum
expenditure allowed, and performance levels required.
(ii) Collecting facts: This involves the collection and recording of data in respect of such
things as actual times taken, level of production achieved, level of sales achieved,
expenditure incurred and actual performance level.
(iii) Comparison: This involves the computation of the difference between the objective and
the actual results for the purpose of indicating variances and the reporting of significant
deviations (variances).
(iv) Corrective Action: This involves the action taken by the relevant manager (effector) to
maintain a steady state.

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7.8.2 Types of Control Systems
The basic types of control systems are Open– and Closed-loop control systems:
(i) Open-loop control system: In an open -loop control system, the control is exercised
regardless of the output produced by the system. Here control is exercised by external
intervention. Physical examples are automatic light switches and traffic light.
(ii) Closed-loop Control System: In closed-loop control system, the control is exercised by
part of the output, which is fed back into the system as input. Many closed-loop systems
are self-regulating as they contain a built-in control mechanism. Business systems
containing integrated control systems performing continuous monitoring activities are also
closed-loop systems because they contain the essential elements of feedback.

7.8.3 Feedback Control System

Business information is needed to plan or make rules. It is also needed to compare actual results
against the plan, so as to judge what control measures are needed. Feedback as a control is the
return of part of the output of a system to the input as a means of control. Thus, feedback is a
control of a process by its results by measuring differences between desired and actual results. A
feedback is a closed loop as shown in Figure 1.1. Feedback is essentially an output signal
causing error signals to be generated as the basis for adjusting the input to a system which, in
respect of an automatic control system, is achieved by an inbuilt control mechanism.

Fig XI: Closed-loop control system

( i) Negative Feedback: Feedback is part of the output which is returned to the input as a
means of system control. When the actual output from a system is lower than the desired
output, the differences between the actual and the desired outputs are detected as positive
deviations (errors) and action is effected in the opposite direction to counteract them.
Consider a production line with 10,000 units as required output in the month. If the actual
monthly output is 9,000 units, then monthly errors of 1,000 units are detected as positive
deviations. Corrective action would then be taken to increase the output to 10,000 units per
month. This is an adjustment in the opposite direction to the error. Most business control
systems are negative feedback control systems.
( ii) Positive Feedback: In a positive feedback control system, actions are taken to enlarge
(amplify) the detected deviations. This is in contrast to what happens in the negative

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 feedback control systems. For example, amplification applies to serve-mechanisms
whereby a small manual force is detected and amplified to achieve a defined purpose.

7.8.4 Feedforward control system

Management can also act proactively on the feedforward principle. Here, the error signals
(deviations) are noted over a period of time by a monitoring process and may be employed to
forecast the projected performance of an organizational unit. This approach ensures that the
historical trend or inherent behaviour of a system is allowed for when establishing control
parameters for future operations. In conclusion, feedforward controls monitor both process
operations and inputs in an attempt to predict potential deviations in order that adjustments can
be made to avert problems.

8. SYSTEM DESIGN AND ANALYSIS

8.1 System Analysis
Systems analysis is "the process of studying a procedure or business in order to identify its goals
and purposes and create systems and procedures that will achieve them in an efficient way".
Systems analysis is a process of collecting factual data, understand the processes involved,
identifying problems and recommending feasible suggestions for improving the system
functioning. This involves studying the business processes, gathering operational data,
understand the information flow, finding out bottlenecks and evolving solutions for overcoming
the weaknesses of the system so as to achieve the organizational goals. System Analysis also
includes subdividing of complex process involving the entire system, identification of data store
and manual processes. The major objectives of systems analysis are to find answers for each
business process: What is being done, How is it being done, Who is doing it, When is he doing
it, Why is it being done and How can it be improved? It is more of a thinking process and
involves the creative skills of the System Analyst. It attempts to give birth to a new efficient
system that satisfies the current needs of the user and has scope for future growth within the
organizational constraints. The result of this process is a logical system design. Systems analysis
is an iterative process that continues until a preferred and acceptable solution emerges.
Common stakeholders for IT projects are Architecture office
i) Testing & certification office
ii) Records management team
iii) Application support group
Once stakeholders have been recognized, the gathering and analysis of the requirements can
begin. Requirement gathering must be related to business needs or opportunities. Requirement
analysis involves capturing requirements and analyzing requirements. Capturing requirements is
communicating with stakeholders to agree on what the requirements are. Analyzing
requirements is using standard tools to produce a baseline of the requirements. Once the
stakeholders concur on the requirements, the baseline is created and becomes the formal
requirement source. Within this analysis phase, the analyst is discovering and fact finding.
Along with meeting with stakeholders, the analyst must meet with end users to understand what
the user's needs are and to learn about problems that affect the current system in order to assist
with designing a new and more efficient system. There are several activities that must occur
within the analysis phase:
i) Gather Information
ii) Define the new system's requirements
iii) Build prototypes for the new system
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 iv) Prioritize requirements
v) Evaluate alternatives
vi) Meet with management to discuss new options

8.2 System Design

Systems design is the process of defining the architecture, components, modules, interfaces, and
data for a system to satisfy specified requirements. The design phase is concerned with the
physical construction of the system. Included are the design or configuration of the network
(hardware, operating system, programming, etc.), design of user interfaces (forms, reports, etc.),
design of system interfaces (for communication with other systems), and security issues. It is
important that the proposed design be tested for performance, and to ensure that it meets the
requirements outlined during the analysis phase. In other words, the main objective of this phase
is to transform the previously defined requirements into a complete and detailed set of
specifications which will be used during the next phase. Some of the activities that need to take
place during the design phase are:
(i) Design the application
(ii) Design and integrate the network
(iii) Design and integrate the database
(iv) Create a contingency plan
(v) Start a Maintenance, Training and Operations plan
(vi) Review the design
(vii) Articulate the business processes and procedures
(viii) Establish a transition strategy
(ix) Deliver the System Design Document
(x) Review final design

Based on the user requirements and the detailed analysis of the existing system, the new system
is designed. This is the phase of system designing. It is the most crucial phase in the
developments of a system. The logical system design arrived at as a result of systems analysis is
converted into physical system design. Normally, the design proceeds in two stages namely
preliminary or general design (at this stage, the features of the new system are specified, costs of
implementing and these features and the benefits to be derived are estimated) and structured or
detailed design (at this stage, the design of the system becomes more structured).

Study Questions
1. What is system analysis? What are its processes?
2. Who are the common stakeholders for IT projects Architecture office?
3. What are the several activities that must occur within the system analysis?
4. What is system design? What are its processes?
5. What are the common activities that take place during system design?
6. What are the two stages of system design? How do they differ from one another?

9. DATA TRANSMISSION AND VALIDATION

9.1 Data Transmission: Computers encode and transmit data, voice, and video over networks
via various transmission media. Encoding is the process of transforming information into digital
and analog signals. Data is transmitted over networks using signals, which are transformed, or

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encoded, by computers into the voice, video, graphics, and/or the print we see on our computer
screens. The signals used by computers to transmit data are either digital or analog.

Analog signals are continuous signals that vary in strength. Sound is an example of an analog
signal. Telephones have transmitters that encode sound waves into electromagnetic waves,
which then travel over wires toward their destination. The receiving telephone decodes the
electromagnetic waves back into sound waves. Our brains then decode the sound waves into the
words we hear. Computer modems use the same principle. Analog signals can be represented
digitally. For instance, a high electromagnetic voltage could be interpreted as 1 and low voltage
as 0.

Analog signal

Digital signals are discrete rather than continuous. Either there is a signal or there isn't a signal.
Telegraphs transmit data with discrete signals.

Discrete signals can also be represented digitally. The presence of a signal could be coded as a 1
and the absence of a signal coded as a 0. The digits 0 and 1 are used because computer circuitry
is based on binary digital data. The computer’s brain, the central processing unit (CPU),
transforms these codes of 0s and 1s into the voice, video and data we see. Digital data is based
on two states, on or off. The binary numbering system uses only two digits, 0 and 1, so it makes
sense to use the binary numbering system. One digit, 0 represents off, the other digit represents
on. A single 0 or 1 is called a bit. In order to appreciate how computers communicate over
networks, it is necessary to be aware of how they encode information.

9.1.1 Connection-Oriented and Connectionless Transmissions: Data transmission may be:

(i) Connection-oriented
(ii) Connectionless
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The main difference between the two is that with a connection-oriented transmission, the
destination device acknowledges receipt. Whereas, with connectionless, there is no
acknowledgement. In connection-oriented transmissions, the sending (source) device establishes
a connection with the receiving (destination) device. The connection is continued until all data
packets have been transmitted and the source device receives notification that the data was
received by the destination device and has been checked for errors. A telephone conversation is
an example of a connection-oriented transmission. When a call is made, data is transmitted
across phone lines, the receiving party picks up the phone, and a conversation takes place. The
individual making the call knows that it arrived at the correct destination and that it was
understood.

In a connectionless transmission, the source device transmits data but the connection is not
maintained. The source device does not wait for notification that the destination device actually
received the information accurately. This method is faster than connection-oriented, however
less reliable since there is no notification of whether the data is received or not. It is more
common to find connectionless transmissions on LANs. To understand a connectionless
transmission, think of a radio broadcast: A radio disc jockey tells his/her friends to be sure to
listen to her/his program at 9:00 p.m. At that time the disk jockey broadcasts a message to them.
Did they receive the message? Although it is quite likely, the disk jockey cannot be sure that
they turned the radio on, listened, or understood the message.

9.1.2 Synchronous and Asynchronous Transmission: Computers need to know when to

expect data and where a character begins and ends. When receiving data, timing on both
computer devices must be coordinated if they are to work together efficiently. This coordination
is called clocking, timing, or framing. There are two protocols for the timing or coordination of
data signals:
(i) Synchronous
(ii) Asynchronous

When transferring data, both the transmitting and receiving nodes need to agree when the signal
begins and ends so the signals can be correctly measured and interpreted. This timing process is
called bit synchronization, framing, or clocking.
Imaginehowdifficultitwouldbetoreadifyoudidnotknowwhenawordstartedan
dwhenawordendediftherewerenopunctuationandnospacesyoucandoitbecaus
ethereareseveraldifferentcharactersanditisnotincodewhatifthiswerecodedas
zerosandonesthenyouwouldhaverealproblems.

As it can be seen, synchronization of data is very important. Clocking is somewhat like timing
in music. There are a specific number of beats expected per bar. When computer devices are
synchronized, a specific number of signals or “beats” are expected within a set amount of time.
Timing is important because it helps you be prepared. In many schools, every 50 minutes, a new
class period starts. Students watch the clock and expect a signal. Usually, they are already
prepared to leave the classroom. That is because they expected the signal. Synchronous
transmission requires the communicating devices to maintain synchronous clocks during the
entire connection. The sending device transmits on a specific schedule and the receiving device
accepts the data on that same fixed schedule. The receiving device knows the timing of the
sending device because the timing information is embedded within the preamble of the frame.
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Synchronous transmissions are common in internal computer communications and usually are
sent as entire frames. Synchronous transmission is common when large blocks of data are
transferred, since it is efficient and has a low overhead (number of bytes of data/control + data
bytes).

Asynchronous data transmission does not involve synchronizing the clocks of the sending and
receiving devices. Instead, start and stop bits are used for synchronization of data signals. The
start and stop bits tell the receiving device how to interpret the data. Asynchronous sends one
character at a time. Data transmission may be half-duplex; meaning data is transferred in only
one direction at a time. An example of half-duplex is a CB radio where only one person can talk
at a time. Or, transmission may be full duplex, transmitted in two directions simultaneously. A
telephone conversation illustrates full-duplex communication.

10. DATA COMMUNICATION AND NETWORKING

10.1 Introduction: Computers are used to generate information. Generated information is not
useful in itself. The information must be delivered to the right person at the right time. Often
information must be transmitted from one location to another. This process is called data
communication. Electronic communication consists of telecommunication and data
communications. Telecommunication refers to the use of telephone, telegraph, and radio or
television facility to transmit information, either directly or via computer. Data communication
means the transfer of data or information between computers devices.

10.2 Data Communication: Data communication is the active process of transporting data from
one point to another. Networks are communication system designed to convey information from
a point of origin to a point of destination. Note that they are communication system, not
computer system. The operative word is communication, the transfer of information from one
device to another. Networks come in two flavors – local as in local area network, which cover a
small area and have a finite, relatively small, number of users and global or long-haul, which
cover long distance and have an unlimited number of users. Telephone networks are long
network. It refers to the transmission of the digital signals over a communication channel
between the transmitter and receiver computers. Communication is possible only with wired and
wireless connectivity of the computers with each other.

The effectiveness of a data communication system depends on three fundamental characteristics:

(i) Delivery: The system must deliver data to the correct destination. Data must be received by
the intended device or user and only by that device or user.
(ii) Accuracy: The system must deliver data accurately. Data that have been altered in
transmission and left uncorrected are unusable.
(iii) Timeliness: The system must deliver data in a timely manner. Data delivered late are
useless. In the case of video, audio and voice data, timely delivery means delivering data as
they are produced, in the same order that they are produced, and without significant delay.
This kind of delivery is called real-time transmission.
10.2.1 Data Communication Components: The following are the basic components for
working of a communication system.
(i) Transmitter: The transmitter is the device that sends the message. It can be a computer,
workstation, telephone handset, video camera, and so on.

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(ii) Receiver: The receiver is the device that receives the message. It can be a computer,
workstation, telephone handset, television, and so on.
(iii) Medium: The transmission medium is the physical path by which a message travels from
sender to receiver. It can consist of twisted pair wire, coaxial cable, fiber-optic cable, laser
or radio waves (terrestrial or satellite microwave).
(iv) Message: The message is the transmission (data) to be communicated. It can consist of
text, number, pictures, sound, or video or any combination of these.
(v) Protocol: A protocol is a set of rules that governs data communication. It represents an
agreement between the communicating devices. Without a protocol, two devices may be
connected but not communicating, just as a person speaking German cannot be understood
by a person who speaks only Japanese.

The transmitter sends message and the receiver receives the message. The medium is the
channel over which the message is sent and the protocol is the set of rules that guides how the
data is transmitted from encoding to decoding. The message of course is central to all the
components. The message is the data that is being communicated.

Fig XII: Data Communication Components

10.3 Communication Media

Following are the major communication devices which are frequently used:
(i) Wire Pairs: Wire pairs are commonly used in local telephone communication and for short
distance digital data communication. They are usually made up of copper. Using these wire
pairs data transmission speed is normally 9600 bits per second in a distance of 100 metre.
(ii) Twisted pair: Twisted pair wire is the most widely used medium for telecommunication.
Twisted-pair cabling consist of copper wires that are twisted into pairs. Ordinary telephone
wires consist of two insulated copper wires twisted into pairs. Computer networking cabling
(wired Ethernet as defined by IEEE 802.3) consists of 4 pairs of copper cabling that can be

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 utilized for both voice and data transmission. The use of two wires twisted together helps to
reduce crosstalk and electromagnetic induction. The transmission speed ranges from 2
million bits per second to 10 billion bits per second. Twisted pair cabling comes in two
forms which are Unshielded Twisted Pair (UTP) and Shielded twisted-pair (STP) which are
manufactured in different increments for various scenario.
(iii) Coaxial cable: Coaxial cable is widely used for cable television systems, office buildings,
and other work-sites for local area networks. The cables consist of copper or aluminum wire
wrapped with insulating layer typically of a flexible material with a high dielectric constant,
all of which are surrounded by a conductive layer. The layers of insulation help minimize
interference and distortion. Transmission speed range from 200 million to more than 500
million bits per second.
(iv) Optical fiber: Optical fiber cable consists of one or more filaments of glass fiber wrapped
in protective layers that carries data by means of pulses of light. It transmits light which can
travel over extended distances. Fiber-optic cables are not affected by electromagnetic
radiation. Transmission speed may reach trillions of bits per second. The transmission speed
of fiber optics is hundreds of times faster than for coaxial cables and thousands of times
faster than a twisted-pair wire. This capacity may be further increased by the use of colored
light, i.e., light of multiple wavelengths. Instead of carrying one message in a stream of
monochromatic light impulses, this technology can carry multiple signals in a single fiber.

Wireless Technologies
(v) Terrestrial microwave: Terrestrial microwaves use Earthbased transmitter and receiver.
The equipment looks similar to satellite dishes. Terrestrial microwaves use low-gigahertz
range, which limits all communications to line-of-sight. Path between relay stations spaced
approx, 48 km (30 mi) apart. Microwave antennas are usually placed on top of buildings,
towers, hills, and mountain peaks.
(vi) Communications satellites: The satellites use microwave radio signals as their
telecommunications medium which are not deflected by the Earth’s atmosphere. The
satellites are stationed in space, typically 35,400 km (22,000 mi) (for geosynchronous
satellites) above the equator. These Earth-orbiting systems are capable of receiving and
relaying voice, data, and TV signals.

10.4 Types of Communication Services

A term used to describe the data-handling capacity of a communication service is bandwidth.
Bandwidth is the range of frequencies that is available for the transmission of data. A narrow
range of frequencies in a communication system is analogous to a garden hose with a small
diameter. The flow of information in such a system is restricted, just as is the flow of water in the
narrow hose. Wider bandwidths permit more rapid information flow. The communication data
transfer rate is measured in a unit called baud. Baud is identical to bits per second. Therefore, a
rate of 300 baud is 300 bits per second.

Communication companies such as American Telephone and Telegraph (AT&T) and Western
Union are called common carriers, and they provide three general classes of service for both
voice and data communication:
(i) Narrowband handles low data volumes: Data transmission rates are from 45 to 300 baud.
The low-speed devices might use narrow band communications.

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(ii) Voiceband handles moderate data transmission volumes between 300 and 9600 baud:
They are used for applications ranging from operating a CRT to running a line printer. Their
major application is for telephone voice communication hence, the term voiceband.
(iii) Broadband handles very large volumes of data: These systems provide data transmission
rates of 1 million band or more. High-speed data analysis and satellite communications are
examples of broadband communication systems.

10.5 Modem
A modem (modulator-demodulator) is a device that modulates an analog carrier signal to encode
digital information, and also demodulates such a carrier signal to decode the transmitted
information. The goal is to produce a signal that can be transmitted easily and decoded to
reproduce the original digital data. Modems can be used over any means of transmitting analog
signals, from light emitting diodes to radio.

A modem modulates outgoing digital signals from a computer or other digital device to analog
signals for a conventional copper twisted pair telephone line and demodulates the incoming
analog signal and converts it to a digital signal for the digital device.

In recent years, the 2400 bits per second modem that could carry e-mail has become obsolete.
14.4 Kbps and 28.8 Kbps modems were temporary landing places on the way to the much higher
bandwidth devices and carriers of tomorrow. From early 1998, most new personal computers
came with 56 Kbps modems. By comparison, using a digital Integrated Services Digital
Network adapter instead of a conventional modem, the same telephone wire can now carry up to
128 Kbps. With Digital Subscriber Line (DSL) systems, now being deployed in a number of
communities, bandwidth on twisted-pair can be in the megabit range.

10.5.1 Types of Modems

1. Landline Modems
2. Wireless Modems
3. LAN Modems

A. Landline Modems: Landline modems are modems which connect to the public switched
telephone network (PSTN). To connect to PSTN, these modems have a jack known as RJ-
11, or regular phone jack. A telephone cable with a RJ-11 plug connects the modem to the
nearest phone jack, which also conforms to the RH-11standard. Landline modems can be
further classified into the followings types:

1. Internal modems: This device is a circuit board that plugs into one of the expansion slots
of the computer. Internal modems usually are cheaper than external modems, but when
problems occur, fixing and troubleshooting the modem can sometimes prove to be quite
difficult. The telephone line plugs into the modem port in the back of the computer. Most
internal modems come installed in the computer you buy. Internal modems are more
directly integrated into the computer system and, therefore, do not need any special
attention. Internal modems are activated when you run a communications program and are
turned off when you exit the program. This convenience is especially useful for novice
users. Internal modems usually cost less than external modems, but the price difference is
usually small. The major disadvantage with internal modems is their location: inside the
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 computer. When you want to replace an internal modem you have to go inside the computer
case to make the switch.

2. External modems: This device is attached to the back of the computer by way of a cable
that plugs into the modem port. It is usually less expensive and very portable. It can be used
with other computers very easily by unplugging it and plugging it into another computer.
This is the simplest type of modem to install because you don’t have to open the computer.
External modems have their own power supply and connect with a cable to a computer’s
serial port. The telephone line plugs into a socket on the rear panel of the modem. Because
external modems have their own power supply, you can turn off the modem to break an
online connection quickly without powering down the computer. Another advantage over an
internal modem is that an external modem’s separate power supply does not drain any
power from the computer. You also can monitor your modem’s connection activity by
watching the status lights.
3. Voice/data/fax modems: This device can be hooked up to your telephone and used to send
information to your computer. Your computer can also send information to a fax machine.
Most computer modems are modems with faxing capabilities.
4. PC Card modem: These modems, designed for portable computers, are the size of a credit
card and fit into the PC Card slot on notebook and handheld computers. These modems are
removed when the modem is not needed. Except for their size, PC Card modems are like a
combination of external and internal modems. These devices are plugged directly into an
external slot in the portable computer, so no cable is required other than the telephone line
connection. The cards are powered by the computer, which is fine unless the computer is
battery-operated. Running a PC Card modem while the portable computer is operating on
battery power drastically decreases the life of your batteries.

B. Wireless Modems: Wireless modems are radio transmitters/receivers installed into mobile
computing devices (i.e. devices that are used while you are moving such as mobile phones,
laptops etc.) Using wireless modems, one can connect to a network while being mobile.
Unlike landline modems, wireless modems do not plug into an RJ-11 jack.
C. LAN Modems: LAN modems allow shared remote access to LAN (Local Area Network)
resources. LAN modem comes fully preconfigured for single particular network architecture
such as Ethernet or Token Ring and/or particular network software such as IPX, NetBIOS,
NetBEUI etc.

10.5.2 Working of Modem

Modems convert analog data transmitted over phone lines into digital data so that computers can
read; they also convert digital data into analog data so it can be transmitted. This process
involves modulating and demodulating the computer’s digital signals into analog signals that
travel over the telephone lines. In other words, the modem translates computer data into the
language used by telephones and then reverses the process to translate the responding data back
into computer language.

10.6 Computer Network

A computer network is interconnection of various computer systems located at different places.
In computer network two or more computers are linked together with a medium and data
communication devices for the purpose of communicating data and sharing resources. The
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 computer that provides resources to other computers on a network is known as server. In the
network the individual computers, which access shared network resources, are known as nodes.

10.6.1 Characteristics of a Computer Network

The primary purpose of a computer network is to share resources:
(i) You can play a CD music from one computer while sitting on another computer.
(ii) You may have a computer that doesn’t have a DVD or BluRay (BD) player. In this case,
you can place a movie disc (DVD or BD) on the computer that has the player, and then view
the movie on a computer that lacks the player.
(iii) You may have a computer with a CD/DVD/BD writer or a backup system but the other
computer doesn’t have it. In this case, you can burn discs or make backups on a computer
that has one of these but using data from a computer that does not have a disc writer or a
backup system.
(iv) You can connect a printer (or a scanner, or a fax machine) to one computer and let other
computers of the network print (or scan, or fax) to that printer (or scanner, or fax machine).
(v) You can place a disc with pictures on one computer and let other computers access those
pictures.
(vi) You can create files and store them in one computer, then access those files from the other
computer(s) connected to it.

10.6.2 Concept of Networking: A computer network, often simply referred to as a network, is a

collection of hardware components and computers interconnected by communication channels
that allow sharing of resources and information. Networks may be classified according to a wide
variety of characteristics such as the medium used to transport the data, communications
protocol used, scale, topology, and organizational scope. The rules and data formats for
exchanging information in a computer network are defined by communications protocols.

10.6.3 Properties of Network

1. Facilitate communications: Using a network, people can communicate efficiently and
easily via email, instant messaging, chat rooms, telephone, video telephone calls, and video
conferencing.
2. Permit sharing of files, data, and other types of information: In a network environment,
authorized users may access data and information stored on other computers on the network.
The capability of providing access to data and information on shared storage devices is an
important feature of many networks.
3. Share network and computing resources: In a networked environment, each computer on
a network may access and use resources provided by devices on the network, such as
printing a document on a shared network printer. Distributed computing uses computing
resources across a network to accomplish tasks.

10.7 Benefits of Network

(i) File sharing: Network file sharing between computers gives you more flexibility than
using floppy drives or Zip drives. Not only can you share photos, music files, and
documents, you can also use a home network to save copies of all of your important data
on a different computer. Backups are one of the most critical yet overlooked tasks in home
networking.

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(ii) Printer/peripheral sharing: Once a home network is in place, it’s then easy to set up all
of the computers to share a single printer. No longer will you need to bounce from one
system or another just to print out an email message. Other computer peripherals can be
shared similarly such as network scanners, Web cams, and CD burners.
(iii) Internet connection sharing: Using a home network, multiple family members can access
the Internet simultaneously without having to pay an ISP for multiple accounts. You will
notice the Internet connection slows down when several people share it, but broadband
Internet can handle the extra load with little trouble.
(iv) Multi-player games: Many popular home computer games support LAN mode where
friends and family can play together, if they have their computers networked.
(v) Internet telephone service: Voice over IP (VoIP) services allows you to make and receive
phone calls through your home network across the Internet.
(vi) Home entertainment: Newer home entertainment products such as digital video recorders
(DVRs) and video game consoles now support either wired or wireless home networking.
Having these products integrated into your network enables online Internet gaming, video
sharing and other advanced features.

10.8 Types of Network

There are many different types of networks. However, from an end user’s point of view there are
three basic types:
(i) Local Area Network
(ii) Wide Area Network
(iii) Metropolitan Area Network

10.8.1 Local Area Network (LAN): A local area network (LAN) supplies networking
capability to a group of computers in close proximity to each other such as in an office
building, a school, or a home. A LAN is useful for sharing resources like files, printers,
games or other applications. A LAN in turn often connects to other LANs, and to the
Internet or other WAN.
Most local area networks are built with relatively inexpensive hardware such as Ethernet
cables, network adapters, and hubs. Wireless LAN and other more advanced LAN
hardware options also exist. LAN is a computer network that spans a relatively small
area. Most LANs are confined to a single building or group of buildings. However, one
LAN can be connected to other LANs over any distance via telephone lines and radio
waves. Most LANs (as shown in Fig. 2.2) connect workstations and personal computers.
Each node (individual computer) in a LAN has its own CPU with which it executes
programs, but it is also able to access data and devices anywhere on the LAN.

This means that many users can share expensive devices, such as laser printers, as well as
data. Users can also use the LAN to communicate with each other, by sending e-mail or
engaging in chat sessions. There are many different types of LANs-tokenring networks,
Ethernets, and ARCnets being the most common for PCs.

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Fig. XIII: LAN

10.8.2 Wide Area Networks (WANs): The term Wide Area Network (WAN) usually refers to a
network which covers a large geographical area, and use communications circuits to connect the
intermediate nodes. A major factor impacting WAN design and performance is a requirement
that they lease communications circuits from telephone companies or other communications
carriers. Transmission rates are typically 2 Mbps, 34 Mbps, 45 Mbps, 155 Mbps, 625 Mbps (or
sometimes considerably more).
10.8.3 Metropolitan Area Network (MAN): A Metropolitan Area Network (MAN) is one of a
number of types of networks (see also LAN and WAN). A MAN is a relatively new class of
network, it serves a role similar to an ISP, but for corporate users with large LANs.

10.9 Important Terms Used In Networking

(i) Voice Messaging: It is a new communication approach which is similar to electronic mail
except that it is audio message rather than text messages that are processed. A sender
speaks into a telephone rather than typing, giving the name of the recipient and the
message. That sender’s voice signal is then digitized and stored. The system can then either
deliver the message at a specified time in future or it can be retrieved from a database by
the recipient. The message is reconverted back into its analog format when it is delivered
or retrieved so that the recipient hears it as the original sender’s voice on a telephone.
Voice messaging requires a computer with an ability to store the audio messages in digital
form and then convert them back in an audio form upon verification. Each user has a voice
mailbox in secondary storage and special equipment converts the audio message to and
from the digital form. The main advantage of voice mail over electronic mail is that the
sender does not have to type. Voice mail also makes it easy to include people in the firm’s
environment in a communication network.
(ii) Hub: A hub is typically the least expensive, least intelligent, and least complicated. Its job
is very simple: anything that comes in one port is sent out to the others. Every computer
connected to the hub “sees” everything that every other computer on the hub sees. The hub
itself is blissfully ignorant of the data being transmitted. For years, simple hubs have been
quick and easy ways to connect computers in small networks.

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(iii) Switch: A switch does essentially what a hub does but more efficiently. By paying
attention to the traffic that comes across it, it can “learn” where particular addresses are.
For example, if it sees traffic from machine A coming in on port 2, it now knows that
machine A is connected to that port and that traffic to machine A needs to only be sent to
that port and not any of the others. The net result of using a switch over a hub is that most
of the network traffic only goes where it needs to rather than to every port. On busy
networks this can make the network significantly faster.
(iv) Router: A router is the smartest and most complicated of the bunch. Routers come in all
shapes and sizes from the small four-port broadband routers that are very popular right now
to the large industrial strength devices that drive the internet itself. A simple way to think
of a router is as a computer that can be programmed to understand, possibly manipulate,
and route the data its being asked to handle. For example, broadband routers include the
ability to “hide” computers behind a type of firewall which involves slightly modifying the
packets of network traffic as they traverse the device. All routers include some kind of user
interface for configuring how the router will treat traffic. The really large routers include
the equivalent of a full-blown programming language to describe how they should operate
as well as the ability to communicate with other routers to describe or determine the best
way to get network traffic from point A to point B.
(v) Network Repeater: A repeater connects two segments of your network cable. It retimes
and regenerates the signals to proper amplitudes and sends them to the other segments.
When talking about, ethernet topology, you are probably talking about using a hub as a
repeater. Repeaters require a small amount of time to regenerate the signal. This can cause
a propagation delay which can affect network communication when there are several
repeaters in a row. Many network architectures limit the number of repeaters that can be
used in a row. Repeaters work only at the physical layer of the OSI network model.
(vi) Bridge: A bridge reads the outermost section of data on the data packet, to tell where the
message is going. It reduces the traffic on other network segments, since it does not send
all packets. Bridges can be programmed to reject packets from particular networks.
Bridging occurs at the data link layer of the OSI model, which means the bridge cannot
read IP addresses, but only the outermost hardware address of the packet. In our case the
bridge can read the ethernet data which gives the hardware address of the destination
address, not the IP address. Bridges forward all broadcast messages. Only a special bridge
called a translation bridge will allow two networks of different architectures to be
connected. Bridges do not normally allow connection of networks with different
architectures. The hardware address is also called the MAC (media access control) address.
To determine the network segment a MAC address belongs to, bridges use one of the
following:
(a) Transparent Bridging: They build a table of addresses (bridging table) as they receive
packets. If the address is not in the bridging table, the packet is forwarded to all
segments other than the one it came from. This type of bridge is used on ethernet
networks.
(b) Source route bridging: The source computer provides path information inside the
packet. This is used on Token Ring networks.
(vii) Router: There is a device called a router which will function similar to a bridge for
network transport protocols that are not routable, and will function as a router for routable
protocols. It functions at the network and data link layers of the OSI network model.

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(viii) Gateway: A gateway can translate information between different network data formats or
network architectures. It can translate TCP/IP to AppleTalk so computers supporting
TCP/IP can communicate with Apple brand computers. Most gateways operate at the
application layer, but can operate at the network or session layer of the OSI model.
Gateways will start at the lower level and strip information until it gets to the required level
and repackage the information and work its way back toward the hardware layer of the OSI
model.

10.10 Teleconferencing: The term teleconferencing refers to electronic meetings that involve
people who are at physically different sites. Telecommunication technology system allows
meeting participants to interact with one another without travelling to the same location. Three
different types of teleconferencing exist: audio teleconferencing, video teleconferencing and
computer conferencing.

10.10.1 Audio Conferencing: Audio conferencing is the use of voice communication

equipment to establish an audio link between geographically dispersed persons, one that allows
them to conduct a conference. The conference call was the first form of audit conferencing and
is still in use. Some firms install more elaborate systems consisting of private, high-quality
audio communications circuits that can be activated with the flip of a switch. Audio
conferencing does not require a computer. It only requires a two-way audio communications
facility. Audio conferencing is best suited for firms that are spread over a wide area. However,
since it is a form of synchronous communication that requires all participants to be present at
the same time, it is difficult to schedule conferences when time zones are far apart.

10.10.2 Video Conferencing: Video conferencing is the use of television equipment to link
geographically dispersed conference participants. The equipment provides both sound and
picture. Like audio conferencing, video conferencing also does not necessarily require a
computer. With video conferencing, participants can see and hear each other. Generally,
participants gather in relatively expensive, specially equipped rooms that can handle the
complexities of simultaneous video and audio transmission.

There are three possible video conferencing configurations.

(a) One-Way Video and Audio: Video and audio signals are sent from a single transmitting
site to one or more receiving sites. This is a good way for a project leader to disseminate
information to team members at remote locations.
(b) One-Way Video and Two-Way Audio: People at the receiving sites can talk to people at
the transmitting site, while everyone views the same video images.
(c) Two -Way Video and Audio: The video and audio communications between all sites are
two-way. Although this is the most effective of the electronically aided conferencing
approaches, it can be the most expensive as well.

10.10.3 Computer Conferencing: A third form of electronic conferencing is computer

conferencing. There is a fine line between this system and Email. Both use the same software
and hardware. Two factors determine this application, who uses the system, and the subject
matter.

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E-mail is available to anyone who has access to the network and that includes practically
everyone in the office. Also, the E-mail system can be used for any purpose. Computer
conferencing, on the other hand, is the use of a networked computer that allows particular task.
Computer conferencing is more disciplined form of E-mail.

Unlike an audio conference, a, computer conference group can consist of large number of
participants. One of the largest computer conferences was formed within IBM to include anyone
who had an interest in the IBM PC. Its members exceeded 40,000, and there were over 4,000
separate topic areas. Computer conferencing differs from audio and video conferencing because
it can be used within a single geographic site. A person can use computer conferencing to
communicate with someone in the office next door.

11. MEMORY AND BACKING STORE

Computer store programs and data in two different ways: Main Memory and Backing store.

11.1 Main memory: Main memory temporarily stores programs and data that are being
processed. It can be thought of as a series of storage locations. Programs and data are made up
of characters. They are stored in the memory character by character. Each character is stored in
one memory location in the form of bit pattern. When one type a character on the keyboard, the
electronic circuitry interprets the character and stores it in the main memory as a code. In the
past, data were stored in vacuum tubes and core memory. Today, semiconductor memory is used
in almost all computers. It is so small but is very powerful.

11.2 ROM and RAM: The main memory of a computer is composed of ROM and RAM.
Read Only Memory (ROM) is used to store a small part of the operating system called the
bootstrap loader. When a computer is switched on, the bootstrap loader examines the backing
store devices to find the operating system. Once found it is loaded into RAM. ROM has the
following features:
(i) Data in ROM is permanently etched onto a microchip.
(ii) ROM is read-only so it cannot be changed.
(iii) Data on ROM is not lost when the computer is switched off.

Random Access Memory (RAM) is the largest part of the main memory. This is where the
operating system is stored; it also holds all programs and data. One can purchase additional
RAM chips and install them in your desktop computer.

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RAM has the following features:
(i) The data in RAM is read/write so it can be changed
(ii) All data stored in RAM is lost when then computer is switched off
(iii) RAM is sometimes referred to as primary storage.

11. 3 Memory Sizes: The size of the main memory is measured in kilobytes (KB), which is
equal to 1024 bytes. For convenience, we sometimes round of the value of K to 1000. For
example, 640 KB is approximately 640 000 bytes (640 *1000). To measure of larger sizes, we
use megabytes (MB) and gigabytes (GB).
1024 KB = 1MB
1024 MB = 1 GB

The storage capacity of today's drive has increased a lot. In a few years ago, the storage capacity
of a typical desktop system is about 100MB. For now, the microcomputers commonly found in
the market are about 64MB to 500 MB, some may even up to 1.2GB, 12 times larger, and much
faster. Of course, the range of the price also varies.

11.4 Backing Storage Devices: Backing storage devices exist to save programs and data for
future processing. All programs and data are not possible to be saved in the main memory as the
main memory is very expensive. Also the program may be so large that it is impossible for the
main memory to hold all the data.

Backing storage devices can be treated as input/output devices. The function as input devices
when stored data are transferred to the computer for processing. They function as output devices
when processed results are written to them. There are several types of common backing storage
devices: floppy disk, hard disk, magnetic tape, and optical disk.

(i) Floppy Disk: It is made of flexible plastic material. It is coated on both sides with a
magnetized substance. There are many sizes floppy disk. The most commonly used ones are
now 5.25 inches and 3.3 inches. It is stored in a plastic envelope for protection, and
commonly, there is a 'lock' for the protection of the data.
(ii) Hard Disk: It is the most popular form of storage for modern computer system. It is
composed of a set of circular plates and made of metal and coated with magnetized
substances.
(iii) Magnetic Tape: There are mainly three types of magnetic types namely Reel-to-reel tape
(It is only suitable for application that involve sequential processing), Cartridge tape (it is
very fast and has a high storage capacity) and Cassette tape (It is a ready-to-load cassette
that is exactly the same size as an audio cassette tape. The volume of data that can be stored
is small).
(iv) Optical Disk: The technology used for optical disks is the same used for audio compact
disks (CDs). Information is stored using a beam of laser to burn holes in a thin coating of
metal. Photos, movies and text are also be able to process. Optical disks for computer data
storage are also known as CD-ROMs (compact disk read only memory). Data are written
permanently on the disk and can only be read like read on memory. Data on optical disks
are not easily erased or changed.

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Besides, new type of removable storage media like CDR, Zip disk and MO (magneto-optical
drive) are gaining popularity. CD-R can only write once, Zip disk and MO can write many times
as an ordinary hard disk.

11.5 Relationship between the Backing Store and the Main Memory

The diagram below shows the components used in a typical computer system. It is a simple
representation of how a computer works and is often referred to as the ‘four box diagram’ in
Figure XiV

When a computer is switched off all programs and data are held on backing store media such as
hard drives, floppy disks, zip disks and CDR/W. Once the computer is switched on, the
operating system is loaded from the backing store into main memory (RAM). The computer is
now ready to run programs.

When the user opens a word processor file both the application program and the file itself are
loaded into the main memory. The user may then edit the document by typing on the keyboard.
It is the processor that controls the timing of operations and runs the word processing program,
allowing the user to add new text. Once the editing is complete, the user saves the file to the
backing store and this overwrites the original file (unless a new file name is used). If there is a
power failure or the user does not save the document to the backing store then the file will be
lost forever.

Throughout this process the document is outputted to the monitor so that the user can see what is
happening. The user may wish to obtain a hardcopy of the document by using the mouse (input)
to instruct the processor (process) to make a printout (output). This example shows the
relationship between the backing store, the main memory and the processor.

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12. FILE ORGANIZATION AND STRUCTURE
"File organization" refers to the logical relationships among the various records that constitute
the file, particularly with respect to the means of identification and access to any specific record.
"File structure" refers to the format of the label and data blocks and of any logical record control
information.

12.1 Types of File Organization

The organization of a given file may be sequential, relative, or indexed.
(i) Sequential Files: A sequential file is organized such that each record in the file except the
first has a unique predecessor record and each record except the last has a unique successor
record. These predecessor-successor relationships are established by the order in which the
records are written when the file is created. Once established, the predecessor-successor
relationships do not change except in the case where records are added to the end of the
file. A file that is organized sequentially must be accessed sequentially. There are two
types of sequential files, namely variable- or fixed-length sequential files. Sequential files
may be recorded in variable-length or fixed-length record form. If a file consists of
variable-length records, each logical record is preceded by control information that
indicates the size of the logical record. The control information is recorded when the
logical record is written, based on the size of the internal record specified in the write
statement, and is subsequently used by the input- output control system to determine the
location of successive logical records. If a file consists of fixed- length records, the record
size is established at the time the file is opened and is the same for every logical record on
the file.
(ii) Relative Files: A relative file, which must be allocated to random mass storage file space
in the execution activity, is organized such that each record location is uniquely identified
by an integer value greater than zero which specifies ordinal position on the file. In the
RELATIVE KEY phrase of the SELECT clause, the source program specifies a numeric
integer data item as the relative key item.
(iii) Indexed Files: An indexed file, which must be allocated in the execution activity to two or
more random mass storage files (one for the index, and one or more for the data), is
organized such that each record is uniquely identified by the value of a key within the
record. In the RECORD KEY phrase of the SELECT clause, the source program specifies
one of the data items within one of the records associated with the file as the record key
data item. Each attempt to access a record based on the record key item causes a search of
the index file for a key that matches the current contents of the record key data item in the
file record area. The matching index record in turn points to the location of the associated
data record.

12.2 Types of File: A file is a collection of rated data that is treated as a single unit on a
peripheral device for example text document in word processing. The following are the
various types of files.
(i) Transaction File: Transaction file is a record of business transactions. Transactional data
describe an internal or external event or transaction that takes place as an organization
conducts its business. A transaction, in this context, is a sequence of information exchange
and related work (such as database updating) that is treated as a unit for the purposes of
satisfying a request.

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 Transactional data can be financial (invoices, payments, sales orders, invoices, purchase
orders, shipping documents, credit card payments, and insurance claims), work-related
(plans, activity records) or logistical (deliveries, storage records, travel records, etc.)
involving everything from a purchase order to shipping status to employee hours worked to
insurance costs and claims. These data are typically grouped into transactional records,
which include associated master and reference data. Reference data are sets of values or
classification schemas that are referred to by systems, applications, data stores, processes,
and reports, as well as by transactional and master records.

Examples include lists of valid values, code lists, status codes, state abbreviations,
demographic fields, flags, product types, gender, chart of accounts, and product hierarchy.
Standardized reference data are key to data integration and interoperability and facilitate the
sharing and reporting of information. Reference data may be used to differentiate one type of
record from another for categorization and analysis, or they may be a significant fact such as
country, which appears within a larger information set such as address. Organizations often
create internal reference data to characterize or standardize their own information. Reference
data sets are also defined by external groups, such as government or regulatory bodies, to be
used by multiple organizations.

(ii) Master File: Master File is a record that contain master data. Master data refers to the key
organizational entities that are used by several functional groups and are typically stored in
different data systems across an organization. Additionally, master data represents the
business entities around which the organization’s business transactions are executed and the
primary elements around which analytics are conducted. Master data is typically persistent,
non-transactional data utilized by multiple systems that defines the primary business entities.
Master data describe the people, places, and things that are involved in an organization’s
business. Examples include people (e.g., customers, employees, vendors, suppliers), places
(e.g., locations, sales territories, offices), and things (e.g., accounts, products, inventory,
assets, document sets, sites). Because these data tend to be used by multiple business
processes and IT systems, standardizing master data formats and synchronizing values are
critical for successful system integration. Master data tend to be grouped into master records,
which may include associated reference data. An example of associated reference data is a
state field within an address in a customer master record.
(iii) Analytical File: This is a file that contain analytical data. Analytical data are the
numerical values, metrics, and measurements that provide business intelligence and support
organizational decision making. Typically analytical data is stored in Online Analytical
Processing (OLAP) repositories optimized for decision support, such as enterprise data
warehouses and department data marts. Analytical data is characterized as being the facts
and numerical values in a dimensional model.

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Figure XV: Enterprise Data

Transactional data supports the daily operations of an organization (i.e. describes business
events). Analytical data supports decision-making, reporting, query, and analysis (i.e. describes
business performance). While master data represents the key business entities upon which
transactions are executed and the dimensions around which analysis is conducted (i.e. describes
key business entities).

13. PRINCIPLES OF DATA DESIGN

13.1Database Design: The term database design can be used to describe many different parts of
the design of an overall database system. Principally, and most correctly, it can be thought
of as the logical design of the base data structures used to store the data. However, the term
database design could also be used to apply to the overall process of designing, not just the
base data structures, but also the forms and queries used as part of the overall database
application within the Database Management System (DBMS).

Database designs also include ER (entity-relationship model) diagrams. An ER diagram is a

diagram that helps to design databases in an efficient way. Attributes in ER diagrams are
usually modeled as an oval with the name of the attribute, linked to the entity or relationship
that contains the attribute.
13.1.1 Steps in Database Design
The process of doing database design generally consists of a number of steps which will be
carried out by the database designer. Usually, the designer must:
(i) Determine the data to be stored in the database
(ii) Determine the relationships between the different data elements.
(iii)Superimpose a logical structure upon the data on the basis of these relationships.

Within the relational model the final step above can generally be broken down into two further
steps that of determining the grouping of information within the system, generally determining
what are the basic objects about which information is being stored, and then determining the
relationships between these groups of information, or objects. This step is not necessary with
an Object database.

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13.2 Determining Data to be Stored
In a majority of cases, a person who is doing the design of a database is a person with expertise
in the area of database design, rather than expertise in the domain from which the data to be
stored is drawn e.g. financial information, marketing information etc. Therefore, the data to be
stored in the database must be determined in cooperation with a person who does have expertise
in that domain, and who is aware of what data must be stored within the system.
This process is one which is generally considered part of requirements analysis, and requires
skill on the part of the database designer to elicit the needed information from those with the
domain knowledge. This is because those with the necessary domain knowledge frequently
cannot express clearly what their system requirements for the database are as they are
unaccustomed to thinking in terms of the discrete data elements which must be stored. Data to
be stored can be determined by requirement Specification.
13.3 Determining Data Relationship
Once a database designer is aware of the data which is to be stored within the database, they
must then determine where dependency is within the data. Sometimes when data is changed you
can be changing other data that is not visible. For example, in a list of names and addresses,
assuming a situation where multiple people can have the same address, but one person cannot
have more than one address, the address is dependent upon the name. When provided a name
and the list the address can be uniquely determined; however, the inverse does not hold - when
given an address and the list, a name cannot be uniquely determined because multiple people
can reside at an address. Because an address is determined by a name, an address is considered
dependent on a name.
13.4 Logically Structuring Data
Once the relationships and dependencies amongst the various pieces of information have been
determined, it is possible to arrange the data into a logical structure which can then be mapped
into the storage objects supported by the database management system. In the case of relational
databases the storage objects are tables which store data in rows and columns. In an Object
database the storage objects correspond directly to the objects used by the Object-oriented
programming language used to write the applications that will manage and access the data. The
relationships may be defined as attributes of the object classes involved or as methods that
operate on the object classes.
The way this mapping is generally performed is such that each set of related data which depends
upon a single object, whether real or abstract, is placed in a table. Relationships between these
dependent objects is then stored as links between the various objects.
Each table may represent an implementation of either a logical object or a relationship joining
one or more instances of one or more logical objects. Relationships between tables may then be
stored as links connecting child tables with parents. Since complex logical relationships are
themselves tables they will probably have links to more than one parent.
13.5 Design Process foe Microsoft Access
i) Determine the purpose of the database - This helps prepare for the remaining steps.
ii) Find and organize the information required - Gather all of the types of information to
record in the database, such as product name and order number.

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 iii) Divide the information into tables - Divide information items into major entities or
subjects, such as Products or Orders. Each subject then becomes a table.
iv) Turn information items into columns - Decide what information needs to be stored in
each table. Each item becomes a field, and is displayed as a column in the table. For
example, an Employees table might include fields such as Last Name and Hire Date.
v) Specify primary keys - Choose each table’s primary key. The primary key is a column, or
a set of columns, that is used to uniquely identify each row. An example might be Product
ID or Order ID.
vi) Set up the table relationships - Look at each table and decide how the data in one table is
related to the data in other tables. Add fields to tables or create new tables to clarify the
relationships, as necessary.
vii) Refine the design - Analyze the design for errors. Create tables and add a few records of
sample data. Check if results come from the tables as expected. Make adjustments to the
design, as needed.
viii) Apply the normalization rules - Apply the data normalization rules to see if tables are
structured correctly. Make adjustments to the tables, as needed.
13.6 Normalization
In the field of relational database design, normalization is a systematic way of ensuring that a
database structure is suitable for general-purpose querying and free of certain undesirable
characteristics—insertion, update, and deletion anomalies that could lead to loss of data
integrity.

A standard piece of database design guidance is that the designer should create a fully
normalized design; selective denormalization can subsequently be performed, but only
for performance reasons. However, some modeling disciplines, such as the dimensional
modeling approach to data warehouse design, explicitly recommend non-normalized designs,
i.e. designs that in large part do not adhere to 3NF. Normalization consists of normal forms that
are 1NF,2NF,3NF,BOYCE-CODD NF (3.5NF),4NF and 5NF.

13.7 Schema refinement

Schema refinement of the database specifies that the data is normalized to reduce data
insufficiency and conflicts.

13.8 Physical design

The physical design of the database specifies the physical configuration of the database on the
storage media. This includes detailed specification of data elements, data types, indexing options
and other parameters residing in the DBMS data dictionary. It is the detailed design of a system
that includes modules & the database's hardware & software specifications of the system.

14 ESSENTIAL ELEMENTS OF ACCOUNTING INFORMATION

14.1 The Concept of Accounting: Accounting is the principal way of organizing and reporting
financial information. It has been called the “language of business.” Accounting and
information systems comprise the functional area of business responsible for providing
information to the other areas to enable them to do their jobs and for reporting the results to
interested parties. To that end, an accounting system is used to identify, analyze, measure,
record, summarize, and communicate relevant economic information to interested parties.
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Traditionally, accounting is purely based on manual approach. Experience and skilfulness of an
individual accountant are critical in accounting processes. Even using the manual approach can
be ineffective and inefficient. Accounting information systems resolve many of above issues.
AISs can support an automation of processing large amount of data and produce timely and
accuracy of information.
Early accounting information systems were designed for payroll functions in 1970s. Initially,
accounting information systems were predominantly developed "in-house" as legacy systems.
Such solutions were expensive to develop and difficult to maintain. Therefore, many accounting
practitioners preferred the manual approach rather than computer-based. Today, accounting
information systems are more commonly sold as prebuilt software packages from large vendors
such as Microsoft, Sage Group, SAP AG/SAP and Oracle Corporation/Oracle where it is
configured and customized to match the organization’s business processes. Small businesses
often use accounting lower costs software packages such as MYOB and Quickbooks. Large
organizations would often choose ERP systems.
As the need for connectivity and consolidation between other business systems increased,
accounting information systems were merged with larger, more centralized systems known
as enterprise resource planning (ERP). Before, with separate applications to manage different
business functions, organizations had to develop complex interfaces for the systems to
communicate with each other. In ERP, a system such as accounting information system is built
as a module integrated into a suite of applications that can include manufacturing, supply chain,
human resources.
These modules are integrated together and are able to access the same data and execute complex
business processes. Today, Cloud-based accounting information systems are increasingly
popular for both SMEs and large organisations for lower costs. With adoption of accounting
information systems, many businesses have removed low skills, transactional and operational
accounting roles.

14.2: Information System: A System is an entity consisting of interacting parts that are
coordinated to achieve one or more common objectives. Systems must possess input, process
and output.

An Information system is a framework in which data is collected, processed, controlled and

managed through stages in order to provide information to users. It evolves over time and
becomes more formalized as a firm grows and becomes more complex. It can be a manual or
computerized system. Firms depend on information systems in order to survive and stay
competitive.

14.3 An accounting information system (AIS): This is a system of collecting, storing and
processing financial and accounting data that are used by decision makers. An accounting
information system is generally a computer-based method for tracking accounting activity in
conjunction with information technology resources. The resulting financial reports can be used
internally by management or externally by other interested parties
including investors, creditors and tax authorities. Accounting information systems are designed
to support all accounting functions and activities including auditing, financial accounting &
reporting, managerial/ management accounting and tax. The most widely adopted accounting
information systems are auditing and financial reporting modules. An Accounting Information
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System is a unified structure that employs physical resources and components to transform
economic data into accounting information for external and internal users.
Accounting information systems generally consist of six main parts: people, procedures and
instructions, data, software, information technology infrastructure and internal controls. Let's
look at each component in detail. Objectives of AIS include:
(i) Support day-to-day operations
(ii) Support Internal Decision-Making
(iii) Help fulfill Stewardship Role
(iv) Support planning and control of operations

14.4 Qualities of Good Accounting Information

(i) Usefulness :- Must be useful to management for effective decision making
(ii) Meaningful :- Must carry meaning to make it usable
(iii) Accuracy :- Must be free from errors
(iv) Relevance:- Must be relevant to the situation and decision at hand
(v) Timeliness :- Must be readily available when required certain information becomes
obsolete with time
(vi) Suitability :- Must be appropriate and fit for the purpose
(vii) Reliability :- Must be trust worthy and dependable
(viii) Cost effective :- The cost of providing the information should be optimal and justifiable
(ix) Frequency :- Must be produced at a suitable frequency
(x) Comprehensive (completeness):- must contain all the required facts and be complete to
use.

16. DATA CODING

Data coding involves creating simple numeric or alphabetic codes to represent complex
economic phenomena that facilitate efficient data processing.

15.1 AIS and Data Coding

AISs depend on coding to record, store, classify and retrieve financial data. Codes should serve
some useful purpose, should be consistent and should plan for future expansion.

15.2 A System without Codes

Firms process large volumes of transactions that are similar in their basic attributes. For
instance, a firm’s Account Receivables file may contain accounts for several different customers
with the same name and similar addresses. To process transactions accurately against the correct
accounts, the firm must be able to distinguish one Usman Yakubu from another. This task
becomes particularly difficult as the number of similar attributes and items in the class increase.

Consider the most elementary item that a machine shop wholesaler firm might carry in its
inventory—a machine nut. Assume that the total inventory of nuts has only three distinguishing
attributes: size, material, and thread type. As a result, this entire class of inventory must be
distinguished on the basis of these three features. Therefore uncoded entry for any transaction
takes a great deal of recording space, is time-consuming to record, and is obviously prone to
many types of errors. The negative effects of this approach may be seen in many parts of the
organization:
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(i) Sales staff: Properly identifying the items sold requires the transcription of large amounts of
detail onto source documents. Apart from the time and effort involved, this tends to promote
clerical errors and incorrect shipments.
(ii) Warehouse personnel: Locating and picking goods for shipment are impeded and shipping
errors will likely result.
(iii) Accounting personnel: Postings to ledger accounts will require searching through the
subsidiary files using lengthy descriptions as the key. This will be painfully slow, and
postings to the wrong accounts will be common.

15.3 A System with Codes

These problems are solved, or at least greatly reduced, by using codes to represent each item in
the inventory and supplier accounts. Let’s assume the inventory item in our previous example
had been assigned the numeric code 896, and the supplier in the Account Payable account is
given the code number 321. The coded version of the journal entry can be greatly simplified:

This is not to suggest that detailed information about the inventory and the supplier is of no
interest to the organization. These facts will be kept in reference files and used for such purposes
as the preparation of parts lists, catalogs, bills of material, and mailing information. The
inclusion of such details, however, would clutter the task of transaction processing and could
prove dysfunctional, as this simple example illustrates. Other uses of data coding in AIS are to:
1. Concisely represent large amounts of complex information that would otherwise be
unmanageable.
2. Provide a means of accountability over the completeness of the transactions processed.
3. Identify unique transactions and accounts within a file.
4. Support the audit function by providing an effective audit trail,
5. Uniquely identify transactions and accounts
6. Compress data
7. Aid in classification of accounts or transactions
8. Communicate special meaning

15.5 Computer Coding and Types of Codes

Computer codes for processing accounting transactions are numeric or alphanumeric codes.
(i) Sequence Codes (assign numbers or letters in consecutive order).
(ii) Block Codes (are sequential codes in which specific blocks of numbers are reserved for
particular uses).
(iii) Group Codes (combining of two or more subcodes).
(iv) Alphabetic Codes
(v) Mnemonic Codes (give visible clues concerning the objects they represent).

15.4.1 Sequential Codes

As the name implies, sequential codes represent items in some sequential order (ascending or
descending). A common application of numeric sequential codes is the pre-numbering of source
documents. At printing, each hard-copy document is given a unique sequential code number.
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This number becomes the transaction number that allows the system to track each transaction
processed and to identify any lost or out-of-sequence documents. Digital documents are
similarly assigned a sequential number by the computer when they are created.

The advantage of sequential coding supports the reconciliation of a batch of transactions, such
as sales orders, at the end of processing. If the transaction processing system detects any gaps in
the sequence of transaction numbers, it alerts management to the possibility of a missing or
misplaced transaction. By tracing the transaction number back through the stages in the process,
management can eventually determine the cause and effect of the error. Without sequentially
numbered documents, problems of this sort are difficult to detect and resolve.

However, the disadvantage of sequential codes carry no information content beyond their order
in the sequence. For instance, a sequential code assigned to a raw material inventory item tells
us nothing about the attributes of the item (type, size, material, warehouse location, and so on).
Also, sequential coding schemes are difficult to change. Inserting a new item at some midpoint
requires renumbering the subsequent items in the class accordingly. In applications where record
types must be grouped together logically and where additions and deletions occur regularly, this
coding scheme is inappropriate.

15.4.2 Block Codes

A numeric block code is a variation on sequential coding that partly remedies the disadvantages
just described. This approach can be used to represent whole classes of items by restricting each
class to a specific range within the coding scheme. A common application of block coding is the
construction of a chart of accounts.

A well-designed and comprehensive chart of accounts is the basis for the general ledger and is
thus critical to a firm’s financial and management reporting systems. The more extensive the
chart of accounts, the more precisely a firm can classify its transactions and the greater the range
of information it can pro- vide to internal and external users.

Note that each account type is represented by a unique range of codes or blocks. Thus, balance
sheet and income statement account classifications and sub-classifications can be depicted. In
this example, each of the accounts consists of a three-digit code. The first digit is the blocking
digit and represents the account classification; for example, current assets, liabilities, or
operating expense. The other digits in the code are sequentially assigned.

The Advantage of block coding is that it allows for the insertion of new codes within a block
without having to reorganize the entire coding structure. For example, if advertising expense is
account number 626, the first digit indicates that this account is an operating expense.

As new types of expense items are incurred and have to be specifically accounted for, they may
be added sequentially within the 600 account classification. This three-digit code accommodates
100 individual items (X00 through X99) within each block. Obviously, the more digits in the
code range, the more items that can be represented.

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The disadvantage of block coding is that as with the sequential codes, the information content
of the block code is not readily apparent. For instance, account number 626 means nothing until
matched against the chart of accounts, which identifies it as advertising expense.

15.4.3 Group Codes

Numeric group codes are used to represent complex items or events involving two or more
pieces of related data. The code consists of zones or fields that possess specific meaning. For
example, a department store chain might code sales order transactions from its branch stores as
follows:

Group codes have a number of advantages over sequential and block codes.
(i) They facilitate the representation of large amounts of diverse data.
(ii) They allow complex data structures to be represented in a hierarchical form that is logical
and more easily remembered by humans.
(iii) They permit detailed analysis and reporting both within an item class and across different
classes of items.

For example Store Number 04 could represent the Ado Bayero Mall Store in Kano; Dept.
Number 09 represents the electrical goods department; Item Number 476214 is a Television Set;
and Salesperson 99 is Fatima Adams. With this level of information, a corporate manager could
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measure profitability by store, compare the performance of similar departments across all stores,
track the movement of specific inventory items, and evaluate sales performance by employees
within and between stores.

Ironically, the primary disadvantage of group coding results from its success as a classification
tool. Because group codes can effectively present diverse information, they tend to be over-
used. Unrelated data may be linked simply because it can be done. This can lead to
unnecessarily complex group codes that cannot be easily interpreted. Finally, over-use can
increase storage costs, promote clerical errors, and increase processing time and effort.

15.4.4 Alphabetic Codes

Alphabetic codes are used for many of the same purposes as numeric codes. Alphabetic
characters may be assigned sequentially (in alphabetic order) or may be used in block and group
coding techniques.

The advantage of alphabetic codes is that the capacity to represent large numbers of items is
increased dramatically through the use of pure alphabetic codes or alphabetic characters
embedded within numeric codes (alphanumeric codes). The earlier example of a chart of
accounts using a three-digit code with a single blocking digit limits data representation to only
10 blocks of accounts—0 through 9. Using alphabetic characters for blocking, however,
increases the number of possible blocks to 26—A through Z. Furthermore, whereas the two-
digit sequential portion of that code has the capacity of only 100 items (102), a two-position
alphabetic code can represent 676 items (262). Thus, by using alphabetic codes in the same
three-digit coding space, we see a geometric increase in the potential for data representation

The primary drawbacks/disadvantages with alphabetic coding are

(i) as with numeric codes, there is difficulty rationalizing the meaning of codes that have been
sequentially assigned, and
(ii) users tend to have difficulty sorting records that are coded alphabetically.

15.4.5 Mnemonic Codes

Mnemonic codes are alphabetic characters in the form of acronyms and other combinations that
convey meaning. For example, a student enrolling in college courses may enter the following
course codes on the registration form:

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This combination of mnemonic and numeric codes conveys a good deal of information about
these courses; with a little analysis, we can deduce that Acctg is accounting, Psyc is psychology,
Mgt is management, and Mktg is marketing. The sequential number portion of the code
indicates the level of each course. Another example of the use of mnemonic codes is assigning
state codes in mailing addresses,

Code Meaning
KN Kano
GM Gombe
BA Bauchi
PL Plateau

The advantage of mnemonic coding scheme is that it does not require the user to memorize
meaning; the code itself conveys a high degree of information about the item that is being
represented.

Although mnemonic codes are useful for representing classes of items, their disadvantage
is that they have limited ability to represent items within a class. For example, the entire class of
accounts receivable could be represented by the mnemonic code Accounts Receivable, but one
would quickly exhaust meaningful combinations of alphabetic characters if we attempted to
represent the individual accounts that make up this class. These accounts would be represented
better by sequential, block, or group coding techniques.

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