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Chapter 2

This document provides an introduction to transaction processing and accounting information systems. It includes multiple choice questions and true/false questions covering topics like reference files, transaction cycles, batch vs real-time processing, audit trails, and flowcharts. Diagrams are also included to illustrate the relationships between transaction cycles, flow of information in accounting systems, and symbols used to represent manual and computerized accounting procedures and processes.

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Pinky Rose
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42 views35 pages

Chapter 2

This document provides an introduction to transaction processing and accounting information systems. It includes multiple choice questions and true/false questions covering topics like reference files, transaction cycles, batch vs real-time processing, audit trails, and flowcharts. Diagrams are also included to illustrate the relationships between transaction cycles, flow of information in accounting systems, and symbols used to represent manual and computerized accounting procedures and processes.

Uploaded by

Pinky Rose
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Chapter 2

Introduction to
Transaction Processing

Accounting information system


01 MCQ
1. A file that stores data used as a standard
when processing transactions is

A. A reference file B. A master file

C. A transaction file D. An archive file


2. Which system is not part of the
expenditure cycle?

A. Cash disbursements B. Payroll

C. Production Planning / D. Purchases / Accounts


Control Payable
3. Which system produces information used for
inventory valuation, budgeting, cost control,
performance reporting, and make-buy decisions?

A. Sales Order Processing B. Purchases / Accounts


Payable

C. Cash Disbursements D. Cost Accounting


4. In general a special journal would not
be used to record

A. Sales B. Cash disbursement

C. Depreciation D. Purchases
5. In a computerized environment, a list of
authorized suppliers would be found in the

A. Archive file B. Reference file

C. Transaction file D. Master file


6. Which of the following is an archive
file?

A. An accounts payable B. A cash receipts file


subsidiary ledger

C. A sales journal D. A file of accounts


receivable that have
been written off
7. The most important purpose of a
turn-around document is to

A. Serve as a source B. Inform a customer of the


document outstanding amount
payable

C. Provide an audit trail for D. Inform the bank of


the external auditor electronic funds deposits
8. In contrast to a real-time system, in a
batch processing system

A. There is a lag between the B. Relatively more resources are


time when the economic required
event occurs and the
financial records are
updated

C. A greater resource D. Processing takes place when


commitment per unit of the economic event occurs
output is required
9. In contrast to a batch processing
system, in a real-time system

A. A lag occurs between the B. Relatively fewer hardware,


time of the economic event programming, and training
and when the transaction is resources are required
recorded

C. A greater resource D. Processing takes place when


commitment per unit of the economic event occurs
output is required
10. A journal is used in manual accounting environments.
What file is comparable to a journal in a computerized
environment?

A. Archive file B. Reference file

C. Transaction file D. Master file


11. Which step is not found in batch
processing using sequential files?

A. Keystroke B. Sort runs

C. Edit runs D. Immediate feedback of


data entry errors
12. Both the revenue and the expenditure cycle
can be viewed as having two key parts. These
are

A. Manual and B. Physical and financial


computerized

C. Input and output D. Batch and real-time


13. The characteristics that distinguish between
batch and real-time systems include all of the
following except

A. Time frame B. Resources used

C. File format D. Efficiency of processing


14. Subsidiary ledgers are used in manual accounting
environments. What file is comparable to a subsidiary
ledger in a computerized environment?

A. Archive file B. Reference file

C. Transaction file D. Master file


02 T or F
1. A financial transaction is an economic
event that doesn’t affect the assets and
equities of the firm

True False
2. The audit trail is more observable in
computer-based systems than in traditional
manual systems

True False
3. Reference file contains past transactions
for reference purposes

True False
4. Transaction file is a temporary file
containing transactions since the last
update

True False
5. System flowchart is the only documentation
technique

True False
6. The data entry and computer programs
are the physical systems

True False
7. Class of computer-based accounting
systems include Real-time systems.

True False Only


03 Diagrams
Relationship
between
Transaction
Cycles
Flow of
Information from
Economic Event
Into the General
Ledger
Accounting
Records in a
Computer-Based
System
Audit
Trail
Symbol Set for
Representing
Manual
Procedures
Flowchart
Showing Stated
Fact I Translated
into Visual
Symbols
Symbol Set for
Representing
Computer
Processes
Flowchart
Showing
Translation of
Facts 1, 2, and 3
into Visual
Symbols
Batch
Processing
Thank
you!

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