ACC 341 Exam #1 2023 with complete solution

System a set of two or more interrelated components that interact to achieve a goal Data Processing Cycle 1. data input, 2. data processing ( data storage) , 3. information output. performed on data to generate meaningful and relevant information Goal of data processing process company transactions efficiently and effectively Data Input Steps 1. capture transactional data and enter then into the system - triggered by business activity 2. Ensure data is accurate and complete 3. Ensure company policies are followed Information is collected for what activities? 1. activity of interest 2. the resources effected by each activity 3. the people who participate in each activity source documents capture transaction data at its source. [ex] sales orders, purchase orders, employee time cards turn around documents records of company data sent to an external party then returned as an input [ex] utility bill turnaround documents are generally in _____________________ from machine readable source data automation the collection of transaction data in machine readable form at the time and place of the origin [ex] ATM, point of sale scanners, barcode scanners What can be used to ensure accurate and complete data? - source data automation - turn around documents - data entry screens - documents and entry screens which provide prompt instructions of what to collect - prenumbered source documents Data Storage needs to be .... ready and easy to access _________ is one of the most important resources data Types of Data Storage -ledgers -journals -chart of accounts Data facts stored in systems Information consists of data that are processed and/or combined with context T/F: One persons data could be another persons information true When is information valuable? When the benefits exceed the costs of gathering, maintaining, and storing the data. Business Processes a set of structured activities that are performed by people, machines, or both to achieve a specific goal. T/F: Businesses are complex systems true What is considered the framework of a business? The business cycle Transactions are described as a ______________-__________ exchange give-get Transaction Processing the process that begins with capturing transaction data and ends with informational output, such as the financial statements Accounting Information System (AIS) is a system that collects, records, stores, and processes data to produce information for decision makers. AIS consists of -people who use the system -processes -technology -controls to safeguard information Artificial Intelligence (AI) the use of computer systems to simulate human intelligence processes such as learning, reasoning, and self-improvement Data Analytics The use of software and algorithms to find and communicate meaningful patterns in data in order to solve problems and improve business performance Data Analytics helps improve decision making by: -identifying the problem to be resolved -collecting data needed to solve the problem, analyze it and recommend how to solve it -integrate actionable insights into the system to make decisions Information traditionally comes from ________________ source documents Journals store transactional data Types of journals general and specialized General Journal records infrequent or specialized transactions Specialized Journal records repetitive transactions Ledgers a book in which financial records are kept Types of ledgers general and subsidary General Ledger contains summary level data of : assets, labilities, revenue, equity, and expenses subsidiary ledgers contain detailed data for a GL account that has an individual sub account [ex] AR, AP Audit Trail a traceable path of a transaction through a data processing system from point of origin to final output, or backwards from final output to point of origin chart of accounts a list of all accounts used by a business Coding techniques sequence, block, group, mnemonic Codes should: -be consistent -allow for growth -be simple and feasible to minimize costs and easy to understand -consistent across the company sequence codes items numbered consecutively to account for all items block codes blocks of numbers are reserved for specific categories of data [ex] product numbers beginning w 2 are fridges group codes two or more subgroups of digits used to code items, different chunks have different meanings mnemonic coes letters and numbers interspersed to identify an items [ex] Dry300W05 - also are group codes Instead of recording transactions in journals and ledgers think about... events and transactions and master files Computer Based Storage Concepts 1. entity 2. attributes 3. records 4. fields 5. file Data is stored in master files or transaction files entity -something about which an organization wishes to store data [ex] person, places, or things attributes facts about an entity -COLUMNS Records groups of related attributes about an entity -ROWS fields where attribute data are stored -CELLS file a group of related records master file Stores cumulative information about an organization -like a ledger in a manual AIS transaction file contains records of individual business transactions that occur during a specific time -like a journal T/F: Transaction files are permanent false, they are not permanent, they are used to update individual account balances in master files database set of interrelated, centrally coordinated files, stored with as little data redundancy as possible T/F: a data base is centrally controlled true, consolidated records stored in separate files into a common pool 4 types of data processing creating, reading, updating, deleting batch processing updating done periodically, such as daily real-time processing update each transaction as it occurs pros of real-time processing -ensures information is current -increases decision making usefulness -input errors can be corrected in real time online batch processing transaction data are entered and edited as they occur and stored for later processing Information Output is presented in 3 forms 1. documents 2. reports 3. query documents records of transaction or other company data reports specialized output for specific activities/decisions -some are produced regularly others are produced on demand or to call attention to unusually conditions queries used to provide information needed to deal with problems and questions that need rapid action or answers Data can be viewed ___________ or _____________________ electronically (soft copy) or printed (hard copy) Blockchain when parties to a transaction do not trust each other, a third part steps in to hold the items of value being exchanged Blockchain is a network of ____________ and _________________ value and trust smart contract a regular contract with the terms agreed upon build into blockchain Enterprise Resource Planning (ERP) System that integrates a company's functions, departments, and data into one system ERP systems are _______________ modular, each part is separate so companies can chose what modules they need based on their business. T/F: ERP uses a centralized database true, this shares information across the business process to help coordinate activites ERP Advantages - integrated single view to streamline the flow of information -data captured at once -great visibility and monitoring - improve access of control of data -standardize procedures and reports -improves customer service -increases productivity through automation ERP Disadvantages - Cost - Amount of time required - customizing or standardizing a business process - Complexity - Resistance How can a company increase the changes of ERP success commitment and support for the change