DATO, VENICE B.
PEÑAS, ALYSSA JOYCE B.
QUESTIONS
A. Archiving a record is an
alternative to deleting a
record? What is the
benefit that can be
derived from it?
B. Are large batch sizes
preferable to small batch
sizes when it comes to
data processing? Explain.
C. Discuss the importance of
accounting independence
in accounting information
systems. Use an example
aside from inventory
control.
D. Does banking system use
real/ on-line processing or
both real time and batch
processing. Provide a
scenario.
I.T.
PROF. E M TORRES
ACTIVITY 1
ANSWERS
Deleting means removing records or
information completely while Archiving means
moving the record or information in a
permanent storage to free up a space in the
system. The benefit of archiving a record is it
lets you retrieve your record when the need
of it arises.
No. Small batch sizes are preferable than
large batch sizes because small ones produce
fewer queues, give faster cycle time, increase
urgency, and decrease risk through faster
feedback.
It is important because the information
reliability requires the use of accounting
independence. The accounting activities must
be separate and independent of the
functional areas maintaining resources.
Decisions makers in these functions require
that such vital information be supplied by an
independent source to ensure its integrity.
An example of accounting independence is
the payroll process. It organizes all the tasks
of employee payment and the filing of
employee taxes. These tasks include keeping
tracks of hours, calculating wages,
withholding taxes and deductions, printing
and delivering checks and paying
employment taxes to the government.
Banking system uses both real time and batch
processing. Real time is used when processing
transactions without delay like when the
customers deposit money in the bank or
withdraws money from the bank, the record of
the customers reflect their current status or
the transactions they made. Batch processing
is used by the bank in terms of payroll

E. Give at least one criteria
that influence selection of
data structure? What data
structure is suited for
that?
F. How do backup
procedures for files with a
direct access structure
differ from sequential
files?
G. How do you consider
Microsoft Office Systems?
Is it a turnkey, backbone
or vendor supported
system? Explain your
answer.
H. If a certain system in a
business is centralized
does it mean that the
whole business is
centralized? Explain your
answer. (You are
encouraged to give
practical business cases)
system, there is no need to keep track of how
much an employee has earned every minute
of the day and doing this every two weeks is
likely sufficient.
The criteria that influence selection of data
structures include the insertion of record into
a file. This will need sequential structure so as
the records will automatically be inserted into
the right path.
In a direct access structure, each record is
assigned in a unique disk location or address
that is determined by its key value. Because
only a single valid location exists for each
record, updating the record must occur in a
place of a destructive update approach that
leaves no backup copy of the original master
file and only the current value is available to
the user. If the current master becomes
damaged or corrupted, no backup version
exist from which to reconstruct the file while
sequential file update process produces new
physical masters file. The new file contains all
of the records from the original file, including
those that were updated by transactions and
those that were not updated. The original
master continues to exist. If the current
master file become lost, damaged, or
corrupted by erroneous data, a new file can
be created from the original master files and
the corresponding transaction files.
I think MS Office System is a backbone
system because it consist the basic system
structure in which to build. The primary
processing logic is programmed, and the
vendor then designs the user interfaces to
suit the client’s unique needs.
Yes, the whole business is centralized if a
certain system is centralized because
resources and data of the company are
shared by the management and employees of
the company.
I. If accountants are viewed
Accountants as end users must provide a
as providers of
clear picture of their needs to the
information, then why are
professionals who design their systems.
they consulted as system
Example, the accountant must specify
users in the system
accounting rules and techniques to be used,
development process?
internal control requirements, and special
Give a practical example
algorithms such as depreciation models.
to support your answer.
J. In what scenario does real
time processing
advantageous over batch Real time processing system process
processing (Is it transactions individually at the moment the
transactions that are event occurs. Because records are not
dependent with one grouped into batches, there are no time lags
another or transactions between occurrence and recording compared
that are independent with with batch processing system.
one another?) Justify your
answer.
REA treats the accounting system as a virtual
K. The REA model is based
representation of the actual business. In other
on the premise that
words, it creates computer objects that
business data must not be
directly represent real-world-business objects.
preformatted or artificially
For example, in the sales process, one event
constrained and must
would be "sales"—where goods are given up—
reflect the all relevant
and the other would be "cash receipt", where
aspects of the underlying
cash is received. These two events are linked;
economic events.” Explain
a cash receipt occurs in exchange for a sale,
it by giving a practical
and vice versa. The duality relationship can
example of REA model
be more complex, e.g., in the manufacturing
(which is of course not on
process, it would often involve more than two
the book)
events.
The three general problem associated with
data redundancy are Wasted Storage
Space,More difficult Database Updates, A
L. What are the 3 general
Possibility of Inconsistent data. Examples,
problems associated with
Autonimous sysytem developments activities
data redundancy and give
distributed throughout the firm can result in
a practical example for
each user area reinventing the wheel. Another
each.
example customer data exist only once, but is
shared by accounting, marketing, and product
services users.

M. What are the 4 levels of
activity in the pyramid
representing the hierarchy
of management? Give at
least one person involved
in the four levels of
organization (e.g. Chief
Executive Officer belongs
to top management). Give
examples of vertical flow
and horizontal flow of
information.
N. What are the three
fundamental task of data
management and give a
practical example for each
task.
O. What is feedback? Give a
practical example of it
and how is it beneficial to
the system?
The four levels are Top management, middle
management, operation management and
operation personnels. Example.,Operations
manager, this individual is the leader for the
operation and has overall responsibility for
the financial success of the business. The
operations manager handles external
relations with lenders, community leaders and
vendors.(horizontal) Frequently, this
individual also is in charge of either
production or marketing for the business. This
person will set in motion the vision, strategic
plan and goals for the business (vertical).
Three fundamental tasks of data
management, storage, retrieval and deletion,
storage, for assigning keys to a new records
and stores them in their proper location in the
database. Retrieval is the task of locating and
extracting an existing record from the
database for processing. Deletion is the task
permanently removing obsolete or redundant
records from the database.
Feedback is a form of output that is sent back
to the system as a source of data. For
example, an inventory have fallen to, or
below, their minimum allowable levels.
Internal feedback from the information will
initiate the inventory ordering process to
replenish the inventories. Similarly, external
feedback about level of uncollected customer
accounts can be used to adjust the
organization's credit-granting policy.

P. What is meant by
cardinality in E-R
diagram? Provide an
example based on a case
record.
Q. What processing requires
considerable computer
networking? Is it real-time
or batch processing?
Explain.
R. Why is cost accounting
also applicable in service -
oriented business such as
hospitals? Explain.
S. Why is management
report considered
discretionary reporting?
T. Why is transaction file
called a temporary file?
Cardinality is the numeric mapping between
entities instances. if we think of entities in the
ER diagram as files of records, cardinality is
the maximum number of records in one file
that are related to a single record in the other
file and vice versa. for example, each
salesperson in the organization is assigned
one automobile. If instead the organization's
policy were to assign a single automobile to
one or more persons who share it, this policy
would be reflected by a 1:M relationship.
Similarly, the M:M relationship between
vendor and inventory implies that the
organization buys the same type of products
from one or more vendors. A company policy
to buy particular items from a single vendor
would be reflected by a 1:M cardinality.
It is real- time processing that is requires
considerable computer networking, because
records are not grouped into batches, there
are no time lags between occurrence and
recording.
Cost accounting encompasses a body of
concepts and techniques that support the
objectives of both financial accounting and
managerial accounting. Activity - Based
Costing can be applied in service industries
other than those described here. It has
become increasingly important for companies
whose markets are becoming more
competitive. Since ABC is really about cost
management, using it allows service
companies to reduce and control their costs in
order to make correct pricing and other
decisions, and to increase their profitability. It
is likely to continue to become more prevalent
in the service industry in the future.
Management reporting is called discretionary
reporting because the organization can
choose what information to report and how to
present it.
Transaction file is called temporary file
because it used to change or update data in a
master file.