1. What are the four parts of data processing cycle and the major activities in each?

 Data input – records transaction data and enters them into the system.
 Data Storage – stores data for it to be ready and easily accessible
 Data Processing – data are processed once data are entered into the system
 Information Output – information is displayed or presented
2. What are the documents and procedures used to collect and process transaction data
for each activities.
a. revenue cycle
 Sales order which records the orders
 Delivery tickets which refer to the record of delivery of merchandise to the
customer
 Credit memo which shows the support adjustments of sales discount, returns and
allowance of a customer, and uncollectible accounts.
 Deposit slip which is a recorded amount deposited in company bank accounts.
b. expenditure cycle
 Purchase requisition which is a request that purchasing department orders
specific goods.
 Purchase order which request merchandise from vendors.
 Receiving report which records the receipt of merchandise from vendors.
c. human resource cycle
 Time card records the time consumed in working by employees.
 W4 Forms collect employee withholding data.
3. Describe the ways information is stored in computer-based information systems.
Computer-based information systems store information generally in two ways which
are hard copy and a soft copy.
4. What are the types of information that an AIS can provide?
Accounting information system can provide information such as;
Sales orders, customer billing statements, sales analysis reports, purchase requisitions,
vendor invoices, check registers, general ledger, inventory data, payroll information,
timekeeping, and tax information.
5. What is an ERP system?
Enterprise Resource Planning is a software application that automates company processes
while also providing insights and internal controls. It collects data from accounting,
manufacturing, marketing, and other departments.
6. What are the advantages and disadvantages of an ERP system?
Advantages of an ERP system are improvement in reporting and planning.
Disadvantage of an ERP system is that the cost of an ERP software is very expensive.
7. What are the types of coding system? Describe each.
 Sequential codes – the word sequential means in sequence, of course. A
sequential code, therefore, simply follows a sequence.
 Hierarchical (or significant digit) codes – he coding systems used by libraries,
such as the Dewey Decimal system and the Library of Congress system, are both
examples of hierarchical codes in which they work through from general qualities
to more and more specific qualities as you go through the code.
 Block codes – numbers that an individual may assign to general accounting terms
while bookkeeping. For example, if a block code reads, “5,000: Fixed Assets,
6,000: Stocks,” the 5,000 block is exclusively for anything dealing with fixed
assets.
 Mnemonic – means something that aids the memory and examples of mnemonic
codes are found almost everywhere. This is simply an abbreviation.
 Faceted code – is one that is broken down into a number of facets or fields, each
of which signifies a unit of information.