1

EXERCISES

Name: ___Erwin E. Ogena___ Date: __March 12, 2022___

Year/Section: BSAIS 2A

Exercise 2- Overview of Transaction Processing and ERP Systems

Part I-Multiple Choice. Read each question and answer choice carefully and choose the ONE best
answer.

1. Which of the following is NOT a step in the data processing cycle?

a. Data collection
b. Data input
c. Data storage
d. Data processing

2. All of the information(name, grade point average(GPA), major, etc. ) about a particular student
is stored in the same____________
a. File
b. Record
c. Attribute
d. Field

3. When items are numbered consecutively to account for all of them, and missing ones cause a
gap in the sequence, it is a
a. Sequence code
b. Block code
c. Group code
d. Mnemonic code

4. Which of the following is most likely to be a general ledger control account?

a. Accounts receivable
b. Petty cash
c. Prepaid rent
d. Retained earnings

5. Which of the following documents is most likely to be used in the expenditure cycle?
a. Sales order
b. Credit memo
c. Receiving report
d. Retained earnings

6. The portion of a data record where the data value for a particular attribute is stored is stored
called
a. An entity
b. An attribute
c. A field
d. A record

7. How does the chart of accounts list general ledger accounts?

a. Alphabetical order
b. Chronological order
c. Size order
d. The order in which they appear in financial statements
 2

8. Which of the following is not an advantage of an ERP system?

a. Better access control
b. Standardization of procedures and reports
c. Improved monitoring capabilities
d. Simplicity and reduced costs

9. Records of company data sent to an external party and then returned to the system as input are
called____________.
a. Turnaround documents
b. Source data automation documents
c. Source documents
d. External input documents

10. What kind of processing involves entering transaction data and editing them as they occur?
a. Batch processing
b. Online batch processing
c. Online-real time processing

Part II- Matching Type. Match the following terms with their definitions.

Definition Term
n 1. Contains summary-level data for every asset, liability, equity, a. Data processing
revenue, and expense account cycle
i 2. Items are numbered consecutively to account for all items; b. Source documents
missing items cause a gap in the numerical sequence
p 3. Path of transaction through a data processing system from point c. Turnaround
of origin to final output, or backward from final output to point of documents
origin
m 4. List of general ledger account numbers; allows transaction data to d. Source data
be coded, classified, and entered into proper accounts; facilitates automation
preparation of financial statements and reports.
u 5. Contents of a specific field, such as “George” in a name field. e. General ledger
s 6. Portion of a data record that contains the data value for a f. Subsidiary ledger
particular attribute, like a cell in a spread sheet.
c 7. Company data sent to an external party and then returned to the g. Control account
system as input
e 8. Used to record infrequent or non-routine transactions h. Coding
r 9. Characteristics of interest that need to be stored i. Sequence code
a 10. The steps a company must follow to efficiently and effectively j. Block code
process data about its transactions
q 11. Something about which information is stored k. Group code
v 12. Stores cumulative information about an organization; like a ledger l. Mnemonic code
in a manual AIS
f 13. Contains detailed data for any general ledger account with many m. Chart of accounts
individual subaccounts
w 14. Contains records of individual business transactions that occur n. General journal
during a specific time period
z 15. Updating each transaction as it occurs o. Specialized journal
d 16. Devices that capture transaction in machine-readable form at the p. Audit trail
time and place of their origin
o 17. Used to record large numbers of repetitive transactions q. Entity
u 18. Set of interrelated, centrally coordinated files r. Attribute
 3

k 19. Two or more subgroups of digits are used to code items s. Field
y 20. Updating done periodically such as daily t. Record
h 21. Systematic assignment of numbers or letters to items to classify u. Data value
and organize them
l 22. Letters and numbers, derived from the item description, are v. Master file
interspersed to identify items; usually easy to memorize
b 23. Initial record of a transaction that takes place; usually recorded on w. Transaction file
pre-printed forms or formatted screens
t 24. Fields containing data about entity attributes; like a row in a x. Database
spread sheet
j 25. Set of numbers are reserved for specific categories of data y. Batch processing
g 26. The general ledger account corresponding to a subsidiary ledger, z. Online, real-time
where the sum of all subsidiary ledger entries should equal the processing
amount in the general ledger account.

Part III- Identification. For each of the following scenarios, identify which data processing method (batch
or online, real-time) would be the most appropriate.

Scenarios Batch Real time

1. Make an airline reservation /
2. Register for a university course /
3. Prepare biweekly payroll checks /
4. Process an order through an e-commerce website /
5. Prepare a daily bank deposit /
6. Preparation of customer bills by a local utility /
7. Accumulate daily costs from a production run of a single
/
automobile part
8. Identify the replacement drill bit size for a bit broken during a
/
recent production run

Which of the following actions update a master file and which would be stored as a record in a
transaction file?

Activities Master file Transaction file

1. Update customer address change /
2. Update unit pricing information /
3. Record daily sales /
4. Record payroll checks /
5. Change employee pay rates /
6. Record production variances /
7. Record sales commissions /
8. Change employee office location /
9. Update accounts payable balance /
10. Change customer credit limit /
11. Change vendor payment discount terms /
12. Record purchases /