TARLAC CHRISTIAN COLLEGE

5085 Buno Matatalaib, Tarlac City

STUDY TO SHEW THYSELF APPROVED UNTO GOD,
A workman that needeth not to be ashamed, rightly dividing the word of
truth. (II Timothy 2:15)

Name: CRISTEL ANN DOTIMAS Score:

Course/Year: BSA-2 Date:

Accounting Information
System Performance Task
(Week 3)
Chapter 2 - Part 1 - Overview of Transaction Processing and Enterprise
Resource Planning

I. Read and study “Chapter 2 - Part 1 - Overview of Transaction Processing and

Enterprise Resource Planning” (pp. 24-38) from our PDF textbook.

II. Key Terms: Define the following terms as how it is defined in our textbook.

1. data processing cycle - operations performed on data to generate meaningful and relevant information
are referred to collectively as the data processing cycle.
2. source documents - collect data about their business activities
3. turnaround documents - company output sent to an external party, who often adds
data to the document, and then are returned to the company as an input document.
4. source data automation - devices capture transaction data in machine-readable form at
the time and place of their origin.
5. general ledger - contains summary-level data for every asset, liability, equity, revenue, and expense account.
6. subsidiary ledger - contains detailed data for any general ledger account with many
individual subaccounts.
7. control account - general ledger account corresponding to a subsidiary ledger
8. coding - systematic assignment of numbers or letters to items to classify and organize them.
9. sequence code - items are numbered consecutively to account for all items. Any
missing items cause a gap in the numerical sequence.
10. block code - blocks of numbers are reserved for specific categories of data.
11. group code - which are two or more subgroups of digits used to code items, are often
used in conjunction with block codes.
12. mnemonic code - letters and numbers are interspersed to identify an item. The mnemonic code is derived from
the description of the item and is usually easy to memorize.
13. chart of accounts - which is a list of the numbers assigned to each general ledger account.
14. general journal - used to record infrequent or nonroutine transactions, such as loan payments and
end-of-period adjusting and closing entries.
15. specialized journal - records large numbers of repetitive transactions such as sales, cash receipts, and cash
disbursements.

III. Multiple Choice

1. Which of the following is NOT a step in the data processing cycle?
a. data collection c. data storage
b. data input d. data processing

2. All of the information (name, GPA, major, etc.) about a particular student is stored in the same
.
a. file c. attribute
b. record d. field
 3. Which of the following would contain the total value of all inventory owned by an organization?
a. source document b. general ledger c. cash budget

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

a. accounts receivable c. prepaid rent
b. petty cash d. retained earnings

5. Which of the following documents is most likely to be used in the expenditure cycle?
a. sales orders c. receiving report
b. credit memo d. job time ticket

1. Table 2-1 lists some of the documents used in the revenue, expenditure, and human resources
cycle. What kinds of input or output documents or forms would you find in the production (also
referred to as the conversion) cycle?

Input documents such as:

1. Work orders: These specify the tasks to be performed, materials required, and expected
completion times for production.
2. Bill of materials: A detailed list of components or materials needed for production.
3. Production schedule: Outlines the timing and sequence of production activities.
4. Material requisitions: Requests for materials needed in the production process.

Output documents may include:

1. Finished goods inventory records: Documents recording the quantity and value of products
produced.
2. Production reports: Summaries of production activities, including quantities produced, labor
hours used, and any issues encountered.

2. With respect to the data processing cycle, explain the phrase “garbage in, garbage out.” How can
you prevent this from happening?
- "Garbage in, garbage out" refers to the idea that if you input poor-quality data into a system, you'll
get poor-quality output. To prevent this from happening, you can:
1. Provide training to personnel responsible for entering data to minimize errors.
2. Regularly review and clean input data to remove inaccuracies.
3. Use automated data entry systems to reduce human error.

3. What kinds of documents are most likely to be turnaround documents? Do an Internet search to
find the answer and to find example of turnaround documents.

- Turnaround documents are those that are created in one system, sent to another party or system for
processing, and then returned to the originating system as output. Examples include:
1. Invoices: Generated by a company and sent to customers for payment processing before being
returned as payment records.
2. Purchase orders: Sent by a buyer to a supplier to request goods or services, then returned as
order acknowledgments or delivery confirmations.
 4. The data processing cycle in Figure 2-1 is an example of a basic process found throughout
nature. Relate the basic input/process/store/output model to the functions of the human body.

1. Input: This corresponds to the sensory organs (eyes, ears, skin, etc.) receiving information
from the external environment.
2. Process: This represents the brain processing and interpreting the sensory input, making
decisions, and sending signals to the body.
3. Store: This is akin to the memory function in the brain, where information is stored for later
retrieval.
4. Output: This corresponds to the body's actions and responses based on the processed
information, such as moving muscles or speaking.

5. Some individuals argue that accountants should focus on producing financial statements and leave
the design and production of managerial reports to information systems specialists. What are the
advantages and disadvantages of following this advice? To what extent should accountants be
involved in producing reports that include more than just financial measures of performance? Why?

Advantages include:
1. Specialization: Accountants can focus on their expertise in financial reporting, while information
systems specialists can focus on designing and producing managerial reports.
2. Efficiency: Each group can work on tasks that align with their skill set, potentially leading to more
efficient processes.
Disadvantages include:
1. Lack of integration: Disconnect between financial and managerial reporting may hinder decision-
making that requires a comprehensive view of the organization.
2. Miscommunication: Accountants may not fully understand the information needs of managers,
leading to reports that are not tailored to managerial needs.