INFORMATION TECHNOLOGY

CHAPTER1
RAMON F. SINAG, CPA, MBA
LECTURER
 MATTHEW 10:24

"The student is not above the teacher, nor a servant above his
master.”
 WHAT IS INFORMATION?

Noun

Layman’s Term-Something (data, facts, news, opinions) you

still don’t know,

-refers to that which has the power to inform

 WHAT IS A DATA?

-A collection of independent raw facts and figures

 WHAT IS TECHNOLOGY?

-It is the application of scientific knowledge to the practical

aims of human life.
 WHAT IS KNOWLEDGE?

-Something that you know.

-facts, information, and skills acquired by a person through

experience or education
 WHAT IS SYSTEM?

-It is a group of organized independent components that

interact with and complement one another to achieve one or
more predefined goals.
 DEFINITIONS

Information System - It is system that collects, stores,

processes and distribute information.
 DEFINITIONS

Artificial Intelligence- a term that in its broadest sense would

indicate the ability of a computer to perform the same kinds
of function that characterize human thought.
A.I.
 DEFINITIONS

Data Processing - It is the preparation of documents and the

flow of data contained in these documents through the major
accounting steps of recording, classifying, and summarizing.
 DEFINITIONS

System Design - It is applied to all those activities, which go

together to produce the system, which meets its objectives. It
is concerned with defining and findings ways of meeting
those objectives
 DEFINITIONS

Flow charts - It portrays graphically the documents and other

records used and the sequential processing steps applied to
them from their origin to disposition in the accounting
system.
COMPONENTS OF AN INFORMATION SYSTEM

Forms - are the source documents on which the data is

recorded. Examples are invoices, checks, and journals.

Equipment - consists of devices and machines such as pens,

file cabinets, adding machines, cash registers, typewriters,
printers, scanners and computers.
COMPONENTS OF AN INFORMATION SYSTEM

Procedures - are series of operations or steps that must be

performed to complete a task.

People (Human Resource) - An accounting system can only

function efficiently if the people who are involved in it perform
their duties carefully and accurately.
 GUIDING PRINCIPLES FOR GOOD SYSTEMS
DESIGN

1. Flexibility - It is important if the system is adaptable to

meet changing circumstances and changing demands.
2. Reliability - Accuracy and timeliness are both relative
and subjective evaluation of information. The system must
also be robust and can stand up to misuse, both deliberate
and accidental.
3. Economy - It is always important and is linked to
simplicity because simply systems are always economic.
 GUIDING PRINCIPLES FOR GOOD SYSTEMS
DESIGN
4. Simplicity - It is the key to success and it is often said that
the best ideas are always simple ones and this is true to systems.
5. Helpfulness - It is not just the achievement of the objectives,
but also the usefulness of the system to those who have to work
with it.
6. Speed - With the fast development in computer hardware
and software, information technology and Internet access, speed in
the recording of data and access of information is important in
systems design.
 HOW TO DESIGN A SYSTEM FOR AN
ESTABLISHED BUSINESS

1. Study the System in Use - Keep an open mind until you

have completed your study of the existing system.

2. Meet the Employees - Find out what they do.

3. Use Internal Control Questionnaire - This will organize your

study.

4. Control your survey Interview - You start with supervisory

personnel and filter down to operating personnel.
 HOW TO DESIGN A SYSTEM FOR AN
ESTABLISHED BUSINESS

5. Obtain Copies of Forms Used - Examine completed forms and your

study may serve as consideration in redesigning the forms.

6. Diagram the Paper Work Flow - Flowcharts are most useful for this
purpose.

7. Evaluate System in Use - This is to know what the system now does for

Management in contrast to how it could do the job better .

8.Present recommendation - After doing the above steps and drafting an

improved plan, present your recommendation and sell your plan.
COMPUTER HARDWARE CONFIGURATION
ELEMENTS OF AN INFORMATION SYSTEM:

1. Hardware - There are four basic kinds of computer hardware, namely:

a. Processing Hardware - The Central Processing Unit (CPU) and related
hardware.
b. Input Hardware - Devices to enter data and instructions into the computer.
c. Output Hardware - Devices that receive information from the computer.
d. Storage Hardware - Devices that store output for later use.
2. Software - A list of instructions that tells the computer what to do.
3. Documentation - To provide paper or document containing information
or proof.
ELEMENTS OF AN INFORMATION SYSTEM :

4. Personnel- People who performs computer functions

including maintenance.

5. Data - Information needed to be entered or encoded in

the computer.

6. Controls - A means of providing safety controls and

check measures.
 COMPUTER HARDWARE

1. Central Processing Unit (CPU, Main Frame) - Primary

hardware component. The actual processing of data occurs in the
CPU. It contains:
a. Primary Storage (Main Memory) - Portion of the CPU that holds
the program, data, and results during processing.
b. Control Unit - Portion of the CPU, which controls and directs the
operations of the computer. . .
c. Arithmetic/Logic Unit - Portion of the CPU, which has special
circuitry for performing arithmetic and logical operations.
 COMPUTER HARDWARE

2. Peripheral Equipment - Data processing equipment

that is not physically a part of the CPU but which may be
placed under the control of the CPU.

Examples: CD-ROM, magnetic tape, disk drives and printers

 COMPUTER HARDWARE

4. Output Devices - Devices for transferring processed

data out of the CPU. Examples: Printers, Cathode Ray Tube
(Monitor), and Graphical Plotters.

5. Secondary Storage - Devices external to the CPU, which

store
 COMPUTER HARDWARE

5. Secondary Storage - Devices external to the CPU, which

store information that can subsequently be used by the CPU.
Examples: Floppy disks, Hard disk, Optical Disks, Magnetic
Tape, Magnetic Disk, and Magnetic Drum.
 TYPES OF COMPUTERS

Microcomputers - Sometimes called Personal Computers

(PCs) because they are designed to be used by one person at
a time. In microcomputers, the complete Central Processing
Unit (CPU) is. assembled on a single silicon chip called the
microprocessor.

Examples are: Desktop, Laptop, and Notebook

 TYPES OF COMPUTERS

Minicomputers - are not much larger than desktop

microcomputers but they are more powerful and are
designed to be used by more than one person at a time.

Example: Cash registers may be connected to a

minicomputer. This stores all sales data rung up by the cash
registers, and .it keeps track of the inventory of thousands of

different items.
 TYPES OF COMPUTERS

Mainframe Computers - are large, powerful and expensive

computers. They are used by big business such as banks,
airline companies and government agencies, which must .

process enormous amounts of data.

INPUT AND OUTPUT DEVICES AND MEDIA

Key Entry Devices - A typewriter-like keyboard, which is used

to enter data and then stored in the computer or on other
media to wait processing. Mouse (Mice) is also used

data entry.
INPUT AND OUTPUT DEVICES AND MEDIA

Universal Serial Bus (USB)- was designed to standardize the

connection of peripherals to personal computers, both to
communicate with and to supply electric power. It has largely
replaced interfaces such as serial ports and parallel ports,
and has become commonplace on a wide range of devices.
INPUT AND OUTPUT DEVICES AND MEDIA

Server is a computer that provides data to other computers. It

may serve data to systems on a local area network (LAN) or a
wide area network (WAN) over the Internet. Many types of
servers exist, including web servers, mail servers, and file
servers.
INPUT AND OUTPUT DEVICES AND MEDIA

Printer - This is an output device. It produces the "hard copy"

that can be distributed to various users of computer-
generated reports.
INPUT AND OUTPUT DEVICES AND MEDIA

Terminal - It includes, a keyboard similar to a typewriter for

input of commands or data and a visual screen or liquid
crystal display (LCD) for displaying output. Examples: Terminal

used by banks and airline offices.

INPUT AND OUTPUT DEVICES AND MEDIA

Other Media and Devices - CD-ROM stands for Compact Disk-

Read Only Memory, which is similar to compact disks used in
audio CD players. Scanners are devices to input text or
pictures into a computer file.
 SOFTWARE

Systems Software - It is a collective term for all programs

(instructions to the computer) that co-ordinate and control the
use of hardware or support the execution of application
software.
 SOFTWARE

Systems Software –
• Operating System - A set of internally store instructions that
control and coordinate the use of the CPU, including input, storage,
processing, and output.
• Compilers, Assemblers, and Interpreters - this specialized
software converts (translates) the instructions written in a
programming language into machine language.
• Utilities - This software is designed to perform standard
input/output tasks, such as sorting and merging of data.
 SOFTWARE

Application Software - are programs, the specific sets of

instructions for performing specific data processing tasks
such as order entry, billing, accounts receivable processing,
or payroll processing. Application programs such as Word
Processing, Spreadsheets, Database, Accounting and Payroll,
Graphics, Desktop Publishing and Educational may either be
Windows or MacOS (Macintosh Operating System) based
programs.
 COMPUTER TERMINOLOGY

Access - To retrieve data from a storage device.

Application Program - Programs written for or by a user

(client) and designed for processing specific files such as
inventory, receivable or payroll.

Arithmetic and Logic Unit - The part of the CPU in which all
arithmetic and logical operations takes place.
 COMPUTER TERMINOLOGY

Artificial Intelligence (AI) - An area of study concerned with

the development of computers that are able to perform
functions normally associated with human intelligence.
Auxiliary Storage - Secondary or supplementary storage that
usually has a larger capacity, but long access time, than
primary online storage.
Backup - It is a duplicate copy of a file or diskette. When you
make such a copy you are doing a backup.
 COMPUTER TERMINOLOGY

BASIC (Beginner's All-purpose Symbolic Instruction Code) - A

procedure-level language that is easy to learn.

Batch Processing - Items to be processed are collected in

groups to permit fast and convenient processing.

BCD (Binary Coded Decimal) - A method for representing

each of the decimal digits 0 through 9 by a distinct group of
binary digits.
 COMPUTER TERMINOLOGY

Boot - When you load the operating system (DOS), you are
booting (starting) the computer.

Boundary Protection - This prevents the intermixing or

overlapping of data.

Browse - To search through information. Often used to

describe looking through data in a database.
 COMPUTER TERMINOLOGY

Buffer Storage - Secondary storage used to facilitate transfer

of data between internal and external storage.

Bug - Anything that makes the computer or its software stop

working as planned. A malfunction (mistake) in a program,
system of equipment.

Byte-The unit of measurement for computer storage and

memory. A byte can store one character of information.
 COMPUTER TERMINOLOGY

C- A high-level programming language widely used on the UNIX

Operating System.

ROM - An acronym for Compact Disk - Read Only Memory.

Chip - Also called a silicon chip containing incredibly complex

circuits, and is the heart and soul of the computer.

COBOL (Common Business-Oriented Language) . A process-

oriented language developed to facilitate business data processing.
 COMPUTER TERMINOLOGY

Compiler - A computer program, which converts a source

program (e.g. Cobol) into an object program (e.g. machine
language).

Console - A portion of a computer that is used for

communication between operators and the computer.

Core Dumps - A technique used is debugging a program.

.
 COMPUTER TERMINOLOGY

CPU (Central Processing Unit) - It performs all operations,

calculations and processes. In a PC it is also known as a
microprocessor.

Crash - A complete malfunction of the computer, much worse

than a bug. A major breakdown.

Database - A collection of files that are grouped together

because they have something in common.
 COMPUTER TERMINOLOGY

Debug - To locate and correct any error in a computer

program.
Desk Checking - A manual ready of computer program to
determine if logic satisfies certain audit requirements. .
Direct Access - A storage device (e.g., a disk pack) that
permits access to storage under conditions in which the next
location from which data are to be obtained is not dependent
on the locations of the previously obtained data.
 COMPUTER TERMINOLOGY

Echo Check - A control feature in an EDP system, which requires

the CPU to send signals to the printer to activate the print
mechanism for each character.
Electronic Data Interchange (EDI) - The exchange of standard
documents, such invoices and purchase orders between computer
systems. EDI is simply a different medium for input and output

Electronic Mail - Memos, letters and messages sent from one

computer to another often called E-Mail.
 COMPUTER TERMINOLOGY

FORTRAN (FORmula TRANslator) - A data processing language

consisting of language and a compiler that is used primarily for
mathematical type applications.

Gigabyte (GB) - A unit of measurement for computer memory;

equals to about 1 billion bytes or characters (1,024 megabytes).

Hard Copy - A printed copy of anything the computer produces, from

a computer program to a word-processing document.
 COMPUTER TERMINOLOGY

Hash Total - The total of field amounts for all the records in a
batch that are computed for control purposes only.

Head - A small magnetic device inside a disk drive that reads

and writes information disks.

Input - Anything you put into the computer - commands,

programs, and instructions.
 COMPUTER TERMINOLOGY

Integrated System Processing - A data processing system that coordinates

a number previously unconnected processes in order to improve
processing efficiency by reducing or eliminating redundant data entry.
Internet - Provides information or access to world wide interconnected
academic, commercial, government and military networks and databases.
Internet users communicate with each other.
Interactive - When you give the computer an instruction and it responds,
you a: interacting with each other.
 COMPUTER TERMINOLOGY

Interlace - A piece of hardware or software that allows

communication between computer and another device.

Interrupt - An event or signal that stops data processing.

Job Control Language - A programming language devised to

prepare the operating system for an application to be
processed.
 COMPUTER TERMINOLOGY

Kilobyte - Approximately one thousand bytes (1,024 to be

precise), usually abbreviated Kbytes.

Library - Collection of files, records, and programs.

Local Area Network (LAN) - A group 'of computers and

peripherals linked together by high speed cables and
contained within a limited area. .
 COMPUTER TERMINOLOGY

Log A record of the operations of data processing equipment,

which lists each job run, the time it required, operator actions
and other pertinent data.

Logged Drive - Another way of saying the current or default

disk drive.

Looping - A sequence of program instructions that can be

executed repetitively.
 COMPUTER TERMINOLOGY

Machine Language - Program or data that have been converted

into binary code. Language directly used by the computer

Management Information System - It is designed to ensure that

management possesses information it needs to carry out its
functions through. the integrated actions of data gathering,
analysis, and reporting.

Master File - This file contains relatively permanent information

used. for reference and updated periodically.
 COMPUTER TERMINOLOGY

Megabyte - A million bytes, usually abbreviated Mb or M bytes.

Microcomputer - A complete, small, computer system, like the PC.

Memory - The part of the computer that stores programs and

information needed to perform the current operation.

Mouse- An input device used to choose commands from menus,

move objects on the screen, and draw pictures onscreen.
 COMPUTER TERMINOLOGY

Multiprogramming - A technique used to enable an operating

system to handle two or more independent programs by
overlapping their execution.
Off-line - Equipment or devices (e.g., magnetic storage files)
that are not in direct communication with the CPU of a
computer system.
On-line - Equipment or devices that are in direct
communication with the CPU of a computer system.
 COMPUTER TERMINOLOGY

On-line, Real-time (OLRT) - An operation which data input is

obtained directly from measuring devices and the computer
results are thereby obtained during the processing of the
event.
Operating Environment. - A program that changes the way you
interact with the personal computer.
Operating System (DOS) - An organized collection of routines
and processing for operating a computer.
 COMPUTER TERMINOLOGY

Output - What the computer comes up with after acting on your

input. The output may be displayed on the screen or store on a
disk, or printed.
Parity Checks - A test to see if the number of I-bits in an array is
even or odd. The test helps to halt erroneous transmission of data
to storage devices or output reports.
Pascal - A high-level, highly structured programming language that
is widely used in scientific applications and for teaching
programming.
 COMPUTER TERMINOLOGY

Peripheral - Any additional equipment you attach. to the

computer such as printers and disk drives. .
PLIl (Programming Language) - It is a flexible oriented
language for programming, problems that can best solve
using a combination of scientific and commercial computing
techniques.
Program Flowchart - Flowchart diagramming the processing
steps and logic of a computer program.
 COMPUTER TERMINOLOGY

Programmer - A person who develops the program flowchart,

writes the program and debugs the program.

Read a Disk - To copy information from a disk into the

computer's memory

RAM (Random Access Memory) - The part of the computers

memory that temporarily the program and instructions while
you are working with them
 COMPUTER TERMINOLOGY

Response Time - The interval between the instructions and

the computer acting on the instructions.

ROM (Read Only Memory) - The part of the computers

memory that holds information permanently. With the PC,
BASIC is in ROM and is stored there at all times.

Source Program - A computer program written in a source

language such as COBOL, RAN, PLII, and BASIC.
 COMPUTER TERMINOLOGY

System Analyst - An EDP employee responsible for designing

new or improved data processing problems.

Systems Disk - Any disk that contains the operating system'

needed to start a computer.

Systems Flowchart - A flowchart diagramming the flow of

work, documents, and ions in a data processing application.
 COMPUTER TERMINOLOGY

System Software - All the software used to control the

operation of a computer system, includes the operating
system, and supporting utility programs .
Terabyte (TB) - A unit of measurement for computer memory,
which is approximately one trillion bytes.
Time Sharing - A computing technique in which numerous
devices can utilize a central computer concurrently for input,
processing, and output functions.
 COMPUTER TERMINOLOGY

Transaction File - A file containing information that is relatively transient

(e.g., Purchases)
Utility - Software used for regularly performed operating system
operations such as managing or recovering files.
Wide Area Network (WAN) - A computer network that use telephone lines
and satellites to connect computers over distances greater than those of
Local Area Network (LANs).
Window- An area on the screen that displays the contents of a file.
Operating environments use windows to let you work with files from more
than one application.