Ais 560 Ch. 2

Front 1

where goods and services are sold for cash or a future promise to pay cash

Back 1

revenue cycle

Front 2

where companies purchase inventory for resale or raw material to use in producing products in exchange for cash or a future promise to pay cash

Back 2

expenditure cycle

Front 3

where raw materials are transformed into finished goods

Back 3

production cycle

Front 4

where employees are hired, trained, compensated, evaluated, promoted and terminated

Back 4

HR payroll cycle

Front 5

where companies sell parts of the company to investors and borrow money and where investors are paid dividends and interest is paid on loans

Back 5

financing cycle

Front 6

five major transaction cycles

Back 6

revenue, expenditure, production, HR, financing

Front 7

the operations formed on data to generate meaningful and relevant information are referred to collectively as the

Back 7

data processing cycle

Front 8

four steps of the data processing cycle

Back 8

data input, data storage, data processing, and information output

Front 9

data must be collected about three facets of each business activity

Back 9

Each activity of interest, the resources affected, the people who participate

Front 10

records of company data sent to an external party then returned to the system as input

Back 10

turnaround documents

Front 11

capture transaction data in machine-readable form at the time and place of their origin

Back 11

source data automation

Front 12

files used to store cumulative information are called

Back 12

ledgers

Front 13

contains summary-level data for every asset, liability, equity, revenue and expense account of the organization

Back 13

general ledger

Front 14

records all the detailed data for any general ledger account that has many individual sub accounts

Back 14

subsidiary ledger

Front 15

the general ledger account corresponding to a subsidiary ledger is called a

Back 15

control account

Front 16

the systematic assignment of numbers or letters to classify and organized the data stored in ledgers

Back 16

coding

Front 17

when items are numbered consecutively to ensure that there will be no gaps in the sequence so that users can account for all the items, used for checks, invoices, and Pos

Back 17

sequence codes

Front 18

blocks of numbers within a numerical sequence are resolved for categories having meaning to the user

Back 18

block codes

Front 19

often used in conjunction with block codes where two or more subgroups of digits are used to code an item, like a vin #

Back 19

group codes

Front 20

a list of all general ledger accounts an organization uses

Back 20

chart of accounts

Front 21

a __ is made for each transaction showing the accounts and amounts to be debited and credited

Back 21

journal entry

Front 22

used to record infrequent or non routine transaction

Back 22

general journal

Front 23

used to simplify the process of recording large numbers of repetitive transactions

Back 23

specialized journal

Front 24

a means to check the accuracy and validity of ledger postings

Back 24

audit trail

Front 25

something about which information is stored

Back 25

entity

Front 26

characteristics of interest

Back 26

attributes

Front 27

data values are stored in a physical space called a

Back 27

field

Front 28

the set of fields that contain data about various attributes of the same entity forms a

Back 28

record

Front 29

the contents of a field within a record are called a

Back 29

data value

Front 30

related records are grouped in a

Back 30

file

Front 31

two basic types of files exist

Back 31

a master file and a transaction file

Front 32

four different types of file processing

Back 32

updating, changing, adding and deleting

Front 33

periodic updating is known as

Back 33

batch processing

Front 34

updating each transaction is known as

Back 34

real time, or online processing

Front 35

batch processing is a ___ method

Back 35

legacy

Front 36

records of transaction or other company data

Back 36

documents

Front 37

documents generated at the end of transaction processing activities are called

Back 37

operational documents

Front 38

used by employees to control operational activities and by managers to make decision strategies for the business

Back 38

reports

Front 39

a user enters a request for a specific piece of information

Back 39

query

Front 40

formal expressions of goals in financial terms

Back 40

budget

Front 41

reports that compare standard or expected performance with actual performance

Back 41

performance report

Front 42

systems designed to overcome the problems of integration, redundancies and discrepancies

Back 42

Enterprise resource planning