35 terms

414 Ch 2

an agreement between two entities to exchange goods or services
business or transactional processing
system which captures transactions and outputs financial statements
Transactional Processing Outline
1. Revenue cycle 2. Expenditure cycle 3. Production cycle 4. Human resources/Payroll cycle 5. Financing cycle
revenue cycle
goods and services sold for cash or promise
expenditure cycle
purchase inventory for resale or production of products for cash or promise
production cycle
raw materials transformed into finished goods
human resources/ payroll cycle
"employees are hired, trained, compensated, evaluated, promoted, and terminated."
financing cycle
"companies sell shares to investors, borrow money, investors are paid dividends, interests paid on loans"
General ledger and reporting system
show how transaction processes relate and interface and collects info from each for management and external parties
data processing cycle
operations performed on data to generate meaningful and relevant information
turnaround documents
records of company data sent to external party and returned as input (ex. utility bill that is returned to the company with payment)
source data automation
devices that capture transaction data in machine-readable form at the time and place of origin
general ledger
"summary-level data for every asset, liability, equity, revenue, and expense account"
subsidiary ledger
all detailed data for any general ledger account that has many individual subaccounts
control account
general ledger account corresponding to a subsidiary ledger
Systematic assignment of numbers or letters to items to classify and organize them
Sequence codes
items are numbered consecutively to ensure there will be no gaps in the sequence
block code
blocks of number within a numerical sequence are reserved for categories having meaning to the user
group codes
Used in conjunction with block code - two or more subgroups of digits are used to code the item
chart of accounts
list of all general ledger accounts an organization uses
general journal
used to record infrequent or non routine transactions
specialized journal
"used to record repetitive transitions: credit sales. cash receipts, etc"
audit trail
the posting of reference and document numbers
characteristics of interest
something about which information is stored
physical space a data value is stored
set of fields containing data about various attributes of the same entity
data value
content of a field
related records are grouped
master file
store cumulative information about an origination's resources and the agents whom it interacts - permament
transaction files
contain records for individual business transactions that occur during a specific fiscal period
"set of interrelated, centrally coordinated files"
batch processing
periodic updating of data
online real-time processing
update data as transaction occurs
Enterprise resource planning (ERP) system
designed to overcome problems as they relate to aspects of a company's operations within its traditional AIS