Page 130 - Accounting Information Systems

CHAPT E R 2 Introduction to Transaction Processing 101

19. For each of the following items, indicate whether a d. inventory item number
sequential, block, group, alphabetic, or mnemonic e. -bin number (inventory warehouse location)
code would be most appropriate (you may list
f. sales order number
multiple methods; give an example and explain
why each method is appropriate): g. vendor code
h. invoice number
a. state codes
i. customer number
b. check number
c. chart of accounts

Multiple-Choice Questions

1. Which statement is NOT true? 5. Which of the following files is a temporary file?
a. Business activities begin with the acquisition of a. transaction file
materials, property, and labor in exchange for b. master file
cash.
c. reference file
b. The conversion cycle includes the task of
d. none of the above
determining raw materials requirements.
6. A documentation tool used to represent the logi-
c. Manufacturing firms have a conversion cycle
cal elements of a system is a(n)
but retail firms do not.
a. programming flowchart.
d. A payroll check is an example of a product
document of the payroll system. b. entity relationship diagram.
e. A journal voucher is actually a special source c. system flowchart.
document. d. data flow diagram.
2. A documentation tool that depicts the physical 7. Which of the following is NOT an advantage of
flow of information relating to a particular transac- real-time processing files over batch processing?
tion through an organization is a a. shorter transaction processing time
a. system flowchart. b. reduction of inventory stocks
b. program flowchart. c. improved customer service
c. decision table. d. all are advantages
d. work distribution analysis. 8. Which statement is NOT correct?
e. systems survey. a. Legacy systems may process financially signifi-
3. Sequential file processing will not permit cant transactions.
a. data to be edited on a separate computer b. Some legacy systems use database technology.
run. c. Mainframes are exclusive to legacy systems,
b. the use of a database structure. while modern systems use only the client-
c. data to be edited in an offline mode. server model.
d. batch processing to be initiated from a d. All the above are true.
terminal. 9. Which statement is NOT correct?
e. data to be edited on a real-time basis. a. Indexed random files are dispersed throughout
4. The production subsystem of the conversion cycle the storage device without regard for physical
includes all of the following EXCEPT proximity with related records.
a. determining raw materials requirements. b. Indexed random files use disk storage space
efficiently.
b. make or buy decisions on component parts.
c. Indexed random files are efficient when
c. release of raw materials into production.
processing a large portion of a file at one
d. scheduling the goods to be produced. time.