Page 132 - Accounting Information Systems

CHAPT E R 2 Introduction to Transaction Processing 103

21. A coding scheme in the form of acronyms and c. alphabetic code.
other combinations that convey meaning is a(n) d. mnemonic code.
a. sequential code.
b. block code.

Problems

1. TRANSACTION CYCLE discrepancies, then sending this form back to the payroll
IDENTIFICATION department. Any discrepancies noted must be corrected
by the payroll department.
Categorize each of the following activities into the ex-
penditure, conversion, or revenue cycles, and identify
the applicable subsystem. 4. ENTITY RELATIONSHIP
DIAGRAM
a. preparing the weekly payroll for manufacturing per-
sonnel Shown here is a partial entity relationship diagram of a
b. releasing raw materials for use in the manufacturing purchase system. Describe the business rules repre-
cycle sented by the cardinalities in the diagram.
c. recording the receipt of payment for goods sold
d. recording the order placed by a customer
e. ordering raw materials
f. determining the amount of raw materials to order PROBLEM 4: ENTITY RELATIONSHIP DIAGRAM

2. TYPES OF FILES Updates Contains
Inventory
For each of the following records, indicate the appropri- M 1
ate related file structure: master file, transaction file, ref-
M
erence file, or archive file.
a. customer ledgers
b. purchase orders 1
c. list of authorized vendors
d. records related to prior pay periods Supplier 1
e. vendor ledgers
f. hours each employee has worked during the current
pay period
g. tax tables
M M M
h. sales orders that have been processed and recorded
Is Associated with
Receiving Purchase
3. SYSTEM FLOWCHART Report 1 1 Order
Figure 2-4 illustrates how a customer order is trans-
formed into a source document, a product document, and
a turnaround document. Develop a similar flowchart for
the process of paying hourly employees. Assume time 5. ENTITY RELATIONSHIP
sheets are used and the payroll department must total the
hours. Each hour worked by any employee must be DIAGRAM
charged to some account (a cost center). Each week, the Refer to the entity relationship diagram in Problem 4.
manager of each cost center receives a report listing the Modify the diagram to deal with payments of merchan-
employee’s name and the number of hours charged to dise purchased. Explain the business rules represented
this center. The manager is required to verify that this in- by the cardinalities in the diagram. (You may wish to
formation is correct by signing the form and noting any refer to Chapter 5.)