SOLUTION Manual for b b
Accounting Information Systems 9th
b b b b
Edition by Hall b b
CHAPTER 2 b
INTRODUCTION TO TRANSACTION PROCESSING
b b b
REVIEWbQUESTIONS
1. Thebexpenditurebcycle,bconversionbcycle,bandbrevenuebcycle.
2. Purchases/accountsbpayablebsystem,bcashbdisbursementsbsystem,bfixedbassetsb
system,bandbpayrollbsystem.
3. Thebphysicalbcomponentbincludesbthebacquisitionbofbgoods,bwhilebthebfinancialbc
omponentbincludesbthebrecognitionbofbabliabilitybowedbtobthebsupplierbandbthebtran
sferbofbthebpaymentbtobthebsupplier.
4. Productionbsystembandbcostbaccountingbsystem.
5. Salesborderbprocessingbsystembandbcashbreceiptsbsystem.
6. Sourcebdocuments,bproductbdocuments,bandbturnaroundbdocuments.
7. Specialbjournalsbandbthebgeneralbjournal.
, Chapterb2bPageb37
8. Abgeneralb journalb isb usedb tob recordb nonrecurringb andb infrequentb transactions.
Oftentimes,bgeneralbjournalsbarebreplacedbwithbabjournalbvoucherbsystem.bThebjo
urnalbvoucherbisbusedbtobrecordbabsinglebnonrecurringbandbinfrequentbtransaction
,bandbitbisbusedbasbabspecialbsourcebdocumentbforbthebtransaction.
Thebtotalbofbjournalbvouchersbprocessedbisbequivalentbtobthebgeneralbjournal.
9. Generalbledgerbandbsubsidiarybledger.
10. Abtrailbthatballowsbthebauditorbtobbeginbwithbabsummarybtotalbfoundbonbthebfinancialbs
tatementsbandbtrackbitbbackbtobthebindividualbtransactionsbthatbmake
upbthisbtotal.bConversely,banbauditorbshouldbbebablebtobtrackbtransactionsbtobtheirbfi
nalbimpactbonbthebfinancialbstatements.
11. Thebconfirmationbprocessbentailsbselectingbcustomersbandbcontactingbthembtobd
eterminebwhetherbthebtransactionsbrecordedbinbthebfinancialbstatementsbactuallybt
ookbplacebandbarebvalid.
12. Masterbfiles,btransactionbfiles,breferencebfiles,bandbarchivebfiles.
13. Masterb filesb correspondb tob generalb ledgerb accountsb andb subsidiaryb ledgers.
Examplesbincludebaccountsbreceivablebandbcustomerbsubsidiarybaccounts,bacco
untsbpayablebandbvendorbsubsidiarybaccounts,binventory,betc.bTransactionbfilesbc
orrespondbtobgeneralbandbspecialbjournals.bExamplesbincludebthebgeneralbjourna
l,bsalesbjournals,bcashbreceiptsbjournals,bpayrollbjournals,betc.bReferencebfilesbincl
udeblistsbofbvendors,bdelinquentbcustomers,btaxbtables,bsalesbtaxbrates,bdiscountb
rates,blistsbofbcustomersbgrantedbspecificbdiscounts,betc.bArchivebfilesbarebtypicall
ybcomposedbofbrecordsbthatbhavebbeenbprocessedbbutbarebretainedbforbtheirbhisto
ry.bExamplesbincludebpayrollbtransactions,bsalesbtransactions,betc.
, Chapterb2bPageb38
14. Thebdigitalbauditbtrail,blikebthebpaperbtrail,ballowsbusbtobtracebtransactionsbfrombthebfi
nancialbstatementbbalancebbackbtobthebactualbtransactionbsobwebmay:b(1)bcompa
rebbalances,b(2)bperformbreconciliations,b(3)bselectbandbtracebsamplesbofbentries,
andb(4)bidentify,bpull,bandbverifybspecificbtransactions.
b
15. Cardinalitybreflectsbnormalbbusinessbrulesbasbwellbasborganizationalbpolicy.bForbi
nstance,btheb1:1bcardinalitybinbthebfirstbexamplebinbFigureb2-
16bsuggestsbthatbeachbsalespersonbinbtheborganizationbisbassignedbonebautomobi
le.bIfbinsteadb theborganization’sbpolicybwerebtobassignbabsinglebautomobilebtoboneb
orbmorebsalespeoplebthatbsharebit,bthisbpolicybwouldbbebreflectedbbybab1:Mbrelatio
nship.
16. Entitybrelationshipbdiagramsbrepresentbthebrelationshipbbetweenbentitiesb(resour
ces,bevents,bandbagents)binbabsystem.bDataflowbdiagramsbrepresentbtheblogicalbe
lementsb(i.e.bwhatbisbbeingbdone)bofbabsystembbybillustratingbprocesses,bdatabsour
ces,bdatabflows,bandbentities.bSystembflowchartsbrepresentbthebphysicalbelementsb
beingbusedb(i.e.,bhowbthebtasksbarebbeingbconducted)bbybillustratingbthebrelationshi
pbbetweenbinputbsources,bprogram,bandboutputbproducts.bSystembflowchartsbcanb
alsobrepresentbbothbtheblogicalbandbphysicalbelementsbofbmanualbsystemsbandbal
sobillustratebthebpreparationbandbhandlingbofbdocuments.
17. Cardinalitybrefersbtobthebnumericalbmappingbbetweenbentitybinstances,bandbitbisbab
matterbofborganizationbpolicy.bThebrelationshipbcanbbebone-to-
one,bonetomany,borbmany-to-many.
, Chapterb2bPageb39
18. Anb entityb relationshipb (ER)b diagramb isb ab documentationb techniqueb usedb tobre
presentbthebrelationshipbbetweenbentities.bOnebcommonbusebforbERbdiagramsbisbt
obmodelbanborganization’sbdatabase,bwhichbwebexaminebinbdetailbinbChapterb9.
19. Entitiesbarebphysicalbresourcesb(automobiles,bcash,borbinventory),beventsb(orderi
ngbinventory,breceivingbcash,bshippingbgoods),bandbagentsb(salesperson,bcusto
mer,borbvendor)baboutbwhichbtheborganizationbwishesbtobcapturebdata.
20. Batchbprocessingboccursbwhenbsimilarbtransactionsbarebaccumulatedboverbtimeb
andbprocessedbtogether.bReal-
timebprocessingbcapturesbeachbeventborbtransactionbandbprocessesbitbbeforebeng
agingbinbanotherbtransaction.bIfbtransactionsbarebindependentbofbonebanother,bsu
chbasbthebprocessingbofbdailybcashbreceipts,bthenbbatchbprocessingbisbappropriat
e.bIfbtransactionsbarebdependentbonbonebanother,bsuchbasbcreditbsales,bticketbsale
s,betc.,bthenbrealtimebprocessingbisbmorebappropriate.
21. Abflat-filebmodelbisbonebinbwhichbindividualbdatabfilesbarebnotbrelatedbtobotherbfiles.
Endbusersbinbthisbenvironmentbownbtheirbdatabfilesbratherbthanbsharebthembwithbot
herbusers.bDatabprocessingbisbthusbperformedbbybstandaloneb applicationsbrather
thanbintegratedbsystems.
b
22. No.bAbDFDbshowsbwhichbtasksbarebbeingbperformed,bbutbnotbwhobperformsb them.
Itbdepictsbtheblogicalbsystem.
23. Yes,bAbflowchartbdepictsbthebphysicalbsystembandbillustratesbwhatbtypebofbandbwh
erebabtaskbisbperformedbandbwhobisbperformingbit.
Accounting Information Systems 9th
b b b b
Edition by Hall b b
CHAPTER 2 b
INTRODUCTION TO TRANSACTION PROCESSING
b b b
REVIEWbQUESTIONS
1. Thebexpenditurebcycle,bconversionbcycle,bandbrevenuebcycle.
2. Purchases/accountsbpayablebsystem,bcashbdisbursementsbsystem,bfixedbassetsb
system,bandbpayrollbsystem.
3. Thebphysicalbcomponentbincludesbthebacquisitionbofbgoods,bwhilebthebfinancialbc
omponentbincludesbthebrecognitionbofbabliabilitybowedbtobthebsupplierbandbthebtran
sferbofbthebpaymentbtobthebsupplier.
4. Productionbsystembandbcostbaccountingbsystem.
5. Salesborderbprocessingbsystembandbcashbreceiptsbsystem.
6. Sourcebdocuments,bproductbdocuments,bandbturnaroundbdocuments.
7. Specialbjournalsbandbthebgeneralbjournal.
, Chapterb2bPageb37
8. Abgeneralb journalb isb usedb tob recordb nonrecurringb andb infrequentb transactions.
Oftentimes,bgeneralbjournalsbarebreplacedbwithbabjournalbvoucherbsystem.bThebjo
urnalbvoucherbisbusedbtobrecordbabsinglebnonrecurringbandbinfrequentbtransaction
,bandbitbisbusedbasbabspecialbsourcebdocumentbforbthebtransaction.
Thebtotalbofbjournalbvouchersbprocessedbisbequivalentbtobthebgeneralbjournal.
9. Generalbledgerbandbsubsidiarybledger.
10. Abtrailbthatballowsbthebauditorbtobbeginbwithbabsummarybtotalbfoundbonbthebfinancialbs
tatementsbandbtrackbitbbackbtobthebindividualbtransactionsbthatbmake
upbthisbtotal.bConversely,banbauditorbshouldbbebablebtobtrackbtransactionsbtobtheirbfi
nalbimpactbonbthebfinancialbstatements.
11. Thebconfirmationbprocessbentailsbselectingbcustomersbandbcontactingbthembtobd
eterminebwhetherbthebtransactionsbrecordedbinbthebfinancialbstatementsbactuallybt
ookbplacebandbarebvalid.
12. Masterbfiles,btransactionbfiles,breferencebfiles,bandbarchivebfiles.
13. Masterb filesb correspondb tob generalb ledgerb accountsb andb subsidiaryb ledgers.
Examplesbincludebaccountsbreceivablebandbcustomerbsubsidiarybaccounts,bacco
untsbpayablebandbvendorbsubsidiarybaccounts,binventory,betc.bTransactionbfilesbc
orrespondbtobgeneralbandbspecialbjournals.bExamplesbincludebthebgeneralbjourna
l,bsalesbjournals,bcashbreceiptsbjournals,bpayrollbjournals,betc.bReferencebfilesbincl
udeblistsbofbvendors,bdelinquentbcustomers,btaxbtables,bsalesbtaxbrates,bdiscountb
rates,blistsbofbcustomersbgrantedbspecificbdiscounts,betc.bArchivebfilesbarebtypicall
ybcomposedbofbrecordsbthatbhavebbeenbprocessedbbutbarebretainedbforbtheirbhisto
ry.bExamplesbincludebpayrollbtransactions,bsalesbtransactions,betc.
, Chapterb2bPageb38
14. Thebdigitalbauditbtrail,blikebthebpaperbtrail,ballowsbusbtobtracebtransactionsbfrombthebfi
nancialbstatementbbalancebbackbtobthebactualbtransactionbsobwebmay:b(1)bcompa
rebbalances,b(2)bperformbreconciliations,b(3)bselectbandbtracebsamplesbofbentries,
andb(4)bidentify,bpull,bandbverifybspecificbtransactions.
b
15. Cardinalitybreflectsbnormalbbusinessbrulesbasbwellbasborganizationalbpolicy.bForbi
nstance,btheb1:1bcardinalitybinbthebfirstbexamplebinbFigureb2-
16bsuggestsbthatbeachbsalespersonbinbtheborganizationbisbassignedbonebautomobi
le.bIfbinsteadb theborganization’sbpolicybwerebtobassignbabsinglebautomobilebtoboneb
orbmorebsalespeoplebthatbsharebit,bthisbpolicybwouldbbebreflectedbbybab1:Mbrelatio
nship.
16. Entitybrelationshipbdiagramsbrepresentbthebrelationshipbbetweenbentitiesb(resour
ces,bevents,bandbagents)binbabsystem.bDataflowbdiagramsbrepresentbtheblogicalbe
lementsb(i.e.bwhatbisbbeingbdone)bofbabsystembbybillustratingbprocesses,bdatabsour
ces,bdatabflows,bandbentities.bSystembflowchartsbrepresentbthebphysicalbelementsb
beingbusedb(i.e.,bhowbthebtasksbarebbeingbconducted)bbybillustratingbthebrelationshi
pbbetweenbinputbsources,bprogram,bandboutputbproducts.bSystembflowchartsbcanb
alsobrepresentbbothbtheblogicalbandbphysicalbelementsbofbmanualbsystemsbandbal
sobillustratebthebpreparationbandbhandlingbofbdocuments.
17. Cardinalitybrefersbtobthebnumericalbmappingbbetweenbentitybinstances,bandbitbisbab
matterbofborganizationbpolicy.bThebrelationshipbcanbbebone-to-
one,bonetomany,borbmany-to-many.
, Chapterb2bPageb39
18. Anb entityb relationshipb (ER)b diagramb isb ab documentationb techniqueb usedb tobre
presentbthebrelationshipbbetweenbentities.bOnebcommonbusebforbERbdiagramsbisbt
obmodelbanborganization’sbdatabase,bwhichbwebexaminebinbdetailbinbChapterb9.
19. Entitiesbarebphysicalbresourcesb(automobiles,bcash,borbinventory),beventsb(orderi
ngbinventory,breceivingbcash,bshippingbgoods),bandbagentsb(salesperson,bcusto
mer,borbvendor)baboutbwhichbtheborganizationbwishesbtobcapturebdata.
20. Batchbprocessingboccursbwhenbsimilarbtransactionsbarebaccumulatedboverbtimeb
andbprocessedbtogether.bReal-
timebprocessingbcapturesbeachbeventborbtransactionbandbprocessesbitbbeforebeng
agingbinbanotherbtransaction.bIfbtransactionsbarebindependentbofbonebanother,bsu
chbasbthebprocessingbofbdailybcashbreceipts,bthenbbatchbprocessingbisbappropriat
e.bIfbtransactionsbarebdependentbonbonebanother,bsuchbasbcreditbsales,bticketbsale
s,betc.,bthenbrealtimebprocessingbisbmorebappropriate.
21. Abflat-filebmodelbisbonebinbwhichbindividualbdatabfilesbarebnotbrelatedbtobotherbfiles.
Endbusersbinbthisbenvironmentbownbtheirbdatabfilesbratherbthanbsharebthembwithbot
herbusers.bDatabprocessingbisbthusbperformedbbybstandaloneb applicationsbrather
thanbintegratedbsystems.
b
22. No.bAbDFDbshowsbwhichbtasksbarebbeingbperformed,bbutbnotbwhobperformsb them.
Itbdepictsbtheblogicalbsystem.
23. Yes,bAbflowchartbdepictsbthebphysicalbsystembandbillustratesbwhatbtypebofbandbwh
erebabtaskbisbperformedbandbwhobisbperformingbit.
