Beatriz Fenina Chua
IT 5
1.
a. What would you prefer role in AIS (as a
system user, a system designer or
system auditor) . Choose one and defend
your
preference.
b. Archiving a record is an alternative to Deleting means removing records or
deleting a record? What is the benefit that information completely while Archiving
can be derived from it?
c. Are large batch sizes preferable to
small batch sizes when it comes to data
processing? Explain
d. Discuss the importance of accounting
independence in accounting information
systems. Use an example aside from
inventory control.
e. Does banking system use real/ on-line Banking system uses both real time and
processing or both real time and batch
processing. Provide a scenario.
I would prefer the role of system auditor
since I can use guidelines on how to audit
the system instead of just using it or
designing it.
means moving the recordor information in
a permanent storage to free up a space
in the system. The benefit of archiving a
record is it lets you retrieve your record
when the need of it arises
No. Small batch sizes are preferable than
large batch sizes because small ones
produce fewer queues, give faster cycle
time, increase urgency, and decrease risk
through faster feedback.
It is important because the information
reliability requires the use of accounting
independence. The accounting activities
must be separate and independent of the
functional areas maintaining resources.
Decisions makers in these functions
require that such vital information be
supplied by an independent source to
ensure its integrity.An example of
accounting independence is the payroll
process. It organizes all the tasks of
employee payment and the filing of
employee taxes. These tasks include
keeping tracks of hours, calculating
wages, withholding taxes and deductions,
printing and delivering checks and paying
employment taxes to the government.
batch processing. Real time is used when
processing transactions without delay like
when the customers deposit money in the
bank or withdraws money fromthe bank,
the record of the customers reflect their
current status or the transactions they

f. Give at least on criteria that influence
selection of data structure? What data
structure is suited for that?
g. How do backup procedures for files
with a direct access structure differ from
sequential files?
h. How do you consider Microsoft Office
Systems? Is it a turnkey, backbone or
vendor supported system? Explain your
answer.
i. If a certain system in a business is
centralized does it mean that the whole
business is centralized. Explain your
answer. (You are encouraged to give
made. Batch processing is used by the
bank in terms of payroll system, there is
no need to keep track of how much an
employee has earned every minute of the
day and doing this every two weeks is
likely sufficient
The criteria that influence selection of
data structures include the insertion of
record into a file. This will need sequential
structure so as the records will
automatically be inserted into the right
path.
In a direct access structure, each record
is assigned in a unique disk location or
address that is determined by its key
value. Because only a single valid
location exists for each record, updating
the record must occur in a place of a
destructive update approach that leaves
no backup copy of the original master file
and only the current value is available to
the user. If the current master becomes
damaged or corrupted, no backup version
exist from which to reconstruct the file
while sequential file update process
produces new physical masters file. The
new file contains all of the records from
the original file, including those that were
updated by transactions and those that
were not updated. The original master
continues to exist. If the current master
file become lost, damaged, or corrupted
by erroneous data, a new file can be
created from the original master files and
the corresponding transaction files.
I think MS Office System is a backbone
system because it consist the basic
system structure in which to build. The
primary processing logic is programmed,
and the vendor then designs the user
interfaces to suit the clients unique
needs.
Yes, the whole business is centralized if a
certain system is centralized because
resources and data ofthe company are
shared by the management and
practical business cases)
j. If accountants are viewed as providers
of information, then why are they
consulted as system users in the system
development process? Give a practical
example to support your answer.
k. In what scenario does real time
processing advantageous over batch
processing (Is it transactions that are
dependent with one another or
transactions that are independent with
one another?) Justify your answer.
l. The REA model is based on the
premise that business data must not be
preformatted or artificially constrained
and must reflect the all relevant aspects
of the underlying economic events.
Explain it by giving a practical example of
REA model (which is of course not on the
book)
m. What are the 3 general problems
associated with data redundancy and
give a practical example for each.
n. What are the 4 levels of activity in the
pyramid representing the hierarchy of
management? Give at least one person
employees of the company
Accountants as end users must provide a
clear picture of their needs to the
professionals who design their systems.
Example, the accountant mustspecify
accounting rules and techniques to be
used, internal control requirements, and
special algorithmssuch as depreciation
models
Real time processing system process
transactions individually at the moment
the event occurs. Because records are
not grouped into batches, thereare no
time lags between occurrence and
recording compared with batch
processing system.
REA treats the accounting system as a
virtual representation of the actual
business. In other words, it creates
computer objects that directly represent
real-world-business objects. For example,
in the sales process, one event would be
"sales"where goods are given upand
the other would be "cash receipt", where
cash is received. These two events are
linked; a cash receipt occurs in
exchangefor a sale, and vice versa. The
duality relationship can be more complex,
e.g., in the manufacturing process, it
would often involve more than two
events.
The three general problem associated
with data redundancy are Wasted
Storage Space,More difficult Database
Updates, A Possibility of Inconsistent
data. Examples, Autonimous sysytem
developments activities distributed
throughout the firm can result in each
user area reinventing the wheel. Another
example customer data exist only once,
but is shared by accounting, marketing,
and product services users.
The four levels are Top management,
middle management, operation
management and operation personnels.
involved in the four levels of organization
(e.g. Chief Executive Officer belongs to
top management). Give examples of
vertical flow and horizontal flow of
information.
o. What are the three fundamental task of
data management and give a practical
example for each task.
p. What is feedback? Give a practical
example of it and how is it beneficial to
the system?
Example.,Operations manager, this
individual is the leader for the operation
and has overall responsibility for the
financial success of the business. The
operations manager handles external
relations with lenders, community leaders
and vendors.(horizontal) Frequently, this
individual also is in charge of either
production or marketing for the business.
This person will set in motion the vision,
strategic plan and goals for the business
(vertical).
Three fundamental tasks of data
management, storage, retrieval and
deletion, storage, for assigningkeys to a
new records and stores them in their
proper location in the database. Retrieval
is the task of locating and extracting an
existing record from the database for
processing. Deletion is the task
permanently removing obsolete or
redundant records from the database.
K. The REA model is based on the
premise that business data must not be
preformattedor artificially constrained and
must reflect the all relevant aspects of the
underlying economic events. Explain it
by giving a practical example of REA
model (which is of course not on the
book)REA treats the accounting system
as a virtual representation of the actual
business. In other words, it creates
computer objects that directly represent
real-world-business objects. For example,
in the sales process, one event would be
"sales"where goods are given upand
the other would be "cash receipt", where
cash is received. These two events are
linked; a cash receipt occurs in
exchangefor a sale, and vice versa. The
duality relationship can be more complex,
e.g., in the manufacturing process, it
would often involve more than two
events.L. What are the 3 general
problems associated with data
redundancy and give a practical example
for each.The three general problem
associated with data redundancy are
Wasted Storage Space,More difficult
Database Updates, A Possibility of
Inconsistent data. Examples, Autonimous
sysytem developments activities
distributed throughout the firm can result
in each user area reinventing the wheel.
Another example customer data exist
only once, but is shared by accounting,
marketing, and product services users.M.
What are the 4 levels of activity in the
pyramid representing the hierarchy of
management? Give at least one person
involved in the four levels of organization
(e.g. Chief Executive Officer belongs to
top management). Give examples of
vertical flowand horizontal flow of
information.The four levels are Top
management, middle management,
operation management and operation
personnels. Example.,Operations
manager, this individual is the leader for
the operation and has overall
responsibility for the financial success of
the business. The operations manager
handles external relations with lenders,
community leaders and vendors.
(horizontal) Frequently, this individual
also is in charge of either production or
marketing for the business. This person
will set in motion the vision, strategic plan
and goals for the business (vertical).N.
What are the three fundamental task of
data management and give a practical
example for each task.Three fundamental
tasks of data management, storage,
retrieval and deletion, storage, for
assigningkeys to a new records and
stores them in their proper location in the
database. Retrieval is the task of locating
and extracting an existing record from
the database for processing. Deletion is
the task permanently removing obsolete
or redundant records from the
database.O. What is feedback? Give a
 practical example of it and how is it
beneficial to the system?Feedback is a
form of output that is sent back to the
system as a source of data. For example,
an inventory have fallen to, or below, their
minimum allowable levels. Internal
feedback from the information will initiate
the inventory ordering process to
replenish the inventories. Similarly,
external feedback about level of
uncollected customer accounts can be
used to adjust the organization's credit-
granting policy.
q. What is meant by cardinality in E-R Cardinality is the numeric mapping
diagram? Provide an example based on a between entities
case record. instances. if we think of entities in the ER
diagram
as files of records, cardinality is the
maximum
number of records in one file that are
related to a
single record in the other file and vice
versa. for
example, each salesperson in the
organization is
assigned one automobile. If instead the
organization's policy were to assign a
single
automobile to one or more persons who
share it, this
policy would be reflected by a 1:M
relationship.
Similarly, the M:M relationship between
vendor and
inventory implies that the organization
buys the
same type of products from one or more
vendors. A
company policy to buy particular items
from a single
vendor would be reflected by a 1:M
cardinality.

r. What processing requires considerable It is real- time processing that is requires

computer networking? Is it real-time or considerable computer networking,
batch processing? Explain. because records

s. Why is cost accounting also applicable
in service oriented business such as
hospitals? Explain
t. Why is management report considered
discretionary reporting?
u. Why is transaction file called a
temporary file?
2. The accounting cycle is the name given to the collective process of recording and
processing the accounting events of a company. The series of steps begin when a
are not grouped into batches, there are
no time lags
between occurrence and recording.
Cost accounting encompasses a body of
concepts
and techniques that support the
objectives of both
financial accounting and managerial
accounting.
Activity - Based Costing can be applied in
service
industries other than those described
here. It has
become increasingly important for
companies whose
markets are becoming more competitive.
Since ABC
is really about cost management, using it
allows
service companies to reduce and control
their costs
in order to make correct pricing and other
decisions,
and to increase their profitability. It is
likely to
continue to become more prevalent in the
service
industry in the future.
Management reporting is called
discretionary
reporting because the organization can
choose what
information to report and how to present
it.
Transaction file is called temporary file
because it
used to change or update data in a
master file.
transaction occurs and end with its inclusion in the financial statements. Additional
accounting records used during the accounting cycle include the general ledger and trial
balance.

An organization begins its accounting cycle with the recording of transactions using journal
entries. The entries are based on the receipt of an invoice, recognition of a sale or
completion of other economic events. After the company posts journal entries to individual
general ledger accounts, an unadjusted trial balance is prepared. The trial balance ensures
the total debits equals the total credits in the financial records. At the end of the period,
adjusting entries are made. These are the result of corrections that need to be made as well
as results from the passage of time. For example, an adjusting entry may accrue interest
revenue that has been earned based on the passage of time.

Upon the posting of adjusting entries, a company prepares an adjusted trail balance
followed by the financial statements. An entity closes temporary accounts -- revenues and
expenses -- at the end of the period using closing entries. These closing entries transfer net
income into retained earnings. Finally, a company prepares the post-closing trial balance to
ensure debits and credits match.

customer accounts can be used to adjust the

organization's credit-granting policy.
Q. What processing requires
considerable computer
networking? Is it real-time or
batch processing? Explain.
R. Why is cost accounting also
applicable in service -
oriented business such as
hospitals? Explain.
S. Why is management report
considered discretionary
reporting?
T. Why is transaction file called
a temporary file?