Professional Documents
Culture Documents
Chapter 2-Introduction To Transaction Processing
Chapter 2-Introduction To Transaction Processing
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CONVERSION CYCLE
Major subsystems of Conversion Cycle
1. Production System- planning,
scheduling & control of the physical
product through the manufacturing
process.
2. Cost Accounting Systemmonitors the flow of cost
information.
REVENUE CYCLE- Through this system,
firms sell their goods and services to
customers.
ACCOUNTING RECORDS
1. Traditional Accounting Records
2. Digital Accounting Records
TRADITIONAL RECORDS
1. Documents- may initiate transaction
processing or to be the output of the
process.
2. Journals- chronological record of
transaction
3. Ledgers- Book of Accounts; Reflects the
fin. effects of the firms transactions after
they are posted from the various journals;
Show activity by account type; Indicates
increase, decrease & current bal of
accounts.
Types of Documents
1. Source Documents- used to capture
& formalize transaction data that the
transaction cycle uses for processing.
2. Product Documents- result of
transaction processing rather than the
triggering mechanism for the process.
3. Turnaround Documents- product
documents of 1 system that become
source documents of another.
Types of Journals
1. Special Journals- used to record
specific classes of transaction that
occur in high volume.
Register- often used to denote certain
types of special journal or to denote
log.
2. General Journals- used to record non
recurring, infrequent & dissimilar
transactions.
Journal Voucher- replaced the general
journal in some org.; contains a single
journal entry specifying the general
ledger accounts affected; used to record
summaries of routine & non routine trans
and adjusting & closing entries.
Types of Ledgers
1. General Ledger- summarizes the
activities for each of the organizations
accounts.
2. Subsidiary Ledger- contains the details
of the individual accounts that constitute
a particular control account.
AUDIT TRAIL
- It is for tracing account balances contained in
the FS back to source docu & the economic
events that created them.
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DIGITAL RECORDS
Types of digital computer files
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