‘An organisation is a collection of interdependent decision-making units that exists to pursue organisational objectives’. In the light of this statement, explain the relationship between information and decisions. Also explain the role of the Transaction Processing System in facilitating the decision-making process in business organisations.
There is a great relationship between information and decision every organisation accepts inputs and transforms them into outputs. All organisation systems pursue certain objectives through a process of resource allocation, which is accomplished through the process of managerial decision-making. Information facilities decision regarding allocation of resources and thereby an organisation in achieving its objective.
Every medium sized to large organisation has a well-established information system that is meant to generate the information required for decision - making with the increasing use of information systems in organisation, Transaction Processing System (TPS) have started playing a vital role in supporting business operation.
Every transaction processing system has three components Input Processing and output, Since Information technology (IT) follows the GIGO principle (Garbage in Garbage out), it is necessary that inputs to the it-based information system are accurate, complete and authorised. This is achieved by automating the input. A large number of the devices are now available to automatically process the inputs process for a TPS.
Transaction Processing System Transaction Processing System (TPS) are among the earliest computerized systems catering to the requirements of large business enterprises. The purpose of typical TPS is to record, process,validate and store transactions that occur in the various functional areas of a business for subsequent retrieval and usage.
A transaction could be internal or external, The scope of financial accounting is confined to external transactions only, whereas through the transaction processing system we record all the transaction internal as well as external.
State the relationship between information and decision.
Explain, using examples, the relationship between the organisational MIS and the other functional information system in an organisation. Describe how AIS receives and provides information to other functional MIS.
List the distinctive advantages of a computer system over a manual system.
State the various essential features of an accounting report.
Draw block diagram showing the main components of a computer.
Describe the various elements of a computer system and explain the distinctive features of a computer system and manual system.
Fill in the correct words :
1. The user oriented programmes designed and developed for performing certain specific tasks are called as ...........
2. Language syntax is checked by software called as ...........
3. The people who write programmes to implement the data processing system design are called as ...........
4. ........... is the brain of the computer.
5. ........... and ........... are two of the important requirements of an accounting report.
6. An example of responsibility report is ...........
What is Accounting Information System?
State the different elements of a computer system.
Name three components of a Transaction Processing System.
Name any two types of commonly used negotiable instruments.
Why is it necessary to record the adjusting entries in the preparation of final accounts?
State the meaning of incomplete records?
What is ‘Depreciation’?
Briefly state how the cash book is both journal and a ledger.
State the meaning of a trial balance?
State the four basic requirements of a database applications.
Define accounting.
Why is it necessary for accountants to assume that business entity will remain a going concern?
State the need for the preparation of bank reconciliation statement?
Complete the following sentences with appropriate words:
(a) Information in financial reports is based on .....................
(b) Internal users are the ..................... of the business entity.
(c) A ..................... would most likely use an entities financial report to determine whether or not the business entity is eligible for a loan.
(d) The Internet has assisted in decreasing the ..................... in issuing financial reports to users.
(e) ..................... users are groups outside the business entity, who uses the information to make decisions about the business entity.
(f) Information is said to be relevent if it is ......................
(g) The process of accounting starts with ............ and ends with ............
(h) Accounting measures the business transactions in terms of ............ units.
(i) Identified and measured economic events should be recording in ............ order.
What is difference between trade discount and cash discount?
Furniture purchased from M/s Rao Furnishigs for 8,000 was entered into the purchases book.
This is the error of ........................................
State the wrong entry recorded in the book of accounts
Correct effect should have been:
The rectification entry will be:
State whether the following statements are true or false:
Define revenues and expenses?
Define a computerised accounting system. Distinguish between a manual and computerised accounting system.
Write the correct word(s) :
1. Credit sales can be ascertained as the balancing figure in the .......... account.
2. Excess of .......... over ......... represents loss sustained during the period.
3. To ascertain the profit, closing capital is to be adjusted by deducting .......... and adding ..........
4. Incomplete records are generally used by ..........
Cash withdrawn by the Proprietor should be credited to:
(i) Drawings account
(ii) Capital account
(iii) Profit and loss account
(iv) Cash account
State the meaning of:
(a) Outstanding expenses
(b) Prepaid expenses
(c) Income received in advance
(d) Accrued income
Give any three examples of revenues.