‘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.
Give example of the relationship between a Human Resource Information System and MIS.
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?
If opening capital is Rs. 60,000, drawings Rs. 5,000, capital introduced during the period Rs. 10,000, closing capital Rs. 90,000. The value of profit earned during the period will be :
(a) Rs. 20,000 (b) Rs. 25,000
(c) Rs. 30,000 (d) Rs. 40,000
Define revenues and expenses?
What do you understand by balancing of account?
State briefly the need for providing depreciation.
Favourable bank balance means:
(a) Credit balance in the cash book (b) Credit balance in passbook
(c) Debit balance in the cash book (d) Both (b) and (c)
As an accountant of a company, you are disappointed to learn that the totals in your new trial balance are not equal. After going through a careful analysis, you have discovered only one error. Specifically, the balance of the Office Equipment account has a debit balance of 15,600 on the trial balance. However, you have figured out that a correctly recorded credit purchase of pendrive for 3,500 was posted from the journal to the ledger with a 3,500 debit to Office Equipment and another 3,500 debit to creditors accounts. Answer each of the following questions and present the amount of any misstatement :
(a) Is the balance of the office equipment account overstated, understated, or correctly stated in the trial balance?
(b) Is the balance of the creditors account overstated, understated, or correctly stated in the trial balance?
(c) Is the debit column total of the trial balance overstated, understated, or correclty stated?
(d) Is the credit column total of the trial balance overstated, understated, or correctly stated?
(e) If the debit column total of the trial balance is 2,40,000 before correcting the error, what is the total of credit column.
Tick the Correct Answer
Which of the following is not a business transaction?
a. Bought furniture of ₹ 10,000 for business
b. Paid for salaries of employees ₹ 5,000
c. Paid sons fees from her personal bank account ₹ 20,000
d. Paid sons fees from the business ₹ 2,000
Goods purchased on cash are recorded in the :
(i) Purchases (journal) book
(ii) Sales (journal) book
(iii) Cash book
(iv) Purchases return (journal) book
Are debits or credits listed first in journal entries? Are debits or credits indented?
What is meant by maturity of a bill of exchange?