Question 1

Which of the following best describes the primary purpose of source documents in the data processing cycle?

Accepted Answer

To capture data at the source when the transaction takes place

Question 2

A company uses a coding system where product numbers starting with '3' represent washing machines, and those starting with '2' represent refrigerators. What type of coding technique is this?

Accepted Answer

Block code

Question 3

Which of the following is NOT an advantage of implementing an Enterprise Resource Planning (ERP) system?

Accepted Answer

Immediate cost savings with no implementation time

Question 4

In the CRUD model of data processing, which activity is performed when a company updates a customer's address in its database?

Accepted Answer

Updating previous record or data

Question 5

A sales invoice is printed out as a hard copy for a customer. In terms of information output, this is best classified as:

Accepted Answer

A document

Question 6

Which of the following best explains the concept of an audit trail in accounting information systems?

Accepted Answer

A path that allows tracing a transaction from its origin to its final impact on financial statements

Question 7

If a company uses Point of Sale (POS) scanners to automatically capture sales data, this is an example of:

Accepted Answer

Source data automation

Question 8

Which of the following is a disadvantage of ERP systems?

Accepted Answer

Costly and time-consuming implementation

Question 9

A company wants to analyze which division had the most sales for the month. Which type of information output would best serve this need?

Accepted Answer

Query

Question 10

Which of the following best describes batch processing?

Accepted Answer

Processing a group of transactions at a scheduled time, such as at the end of the business day

Question 11

A car's Vehicle Identification Number (VIN) uses several subgroups of digits to represent manufacturer, model, and year. This is an example of which coding technique?

Accepted Answer

Group code

Question 12

Which of the following is most likely to be stored in a subsidiary ledger?

Accepted Answer

Individual customer account balances

Question 13

Which step in the data processing cycle ensures that company policies, such as transaction approval, are followed?

Accepted Answer

Data input

Question 14

A company uses the code 'Dry300W05' to represent a low-end (300), white (W) dryer (DRY) made by Sears (05). What type of code is this?

Accepted Answer

Mnemonic code

Question 15

Which of the following is NOT a component of the data processing cycle?

Accepted Answer

Data analysis

Question 16

In an ERP system, which cycle would handle payroll processing for employees?

Accepted Answer

H/R Payroll Cycle

Question 17

Which of the following best describes a master file in computer-based storage?

Accepted Answer

A file containing cumulative data about entities, such as customers or inventory

Question 18

A company wants to ensure that all sales transactions are recorded and none are missed. Which coding technique would be most effective for this purpose?

Accepted Answer

Sequence code

Question 19

Which of the following is a real-world example of data being captured from a turnaround document?

Accepted Answer

A customer returns a payment slip with updated address information

Question 20

If a company deletes obsolete customer records from its database, which CRUD activity is being performed?

Accepted Answer

Deleting data

Overview of Transaction Processing and Enterprise Resource Planning Systems

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