‘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?
Name three components of a Transaction Processing System.
State the different elements of a computer 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?
Write the process of preparing ledger from a journal.
What is petty cash book? How it is prepared?
What is contra entry? How can you deal this entry while preparing double column cash book?
What is meant by closing stock? Show its treatment in final accounts?
Define revenues and expenses?
Choose the Correct Answer :
The ledger folio column of journal is used to:
(a) Record the date on which amount posted to a ledger account.
(b) Record the number of ledger account to which information is posted.
(c) Record the number of amounts posted to the ledger account.
(d) Record the page number of the ledger account.
What is a journal? Give a specimen of journal showing at least five entries.
If the rent of one month is still to be paid the adjustment entry will be :
(a) Debit outstanding rent account and Credit rent account.
(b) Debit profit and loss account and Credit rent account.
(c) Debit rent account and Credit profit and loss account.
(d) Debit rent account and Credit outstanding rent account.
What are closing entries? Give four examples of closing entries.
Which of following errors will be rectified through suspense account:
(a) Sales return book undercast by Rs. 1,000.
(b) Sales return by Madhu Rs. 1,000 not recorded.
(c) Sales return by Madhu Rs. 1,000 recorded as Rs. 100.
(d) Sales return by Madhu Rs. 1,000 recorded through purchases returns book.