Transaction Cycles
Acquisition of materials, property, and labor in exchange for cash.
What is the expenditure cycle?
Book of accounts that reflects the financial effects of the firm's transactions after they are posted from the various journals and journal vouchers.
What is a ledger?
File containing account data.
What is a master file?
Software system that controls access to the data resource.
What is a database management system (DBMS)?
Use of a set of symbols in a diagram to represent the processes, data sources, data flows, and process sequences of a current or proposed system; a documentation tool used to represent the logical elements of a system.
What is a data flow diagram (DFD)?
Cycle composed of sales order processing and cash receipts.
What is the revenue cycle?
Documents that capture and formalize transaction data needed for processing by their respective transaction cycles.
What are source documents?
Accounting records that trace transactions from their source documents to the financial statements.
What is an audit trail?
Problem associated with the flat-file model because of its failure to update all the user files affected by a change in status; may result in decisions based on outdated information.
What is currency of information?
Documentation technique used to represent the relationship among data (business) entities in a system.
What is an entity relationship (ER) diagram?
Cycle composed of the production system and the cost accounting system.
What is the conversion cycle?
Documents that result from transaction processing.
What are product documents?
File that contains records of past transactions that are retained for future reference.
What is an archive file?
Environment in which individual data files are not related to other files.
What is the flat-file model?
Blueprint for what ultimately will become the physical database.
What is a data model?
These consist of the purchasing and accounts payable system, cash disbursements system, payroll system, and fixed assets system.
What are the primary expenditure cycle subsystems?
Product documents of one system that become source documents for another system.
What are turnaround documents?
File that stores the data used as standards for processing transactions.
What is a reference file?
Large mainframe systems implemented in the late 1960s through the 1980s.
What are legacy systems?
Flowcharts used to show the relationship between the key elements – input sources, programs, and output products – of computer systems; a documentation tool that depicts the physical flow of information relating to a particular transaction through an organization.
What is a system flowchart?
These consist of the sales order processing system and the cash receipts system.
What are the primary revenue cycle subsystems?
Record of a chronological entry.
What is a journal?
Temporary file that holds transaction records that will be used to change or update data in a master file.
What is a transaction file?
Symbolic model of the structure of, and the associations between, an organization’s data entities.
What is the database model?
Diagram providing a detailed description of the sequential and logical operations of the program.
What is a program flowchart?