AIS CHAPTER 2 QUESTIONS WITH
VERIFIED ANSWERS { GRADED A+}
data processing cycle - ✔✔the four operations (data input, data storage, data
processing, and information output) performed on data to generate meaningful and
relevant information
source documents - ✔✔Documents used to capture transaction data at its source -
when the transaction takes place. Examples include sales orders, purchase orders,
and employee time cards.
turnaround documents - ✔✔Records of company data sent to an external party
and then returned to the system as input. Turnaround documents are in machine-
readable form to facilitate their subsequent processing as input records. An
example is a utility bill.
source data automation - ✔✔The collection of transaction data in machine-
readable form at the time and place of origin. Examples are point-of-sale terminals
and ATMs.
, General Ledger - ✔✔A ledger that contains summary-level data for every asset,
liability, equity, revenue, and expense account of the organization.
subsidiary ledger - ✔✔A ledger used to record detailed data for a general ledger
account with many individual subaccounts, such as accounts receivable, inventory,
and accounts payable.
Control Account - ✔✔a title given to a general ledger account that summarizes
the total amounts recorded in a subsidiary ledger. For example, the accounts
receivable control account in the general ledger represents the total amount owed
by all customers. The balances in the accounts receivable subsidiary ledger
indicate the amount owed by each specific customer.
coding - ✔✔the systematic assignment of numbers or letters to items to classify
and organize them
sequence code - ✔✔Items are numbered consecutively so that gaps in the
sequence code indicate missing items that should be investigated. Examples
include prenumbered checks, invoices, and purchase orders.
block code - ✔✔Blocks of numbers that are reserved for specific categories of
data, thereby helping to organize the data. An example is a chart of accounts.
VERIFIED ANSWERS { GRADED A+}
data processing cycle - ✔✔the four operations (data input, data storage, data
processing, and information output) performed on data to generate meaningful and
relevant information
source documents - ✔✔Documents used to capture transaction data at its source -
when the transaction takes place. Examples include sales orders, purchase orders,
and employee time cards.
turnaround documents - ✔✔Records of company data sent to an external party
and then returned to the system as input. Turnaround documents are in machine-
readable form to facilitate their subsequent processing as input records. An
example is a utility bill.
source data automation - ✔✔The collection of transaction data in machine-
readable form at the time and place of origin. Examples are point-of-sale terminals
and ATMs.
, General Ledger - ✔✔A ledger that contains summary-level data for every asset,
liability, equity, revenue, and expense account of the organization.
subsidiary ledger - ✔✔A ledger used to record detailed data for a general ledger
account with many individual subaccounts, such as accounts receivable, inventory,
and accounts payable.
Control Account - ✔✔a title given to a general ledger account that summarizes
the total amounts recorded in a subsidiary ledger. For example, the accounts
receivable control account in the general ledger represents the total amount owed
by all customers. The balances in the accounts receivable subsidiary ledger
indicate the amount owed by each specific customer.
coding - ✔✔the systematic assignment of numbers or letters to items to classify
and organize them
sequence code - ✔✔Items are numbered consecutively so that gaps in the
sequence code indicate missing items that should be investigated. Examples
include prenumbered checks, invoices, and purchase orders.
block code - ✔✔Blocks of numbers that are reserved for specific categories of
data, thereby helping to organize the data. An example is a chart of accounts.
