Accounting Information Systems: The Processes and Controls, 2nd Edition

SUMMARY OF STUDY OBJECTIVES

The need for data collection and storage. Businesses need to collect and store data so that they can properly record and complete transactions in their day-to-day operations. This enables the company to carry out transactions in a manner that will satisfy customers and suppliers. It also allows the company to maintain detailed records that facilitate follow-up, feedback for future decision making, and preparation of financial statements.

Methods of storing data and the interrelationship between storage and processing. Data may be stored in characters, fields, records, files, and databases. The media on which data are stored may be sequential access or random access. The choice of data storage media may depend on the use of the data. Data that are accessed sequentially may be stored on magnetic tape, whereas disk storage is used for data that need to be accessed randomly or directly.

The differences between batch processing and real-time processing. Batch processing involves the grouping of similar transactions into a batch and processing all of these items together. On the other hand, real-time processing involves continuous processing, where transactions are processed as soon as they occur or as soon as they are entered into the system. Although real-time processing is preferred because of the timely response, batch systems are still used for processing large volumes of data due to their lower cost and ease of control.

The importance of databases and ...