Jed Philip
Accounting Information Systems
Mrs. Aldredge
28th September, 2011
Chapter 2 Assignment
Discussion Questions
3.) Documents pertaining to transactions which require these transactions to be captured, and documents which need to be returned with a payment are likely to be turn around documents. Examples of turn around documents are bills, credit card invoices, insurance payment booklets, instant rebate coupons, picking tickets, and inventory count sheets.
Problems
3 (a.) Purchases of inventory: 1. A purchase order is placed by the company to its seller specifying the goods needed and the prices. 2. Then a delivery order is sent from the seller along with the goods upon arrival. This should be acknowledged by the store man to confirm that the goods did arrive and in good condition and are what the company ordered. 3. An invoice from the seller is then sent to the company. Someone in accounts should authenticate the invoice to make certain what is invoiced is what was received and that the price is as per the purchase order. 4. Finally the correct posting of the purchase transaction into the company’s books takes place.
(b.) Sale of inventory:
1. A purchase order is received by the company from a customer and an order confirmation is sent from the company to that customer.
2. A delivery order is then prepared by the company to accompany the goods being sent to the customer's location. The delivery should be acknowledged by the customer's store man to confirm that the goods did arrive and in good condition and are what his company ordered.
3. Then a copy of the sales invoice must be sent to the customer along with evidence that someone has matched the details in the delivery order with what the sales invoice contains.
4. Correct posting of the sales transaction into the company’s books then follows.
c.) Employee payroll:
1. A copy of the employment contract is signed by the company and the employee and subsequent negotiations of the contract.
2. A salary voucher is acknowledged by the employee with evidence that someone has checked the calculation of basic pay, overtime etc.
3. The correct posting of salary transaction in should then be recorded in the company’s books.

5.)
a.) data processing cycle- 10
b.) source documents- 23
c.) turnaround documents- 7
d.) control account- 16
e.) general ledger- 1
f.) subsidiary ledger- 13
g.) control account- 26
h.) coding- 21
i.) sequence code- 2
j.) block code- 25
k.) group code- 19
l.) mnemonic code-22
m.) chart of accounts- 4
n.) general journal- 8
o.) specialized journal- 17
p.) audit trail- 3
q.) entity-11
r.) attribute- 9
s.) field-6
t.) record-24
u.) data value- 5
v.) master file- 12
w.) transaction file- 14
x.) database- 18
y.) batch processing-20
z.) online, real time processing- 15

6.
a.) online, real time processing
b.) online, real time processing
c.) batch processing
d.) online, real time processing
e.) batch processing
f.)batch processing
g.) batch processing
h.) online, real time processing

8.
a.) update customer address change- master file
b.) update unit pricing information- master file
c.) record daily sales- transaction file
d.)record payroll checks- transaction file
e.) change employee pay rates- master file
f.) record production variances- master file
g.) record sales commissions- transaction file
h.) change employee office location- master file
i.) update accounts payable balance- master file
j.) change customer credit limit- master file
k.) change vendor payment discount terms- master file
l.) record purchases- transaction file