Free Essay

Finance

In:

Submitted By mohdehasan
Words 1298
Pages 6
INTRODUCTION
MEANING AND DEFFINITION
Data Processing is a process of converting data into the information and it can also convert information into a data. It means Data Processing can convert any data from one format to another. By means of various sources, customers give their opinions as data.
Data Processing System is a system which processes data which has been captured and encoded in a format recognizable by the data processing system or has been created and stored by another unit of an information processing system.
Data is defined as any collection of facts. Thus, sales reports, inventory figures, test scores, customers’ names and addresses, and weather reports are all examples of data. Note that data may be numerical (e.g, inventory figures and test scores) or they may be numerical (e.g. , names of students and addresses, drawings).
Many businesses are venturing to take immense advantage of it as data processing is an essential ingredient in the market research. Data are facts or figures through which one can jump into the conclusion. By gathering plentiful data, Companies then utilize that information for swelling their revenue or for cutting-down the price.
AREA OF DATA PROCESSING
Data processing is the manipulation of data into a more useful form. It is the modern name for paperwork and involves the collecting, processing, and distributing of facts and figures to achieve a desired result. Data processing includes not only numerical calculations but also operations such as the classification of data and the transmission of data from one place to another. In general, we assume that these operations are performed by some type of machine or computer, although some of them could also be carried out manually. Data processing system refers to the equipment or devices and procedures by which the result is achieved.

DATA PROCESSING CYCLE 1. INPUT: In this step the initial data, or output data, are prepared in some convenient form for processing. The form will depend on the processing machine. For example, when electromechanical devices are used, the input data are punched on cards; but if electronic computers are used, the input data could be recorded on any of several types of input medium, such as cards, tapes, disks, and so on. 2. PROCESSING: In this step the input data are changed, and usually combined with other information, to produce data in more useful form. Thus, paychecks may be calculated from the time cards, or summary of sales for the month may be calculated from the sales orders. The processing step usually involves a sequence of certain basic processing operations. 3. OUTPUT: Here the results of the preceding processing steps are collected. The particular form of the output data depends on the use of data. For example, output data may be paychecks for employees, a printed summary of monthly sales for management, or simply data to be stored for further processing at a later date. INPUT PROCESS OUTPUT

FIVE STEP APPROACH TO DATA PROCESSING:
1. EDITING – To determine the relevance of data is a crucial step in a data processing. Once the data has been accumulated from the different sources, the relevance of the data is been tested-out then. All the inappropriate data is taken out and only the relevant information is been kept.
2. CODING – All the needed information would be in a random order. Therefore, it needs to be aligned into a particular system so that it is unproblematic to comprehend it. This method other than Coding, is also called as ‘netting' or ‘bucketing' which necessitates certain codes.
3. DATA ENTRY – Data is entered into the software that does the eventual cross tabulation. After the decision has been made on a code, edited data is than entered into the software.
4. VALIDATION – Validation is the second phase of ‘cleaning' in which thorough quality-check is been done. Data is double-checked so as to ensure that the process has been done infallibly.
5. TABULATION – Final step is the production of the end product which is tabulated in a systematic format so that thorough analysis can be done.

MERITS OF DATA PROCESSING:- * Data Processing is a process of organizing and controlling the large amount of information. * It is helpful to manage the important information in synchronized manner. Business data processing includes processing data of accounting, marketing, manufacturing and other department. * Reduced Paper Work: It is the one of the advantages of processing information. It helps organization to cope with increased problem of paper management and handling. Information is available digitally so there is no need to search through bunches and get particular file. * Easier Report Making: You can gather processed facts and figures in very little time and arrange such in appropriate manner that helps executives in making quick analysis. There are also pre-defined reports that help professionals in making reports quickly and easily. * Cost Reduction: The cost of data processing is much lesser than the cost of managing and maintaining paper documents. Organizations also decrease the cost of stationery such as photo copy and mailing by using digital information and email system. * Improved Performance: The performance of staff is the base thing for any organization to improve the profitability. Companies can increase the efficiency of personnel by offering them facilities and ease in work.
DEMERITS OF DATA PROCESSING:- * Technical and Mechanical mistake. * Time factor * Equipment is expensive * Much money required to design special computer system * Important data will be lost if computer breaks down

OBJECTIVE OF DATA PROCESSING * Provide the data in accurate and easier form. * Provide any data in less time period. * Provide help to manage the important data/Information. * Enhance working condition. * Store the data for future purpose.

APPLICATIONS OF DATA PROCESSING
Online Transaction Processing (OLTP) systems are one of the most common data processing systems in today's enterprises. Classical examples of OLTP systems are order entry, retail sales, and financial transaction systems.
OLTP systems are primarily characterized through a specific data usage that is different from data warehousing environments, yet some of the characteristics, such as having large volumes of data and lifecycle-related data usage and importance, are identical.
The main characteristics of an OLTP environment are: * SHORT RESPONSE TIME
The nature of OLTP environments is predominantly any kind of interactive ad hoc usage, such as telemarketers entering telephone survey results. OLTP systems require short response times in order for users to remain productive. * SMALL TRANSACTIONS
OLTP systems normally read and manipulate highly selective, small amounts of data; the data processing is mostly simple and complex joins are relatively rare. There is always a mix of queries and DML workload. For example, one of many call center employees retrieves customer details for every call and enters customer complaints while reviewing past communication with the customer. * DATA MAINTENANCE OPERATIONS
It is not uncommon to have reporting programs and data updating programs that need to run either periodically or on an ad hoc basis. These programs, which run in the background while users continue to work on other tasks, may require a large number of data-intensive computations. For example, a University may start batch jobs assigning students to classes while students can still sign up online for classes themselves. CONCLUSION * In most of the study the maximum person has been depend on the data processing system. * The data processing system are used at any time at any place and provide the data as according to need of the one person to another person. * The data processing system has been easily used in any work. * The maximum people are depend on electronic data processing system in any work * It helps organization to cope with increased problem of paper management and handling. Information is available digitally so there is no need to search through bunches of files and get the particular file.

Similar Documents

Premium Essay

Finance

...CORPORATE FINANCE COURSE CORPORATE FINANCE 2.1 Working Capital Management Sept. 2014 Ir Frank W. van den Berg mba Vrije Universiteit, Amsterdam ALYX Financial Consultancy bv, Aerdenhout FWvdB/2014 1 OUTLINE CORPORATE FINANCE FWvdB/2014 •  Basics & Guiding principles •  Time value of money + Capital Budgeting •  Valuation of CF + Bonds •  Valuation of shares (+ co.’s) •  Financial Analysis (Ratios) •  Financial Planning (EFN) •  à Working Cap. Mgt. (A/R, Inv., A/P) •  Debt Financing •  •  2 FIN 1.5 FIN 2.1 Entrepreneurial Finance / Raising Equity Mergers & Acquisitions / Corp. Restructuring FINANCIAL RATIOS - Example 1 FWvdB/2014 Sample Balance sheet (000’s €) Cash + bank 500 Accounts Receivable 5.000 Inventory 3.000 ------CA 8.500 Machinery Buildings 6.000 4.000 Total assets -------18.500 STB (bank credit line) Accounts Payable CL LTD (Bonds) Nom. Cap. (500.000 x 2) Paid-in-capital (x 3) Retained Earnings Treasury Stock Shareholders’ Capital Total liabilities + OE 3 3.000 3.000 ------6.000 6.000 1.000 1.500 4.500 - 500 6.500 -------18.500 RATIOS: SAMPLE INCOME STATEMENT REVENUES (= Sales = Turnover) CGS = Costs of Goods Sold (materials, labor costs + energy costs incl. 1.000 depreciation) GROSS PROFIT SGA= Selling Administrative & General Expenses (incl. overhead, management, insurance, marketing) EBIT = Earnings Before Interest and Tax Interest Expense...

Words: 1063 - Pages: 5

Free Essay

Finance

...Personal FinanceIt is important to plan the finance for any regular expenditure suchas the basic needs of any person like food, clothes, accommodation,bills etc.To be able to for fill all your personal needs you must have some kindof personal income, which will cover these expenses.The sources of personal income might be:Salary or wages =============== A regular earned income from employment, for these earnings the employee and the employer both have to pay a deduction to the government such as income tax and N.I. contribution. Overtime An extra earned income for the additional hours of work Commissions ----------- An employee can get a percentage of the selling price of product from his/her employer. Bonus ----- Bonus is an earning for good performance at work place. Interest -------- Interest using your money to create more money, expressed as a rate per period of time, usually one year, in which case it is called an annual rate of interest. Winnings -------- You may win money from playing the lottery or gambling on sport events. Gifts ----- Money received from a friend or relative on a special occasion such as birthday. Sale of personal items ---------------------- Earned income from selling personal items Gross and net pay ----------------- Gross pay is the total amount of money earned by an employee before any deduction is made. Net pay is the amount of money an employee receives after deduction have been made for income tax, national insurance and any voluntary contribution...

Words: 3067 - Pages: 13

Premium Essay

Finance

...SUGGESTED PROGRAM PLAN FOR FINANCE MAJORS FIRST YEAR Fall Semester (14 or 15 credits) Spring Semester (15 or 16 credits) ENG106 Writing Intensive First Year Seminar* HCS100 Hum Comm Studies HIS101 World History I* HIS106 World History II* MAT108 Finite Math MAT181 Applied Calculus I ________ General Education elective ISM142 Business Computer Systems* BSN101 Foundations of Bus Admin (2 crs.)* ________ General Education elective or a General Education elective* or ECO113 Principles of Economics (4 crs.) SECOND YEAR Fall Semester (16 or 15 credits) Spring Semester (15 credits) ACC200 Fundamentals of Financial Accounting ACC201 Managerial Accounting SCM200 Statistical Applications in Business* BSL261 American Legal Environment* ECO113 Principles of Economics (4 crs) ECO280 Managerial Economics or a General Education elective ________ General Education elective ________ General Education elective ________ General Education elective ________ General Education elective THIRD YEAR Fall Semester (15 credits) Spring Semester (15 credits) FIN311 Financial Management FIN313 Advanced Financial Management (SP) MKT305 Principles of Marketing FIN333 Applied Comp. & Security Analysis (SP) MGT305 Organizational Behavior SCM330 Supply Chain & Operations Management ________ General Education elective ________ Free elective ________ General Education elective ________ General Education or Free elective FOURTH...

Words: 620 - Pages: 3

Premium Essay

Finance

...Ch.19 – short-term financing is concerned w/ the analysis of decisions that affect CA & CL (Networking capital=CA-CL) *Short term financial management is called working capital management * The most important difference btwn short-term and long-term is the timing of the cash flows (short term – cash inflows and outflows within a year or less) * Cash = LT – debt + Equity + CL - CA other than cash – Fixed Assets ⇒activities that increase cash: 1.  long term debt 2.  equity (selling some stock) 3.  CL 4.  CA other than cash (selling some inventory for cash) 5.  fixed assets (selling some property). * Activities that decrease cash (opposite of above) * Operating Cycle – the period between the acquisition of inventory and the collection of cash from receivables. 1. Inventory period – the time it takes to acquire and sell inventory. 2. Accounts receivable period – The time between sale of inventory and collection of receivables. (Operating cycle = Inventory Period + Accounts Receivable Period) * The operating cycle describes how a product moves through the CA accounts moving closer to cash. * Accounts Payable Period – The time btwn receipt of inventory & payment for it. *Cash Cycle – The time btwn cash disbursement and cash collection. The Cash Cycle is the number of days that pass before we collect the cash from a sale, measured from when we actually pay for the inventory. (Cash Cycle = Operating Cycle – Accounts Payable Period) * Cash Flow Timeline - A graphical representation...

Words: 890 - Pages: 4

Premium Essay

Finance

...finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance finance ...

Words: 252 - Pages: 2

Premium Essay

Finance

...Jella Mae Macalima November 24, 2014 BSTM-2B Ms.Ana Esquierdo “9 RULES OF FREEDOM OF THE AIR” The freedoms of the air are a set of commercial aviation rights granting a country's airlines the privilege to enter and land in another country's airspace, formulated as a result of disagreements over the extent of aviation liberalisation in the Convention on International Civil Aviation of 1944, known as the Chicago Convention. The United States had called for a standardized set of separate air rights to be negotiated between states, but most other countries were concerned that the size of the U.S. airlines would dominate air travel if there were not strict rules. The freedoms of the air are the fundamental building blocks of the international commercial aviation route network. The use of the terms "freedom" and "right" confer entitlement to operate international air services only within the scope of the multilateral and bilateral treaties (air services agreements) that allow them. The first two freedoms concern the passage of commercial aircraft through foreign airspace and airports, the other freedoms are about carrying people, mail and cargo internationally. The first through fifth freedoms are officially enumerated by international treaties, especially...

Words: 2391 - Pages: 10

Premium Essay

Finance

...II. Statements: Shown below are an incomplete Balance Sheet and Income Statement. Please complete the statements. 10 items, 2 points each, 20 points total Ratio Computations. Using the data in the attached (last page) Balance Sheet and Income Statement (not the ones used in Section II above), compute the following ratios. For each ratio show the formula and the result. 5 Ratios, 2 responses for each, 3 points each, 30 points total. Ratio Formula Result Current ratio ____________________________________ ______________ Total Debt ratio ____________________________________ ______________ Inventory turnover ____________________________________ ______________ Profit margin ____________________________________ ______________ Return on Assets ____________________________________ ______________ *On this page it is suppose to look like this: Ratio Formula Result III. Time value of money. Following are five potential financial scenarios. Please select four of the scenarios to compute the results. It is assumed Excel will be for the computations. The computation will involve one of the time value functions – Present Value, Future Value, Rate, Number of Periods, or Payments. For each scenario attempted, show the function name and the input values used. (Note: Not all of the input values listed will be used for each computation). 4 scenarios...

Words: 666 - Pages: 3

Premium Essay

Finance

...Finance and Financial Management Finance and financial management encompass numerous business and governmental activities. In the most basic sense, the term finance can be used to describe the activities of a firm attempting to raise capital through the sale of stocks, bonds, or other promissory notes. Similarly, public finance is a term used to describe government capital-raising activities through the issuance of bonds or the imposition of taxes. Financial management can be defined as those business activities undertaken with the goal of maximizing shareholder wealth, utilizing the principles of the time value of money, leverage, diversification, and an investment's expected rate of return versus its risk. Within the discipline of finance, there are three basic components. First, there are financial instruments. These instruments—stocks and bonds—are recorded evidence of obligations on which exchanges of resources are founded. Effective investment management of these financial instruments is a vital part of any organization's financing activities. Second, there are financial markets, which are the mechanisms used to trade the financial instruments. Finally, there are banking and financial institutions, which facilitate the transfer of resources among those buying and selling the financial instruments. In today's business environment, corporate finance addresses issues relating to individual firms. Specifically, the field of corporate finance seeks to determine...

Words: 407 - Pages: 2

Premium Essay

Finance

...production and marketing activities, in such a way that it can generate the sufficient returns on invested capital, with an intention to maximise the wealth of the owners. The financial manager plays the crucial role in the modern enterprise by supporting investment decision, financing decision, and also the profit distribution decision. He/she also helps the firm in balancing cash inflows and cash outflows, and in turn to maintain the liquidity position of the firm. How does the modern financial manager differ from the traditional financial manager? Does the modern financial manager's role differ for the large diversified firm and the small to medium size firm? The traditional financial manager was generally involved in the regular finance activities, e.g., banking operations, record keeping, management of the cash flow on a regular basis, and informing the funds requirements to the top management, etc. But, the role of financial manager has been enhanced in the today's environment; he/she takes an active role in financing, investment, distribution of profits, and liquidity decisions. In addition, he/she is also involved in the custody and safeguarding of financial and physical assets, efficient allocation of funds, etc. The role of financial manager in case of diversified firm is more complicated in comparison with a small and medium size firm. A diversified firm has several products and divisions and varied financial needs. The conflicting interests of divisional...

Words: 1368 - Pages: 6

Premium Essay

Finance

...Response to the Finance Questions Name University Response to the Finance Questions Response to Question 1 Liquidity premium theory states that the yield obtained from the bonds that are long term are greater than the return that is expected from short-term bonds that roll over so as to compensate long-term bonds investors for bearing the risks of interest rate. Bonds that have different maturity can, therefore, have different yields regardless of the possibility of future short rates being equivalent to the present short rate. This results in a yield curve that bends upwards even if the short rates are expected to fall if liquidity premiums are sufficiently high. However if the curve slopes downwards and an assumption is made that the liquidity premiums is positive, then we can presume that future short rates would be lower than the present short rate (Lim & Ogaki, 2013). Liquidity premium theory agrees with expectations theory since it gives the same significance to the expected future spot rates though it puts more weight on the impacts of the risk preferences that exist in the market. The main concept of this theory is to compensate an investor for the additional risk of having his capital tied up for a more extended period. It, therefore, aims at enticing investors to engage in long-term investments. Due to the uncertainty associated with long-term rates which have less marketability and greater price variability, investors, therefore, need to be given higher...

Words: 1288 - Pages: 6

Free Essay

Finance

...8. Moral hazard occurs when individuals tend to be very risky when there are protections if a loss occurs. This is more likely in indirect finance. For example, when an individual purchase a new car, they insure it and their policy dictates that if an individual accidentally hits their vehicle, they are obligated to a new vehicle. So after a few years and that individual gets tired of their vehicle and is desperately in need of a new one, they would intentionally drive a bit reckless to allow someone to hit their vehicle.  Lemons problem can be both indirect and direct finance. It occurs when one party to a transaction do not have the same degree of information. The party with less information take a risk hoping that the “lemon” is a good buy. For example, in the used car industry, the seller has all the information about the car and may limit the actual reason as to why they are selling the car, the problems the car has etc. intermediaries in the financial market can reduce lemon problems by reducing the attractiveness of direct finance by offering more incencitives to individuals when acquiring finances, offer provision for information, enforce laws on information given ensuring individuals receives sufficient information. Financial intermediaries have expertise in assessing the risk of the applicant for funds that reduces adverse selection and moral hazard. They have easy access to various databases that provide information on both individuals and businesses, and they...

Words: 256 - Pages: 2

Premium Essay

Finance

...INTRODUCTION OVERVIEW: Today India is on a threshold of massive development, thanks to the various initiatives taken by the Govt. of India over the last 10 years or as we call it the Dawn of the era of liberalization. The economics policies have been liberalized time and again to accelerate the process of industrial growth. The government is making constant efforts to encourage the entrepreneurs by providing the climate conducive for development and growth. as a result of which various projects are coming up and due to which various applications are being received by state and national financial institutions for financial assistance. Project finance is thus becoming a field of specialization in itself. There is an ever increasing thrust on the capital formation and this capital formation is done in any economy through massive infrastructure projects like setting up a new industry , launching of the green field projects to name a few. Apart form this the Govt. of India has identified certain core factors through which it can make a quantum leap in the area of foreign exports namely the IT sector and the Pharma sector. And due to the competitive advantage that India has because of its labour force, which ids highly skilled and at the same time available very cheap, the Pharma Industry in India is set for growth. But at the same time Pharma industry is a different type of industry altogether and it has own set technical requirement and also its own capital...

Words: 8925 - Pages: 36

Premium Essay

The Finance

...able to see the visible fruits that are the yield of good stewardship and decisions. The book of Proverbs was a series of exhortations and encouragements written by King Solomon to his son.  In chapter 23 verse 23, Solomon states, “Buy truth, and do not sell it; buy wisdom, instruction, and understanding.” For thousands of years, mankind has been given stewardship of resources; natural, human, intellectual and financial. The process of managing these resources, specifically financial resources, requires intentional short-term and long-term planning. More importantly, in order for capital management to be deemed successful, it is required that all members of an organization are on board. “Capital budgeting is not only important to people in finance or accounting, it is essential to people throughout the business organization”< /span> (Block, Hirt, & Danielsen, 2011). As the duration of the investment period increases, and the size of investment increases, the residual risk also increases. For a firm to effectively manage its resources it begins with the administrative considerations, ranges to the ranking of the capital investments, the strategy of selection processes and various other financial planning details and concerns. Once again, we find in Proverbs 24:3-4, “By wisdom a house is built, and by understanding it is established; by knowledge the rooms are filled with all...

Words: 1039 - Pages: 5

Premium Essay

Finance

...INTRODUCTION TO CORPORATE FINANCE AGENDA • Definition • Types of corporate firm • The importance of cash flows • Agency problem WHAT IS CORPORATE FINANCE? WHAT IS CORPORATE FINANCE? How the company raise funds? (financing decision  capital structure) Sources of fund: 1. Debt 2. Equity What long-lived assets to invest? Assets: 1. Current assets 2. Non-current assets/fixed assets How the company manage shortterm operating cash flows? BALANCE SHEET MODEL OF THE FIRM Total Value of Assets: Total Firm Value to Investors: Current Liabilities Net Working Capital Current Assets Long-Term Debt Fixed Assets 1 Tangible Shareholders’ Equity 2 Intangible What is the most important job of a financial manager? To create value for the firm How? In summary, corporate finance addresses the following three questions: 1. What long-term investments should the firm choose (capital budgeting)? 2. How should the firm raise funds for the selected investments (financing)? 3. How should short-term assets be managed and financed (net working capital activities)? LEGAL FORM OF ORGANIZING FORM SOLE PROPRIETORSHIP Owned by one person PARTNERSHIP Owned by two or more individuals Types of partnership: a. General partnership b. Limited partnership Advantages 1. Easy to form 2. No corporate income taxes 3. Management control resides with the owner of general partners Disadvantages 1. 2. 3. 4. Unlimited liability Life of the business is limited...

Words: 517 - Pages: 3

Premium Essay

Finance

...See discussions, stats, and author profiles for this publication at: https://www.researchgate.net/publication/231589896 The Relationship between Capital Structure & Profitability ARTICLE · JUNE 2012 CITATIONS READS 8 3,800 2 AUTHORS, INCLUDING: Thirunavukkarasu Velnampy University of Jaffna 57 PUBLICATIONS 131 CITATIONS SEE PROFILE Available from: Thirunavukkarasu Velnampy Retrieved on: 26 January 2016 Global Journal of Management and Business Research Volume 12 Issue 13 Version 1.0 Year 2012 Type: Double Blind Peer Reviewed International Research Journal Publisher: Global Journals Inc. (USA) Online ISSN: 2249-4588 & Print ISSN: 0975-5853 The Relationship between Capital Structure & Profitability By Prof. (Dr). T. Velnampy & J. Aloy Niresh University of Jaffna, Sri Lanka. Abstract - Capital structure decision is the vital one since the profitability of an enterprise is directly affected by such decision. The successful selection and use of capital is one of the key elements of the firms’ financial strategy. Hence, proper care and attention need to be given while determining capital structure decision. The purpose of this study is to investigate the relationship between capital structure and profitability of ten listed Srilankan banks over the past 8 year period from 2002 to 2009.The data has been analyzed by using descriptive statistics and correlation analysis to find out the association between the variables. Results of...

Words: 4978 - Pages: 20