a.

Archiving a record is an Deleting means removing records or

alternative to deleting a information completely while Archiving
record? What is the means moving the record or information
benefit that can be in a permanent storage to free up a space
derived from it? in the system. The benefit of archiving a
record is it lets you retrieve your record
when the need of it arises.
b. Are large batch sizes No. Small batch sizes are preferable than
preferable to small batch large batch sizes because small ones
sizes when it comes to produce fewer queues, give faster cycle
data processing? Explain time, increase urgency, and decrease risk
through faster feedback.
c. Discuss the importance It is important because the information
of accounting reliability requires the use of accounting
independence in independence. The accounting activities
accounting information must be separate and independent of the
systems. Use an functional areas maintaining resources.
example aside from An example of accounting independence
inventory control. is the payroll process. It organizes the
way of computing the employees’ pay
and the filing of employee taxes. These
tasks include keeping tracks of hours,
calculating wages, withholding taxes and
deductions, printing and delivering checks
and paying employment taxes to the
government.
d. Does banking system Banking system uses both real time and
use real/ on-line batch processing. Since data is being
processing or both real entered and processed immediately in
time and batch real-time processing, the data can be
processing. Provide a accessed and corrected immediately by
scenario. the user. It is used when processing
transactions without delay like when the
customers deposit or withdraw money
from the bank, the record of the
customers reflect the transactions
executed. Batch processing can be more
cost-effective, using fewer peripheral
devices than real-time processing, though
the cost savings is reduced as the price
of peripheral devices decreases over
time. It is used by the bank in terms of
payroll system, there is no need to keep
track of how much an employee has
earned every minute of the day and doing
this every two weeks is likely sufficient.
e. Give at least on criteria The criteria that influence selection of
that influence selection data structures include the insertion of
of data structure? What record into a file. This will need sequential
data structure is suited structure so as the records will
for that? automatically be inserted into the right
path.
f. How do backup
procedures for files with
a direct access structure
differ from sequential
files?
g. How do you consider
Microsoft Office
Systems? Is it a turnkey,
backbone or vendor
supported system?
Explain your answer.
h. If a certain system in a
business is centralized
does it mean that the
whole business is
centralized. Explain your
answer. (You are
encouraged to give
practical business cases)
i. If accountants are
viewed as providers of
information, then why
are they consulted as
system users in the
system development
process? Give a practical
example to support your
answer.
j. In what scenario does
real time processing
advantageous over
batch processing (Is it
transactions that are
dependent with one
another or transactions
that are independent
with one another?)
Justify your answer.
k. The REA model is based REA treats the accounting system as a
on the premise that virtual representation of the actual
business data must not business. In other words, it creates
be preformatted or computer objects that directly represent
artificially constrained real-world-business objects. For example,
and must reflect the all in the sales process, one event would be
relevant aspects of the "sales"—where goods are given up—and
underlying economic the other would be "cash receipt", where
cash is received. These two events are
events.” Explain it by
linked; a cash receipt occurs in exchange
giving a practical
for a sale, and vice versa. The duality
example of REA model
relationship can be more complex, e.g., in
(which is of course not the manufacturing process, it would often
on the book) involve more than two events.
l. What are the 3 general The three general problem associated
problems associated with data redundancy are Wasted
with data redundancy Storage Space, More difficult Database
and give a practical Updates, A Possibility of Inconsistent
example for each. data. Examples, Autonomous system
developments activities distributed
throughout the firm can result in each
user area reinventing the wheel. Another
example customer data exist only once,
but is shared by accounting, marketing,
and product services users.
m. What are the 4 levels of The four levels are Top management,
activity in the pyramid middle management, operation
representing the management and personnel. Example,
hierarchy of Operation Personnel, this individual is the
management? Give at one who actually makes the operation
least one person operate. The operation personnel execute
involved in the four the tasks given by the operation
levels of organization manager.
(e.g. Chief Executive
Officer belongs to top
management). Give
examples of vertical flow
and horizontal flow of
information.
n. What are the three The three fundamental tasks of data
fundamental task of data management are storage, retrieval and
management and give a deletion. Storage is assigning keys to
practical example for new records and stores them in their
each task. proper location. Retrieval is the task of
locating and extracting an existing record
for processing. Deletion is permanently
 removing redundant records from the
database.
o. What is feedback? Give Feedback is a form of output sent back to
a practical example of it the system as a source of data. For
and how is it beneficial example, an employee was not able to
to the system? have his salary for the period, for the
sense that the record has been removed
from the database. Internal feedback from
the information will immediately retrieve
the data of the said employee and
process again for the result of the salary
that he must receive.
p. What is meant by
cardinality in E-R
diagram? Provide an
example based on a
case record.
q. What processing
requires considerable
computer networking? Is
it real-time or batch
processing? Explain.
r. Why is cost accounting
also applicable in service
- oriented business such
as hospitals? Explain
s. Why is management
report considered
discretionary reporting?
t. Why is transaction file
called a temporary file?
The accounting cycle is the holistic process of recording and processing all financial
transactions of a company, from when the transaction occurs, to its representation on
the financial statements, to closing the accounts. One of the main duties of a
bookkeeper is to keep track of the full accounting cycle from start to finish. The cycle
repeats itself every fiscal year as long as a company remains in business.

The accounting cycle incorporates all the accounts, journal entries, T accounts, debits
and credits, adjusting entries over a full cycle.

10 Steps Accounting Cycle

1. Analyzing and Classify Data about an Economic Event

Identifying the transactions from the events is the first step of the
accounting process. Events are analyzed to find the impact on the
financial position or to be more specific the impacts on the accounting
equation.
Documents such as; a receipt, an invoice, a depreciation schedule, and a
bank statement etc. provide evidence that an economic event has actually
occurred.
2. Journalizing the transaction
Transactions having an impact on the financial position of a business are
recorded in the general journal.
In the general journal, the transactions are recorded as a debit and a
credit in monetary terms with the date and short description about the
cause of the particular economic event.
3. Posting from the Journals to the General Ledger
Transactions recorded in the general journal are then posted to the
general ledger accounts. The accounts classify accounting data into
certain categories and they are recorded in general journal entries
according to that classification.
Depending on the frequency of the transactions posting to ledger accounts
may be less frequent.
4. Preparing the Unadjusted Trial Balance
To determine the equality of debits and credits as recorded in the general
ledger, an unadjusted is prepared. It is a way to investigate and find fault
or prove the correctness of the previous steps before proceeding to the
next step.
Unadjusted trial balance makes the next steps of the accounting process
easy and provides the balances of all the accounts that may require an
adjustment in the next step. The unadjusted balance sheet is for internal
use only.
5. Recording Adjusting Entries
Adjusting entries ensure that the revenue recognition and matching
principles are followed. To find the revenues and expenses of an
accounting period adjustments are required.
 Adjusting entries are required to be is because a transaction may have
influence revenues or expenses beyond the current accounting period and
to journalize to the events that not yet recorded.
6. Preparing the Adjusted Trial Balance
An adjusted trial balance contains all the account titles and balances of
the general ledger which is created after the adjusting entries for an
accounting period have been posted to the accounts.
It is an internal document and is not a financial statement. It helps to
create the income statement and balance sheet and doesn’t provide
enough information for preparing the cash flow statement.
7. Preparing Financial Statements
Financial statements are prepared from the balances from the adjusted
trial balance. The financial statements are made at the very last of the
accounting period.
Cash flow statement, income statement, balance sheet and statement of
retained earnings; are the financial statements that are prepared at the
end of the accounting period. This is the output of the accounting process.
8. Recording Closing Entries
At the end of an accounting period, Closing entries are made to transfer
data in the temporary accounts to the permanent balance sheet or income
statement accounts.
Transferring the balances of the temporary accounts or nominal accounts
(e.g. revenue, expense, and drawing accounts) to owner’s equity or
retained earnings account is used because these types of accounts only
affect one accounting period.
9. Preparing a Closing Trial Balance
To make sure that debits equal credits, final trial balance is prepared. As
the temporary ones have been closed only the permanent accounts
appear on the closing trial balance to make sure that debits equal credits.
10. Recording Reversing Entries
Posit closing entries is an optional step of the accounting cycle. A
reversing journal entry is recorded on the first day of the new period for
avoiding double counting the amount when the transaction occurs in the
next period.

The primary objective of the accounting cycle in an organization is to process financial

information and to prepare financial statements at the end of the accounting period.
Accounting cycle is a continuous and fixed process which needs to be followed
accordingly. Maintenance of continuity accounting cycle is important.