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What was the primary method for keeping records before the advent of computers?
How were journal entries recorded prior to the use of computers?
What is a significant benefit of using computerized accounting software compared to traditional methods?
What was the process of auditing financial records before computers?
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What was a limitation regarding data accessibility in accounting before computers?
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What is the primary function of the Central Processing Unit (CPU)?
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Which type of storage device is known for faster data access and performance?
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What role does the motherboard play in a computer system?
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What type of memory is Random Access Memory (RAM), and what is its main function?
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Which device is primarily responsible for displaying or producing output information from a computer?
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Which of the following is not considered a hardware component of a computer?
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What is the purpose of expansion cards in a computer system?
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What type of data storage is typically used for long-term data retention?
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What type of file contains past transactions for reference purposes?
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Which of the following is considered a computer-based documentation technique?
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What is one of the primary advantages of computer-based documentation over manual documentation?
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Which file generally contains account data such as a general ledger?
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What type of file contains information that is used in processing but does not change often?
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Which of the following is an example of a unique documentation technique?
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What is a significant characteristic of computer-based documentation systems?
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What was a common documentation technique before the advent of computers?
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What is the purpose of the detachable section identified in the customer records?
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Which type of journal is primarily used for recording high-frequency transactions?
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Which of the following is NOT a common special journal?
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What distinguishes a subsidiary ledger from a general ledger?
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Which is a correct sequence of steps in reconciling the accounts receivable balance?
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Which of the following transactions would typically be recorded in the general journal?
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Which account would you find in a customers' subsidiary ledger?
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What is the primary focus of the accounts payable subsidiary ledger?
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What is the primary purpose of system flowcharts?
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Which of the following is true regarding program flowcharts?
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What is one advantage of using diagrammatic documentation?
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Which type of code is used to prenumber source documents in a sequential order?
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What distinguishes block codes from other coding schemes?
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Which characteristic is typical of group codes?
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One disadvantage of diagrammatic documentation is:
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How do flowcharts generally support audit functions?
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Study Notes
Computer Components
- The physical components of a computer system are referred to as hardware components.
- The CPU is the central processing unit, responsible for calculations, executing instructions, and managing data processing.
- The motherboard acts as a platform that connects and enables communication between all hardware components.
- Memory (RAM) is temporary storage that allows quick access to data during computer operation.
- Storage Devices like Hard Disk Drives (HDDs) and Solid State Drives (SSDs) are for long-term data storage.
- Graphics Processing Unit (GPU) is crucial for rendering images and videos, especially important for tasks like gaming and video editing.
- Input Devices, such as keyboards, mice, and scanners, allow users to interact with the computer.
- Output Devices, including monitors, speakers, and printers, display or produce processed information.
- Expansion Cards enhance motherboard functionality by providing additional features supported by sound cards, network cards, or other specialized cards.
Accounting Transactions Before Computers
- Accounting transactions were traditionally recorded using manual methods, such as ledger books and paper-based systems.
- Journal entries were recorded manually, with calculations performed manually using calculators or mentally.
- Financial documents, like invoices and receipts, existed in physical format.
- Posting to ledgers was a manual process, as was compiling trial balances and financial statements.
- Auditing involved manual examination of physical records and documents.
- Data storage relied on physical filing cabinets or storage systems.
- These methods were generally time-consuming and dependent on manual processes.
Accounting Transactions After Computers
- Computerized accounting software and digital databases revolutionized record-keeping.
- Journal entries are now entered and stored electronically.
- Automated calculations are performed by accounting software.
- Financial documents exist in digital format, including scanned documents and electronic receipts.
- Automated posting from journals to ledgers is facilitated by accounting software.
- Automated generation of trial balances and financial statements is possible through accounting software.
- Computerized auditing software and digital data analysis have enhanced the auditing process.
- Digital storage and cloud-based solutions provide efficient data storage.
- Computerization resulted in faster, automated processes, improved data accessibility, and increased efficiency overall.
Manual System Accounting Records
- Journals are chronological records of transactions.
- Special journals are used for specific classes of transactions that occur frequently, such as the sales journal, purchases journal, cash disbursements journal, and cash receipts journal.
- General journals are used to record nonrecurring, infrequent, or dissimilar transactions like asset sales, depreciation, interest income, and expense, and stock sales.
- Ledgers are books of financial accounts.
- The general ledger records activity for each account listed on the chart of accounts, organizing transactional data into assets, liabilities, revenues, expenses, and owner's equity.
- Subsidiary ledgers provide detailed activity for each account type.
- Accounts receivable (or customers') subsidiary ledger collects transaction data of individual customers.
- Accounts payable (or creditors') subsidiary ledger collects transaction data of individual creditors.
Accounting Records in a Digital System
- Database management systems play a crucial role in managing and storing data in digital accounting systems.
Computer Files
- Master files generally contain account data, including general ledger and subsidiary file information.
- Transaction files are temporary files that store transactions since the last update.
- Reference files contain relatively constant information, such as tax tables or customer addresses, used for processing.
- Archive files store past transactions for reference purposes.
Documentation Techniques Before Computers
- Before the widespread use of computers, documentation relied heavily on manual and paper-based methods.
- Handwritten Notes, paper documents, typewriters, filing cabinets, photocopying, drawing and sketching, manual calculations, photographs and film were common methods.
DocumentationTechniques After Computers
- Computer-based documentation is more efficient and accurate than manual methods, facilitating easier data storage and access.
- Common techniques include:
- Databases
- Spreadsheets
- Word processing documents
- Presentation software
- Unique documentation techniques include:
- Entity Relationship Diagram
- Data Flow Diagrams
- Document Flowcharts
- System Flowcharts
- Program Flowcharts
System Flowcharts
- Used by systems professionals for the design and maintenance of IT systems.
- They depict processes and media used for processing and storage, indicating whether these are manual or computerized.
Program Flowcharts
- Program flowcharts visualize the control flow in a computer program.
- They are used by programmers for planning, documenting, and debugging code.
Advantages and Disadvantages of Diagram Documentations
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Advantages*
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Convey complex information clearly and concisely.
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Improve communication between stakeholders.
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Help identify potential system problems.
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Are visual.
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Are concise.
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Are easy to share.
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Disadvantages*
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Can be difficult and time-consuming to create and maintain.
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Can be difficult to understand.
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Can quickly become outdated.
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Can be difficult for non-technical users.
Codes
- Codes represent large amounts of complex information concisely.
- They provide a means of accountability for processed transactions.
- They help identify unique transactions and accounts.
- They support auditing by providing an effective audit trail.
Sequential Codes
- Represent items in sequential order.
- They are used to prenumber source documents.
- Used to track each processed transaction.
- They help identify out-of-sequence documents.
Block Codes
- Represent whole classes by assigning ranges to each class.
- Used for chart of accounts, which form the basis of the general ledger.
- They make it easy to insert new codes within a block without reorganization.
Group Codes
- Represent complex items involving two or more data pieces within fields with specific meanings.
- An example is a sales tracking code like 04-09-476214-99, where 04 represents the store number, 09 is the department, 476214 is the customer code, and 99 is the quantity.
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Description
This quiz explores the essential hardware components of a computer system. You will learn about the CPU, motherboard, memory, storage devices, and other critical elements that make up a computer. Test your knowledge of how these components work together to function effectively.
