Activity 1 for Computer 3 (Read Chapter 1 and 2 and fulfill

requirements below , font size 11 or 12 , arial or calibri )

1. Answer the following question by using a two column table (first

column contains question and 2nd column contains the answer)
(1.5 pts each) (30 points (hard copy)

a. Archiving a record is an alternative to deleting a record?

What is the benefit that can be derived from it?
b. Are large batch sizes preferable to small batch sizes
when it comes to data processing? Explain
c. Discuss the importance of accounting independence in
accounting information systems. Use an example aside
from inventory control.
d. Does banking system use real/ on-line processing or
both real time and batch processing. Provide a scenario.
e. Give at least on criteria that influence selection of data
structure? What data structure is suited for that?
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 on the premise that business
data must not be preformatted or artificially constrained
and must reflect the all relevant aspects of the
underlying economic events. Explain it by giving a
practical example of REA model (which is of course not
on the book)
l. What are the 3 general problems associated with data
redundancy and give a practical example for each.
m. What are the 4 levels of activity in the pyramid
representing the hierarchy of management? Give at
 least one person involved in the four levels of
organization (e.g. Chief Executive Officer belongs to top
management). Give examples of vertical flow and
horizontal flow of information.
n. What are the three fundamental task of data
management and give a practical example for each
task.
o. What is feedback? Give a practical example of it and
how is it beneficial to the system?
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?

2. Discuss Financial Accounting Cycle (hard copy 10 points)

3. Think of a service business that is going on (single

proprietorship) then
a. Specify Name and nature of business (5 points)
(hardcopy)
b. Beginning balance (last accounting period) (10
points) (hardcopy)
c. At least 30 financial transactions (current
accounting period) (hardcopy) (15 points)
d. Journal Entry of transactions (soft copy in Excel)
(20 points)

Be sure transactions will result into a normal balance