The AIS Transaction Cycles Game (2024)

FAQs

What is transaction cycle in AIS? ›

The Transaction Cycle model is one way to view basic business processes. The purpose of The AIS Transaction Cycles Game is to provide drill and practice or review of the elements that comprise the five typical transaction cycles identified as: revenue, expenditure, production, human resources/payroll, and financing.

Three transaction cycles process most of the firm's economic activity: the expenditure cycle, the conversion cycle, and the revenue cycle. These cycles exist in all types of businesses— both profit-seeking and not-for-profit.

A transaction cycle is an interlocking set of business transactions. Most of these transactions can be aggregated into a relatively small number of transaction cycles related to the sale of goods, payments to suppliers, payments to employees, and payments to lenders.

There are four main types of financial transactions that occur in a business. The four types of financial transactions that impact of the business are sales, purchases, receipts, and payments.

The first four steps in the accounting cycle are (1) identify and analyze transactions, (2) record transactions to a journal, (3) post journal information to a ledger, and (4) prepare an unadjusted trial balance.

A transaction in a database system must maintain Atomicity, Consistency, Isolation, and Durability − commonly known as ACID properties − in order to ensure accuracy, completeness, and data integrity.

TPS are necessary to conduct business in almost any organization today. TPSs bring data into the organizational databases, these systems are also a foundation on which management oriented information systems rest. Systems charts are well-established tools which are used to describe TPSs.

There are three main data processing methods - manual, mechanical and electronic.

A transaction process system (TPS) is an information processing system for business transactions involving the collection, modification and retrieval of all transaction data. Characteristics of a TPS include performance, reliability and consistency.

Why is it important to understand the transaction cycle? ›

Businesses engage in multiple financial transactions during normal operations, and accurate reporting of each accounting transaction cycle helps determine the profitability of a process or product.

Answer. There are two types of business transactions in accounting which are as follows: Cash Transactions and Credit Transactions. Internal Transactions and External Transactions.

Basic Transaction is the contract on goods and services which are prepared, concluded and/or processed underlying the present framework contract.

Transaction Modes. This chapter describes the different modes in which read consistency is performed.

The eight steps of the accounting cycle are as follows: identifying transactions, recording transactions in a journal, posting, the unadjusted trial balance, the worksheet, adjusting journal entries, financial statements, and closing the books.

What are the 5 basic types of accounts? ›

A transaction involves the exchange or transfer of products, services, or money. What are the three most common types of transactions? There are three types of accounting transactions depending on the transaction of money: cash transactions, non-cash transactions, and credit transactions.

A statement of account, or account statement, is issued by a vendor to a client. It lists out all the financial transactions between the two businesses within a specific time period (typically, monthly).

Accounting information systems generally consist of six primary components: people, procedures and instructions, data, software, information technology infrastructure, and internal controls.

The three basic functions of an accounting information system are to collect and process data, to report for the management, and to maintain accuracy and security.

AIS provides the managers with the necessary information needed in discharging their duties in an effective as well as an efficient manner is such areas as planning, performance evaluation, resource control, and decision making.

Examples of processing modes are:

distributed processing. Time sharing. Batch processing. multiprocessing.

This in mind, the theoretical core amounts to a dichotomous view of two types of processes (Figure ​1A): type 1—intuitive, fast, automatic, nonconscious, effortless, contextualized, error-prone, and type 2—reflective, slow, deliberate, cogitative, effortful, decontextualized, normatively correct¹.

The first step in the data processing cycle is the collection of raw data. Data is pulled from sources such as the company's point-of-sale systems and mailing lists, usually stored in the company's data lakes and warehouse.

What is the most common example of a transaction processing? ›

A transaction processing system is a computerized system that performs and records the daily routine transactions necessary to conduct business. Examples are sales order entry, hotel reservation systems, payroll, employee record keeping, and shipping.

Different examples of transaction processing include automated teller machines, credit card authorizations, online bill payments, self-checkout stations at grocery stores, the trading of stocks over the Internet, and various other forms of electronic commerce.

There are six steps in processing a transaction. They are data entry, data validation, data pro- cessing and revalidation, storage, - output generation, and query support.

Transaction or activity means the conduct of any dealings between or among two or more persons. This term does not include the purchase of utilities.

Related Content. A transaction by a premium listed company, the size of which results in a percentage ratio of 5% or more (but under 25%) under any one of the class tests set out in the Listing Rules.

A transaction account, also called a checking account, chequing account, current account, demand deposit account, or share draft account at credit unions, is a deposit account held at a bank or other financial institution.

The Transaction Detail is the information about a transaction that is able to be reviewed from multiple reports like Transaction Summary or Reconciliation reports.

Step five in the revenue cycle is remittance processing. Once a practice's claims have gone out, they will get remittances back. The explanation of benefits shows the practice what they got paid for the services provided. During this process, allowables are determined.

The acquisition and payment cycle includes processes for identifying products or services to be acquired, purchasing goods and services, receiving the goods, approving payments, and paying for goods and services received.

What are the 4 P's of the revenue cycle? ›

The 4Ps of revenue management are: Pricing, Positioning, Pace and Performance.

Four basic business activities are performed in the revenue cycle: sales order entry, shipping, billing, and cash collection.

Also known as purchase-to-pay and P2P, procure-to-pay is the process of requisitioning, purchasing, receiving, paying for, and accounting for goods and services, covering the entire process from point of order right through to payment.

A payment can be made in the form of services exchanged, cash, check, wire transfer, credit card, debit card, or cryptocurrencies.

The four basic steps of the procurement process are: the purchase order, the goods receipt PO, the A/P invoice and the outgoing payment. Two key types of master data in purchasing are vendor master data and item master data.