Review Questions 1. What three transaction cycles exist in all businesses? 2. Name the major subsystems of the expenditure cycle. 3. Identify and distinguish between the physical and financial components of the expenditure cycle. 4. Name the major subsystems of the conversion cycle. 5. Name the major subsystems of the revenue cycle. 6. Name the three types of documents 7. Name the two types of journals. 8. Distinguish between a general journal and journal vouchers 9. Name the two types of ledgers. 10. What is an audit trail? 11. What is the confirmation process! 12. Computer-based systems employ four types of files. Name them. 13. Give an example of a record for each of the four file types found in a computer-based system. 14. What is the purpose of a digital audit trail? 15. Give an example of how cardinality relates to business policy 16. Distinguish between entity relationship diagrams, data flow diagrams, and system flowcharts. 17. What is meant by cardinality in entity relationship diagrams? 18. For what purpose are entity relationship diagrams used? 19. What is an entity? 20. Distinguish between batch and real-time processing 21. What is the flat-file model? 22. Is a data flow diagram an effective documentation technique for identifying who or what performs a particular task? Explain. 23. Is a flowchart an effective documentation tech- nique for identifying who or what performs a particular task? Explain. 24. How may batch processing be used to improve operational efficiency? 25. Why might an auditor use a program flowchart? 26. How are system flowcharts and program flow- charts related? 27. What are the three general problems associated with data redundancy? 28. What is task-data dependency? 29. What is the database model? 30. What information is provided by a record layout diagram? 31. In one sentence, what does updating a master file record involve? 32. What is the purpose of the DBMS? 33. Flat files limit data integration. Explain. 34. What factor influences the decision to employ real-time data collection with batch updating rather that purely real-time processing? Explain. 35. What are the advantages of real-time data processing? 36. What are the advantages of real-time data collection? 37. What are some of the more common uses of data codes in accounting information systems? 38. Compare and contrast the relative advantages and disadvantages of sequential, block, group, alpha- betic, and maemonic codes