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Introduction to Accounting Information System — Account STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceAccountIntroduction to Accounting Information System6 Marks
Question
Write a detailed note on Transaction Processing System (TPS).
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Answer

Transaction Processing System (TPS): They are the computerised systems that perform and record the daily routine transactions which are necessary to conduct the business. TPS serve the organisation at the operational level.Process of Transaction Procesing System: As the name suggests the Transaction Processing System (TPS) processes the transactions affecting the activities of the organisation. TPS follows the six steps given below:
  1. Data Collection: It gathers all data needed to complete one or more transactions either manually or using devices like scanners and point-of-sale equipment
  2. Data Editing: It is the process of checking the data for validity and completeness.
  3. Data Validation: It is the process of validating the data for correctness and then correcting the same if errors are found.
  4. Data Munipulation: it. It is the process of performing calculations.
  5. Data Storage: It is the process of placing transaction data into one or more databases.
  6. Output Generation 6: It is the process of creating reports and outputting records.
  7. Query Support: It is the process of making available the mechanism that empowers the users of TPS to query upon the stored data and extract the required information in required format.

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