What do you understand Transaction Processing System (TPS)? Explain the different business cycles of TPS?

A Management Information System ICT Revision Questions and Answers

Answer
A transaction processing system is that which keep records and processing the data resulting from business transactions. The business transaction can be online or batch processing.
The nature and types of transaction processing cycles vary depending on the information needs of a specific organization. Nevertheless, most business organizations have in common, transactions that may be grouped according to four common cycles of business activity.
• Revenue cycle: Events related to the distribution of goods and services to other entities and the collection of related payments.
• Expenditure cycle: Events related to he acquisition of goods and service from other entities and the settlement of related obligations.
• Production cycle: Events related to the transformation of resources into goods and services.
• Finance cycle: Events related to the acquisition and management of capital funds, including cash.



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