Question

Which of the following statements) about the history of transaction processing isare) true? (Check all that apply.

When computers were invented, we digitized journals and ledgers and created transaction files and master files that did the job of paper. based journals and ledgers.

Originally, people kept track of transactions using a single-entry accounting system

When the number of master files proliferated, we combined multiple files into databases, which have grown much smaller and simpler

We used double bookkeeping systems with journals and ledgers and paperbased financial reports hundreds of years.

Answer 1

The given options are evaluated as follows:

A.

When computers were invented, we digitized journals and ledgers and created transaction files and master files that did the job of paper-based journals and ledgers.

Before the emergence of computers, the accounting was done on papers i.e. journal, ledgers and other financials were prepared on papers by writing all the financial information in different registers, books, etc. which was very time consuming, risky, difficult to analyze, form of maintaining data.

Accordingly, when the computers invented and organizations started keeping their record in the digitized form, this almost vanished the paper based on record keeping.

Hence, the given statement is True

B.

Originally, people kept track of transactions using a single-entry accounting system

Earlier when the methods accounting were not well diversified and versatile, at that time the financial records were kept using the single entry accounting system as at that time the keeping of records on double entry system would have been a very difficult task, as it requires maintenance of large number of register and/or books.

Hence, the given statement is True.

C

When the number of master files proliferated, we combined multiple files into databases, which have grown much smaller and simpler.

Master files are the large files that contains multiple other files and database is the terminal point where data is stored in large volume, therefore, when the number of master files proliferated then it becomes very easy to access large volume of data, as the entire data is located at one place.

Hence, the given statement is True.

D.

We used double bookkeeping systems with journals and ledgers and paper-based financial reports hundreds of years

After emergence of double entry book-keeping, paper-based accounting was prevalent at the initial stages and accordingly, the double entry book-keeping was done on papers. After hundred of years when the computers invented, the accounting gets shifted from paper based to paper less.

Hence, the given statement is True.

ALL OF THE GIVEN STATEMENTS ARE TRUE