Introduction to Transaction Processing

What is a Transaction Processing System (TPS)?

• A Transaction Processing System (TPS) is a type of gaming console

• A Transaction Processing System (TPS) is an information system that collects, stores, modifies, and retrieves data transactions of an enterprise.

• A Transaction Processing System (TPS) is a type of weather forecasting tool

• A Transaction Processing System (TPS) is a type of computer virus

Explain the importance of TPS in businesses.

• TPS has no impact on organizational performance

• TPS is primarily used for marketing purposes

• TPS is only important for customer service

• TPS is important for recording and processing transactions efficiently, ensuring accurate data management, real-time monitoring, decision-making, customer service, and organizational performance.

What are the key characteristics of a Transaction Processing System?

• High cost, low availability, eventual consistency

• Limited data storage, high latency, CAP theorem compliance

• Slow processing, flexibility, BASE properties

• Rapid processing, reliability, ACID properties

Discuss the components of a Transaction Processing Cycles EXCEPT

• Expenditure Cycle

• Revenue Cycle

• Payroll Cycle

• Subsystem cycle

What is the role of a database in a Transaction Processing System?

• Manages customer relationships

• Coordinates supply chain logistics

• Stores and manages transaction data

• Analyzes market trends

Describe the different types of transactions processed by TPS.

• Different types of transactions processed by TPS include data entry, data processing, data storage, and data retrieval transactions.

• Different types of transactions processed by TPS include data input, data output, and data transmission transactions.

• Describe the different types of transactions processed by TPS.

• Different types of transactions processed by TPS include data validation, data verification, and data cleansing transactions.

How does a Transaction Processing System contribute to real-time monitoring in businesses?

• By analyzing historical data trends

• By processing transactions in batches

• By providing immediate data updates and alerts

• By focusing on long-term strategic planning

Explain the concept of data validation in the context of Transaction Processing Systems.

• Data validation involves encrypting sensitive information

• Data validation ensures that data is accurate and consistent

• Data validation focuses on data storage optimization

• Data validation is irrelevant in TPS operations

Which system is not part of the expenditure cycle?

• cash disbursements

• payroll

• production planning/control

• purchases/accounts payable

Which system produces information used for inventory valuation, budgeting, cost control, performance reporting, and make‑buy decisions?

• sales order processing

• purchases/accounts payable

• cash disbursements

• cost accounting