1. Which of the following is an example of a transaction

processing system (TPS) in accounting?

a) A system that records sales orders and invoices

b) A system that generates financial statements and reports

c) A system that analyzes customer behavior and

preferences

d) A system that monitors inventory levels and reorder

points

*Answer: a) A system that records sales orders and

invoices*

Rationale: A TPS is a system that captures, processes, and

stores data related to business transactions. A system that

records sales orders and invoices is a TPS because it

handles data related to sales transactions.

2. What is the main purpose of an enterprise resource

planning (ERP) system in accounting?

a) To integrate data and processes across different

functional areas of an organization

b) To provide decision support and business intelligence

for managers and executives

c) To ensure compliance with accounting standards and

regulations

d) To automate routine tasks and improve efficiency

*Answer: a) To integrate data and processes across

different functional areas of an organization*

Rationale: An ERP system is a system that integrates data