Differences between mechanical and electronic data processing systems

Mechanical data processing equipment such as electric calculators, bookkeeping machines, and key-punch machines was extremely slow when compared with electronic equipment. The processing of data in the electronic system is accomplished be electric impulses travelling through electronic circuits. Such equipment functions thousands of times faster than mechanical devices.

Another point of contrast is that the units of EDP system are interconnected so that the processing of data is a continuous operation from the point of reading input data to the point of printing the final result. On the other hand, a mechanical data processing system uses separate machines which do not communicate directly with each other. After each machine, such as a key punch, had performed its function, the output device (for example, punched cards) must be transported manually t another machines.

Despite the possibility of errors, electronic data processing makes possible a higher degree of accuracy and reliability than any other system of record keeping.

Accounting applications of the computer

The use of electronic data processing equipment is possible for virtually every phase of accounting operations. The most common application of the computer is to process large masses of accounting data relating to routine repetitive operations such as accounts receivable, accounts payable, inventories, and payrolls. Besides, due to computers it is possible to obtain answers to questions on profit margins on individual products, to forecast the profit possibilities inherent in alternative courses of actions, and to determine the future financial requirements far in advance.

Task 1: Determine the tense and voice form of the verbs in the following sentences.

1. The processing of accounting data at this enterprise is performed manually.

2. An electronic data processing system includes a computer and peripheral equipment.

3. Our company has employed two new programmers.

4. The manager wanted to know the future financial requirements.

5. The profit margins will be really great.

6. They discussed accounts receivable and accounts payable yesterday.

7. electric calculators, bookkeeping machines, and key-punch machines seem extremely slow nowadays.

8. Why have you not prepared the payroll?

9. The accountant has just finished preparing a payroll.

10. In a large business there are hundreds of transactions every day.

Task 2: Answer the questions:

1. What does the term “data processing” include?

2. What does a bookkeeper need to make an immediate record of every financial transaction?

3. What has become standard practice when processing accounting data even in a small business?

4. What helps to handle a large volume of transactions rapidly and efficiently?

5. What are four major types into which the great majority of transactions fall?

6. What are the four special journals in which the main types of transactions are recorded?

7. What is automated data processing?

8. What are the advantages of electronic data processing?

9. What are the elements of EDP system?

10. What is the function of input and output devices?

11. What do the processing operations performed by a computer include?

12. What is the difference between hardware and software?

13. What is a program? What can it be compared with?

14. What are the two main differences between mechanical and electronic data processing systems?

15. How do computers find their application in accounting?