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ACCA Applied Knowledge · Business and Technology · Financial systems and technology

In an accounting information system, which of the following best describes the purpose of the master file?

A master file holds relatively permanent reference data, such as customer names, addresses and credit limits, which changes only occasionally. It differs from a transaction file, which holds individual events waiting to be processed and used to update the master file.

  1. AIt holds relatively permanent reference data, such as customer names and credit limits, which is updated only occasionallyCorrect
  2. BIt stores individual transactions awaiting processing in the next batch run
  3. CIt records a chronological log of every user who accessed the system
  4. DIt contains temporary data created when a report is printed

Explanation

A master file holds standing data that changes infrequently, such as customer details or supplier terms. Transaction files hold the individual events awaiting processing, so the second option describes a transaction file rather than a master file.

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