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

Which of the following is the primary purpose of a transaction processing system (TPS) within a finance function?

A transaction processing system records and processes routine day-to-day transactions such as sales invoices, purchases and payments. It handles high-volume structured data. Strategic, unstructured decision support belongs to executive support systems, and no system removes the need for internal controls.

  1. ATo record and process routine day-to-day transactions such as sales invoices and paymentsCorrect
  2. BTo support senior managers in making unstructured long-term strategic decisions
  3. CTo simulate possible outcomes of alternative investment proposals
  4. DTo replace the need for any internal control over financial data

Explanation

A TPS captures and processes routine, high-volume transactions such as sales, purchases and payroll. Support for unstructured strategic decisions is the role of an executive information system, not a TPS. A TPS does not remove the need for internal controls.

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