ACCA Performance Management (F5) Certification Practice Exam

What is the primary function of a Transaction Processing System (TPS)?

1. Analyze long-term business strategies

2. Record historical data and automate simple tasks

3. Manage customer relationships

4. Perform complex analytical calculations

The correct answer is: Record historical data and automate simple tasks

The primary function of a Transaction Processing System (TPS) is to record historical data and automate simple tasks. TPS is designed to handle a large volume of routine, repetitive data processing tasks effectively and efficiently. This includes capturing transaction data such as sales orders, payroll information, or inventory levels in real-time or batch modes. By automating these tasks, TPS not only ensures accuracy in data entry but also saves time and reduces the potential for human error. The recorded transaction data is crucial for generating reports and providing a foundation for further data analysis. While other systems may be involved in analyzing business strategies, managing customer relationships, or performing complex calculations, these functions extend beyond the primary scope of a TPS, which focuses specifically on the effective processing of day-to-day transactions. As a result, option B highlights the core functionalities of a TPS more accurately than the other choices.