ACCA Performance Management (F5) Certification Practice Exam

What type of system captures and processes daily transactions within an organization?

1. Customer Relationship Management system

2. Transaction Processing System

3. Management Information System

4. Executive Information System

The correct answer is: Transaction Processing System

A Transaction Processing System (TPS) is designed to handle the collection, storage, modification, and retrieval of all data related to the transactions that occur within an organization on a daily basis. It plays a critical role in supporting the operations of a business by processing large volumes of routine transactions such as sales, receipts, cash deposits, payroll, and other financial operations. TPS is essential for ensuring that business operations are conducted efficiently and accurately. It typically automates the process by capturing transaction data through point-of-sale systems, online orders, and other transactional channels, ensuring that the information is recorded consistently and in real-time. This system also ensures data integrity and provides immediate feedback to users, making it crucial for high-volume, repetitive tasks. On the other hand, a Customer Relationship Management system focuses on managing a company's interactions with current and potential customers but does not specifically deal with transaction processing. While a Management Information System provides summaries and reports to management for decision-making, it does not directly handle routine daily transactions. An Executive Information System, in contrast, is tailored for senior management to access and analyze data, often using high-level dashboards, rather than the granular transaction-level data processed within a TPS. Therefore, understanding these types of systems and their specific functions highlights why