The main purpose of transaction file is?

JAMB Accounting 2023 61 views

The main purpose of transaction file is?

  1. to record assets and liabilities
  2. to update income and expenses
  3. to update master files ✓
  4. to make organization decision

Explanation

Transaction files hold temporary data about daily business activities. Their main job is to update permanent master files with new information. Think of them as the messenger that carries changes to the main database.

While transactions involve assets, liabilities, income and expenses, the file itself doesn’t permanently record these. It just passes the information along. Decision-making uses reports, not raw transaction files.

Key concept: Master files are permanent records. Transaction files are temporary updates waiting to be processed.

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