Which statement best describes a transaction processing system?

Which statement best describes a transaction processing system?

• A. It handles day-to-day sales and payment transactions
• B. It stores HR records
• C. It manages supplier contracts
• D. It forecasts market demand

Answer: (A)

A transaction processing system is built to handle the frequent, routine events that keep an organization running, processing transactions quickly and accurately so records stay current. The statement about day-to-day sales and payment transactions fits this purpose exactly because these are the typical, high-volume operations a TPS manages—capturing the sale, recording the payment, updating inventory and accounts, generating receipts, and ensuring data integrity in real time. Storing HR records describes a data repository for personnel information, which isn’t focused on processing ongoing business transactions. Managing supplier contracts involves contract and procurement activities, which are more about managing agreements than the continuous transaction flow. Forecasting market demand is an analytics or planning activity that uses data to predict future trends and isn’t about recording and processing live transactions.

A transaction processing system is built to handle the frequent, routine events that keep an organization running, processing transactions quickly and accurately so records stay current. The statement about day-to-day sales and payment transactions fits this purpose exactly because these are the typical, high-volume operations a TPS manages—capturing the sale, recording the payment, updating inventory and accounts, generating receipts, and ensuring data integrity in real time.

Storing HR records describes a data repository for personnel information, which isn’t focused on processing ongoing business transactions. Managing supplier contracts involves contract and procurement activities, which are more about managing agreements than the continuous transaction flow. Forecasting market demand is an analytics or planning activity that uses data to predict future trends and isn’t about recording and processing live transactions.