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Relational DBMS query languages provide easy access to information about the organization’s activities. Does this mean...

Relational DBMS query languages provide easy access to information about the organization’s activities. Does this mean that online, real-time processing should be used for all transactions? Does an organization need real-time financial reports? Why or why not?

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Real time processing is not necessary for all business transactions. For example, payroll data needs to be current except on payday. Real time financial statements are helpful in providing the management with better ability to react to changes in the existing environment.But there are many month end activities that are performed which might not give a clear picture, eg, accruals and provisions are not recognised on a daily basis. If rent is prepaid then the transaction is recognised considering the time period and cannot be analyzed from a real time perspective. Transactions do not flow into the system just after they happen. However a real time report will definitely will help in detecting frauds faster, improving the accuracy of business forecasts and make better strategic decisions.

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