DATA FILE TYPES:A FILE IS A COLLECTION OF ORGANIZED DATA. (A GROUP OF RECORDS.)MASTER FILES – CONTAIN PERMANENT OR SEMI-PERMANENT DATA.MASTER FILES CONTAIN EVENT OR ACTIVITY DATA after THEIR BALANCESARE UPDATED BY THIS DATA.(When looking at the Systems flowchart on the test ask yourself first: WHERE’S THEMASTER FILE, WHERE’S THE TRANSACTION or ACTIVITY file?)TRANSACTION OR ACTIVITY FILES (TEMPORARY) – DESIGNED TOCAPTURE TRANSACTION OR EVENT DATA. BECAUSE TRANSACTION FILESARE USED TO UPDATE MASTER FILES, THEY OFTEN LINK APPLICATIONSTOGETHER. The data normally stored in journals in a traditional accounting system areexamples of transaction files. They contain the activity data used to update the runningbalance listed in the subsidiary and general ledger master files. Batches of sourcedocuments are also examples of transaction files. In a BATCH processing system, groups of transactions are batched or stored together ina transaction file. In an ONLINE REALTIME processing system, transactions areprocessed as they occur (individually) and may then be written to a transaction activitylog file as backup.OPEN FILES – USED TO RECORD INCOMPLETE TRANSACTIONS. THEYHAVE CHARACTERISTICS OF BOTH MASTER AND TRANSACTION FILES(HYBRID FILES). An example would be the OPEN SALES ORDER FILE, OPENPURCHASE ORDER FILE, OR OPEN INVOICE FILE. OPEN FILES ARE WAITINGFOR AN EVENT TO OCCUR TO RESUME PROCESSING. These files are notERROR FILES. Closing the record usually amounts to setting a flag alerting computersoftware to the changed status. Later, the closed records will be purged from the file, andperhaps written to a history file. Open files usually remain open indefinitely. Onlyindividual records are purged as the transactions are completed.SCRATCH FILES – VERY TEMPORARY FILES. USED TO COLLECT DATA FORFILE UPDATE OR FILE SORT—TEMPORARY BACKUP.ARCHIVE or HISTORY FILES – PROVIDE A PERMANENT RECORD OFTRANSACTIONS PROCESSED DURING CERTAIN TIME PERIOD—exampleswould be IRS files, bank records, court documentation and records, previous years’financial statements. They could also contain data to support those statements, such assales history file, purchase order history file, etc. THEY ARE ACCESSED OR READINFREQUENTLY AND CONTAIN INACTIVE PAST OR HISTORICAL DATA.BACKUP FILES – DUPLICATE COPIES OF A FILE FOR SECURITY REASONSREFERENCE FILE OR TABLE FILE – A TYPE OF MASTER FILE CONTAININGREFERENTIAL DATA. CONTAINS DATA THAT ARE NECESSARY TO SUPPORTDATA PROCESSING i.e. IRS TAX TABLES – PRICE LISTS—DICTIONARY FILES—PRESENT VALUE SCHEDULES—AMORTIZATION TABLES—TABLE OFINVENTORY CODES OR CATEGORIES—LOOKUP TABLESSUSPENSE FILE-- ERROR FILE – TRANSACTIONS NOT ABLE TO BE FULLYPROCESSED DUE TO THE PRESENCE OF ERRONEOUS DATA – THESETRANSACTIONS ARE SUSPENDED FROM FURTHER PROCESSING and may beclassified as incomplete or erroneous, needing correction and reentry for