What is the purpose of a check digit in accounts payable transaction registers?

What is the purpose of a check digit in accounts payable transaction registers?

• A. To detect data transposition errors
• B. To ensure transactions do not exceed predetermined amounts
• C. To ensure that data entered are within reasonable limits
• D. To ensure data entered are within a predetermined range of values

Answer: (A)

The purpose of a check digit in accounts payable transaction registers is primarily to detect data transposition errors. A check digit is a form of redundancy check used to verify the integrity of data entries by performing a mathematical calculation on the number sequence and appending a single digit that serves as a verification tool. If a user mistakenly transposes digits in a number—such as entering a 27 instead of 72—the check digit will not validate the number since it would not match the expected result of the calculation. This makes it a useful mechanism for ensuring accuracy in data entry, particularly in financial transactions where even small errors can have significant implications. The focus of check digits is specifically on catching discrepancies due to incorrect data entry rather than monitoring transaction amounts, reasonable limits, or predetermined ranges. While other options may imply constraints on value and limits, none directly address the inherent function of a check digit in identifying specific errors during data input, making it vital for accurate financial record-keeping.

The purpose of a check digit in accounts payable transaction registers is primarily to detect data transposition errors. A check digit is a form of redundancy check used to verify the integrity of data entries by performing a mathematical calculation on the number sequence and appending a single digit that serves as a verification tool. If a user mistakenly transposes digits in a number—such as entering a 27 instead of 72—the check digit will not validate the number since it would not match the expected result of the calculation. This makes it a useful mechanism for ensuring accuracy in data entry, particularly in financial transactions where even small errors can have significant implications.

The focus of check digits is specifically on catching discrepancies due to incorrect data entry rather than monitoring transaction amounts, reasonable limits, or predetermined ranges. While other options may imply constraints on value and limits, none directly address the inherent function of a check digit in identifying specific errors during data input, making it vital for accurate financial record-keeping.