Which of the following is commonly used to process day-to-day business transactions?

• A. Transaction Processing Systems
• B. Executive Information Systems
• C. Decision Support Systems
• D. Management Information Systems

Answer: (A)

The system that handles day-to-day business transactions is designed to capture and record standard events as they occur, such as sales, payments, payroll, and inventory updates. Transaction Processing Systems specialize in processing these routine transactions quickly and accurately, often in real time, and they update the organization’s databases immediately. This focus on the actual execution of everyday operations—speed, reliability, and data integrity across a high volume of transactions—makes it the best fit for daily processing.

Executive Information Systems are built to give top executives access to summarized data and trends for strategic insight, not to run daily operations. Decision Support Systems assist with analysis for more complex, semi-structured decisions, rather than handling routine transactions. Management Information Systems provide routine reports and monitoring for managers, but they rely on transactional data rather than performing the transactions themselves.