Week 02 Discussion - Databases For years, companies used master files to store data. Databases are now being used in their place. Why did this transformation take place? What are the advantages and disadvantages of using databases rather than files? Why is it important for an accountant to understand how a database works? Identify at least three functions in which an accountant would use a database. A master file is a collection of records that pertain to one of the main subjects of an information system. This could include information such as customers, employees, products and vendors. Master files contain descriptive data, such as name and address, as well as summary information, such as amount due and year-to-date sales. On the other hand, a database is a collection of data for one or more multiple uses. Companies use databases to centralize storage of their electronic information and make it easy to find and cross-reference information about their business and customers. The advantages of using master files are that all you need for the different files is space to
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