It Manual PDF

COVENANT FINANCIAL CONSULTANTS
CPA (T) REVIEW CLASSES
INFORMATION TECHNOLOGY
DESIGNATED FOR ATEC II - NBAA SYLABUS
Prepared By:
Mr. Godson Hance Mkaro
(BSc. Computer Science, ATECII, CPA (T) IP, Certified Business Etiquette, MSc Finance & Investment IP)
Phone: +255 717 348 616, +255 769 348 616

Email: info@covenantfinco.com
Website: www.covenantfinco.com
Prepared By: Godson H. Mkaro (BSc. In Computer Science, ATEC II, CPA (IP), MSc Finance & Investment (IP)
Phone: +255 717 / 769 348 616 | Email: info@covenantfinco.com |Website: www.covenantfinco.com
Page | 1
Table of Contents
CHAPTER1: INTRODUCTION ............................................................................................................. 4
1.1.
What Is Information Technology (IT)? .......................................................................................... 4
1.2.
What is a Computer? .................................................................................................................... 5
1.3.
What is ICT? .................................................................................................................................. 9
1.4.
What is Internet? ........................................................................................................................ 10
1.5.
What is e-commerce? ................................................................................................................. 10
1.6.
What is Multimedia? ................................................................................................................... 10
1.7.
Computer languages ................................................................................................................... 11
1.8.
Information and computing revolution/evolution ..................................................................... 14
1.9.
Importance of information and Communication Technology in community and social
development ........................................................................................................................................... 16
1.10. Information Super Highway ........................................................................................................ 16
1.11. Computer Number Systems ........................................................................................................ 18
1.12. Development of information technology and its impact on accounting profession .................. 26
1.13. Challenges in adoption of ICT in developing Countries (Tanzania)............................................. 29
1.14. How to overcome challenges to facilitate adoption of ICT in the society for economic growth 30
1.15. Advantages of Using ICT in Accounting Profession..................................................................... 31
1.16. Disadvantages of Using ICT in Accounting Profession ................................................................ 32
CHAPTER 2: COMPUTER HARDWARE .......................................................................................... 33

2.1.
Definition: ................................................................................................................................... 33
2.2.
Components of the computer hardware .................................................................................... 33
CHAPTER 3: COMPUTER SOFTWARE ............................................................................................ 38

3.1.
Definition .................................................................................................................................... 38
3.2.
System Software ......................................................................................................................... 38
3.3.
Application Software................................................................................................................... 41
CHAPTER 4: OFFICE AUTOMATION ............................................................................................... 45

4.1.
Introduction ................................................................................................................................ 45
4.2.
Basics of office automation......................................................................................................... 45
4.3.
Word processors ......................................................................................................................... 46
Page | 2
CHAPTER 5: DATA COMMUNICATION .......................................................................................... 48

5.1.
Definition .................................................................................................................................... 48
5.2.
Basic Elements of a Communication System .............................................................................. 48
5.3.
Data Communication Protocols .................................................................................................. 48
5.4.
Data transmission modes............................................................................................................ 49
5.5.
Digital vs. Analog Transmission ................................................................................................... 49
5.6.
Asynchronous and Synchronous Transmission ........................................................................... 50
5.7.
Data communication front end processors ................................................................................ 50
5.8.
Data communication channels ................................................................................................... 51
5.9.
Types of Computer network ....................................................................................................... 52
5.10. Network Topologies .................................................................................................................... 52

5.11. Computer Network Connecting Devices - Hub, Repeater, Switch, Bridge, outer, and Gateway 55
5.12. Information security assurance .................................................................................................. 62
5.13. Computer Virus vs. Computer Worm ......................................................................................... 69
CHAPTER 6: INTERNET...................................................................................................................... 71
6.1. What is Internet? ............................................................................................................................. 71
6.2. Historical development of the internet ........................................................................................... 71
6.3. The World Wide Web....................................................................................................................... 71
5.4.
Internet protocols ....................................................................................................................... 74
5.5.
What is an Email? ........................................................................................................................ 74
CHAPTER 7: E-COMMERCE ............................................................................................................... 77

7.1. Definition ......................................................................................................................................... 77
7.2. E-commerce technology unique features ........................................................................................ 77
7.3. Types of E-commerce....................................................................................................................... 78
7.4. Objectives of E-commerce ............................................................................................................... 79
7.5. Benefits of E-commerce ................................................................................................................... 79
7.6. Barrier to adoption of E-commerce ................................................................................................. 80
CHAPTER 8: COMPUTERIZED ACCOUNTING SYSTEMS ........................................................... 81

3.1.
Introduction ................................................................................................................................ 81
3.2.
Role of computers in accounting ................................................................................................ 81
3.3.
Components of Computerized accounting software .................................................................. 82
3.4.
Need and requirements of computerized accounting ................................................................ 83
Page | 3

3.5.
Difference between Manual accounting and Computerised accounting ................................... 84
CHAPTER1: INTRODUCTION
1.1. What Is Information Technology (IT)?
Information Technology: is the study or use of systems (especially computers and
telecommunications) for storing, retrieving, processing and transmission of information.
OR
Information Technology deals with the processing and distribution of data using
computer hardware and software, telecommunications, and digital electronics.
When we talk about Information technology, we need to also to understand the terms
Information and technology independently.
Information Is the collection of organized analyzed facts and data about a specific subject.
OR
Is the meaningful material derived from computer data by organizing it and interpreting
it in a specific way
Therefore when facts and data are collected and processed through a computer the output
produced is a collection of well connected, organized and analyzed data which is known as
Information.
Definition of terms:
Facts
Facts are data or instances that are specific and unique. Thus facts are the details
about a certain specific thing. It can be about an object, idea, event, etc.
Example: all dogs have a tail.
Data
Is unprocessed Information or simply is a collection of disconnected facts.
Example: All dogs have a tail and fluffy is a dog.
Information
Information is simply the processed data. Thus when facts are collected and
connected and the data obtained is organized and analyzed the output of this
process is information.
Example: If all dogs have a tail and Fluffy is a dog then Fluffy has a tail.
Facts
Collecting
Connecting
Data
Organizing
Analyzing
Information
Page | 4
The transition from Facts to Information

Technology: can be defined in different ways depending on context and the subject matter
of its application.
For example, in agriculture and rural development, a technology may be any systematically
organized knowledge or tool that increases crop and/or livestock production and/or
marketing.
Johnson, (2005) defined the term technology in the context of information and
communication as any electronic tool (digital camera, computer, scanner, etc.) and/ or
software (database, spreadsheet, word processing etc.)
Therefore technology can be generally defined as any tool or technical system to facilitate
mobility, manipulation, communication, environment control, and simple or complex
activities of either daily life, education, professional or societal. Thus various kinds of
technology are used in daily life to improve quality of life and to live independently for
longer.
1.2. What is a Computer?

A Computer is a machine that performs tasks, such as calculations or electronic
communication, under the control of a set of instructions called a program. Programs
usually reside within the computer and are retrieved and processed by the computers
electronics. The program results are stored or routed to output devices, such as video
display monitors or printers. Computers perform a wide variety of activities reliably,
accurately, and quickly.
A Computer is a system, consisting of many components. Some of those components, like
Windows XP, and all your other programs, are software. The stuff you can actually see and
touch, and would likely break if you threw it out a fifth-story window, is hardware.
Personal Computers (PCs) can be obtained in desktop, laptop, notebook and other portable
formats. They are used in all areas of society.
At the most basic level, a computer is a device consisting of three pieces:
A processor to interpret and execute programs

A memory to store both data and programs
A mechanism for transferring data to and from the outside world.
Page | 5
An Example of a desktop computer

Measurements metrics of capacity and speed:
Kilo- (K) = 1 thousand = 103 and 210
Mega- (M) = 1 million = 106 and 220
Giga- (G) = 1 billion = 109 and 230
Tera- (T) = 1 trillion = 1012 and 240
Peta- (P) = 1 quadrillion = 1015 and 250
Exa- = 1 quintillion = 1018 and 260
Zetta- (Z) = 1 sextillion = 1021 and 270
Yotta- (Y) = 1 septillion = 1024 and 280
Hertz = clock cycles per second (frequency)
1MHz = 1,000,000Hz
1HZ = 1 clock cycles per second
Computer Processor speeds are measured in MHz or GHz.
Byte = a unit of storage
1KB = 210 = 1024 Bytes
1MB = 220 = 1,048,576 Bytes
Main memory (RAM) is measured in MB or GB.
Disk storage is measured in GB for small systems, TB for large systems.
Page | 6
Consider the following computer sales advertisement:
Illustration1: The overview of general computer specifications.

What do all those computer specifications mean????
The microprocessor is the brain of the system. It executes program instructions.
This one is a Pentium (Intel) running at 4.20GHz.
A system bus moves data within the computer. The faster the bus the better. This
one runs at 400MHz.
Computers with large main memory capacity can run larger programs with greater
speed than computers having small memories. This system has 256MB of (fast)
synchronous dynamic RAM (SDRAM).
RAM is an acronym for random access memory. Random access means that memory
contents can be randomly accessed directly if you know its location. Unlike other
storage devices such as radio cassettes whereby data must be accessed sequentially.
A cache is a type of temporary memory that can be accessed faster than RAM. This
computer system has got two levels of cache memory; the level 1 (L1) cache with a
capacity of 32KB which is smaller and (probably) faster than the level 2 (L2) cache
with a capacity of 256KB.
Hard disk capacity determines the amount of data and size of programs you can
store. This one can store 80GB. 7200 RPM is the rotational speed of the disk.
Generally, the faster a disk rotates, the faster it can deliver data to RAM. (Although
there are many other factors involved e.g. size of file, speed of buses, etc.)
Page | 7
ATA stands for advanced technology attachment, which describes how the hard disk
interfaces with (or connects to) other system components. Other technologies
include IDE or SATA.
A CD can store about 650MB of data. This systems drive supports rewritable CDs
and CD-RW that can be written to many times. 48xs describes its speed.
Ports allow movement of data between a system and its external devices.
This system has 10 ports. These include 8 Universal Serial Bus (USB) ports, 1 serial
port and 1 parallel port.
o USB, Universal Serial Bus, is an intelligent serial interface that is selfconfiguring. (It supports plug and play.). Serial bus ports are commonly
used as insertion points for flash disks, external hard disks, mouse,
keyboards, modems etc.
o Serial ports send data as a series of pulses along one or two data lines.
o Parallel ports send data as a single pulse along at least eight data lines.
System buses can be augmented/amplified by dedicated I/O buses. PCI, Peripheral
Component Interface, is one such bus. This system has three PCI devices: a video
card, a sound card, and a data/fax modem.
The number of times per second that the image on a monitor is repainted is its
refresh rate. The dot pitch of a monitor tells us how clear the image is. This computer
monitor has a dot pitch of 0.24mm and a refresh rate of 75Hz.
The two major categories of computer elements:
All the elements that go together to make up a computer fall into one of the following two
categories:
i.
Computer hardware
ii.
Computer Software
I. Computer Hardware
Computer Hardware is the equipment involved in the function of a computer. Computer
hardware consists of the components that can be physically handled. The function of these
components is typically divided into the following three main categories:
Input devices
Output devices
Storage devices
Hardware connection devices
Components in these categories connect to microprocessors, specifically, the computers
central processing unit (CPU), the electronic circuitry that provides the computational
ability and control of the computer, via wires or circuitry called a bus.
Page | 8
II. Computer Software

Computer software, or just software, is a collection of computer programs and related data
that provides the instructions for telling a computer what to do and how to do it.
OR
Is a set of instructions that directs a computer to perform some processing function or
combination of functions.
For the instructions to be carried out, a computer must execute the software/programs,
that is, the computer reads the programs, and then follows the steps encoded in the
programs in a precise order until completion. A program can be executed many different
times, with each execution yielding a potentially different result depending upon the
options and data that the user gives the computer.
There are two types of software:
i. System Software
ii. Application software
System Software is a program that manages the computer and the various resources and
devices connected to it, such as RAM (random access memory), hard drives, monitors,
keyboards, printers, and modems, so that they may be used by other programs. Examples
of operating systems are Windows XP, Windows Vista, LINUX, UBUNTU, UNIX, etc.
Application software is the one that carries out some function directly for a user, such as
word processing, calculators, accounting packages, computer games, etc.
We will discuss these in details in the later chapters.
1.3. What is ICT?

ICT is an acronym that stands for Information and Communications Technology.
ICT covers all forms of computer and communications equipment and software used to
create, design, store, transmit, interpret and manipulate information in its various formats.
Personal computers, laptops, tablets, mobile phones, transport systems, televisions,
network technologies, satellite systems and so on are just some examples of the diverse
array of ICT tools as well as the various services and applications associated with them,
such as video conferencing and distance learning. ICTs are often spoken of in a particular
context, such as ICTs in education, health care, or libraries another many more fields of that
requires technology.
Studies in ICT include many disciplines, such as mathematics, information systems, physics
and design. The skills acquired in an ICT can be applied to everything from satellites to
iPhone apps, from CT scanners to computer games.A good way to think about ICT is to
consider all the uses of digital technology that already exist to help individuals, businesses
and organizations use information.
Page | 9
1.4. What is Internet?

The Internet is a global system of interconnected computer networks that use the standard
Internet protocols known as Transfer Control Protocol / Internet Protocol (TCP/IP) to
serve billions of users worldwide.
It is a network of networks that consists of millions of private, public, academic, business,
and government networks, of local to global scope, that are linked by a broad array of
electronic, wireless and optical networking technologies.
Internet is composed of many interconnected computer networks. Each network may link
tens, hundreds, or even thousands of computers, enabling them to share information and
processing power. The Internet has made it possible for people all over the world to
communicate with one another effectively and inexpensively.
1.5. What is e-commerce?

Electronic commerce or ecommerce is a term for any type of business, or commercial
transaction that involves the transfer of information across the Internet. Thus it involves
buying and selling of goods and services on the Internet, especially through the World
Wide Web.
It covers a range of different types of businesses, from consumer based retail sites, through
auction or music sites, to business exchanges trading goods and services between
corporations. It is currently one of the most important aspects of the Internet to emerge.
Ecommerce allows consumers to electronically exchange goods and services with no
barriers of time or distance.
1.6. What is Multimedia?

Multimedia is a computer-based interactive communications process that
incorporates text, graphics, sound, animation, and video.
The Key feature of multimedia is interactivity. Thus the User determines what
content is delivered, when it is delivered and how.
Example: when a user wants to play a video on his/her computer he/she can locate
the video stored in the hard disk through graphical icons and click the icon that may
have the name or text that identifies the actual content of the video and therefore
the video will play on the computer screen.
Page | 10
1.7. Computer languages

In all over the world, language is the source of communication among human beings.
Different countries/regions have different languages. Similarly, in order to
communicate with the computer user also needs to have a language that should be
understood by the computer. For this purpose, different languages are developed for
performing different types of work on the computer.
Categories of computer languages
i.
Low-Level Languages
ii.
High-Level Languages
I. Low-level languages
Low level computer languages are machine codes or close to it. Computer cannot
understand instructions given in high level languages or in English. It can only
understand and execute instructions given in the form of machine language i.e.
language of 0 and 1.
Types of low level programming language
a. Machine Language
b. Assembly Language
A. Machine Language
Machine Language is the lowest and most elementary level of Programming
language and was the first type of programming language to be developed.
Machine Language is basically the only language which computer can understand. In
fact, a manufacturer designs a computer to obey just one Language, its machine
code, which is represented inside the computer by a String of binary digits (bits) 0
and 1. The symbol 0 stands for the absence of Electric pulse and 1 for the presence
of an electric pulse. Since a computer is Capable of recognizing electric signals,
therefore, it understands machine Language.
Advantages of Machine Language
It makes fast and efficient use of the computer.
It requires no translator to translate the code i.e. directly understood by the
computer.
Page | 11
Disadvantages of Machine Language

All operation codes have to be remembered
All memory addresses have to be remembered.
It is hard to amend or find errors in a program written in the machine
language
These languages are machine dependent i.e. a particular Machine language
can be used on only one type of computer
B. Assembly Language
It was developed to overcome some of the many inconveniences of machine
language. This is another low level but a very important language in which
operation codes and operands are given in the form of alphanumeric symbols
instead of 0s and ls. These alphanumeric symbols will be known as mnemonic
codes and can have maximum up to 5 letter combination e.g. ADD for addition, SUB
for subtraction, START, LABEL etc. Because of this feature it is also known as
Symbolic Programming Language. This language is also very difficult and needs a
lot of practice to master it because very small.
English support is given to this language. The language mainly helps in compiler
orientations. The instructions of the Assembly language will also be converted to
machine codes by language translator to be executed by the computer.
Advantages of Assembly Language
It is easier to understand and use as compared to machine language
It is easy to locate and correct errors
It is modified easily
Disadvantages of Assembly Language
Like machine language it is also machine dependent.
Since it is machine dependent therefore programmer should have the knowledge
of the hardware also.
II.
High level languages

High level computer languages give formats close to English language and the
purpose of developing high level languages is to enable people to write programs
easily and in their own native language environment (English). High-level languages
are basically symbolic languages that use English words and/or mathematical
symbols rather than mnemonic codes. Each instruction in the high level language is
translated into many machine language instructions thus showing one-to-many
translation.
Page | 12
Types of High Level Languages

Many languages have been developed for achieving different variety of tasks, some
are fairly specialized others are quite general purpose.
These are categorized according to their use as:
a) Algebraic Formula: Type Processing. These languages are oriented towards the
computational procedures for solving mathematical and statistical problem
Examples are:
BASIC (Beginners All Purpose Symbolic Instruction Code)
FORTRAN (Formula Translation)
PL/I (Programming Language, Version 1)
ALGOL (Algorithmic Language)
APL (A Programming Language)
b) Business Data Processing: These languages emphasize their capabilities for
maintaining data processing procedures and files handling problems.
Examples are:
COBOL (Common Business Oriented Language).
RPG (Report Program Generator)
c) String and List Processing: These are used for string manipulation including
search for patterns, inserting and deleting characters.
Examples are:
LISP (List Processing).
Prolog (Program in Logic).
d) Object Oriented Programming Language
In OOP, the computer program is divided into objects.
Examples are:
C++
Java
e) Visual programming language: these are designed for building Windows-based
applications.
Examples are:
Visual Basic
Visual Java
Visual C & C++
Page | 13
Advantages of High Level Language

Following are the advantages of a high level language:
User-friendly
Similar to English with vocabulary of words and symbols
Therefore it is easier to learn.
They require less time to write.
They are easier to maintain.
Problem oriented rather than 'machine' based.
Program written in a high-level language can be translated into many machine
language and therefore can run on any computer for which there exists an
appropriate translator.
It is independent of the machine on which it is used i.e. Programs developed in high
level language can be run on any Computer.
Disadvantages of High Level Language
A high-level language has to be translated into the machine language by a translator
and thus a price in computer time is paid.
The object code generated by a translator might be inefficient Compared to an
equivalent assembly language program.
1.8. Information and computing revolution/evolution

To fully appreciate the computers of today, it is helpful to understand how things got
the way they are. The evolution of computing machinery has taken place over several
centuries.
In modern times computer evolution is usually classified into four generations
according to the outstanding technology of this era.
Generation Zero: Mechanical Calculating Machines (1642 - 1945)
During this generation the following are some of the outstanding achievements:
Calculating Clock was designed by - Wilhelm Schickard (1592 - 1635).
The invention of the calculating machine called a Pascaline designed by Blaise Pascal
(1623 - 1662).
Difference Engine - Charles Babbage (1791 - 1871), also designed but never built
the Analytical Engine.
Punched card tabulating machines - Herman Hollerith (1860 - 1929).
Page | 14
The First Generation: Vacuum Tube Computers (1945 - 1953)

Atanasoff Berry Computer (1937 - 1938) solved systems of linear equations.
John Atanasoff and Clifford Berry of Iowa State University designed a
Vacuum Tube Computers.
Electronic Numerical Integrator and Computer (ENIAC) was developed by
John Mauchly and J. Prosper Eckert University of Pennsylvania, 1946.
The ENIAC was the first general-purpose computer.
The IBM 650 first mass-produced computer. (1955)
Other major computer manufacturers of this period include UNIVAC,
Engineering Research Associates (ERA), and Computer Research Corporation
(CRC).
The Second Generation: Transistorized Computers (1954 - 1965)
IBM 7094 (scientific) and 1401 (business)
Digital Equipment Corporation (DEC) PDP-1
Univac 1100
Control Data Corporation 1604.
And many other more
The Third Generation: Integrated Circuit Computers (1965 - 1980)
IBM 360
DEC PDP-8 and PDP-11
Cray-1 supercomputer
. . . and many others.
By this time, IBM had gained overwhelming dominance in the industry.
The Computer manufacturers of this era were characterized as IBM and the
BUNCH (Burroughs, Unisys, NCR, Control Data, and Honeywell).
The Fourth Generation: VLSI Computers (1980 To date)
Very large scale integrated circuits (VLSI) have more than 10,000
components per chip.
Enabled the creation of microprocessors.
The first was the 4-bit Intel 4004.
Later versions, such as the 8080, 8086, and 8088 spawned the idea of
personal computing.
Page | 15
1.9. Importance of information and Communication Technology in

community and social development
ICT Simplifies data collection, analysis organization, processing and

presentation.
It has brought about e-commerce for safe and reliable way for trading
ICT Promotes public awareness through News broadcasting in various media
such as Televisions, Internet, Radio, Satellites, etc.
Supports and improves academic activities such as advancement of teaching and
studying facilities, e.g. online studies.
ICT provides support for channeling international relations among countries
through network technologies such as Internet, Satellite live feeds, Video
conferencing, etc.
Supports the governmental operations. The governments have rapidly adopted
ICT in their various sectors such as accounting and Tax systems.
Supporting adaptation and monitoring of the society to the inevitable effects
such as climate changes, forecasting of chances of occurrence of natural disasters
e.g. Tsunamis, earthquakes, Volcano eruption, etc.
1.10. Information Super Highway

Definition: Information Super Highway is an extensive electronic network (such as the
internet) used for the rapid transfer of sound and video and graphics in digital form
It refers to the global information and communications network; It includes the
Internet and other networks and switching systems such as telephone networks, cable
television networks, and satellite communication networks.
Popular discourse would have us believe that the Information Superhighway will just
be a faster, more powerful version of the Internet. But there are key differences
between these two entities.
Page | 16
Difference between Internet and Information Superhighway

INTERNET
INFORMATION SUPERHIGHWAY
1. Fee Mode
Most Internet users are either The Information superhighway

not
charged
to
access model is based upon a pay-perinformation, or pay a low-cost use model
flat fee.
2. Privacy
The Internet is a group of

interconnected networks where
a lot of people can access
various information hence it is
subjected to very low level of
privacy.
3. Producers
vs.
Consumers
On the Internet anyone can be On

the
Information
an information provider or an Superhighway most people will
information consumer.
be relegated to the role of
information consumer.
The pay-per-view on the

Information Superhighway will
need to track everything that an
individual looks at (in case
s/he wants to challenge the bill)
4. Information
The Internet has got too much of
Vs.
entertainment and information
Entertainment that may not be necessary for
consumers. E.g. movies, games,
music, etc.
Information
Superhighway
provides
information-related
services that consumers would
be more willing to pay for these
than for movies-on-demand,
video games, or home shopping
services.
5. Mass
Audience
Information superhighway is
designed to reach tens (or more
likely hundreds) of thousands
of users just to justify the costs
of mounting multimedia servers
and program for high speed
data sharing.
A significant amount of material

placed on the Internet is
designed to reach either a single
person or a very small group of
people.
Page | 17
1.11. Computer Number Systems

The original computers were designed to be high-speed calculators.
The designers needed to use the electronic components available at the time.
The designers realized they could use a simple coding system--the binary system-- to
represent their numbers
Representing Information in Computers
All the different types of information in computers can be represented using binary
code.
Numbers
Letters of the alphabet and punctuation marks
Microprocessor instruction
Graphics/Video
Sound
Bits and Bytes
A binary digit is a single numeral in a binary number.
Each 1 and 0 in the number below is a binary digit:
10010101
The term binary digit is commonly called a bit.
Eight (8) bits grouped together is called a byte.
Computer Number Systems can be classified into:
Decimal Numbers
Binary Numbers
Octal decimal and
Hexadecimal Numbers
Decimal Number System
The prefix deci- stands for 10
The decimal number system is a Base 10 number system:
There are 10 symbols that represent quantities:
0, 1, 2, 3, 4, 5, 6, 7, 8, 9
Each place value in a decimal number is a power of 10.
Any number to the 0 (zero) power is 1. e.g. 40 =1, 160 = 1, 4820 = 1.
Any number to the 1st power is the number itself. E.g. 101 = 10 491 = 49 8271 = 827
Page | 18

1492
1 x 1000 =
4 x 100 =
9 x 10 =
2x1=
1000
400
90
+2
1492
Binary Numbers
The prefix bi- stands for 2
The binary number system is a Base 2 number system:
0, 1
Each place value in a binary number is a power of 2.
1011
1x8= 8
0x4= 0
1x2= 2
1x1=+1
11
Converting Binary Numbers to Decimal
Step 1
Starting with the 1s place; write the binary place value over each digit in the binary
number being converted.
16 8 4 2 1
1 0 1 0 1
Step 2
Add up all of the place values that have a 1 in them. 16 + 4 + 1 = 21
Example: Convert the binary number 1 10 0 1 0 1 to decimal.
64 32 16 8 4 2 1
1 1 0 0 1 0 1
64 + 32 + 4 + 1=101
Converting Decimal Numbers to Binary
There are two methods that can be used to convert decimal numbers to binary:
Repeated subtraction method
Repeated division method
Both methods produce the same result and you should use whichever one you are
most comfortable with.
Page | 19
The Repeated Subtraction method

As an explanation of the repeated subtraction method, let s convert the decimal
number 853 to binary.
Step 1:
Starting with the 1s place, write down all of the binary place values in order until you
get to the first binary place value that is GREATER THAN the decimal number you are
trying to convert.
1024 512 256 128 64 32 16 8 4 2 1
Step 2:
Mark out the largest place value (it just tells us how many place values we need).
1024 512 256 128 64 32 16 8 4 2 1
Step 3:
Subtract the largest place value from the decimal number. Place a 1 under that place
value.
853 - 512 = 341
512 256 128 64 32 16 8 4 2 1
1
Step 4:
For the rest of the place values, try to subtract each one from the previous result.
If you can, place a 1 under that place value.
If you can t, place a 0 under that place value.
Step 5:
Repeat Step 4 until all of the place values have been processed.
The resulting set of 1s and 0s is the binary equivalent of the decimal number you
started with.
Page | 20
The Repeated Division method

The general technique of this method can be used to convert any decimal number to
any other number system.
Step 1:
Divide the decimal number you re trying to convert by 2 in regular long division until
you have a final remainder.
Step 2:
Use the remainder as the LEAST SIGNIFICANT DIGIT of the binary number.
Step 3:
Divide the quotient you got from the first division operation until you have a final
remainder.
Step 4:
Use the remainder as the next digit of the binary number.
Step 5:
Repeat Steps 3 & 4 as many times as necessary until you get a quotient that cant be
divided by 2.
Step 6:
Use the last remainder (the one that cant be divided by 2) as the MOST SIGNIFICANT
digit.
Example: This example converts 853 to binary (the same example we used for the
repeated subtraction method).
Step 1:
853 / 2 = 426 Remainder 1
Step 2:
The remainder of 1 becomes the LEAST significant digit of the number.
Step 3:
Divide the quotient from Step 1 by 2 all the way out.
426 / 2 = 213 Remainder 0
Step 4:
The remainder of 0 becomes the next digit of the number.
Step 5:
Continue to divide the quotients by 2 and move the remainders down until you get a
quotient that can t be divided by 2. Then take the remainders from bottom to top.
Page | 21
213 / 2 = 106 Remainder 1

106 / 2 = 53 Remainder 0
53 / 2 = 26 Remainder 1
26 / 2 = 13 Remainder 0
13 / 2 = 6 Remainder 1
Step 6:
The final quotient of 1 comes down to be the most significant digit.
Hexadecimal Numbers
The prefix hexa- stands for 6 and the prefix deci- stands for 10
The hexadecimal number system is a Base 16 number system:
0, 1, 2, 3, 4, 5, 6, 7, 8, 9, A, B, C, D, E, F
Each place value in a hexadecimal number is a power of 16.
We use hexadecimal numbers as shorthand for binary numbers
Each group of four binary digits can be represented by a single hexadecimal digit
Dec
Bin Hex Dec Bin Hex
0
0000 0
8
1000 8
1
0001 1
9
1001 9
2
0010 2
10
1010 A
3
0011 3
11
1011 B
4
0100 4
12
1100 C
5
0101 5
13
1101 D
6
0110 6
14
1110 E
7
0111 7
15
1111 F
Converting Binary Numbers to Hexadecimal
Step 1:
Starting with the LEAST SIGNIFICANT digit, mark off the digits in groups of 4.
For example, to convert 110001011011 to hexadecimal, mark off the digits in groups
of four.
1100|0101|1011
Page | 22
Step 2:
Convert each group of four digits to its hexadecimal character.
1100|0101|1011
C
5
B
Helpful Hint: The last group on the left can have anywhere from 1 to 4 binary digits
group.
If it will help you see the pattern, you can fill in enough leading zeroes to make the last
group on the left have four digits.
For example, 1 1 0 | 0 1 1 1 | 1 0 0 1 could be written 0 1 1 0 | 0 1 1 1 | 1 0 0 1
Converting Hexadecimal Numbers to Binary
Converting hexadecimal numbers to binary is just the reverse operation of converting
binary to hexadecimal.
Just convert each hexadecimal digit to its four-bit binary pattern. The resulting set of
1s and 0s is the binary equivalent of the hexadecimal number.
Example of Hexadecimal to Binary Conversion
Convert A3D7 to binary.
A
3
D
7
1010 | 0011 | 1101 | 0111
Decimal to Hexadecimal Conversion
There are two methods to choose from:
1. Do a decimal-to-binary conversion and then a binary-to-hexadecimal
conversion.
2. Do a direct conversion using the repeated division method.
Since this is a conversion to hexadecimal, 16 is the divisor each time.
This example converts 853 to hexadecimal.
Step 1:
853 / 16 = 53 Remainder 5
Step 2:
The remainder of 5 becomes the LEAST significant digit of the number. [5]
Step 3:
Divide the quotient from Step 1 by 2 all the way out.
53 / 16 = 3 Remainder 5
Step 4:
The remainder of 5 becomes the next digit of the number. [5 5]
Step 5:
The final quotient of 3 comes down to be the most significant digit. [3 5 5]
Page | 23
- So, the hexadecimal equivalent of 853 is 355.

Note:
Since you are dividing by 16 in the repeated division method for decimal-to-hex
conversion, you could end up with remainders of anywhere from 0 to 15.
If a remainder is 10 to 15, you convert it to the single hex symbol when you add the
digit to the hex number youre building.
Another Decimal-to-Hex Example
Lets convert decimal 60 to hexadecimal.
60 /16 = 3 Remainder 12 therefore in hex = [3C]
The remainder of 12 is represented by its hex symbol C in the resulting number
and the quotient of 3 cant be divided by 16 so it comes down to be the most
significant digit of the hex number.
Converting Hexadecimal Numbers to Decimal
Multiply each digit of the hex number by its place value and add the results.
For example, converting 2FA4
2 x 4096 = 8192
15 x 256 = 3840 (convert F to 15)
10 x 16 =
16 (convert A to 10)
4x1=
+4
12,196
Electronics Prefixes
There is a set of terms used in electronics used to represent different powers of ten.
There is a set of terms used to represent large whole numbers and a set of terms used
to represent small fractional numbers.
Page | 24
Exceptions to the Rule

A kilobyte (KB) is 1,024 bytes.
A megabyte (MB) is 1,048,576 bytes.
These values come from the nearest binary place values to 1,000 and 1,000,000.
A Code for Letters and Symbols
PCs use a standard binary code to represents letters of the alphabet, numerals,
punctuation marks and other special characters.
The code is called ASCII (pronounced ASKEY) which stands for American Standard
Code for Information Interchange.
There are 256 code combinations.
Page | 25
1.12. Development of information technology and its impact on

accounting profession
Every accountant knows that accounting is the language of business. That language has
gone through many changes throughout the ages. But through all the changes
accounting technology has always played a part in making the accountants job just a
little easier. As our knowledge of technology increased so has the accountants ability to
analyze statistical values. Technology advancements have enhanced the accountants
ability to interpret data efficiently and effectively. He/she now has the ability to
interpret the language of business with such ease that the accountant has become a
corporations most trusted business advisor.
Information technology has impacted accounting processes in a very good way. It is
difficult to find anybody doing manual accounting with paper and pencil these days.
Since accounting is about dealing with information-- business information--any
advances in this area will have a positive impact in the accounting department, from the
old days of the battery operated calculator to the fast computers of today.
How Is Information Technology Used in Accounting?
The following are the use, Importance and advantages of I Information Technology in
Accounting:
1. Equipment: The most obvious impact of technology in accounting is the presence of
computers, printers, scanners and faxes. Information technology (IT) transformed
the accounting world--no more green paper sheets and pencils. The good news is
that prices are affordable on most of the equipment. It is not just for large
corporations; small business can get IT equipment easily and at a reasonable cost.
The machines are sophisticated, fast and easy to use.
2. Software: Besides the equipment, accountants appreciate the software. For
example, spreadsheet programs are highly efficient at helping accountants with
calculations and reporting. There are accounting programs in the market that are
easy to use and affordable, making them very popular with small businesses.
Software can help accountants in their daily tasks, such as paying bills, recording
transactions and reporting. The program keeps all data organized and in a
centralized location.
3. 4. Internet: The Internet opened many doors and made life easier in many ways,
especially in the accounting area, where documents can be shared, research can be
conducted and taxes can be filed-all online. Connection to the Internet can be
Page | 26
wireless and simple. Businesses don't have to buy software to run some
programs. Instead, some sites host the programs online, where files also can be
saved.
4. Security: Information technology is used widely in accounting security.
Identifications and passwords limit access to confidential information. Instead of
binders and papers lying around, security can be greatly enhanced with the proper
computer programs. Using a program, accounting information can be encrypted in a
way to prevent unauthorized use, making it quite safe. A lost, stolen or misplaced
laptop or desktop computer can be tracked using security software that can be
activated remotely.
5. Education: Because of the close synergy between accounting and information
systems, many universities have started offering four-year degrees in "accounting
and information systems" or "accounting information systems." Quite a few
universities offer a major in accounting and a minor in information systems. The
program usually includes the typical accounting concepts and IT. The accountant of
the present and future must be technologically savvy to be relevant, and the
universities are preparing new graduates for this challenge
6. E-Business, the Intranet and the Extranet: Todays accounting professionals who
understand the importance of the Internet will use the Internet for e-business. They
use the Internet to execute major business processes in the enterprise. Electronic
business (e-business) allows the accounting firm to coordinate activities for internal
management and combines the clients relationships with the use of digital
networks. Enterprise applications can be used on a small internal network called the
Intranet. The Intranet can distribute information to employees such as corporate
policies, and programs. It centers on a portal which is a single point of access.
Information can come from several different systems using a Web interface. They
can feature such things as e-mail, internal documents such as the Code of Ethics, and
a search tool. It is a good means of communication within an organization.
Accounting professionals can also communicate outside the organization with Web
technology using the creation of an Extranet. This allows the clients to have limited
access, linking to a portion of the accounting firms Intranet to import and export
files back and forth. Linking electronically increases efficiency and cuts down on
travel costs ultimately reducing operational costs
7. Diversified Opportunities: Information became available to an accountant with
the click of a mouse. This changed the nature of an accountants work. More doors
were opening with the use of information technology. This diversified opportunities
Page | 27
in the field of accounting. New specialized areas had developed. Business owners
started looking to professional accountants for technology advice. Accountants
became more knowledgeable about which financial systems worked best.
Accountants were becoming the IT staff and trusted advisors. An accountants role
was to help these businesses become more productive. Integrating the clients
technologies properly with the accountants systems made the practice more
efficient when it came time for write-ups and reconciliation processes
8. Input, Processing and Output: Not only does the client need to have proficient
financial processes but the accountants themselves need software programs that
keep track of clients accounting information with improved efficiency. Accountants
work with systems programmers to develop a digital process that will organize their
clients history and all their documents. When the clients data is input into the
computer program the processing cycle gives the computer instructions on how to
process the clients data. This enables it to change the data into useful information.
Output, transfers the processed information to the accountant. He/she can analyze
the data and interpret the clients financial statements so as to increase the clients
success. All the clients records can be stored and organized on an accountants
computer system. Rather than bringing a suitcase full of file folders to a clients
place of business for review, the documents can be carried on an encrypted laptop
or organized on an encrypted portable storage device. The accountant has the
clients sensitive information protected but yet at his/her fingertips, ready to
perform statistical, accounting or forecasting analysis. The program is stored on the
computer hard drive and the data is used to prepare the clients taxes. The need for
a file storage room has been eliminated
9. Cloud Computing: To go a step further, cloud computing is becoming popular
today. It is called cloud computing because the name represents the cloud symbol
used in flow charts, representing the Internet. It is a service that is being provided
over the internet to permanently store data and use business applications over a
remote server. Software-as-a-service (SaaS) is a web based service. The data is
permanently stored in huge data centers shared by many other users. The
accountant would not have to purchase anything. He/she would pay a monthly
subscription so he/she would only pay for what is needed. It would free up space on
the accounting firms hard drive while the firm rents space from giant computer
centers. However, the accountant should be aware of the security issues involved
when making a decision to use this technology. Cloud service providers are obliged
to provide a safe environment to store the organizations sensitive information as
accountants are obliged to understand the risks.
Page | 28
10. Advancements of Information Technology: Accountants were pushed towards

acquiring new skills due to the advancements that information technology has made
on the accounting industry. Accountants now have to have a high level of computer
and technical skills. These skills have become part of the knowledge, and abilities of
the accounting professionals. In its report the American Institute of Certified Public
Accounts (AICPA) cities that, The knowledge, skills and abilities necessary for the
entry-level accountant now include the application and integration of information
technology into the accounting process, as well as financial and managerial
accounting principles From this research, not only does an accountant need to have
a broad range of accounting knowledge and a strong ability to apply accounting
principles, government regulations and interpret tax laws; they must also have
strong skills in information technology, to be able to merge accounting with
information systems. These accountants will be in greater demand by the profession
Conclusion
The accounting industry is now speaking a brand new language of business. It is the
language of future generations of accounting professionals. The evolution of accounting
technology has been tremendous with strong growth potential for the future. The
advancements have taken the industry to many new levels of opportunities that I have
discussed throughout this article. In comparing and contrasting the changes that have
occurred with the use of technology in accounting throughout the ages, enterprise
productivity has created career stability and many diverse opportunities in this successful
industry of professional accountants.
1.13. Challenges in adoption of ICT in developing Countries (Tanzania)

Developing countries (including Tanzania) are now aware of the benefits derived through
adoption and use of ICTs but there are many serious challenges which must be addressed
and chief among them are:
1. Inadequate communications and power infrastructure
2. Shortage of ICTs facilities and ICTs skills
3. Inadequate institutional arrangements
4. Limited financial resources
5. Inadequate public private partnership
6. Limited data management capacity
7. Inadequate communication facilities i.e. Internet
Page | 29
1.14. How to overcome challenges to facilitate adoption of ICT in the

society for economic growth
ICTs provide an opportunity for nations to address the digital divide and reduce
poverty while registering economic growth. Developed and some developing nations
have seen the emergence of a vibrant ICT sector that significantly contributes towards
national gross domestic product (GDP). It is this ICT sector that should be built, in most
cases, through public-private partnerships.
Therefore ICT sector must be strengthened since it affects operations of all other
sectors of the economy by implementing the following Policies to strengthen the ICT
sector:
1. Develop and improve ICTs infrastructure for all sectors of the economy
(communications, electricity and transport).
2. Encourage full utilization of existing communications infrastructure to reduce
resource wastage.
3. Implement an integrated and equitable framework for accelerated ICTs
development and uptake.
4. Increase bandwidth on the national backbone and international gateway(s) systems
to enhance speed and efficiency of operations.
5. Develop supportive and enabling infrastructure to ensure equitable access to ICTs
by all citizens including disadvantaged groups and rural communities.
6. Promote local production of ICTs products to ensure relevance of content and use of
appropriate technologies that meet international standards.
7. Establish institutional mechanisms to co-ordinate inter-organizational planning,
Policy-making and implementation of strategies to develop ICTs taking into account
the convergence of broadcasting, telecommunications and on-line computer
services.
8. Implement measures to develop and retain skilled human resources in the ICTs
sector.
9. Rationalize the ICTs tariff structure to make ICTs more affordable and accessible.
10. Introduce and enforce stringent quality of service standards in the provision of ICTs.
11. Create a conducive environment for investment through PPPs in the ICTs sector.
12. Promote local research and development in software and hardware relevant to all
sectors of the economy.
13. Promote awareness and use of ICTs.
Page | 30
1.15. Advantages of Using ICT in Accounting Profession

The main advantages of a computerized accounting system are listed below:
1. Speed data entry onto the computer with its formatted screens and built-in
databases of customers and supplier details and stock records can be carried out far
more quickly than any manual processing.
2. Automatic document production fast and accurate invoices, credit notes, purchase
orders, printing statements and payroll documents are all done automatically.
3. Accuracy there is less room for errors as only one accounting entry is needed for
each transaction rather than two (or three) for a manual system.
4. Up-to-date information the accounting records are automatically updated and so
account balances (e.g. customer accounts) will always be up-to-date.
5. Availability of information the data is instantly available and can be made available
to different users in different locations at the same time.
6. Management information reports can be produced which will help management
monitor and control the business, for example the aged debtors analysis will show
which customer accounts are overdue, trial balance, trading and profit and loss
account and balance sheet.
7. TAX return the automatic creation of figures for the regulatory TAX returns. E.g. VAT
8. Legibility the onscreen and printed data should always be legible and so will avoid
errors caused by poor figures.
9. Efficiency better use is made of resources and time; cash flow should improve
through better debt collection and inventory control.
10. Staff motivation the system will require staff to be trained to use new skills, which
can make them feel more motivated. Further to this with many off-the-shelf packages
like MYOB the training can be outsourced and thus making a particular staff member
less critical of business operations.
11. Cost savings computerized accounting programs reduce staff time doing accounts
and reduce audit expenses as records are neat, up-to-date and accurate.
12. Reduce frustration management can be on top of their accounts and thus reduce
stress levels associated with what is not known.
13. The ability to deal in multiple currencies easily many computerized accounting
packages now allow a business to trade in multiple currencies with ease. Problems
associated
with
exchange
rate
changes
are
minimized.
In summary if you have not computerized your accounting you should seriously
consider doing so.
Page | 31
1.16. Disadvantages of Using ICT in Accounting Profession

The Drawbacks of using ICT in accounting functions include:
1. Cost: More and more resources are being put into ICT in the Accounting
departments e.g. the costs of computers, internet, Accounting software, etc. these
contribute a large percentage of the school's budget.
2. Misuse of ICT: Instead of accountants using their computers for strictly positive
official tasks they stray away and use their time and office ICT resources for their
personal activities as well as visiting social networking sites like Facebook or
Twitter.
3. Loss of Data or Service: When a business is reliant on accounting software, any
loss of service due to a power or computer outage could cause a work disruption.
Work disruptions can prevent the input of new information as well as prevent
access to stored information. Additionally, if information is not properly backed up,
a
computer
outage
could
result
in
lost
financial
data.
4. Incorrect Information: The information in an accounting system is only as valid as
the information put into the system. Since most accounting systems require some
manual input of data, financial results could be incorrect unless all input data is
reviewed. If there is a tendency to only review the final reports or output of an
accounting system, it may be difficult to find faulty information
5. System Configuration: Every business has unique aspects that may cause
difficulties when it tries to tailor a generic accounting software package to its needs.
While customization is available for many programs, it may cause downtime and
potential inaccuracies if not done correctly. Also, as a business grows, there may be
a need to change accounting software packages; this could cause a large disruption,
as information must be migrated and new training is needed for personnel.
6. Fraud: Information stored electronically can be manipulated and accessed if proper
controls and security measures are not in place. Strict controls are needed to make
sure only authorized personnel use the accounting software and have access to
reports. Since financial data can be sensitive and confidential, using accounting
software creates the potential for fraud.
Page | 32
CHAPTER 2: COMPUTER HARDWARE

2.1. Definition:
Computer Hardware is the physical/tangible parts that make up the computer
(everything we can 'see and touch').
2.2. Components of the computer hardware

Computer hardware component devices are typically installed into or peripheral to a
computer case. The devices work together dependently in various processes in the
computer.
These components can be classified into:
a. Mother board
b. Secondary storage
c. Input and output peripherals
d. Removable media devices
e. Power supply
A. MOTHER BOARD
The motherboard is the main component inside the case. It is a large rectangular board
with integrated circuitry that connects the other parts of the computer including the
CPU, the RAM, the disk drives (CD, DVD, hard disk, or any others) as well as any
peripherals connected via the ports or the expansion slots.
1. The CPU (Central Processing Unit) performs most of the calculations which
enable a computer to function, and is sometimes referred to as the "brain" of the
computer. It is usually cooled by a heat sink and fan.
A central processing unit (CPU) is the hardware within a computer that carries
out the instructions of a computer program by performing the basic arithmetical,
logical, and input/output operations of the system. The term has been in use in
the computer industry at least since the early 1960s.[1] The form, design, and
implementation of CPUs have changed over the course of their history, but their
fundamental operation remains much the same.
A computer can have more than one CPU; this is called multiprocessing. All
modern CPUs are microprocessors.
Page | 33
Two typical components of a CPU are:

i.
The arithmetic logic unit (ALU), which performs arithmetic and
ii.
Logical operations, and the control unit (CU), which extracts
instructions from memory and decodes and executes them, calling on the
ALU when necessary.
NB: The CPU is Also Known As processor, computer processor, microprocessor,
central processor, "the brains of the computer"
2. The Chipset mediates communication between the CPU and the other
components of the system, including main memory. Chipsets refers to a group of
integrated circuits, or chips, that are designed to work together.
3. The RAM (Random-access Memory) stores resident part of the current running
operating system and all running processes (application parts, using CPU or
input/output (I/O) channels or waiting for CPU or I/O channels).
4. The BIOS (Basic Input Output System) includes boot firmware and power
management. Thus it supports the operating system to boot/start and managing
the power of the system. The tasks are handled by operating system drivers.
5. The ROM (Read-only Memory) stores the initial program that runs when the
computer is powered on or otherwise begins execution (Bootstrapping also
known as "booting" or "booting up"). ROM Usually stores the BIOS.
6. Internal buses connect the CPU to various internal components and to
expansion cards for graphics and sound.
7. External bus controllers support ports for external peripherals. These ports
may be controlled directly by the south bridge I/O controller or based on
expansion cards attached to the motherboard through the PCI bus .e.g. USB,
Memory Card, etc.
B. SECONDARY STORAGE
A Secondary storage is the hardware that keeps data inside the computer for later
use and remains persistent even when the computer has no power.
Types of Secondary Storage devices:
1. Hard disk - for medium-term storage of data.
2. Solid-state drive - a device similar to hard disk, but containing no moving parts and
stores data in a digital format.
Page | 34
3. RAID array controller - a device to manage several internal or external hard disks
and optionally some peripherals in order to achieve performance or reliability
improvement in what is called a RAID array.
C. INPUT AND OUTPUT PERIPHERALS

Input and output devices are typically housed externally to the main computer chase. The
following are either standard or very common to many computer systems:
INPUT DEVICES
Text input devices
Keyboard - a device to input text and characters by depressing buttons
(referred to as keys or buttons).
Pointing devices
Mouse - a pointing device that detects two dimensional motion relative to its
supporting surface.
Optical Mouse - uses light (laser technology) to determine mouse motion.
Trackball - a pointing device consisting of an exposed ball housed in a socket
that detects rotation about two axes.
Touchscreen - senses the user pressing directly on the monitor.
Gaming devices
Joystick - a hand-operated pivoted stick whose position is transmitted to the
computer.
Game pad - a hand held game controller that relies on the digits (especially
thumbs) to provide input.
Game controller - a specific type of controller specialized for certain gaming
purposes.
Image, Video input devices
Image scanner - a device that provides input by analyzing images, printed
text, handwriting, or an object.
Web cam - a video camera used to provide visual input that can be easily
transferred over the internet.
Audio input devices
Microphone - an acoustic sensor that provides input by converting sound
into electrical signals.
OUTPUT DEVICES
Printer - a device that produces a permanent human-readable text of graphic
document.
Page | 35
- Dot Matrix Printer

- Laser Printer
- Diode display
- OLED - Organic Light-Emitting Diode
- Monitors
-Speakers
D. REMOVABLE MEDIA DEVICES
CD (compact disc) - the most common type of removable media, suitable for
music and data.
CD-ROM Drive - a device used for reading data from a CD.
CD Writer Is a removable media device used for both reading and writing
data to and from a CD.
o DVD (digital versatile disc) - a popular type of removable media that is the
same dimensions as a CD but stores up to 12 times as much information. It is the
most common way of transferring digital video, and is popular for data storage.
DVD-ROM Drive - a device used for reading data from a DVD.
DVD Writer - a device used for both reading and writing data to and from a
DVD.
DVD-RAM Drive - a device used for rapid writing and reading of data from a
special type of DVD.
o Blu-ray Disc - a high-density optical disc format for data and high-definition
video. Can store 70 times as much information as a CD.
BD-ROM Drive - a device used for reading data from a Blu-ray disc.
BD Writer - a device used for both reading and writing data to and from a
Blu-ray disc.
o HD DVD - a discontinued competitor to the Blu-ray format.
o Floppy disk - an outdated storage device consisting of a thin disk of a flexible
magnetic storage medium. Floppies are used today mainly for loading device
drivers not included with an operating system release (for example, RAID
drivers).
o Zip drive - an outdated medium-capacity removable disk storage system, first
introduced by Iomega in 1994.
o USB flash drive - a flash memory data storage device integrated with a USB
interface, typically small, lightweight, removable, and rewritable. Capacities
vary, from hundreds of megabytes (in the same range as CDs) to tens of
gigabytes (surpassing, at great expense, Blu-ray discs).
o Memory Card - a flash memory data storage device used to store digital
information found on many mobile devices. They are smaller and lighter then
Page | 36
USB flash drives. They are thin, removable and able to retain data without
power. Common types of formats are SD and MS.
o Memory Card Reader - a device used for reading Memory Cards. Most modern
devices contain a Memory Card Reader. Examples are personal computers,
mobile phones, printers and some gaming devices like PSP.
o Tape drive - a device that reads and writes data on a magnetic tape, used for
long term storage and backups.
E. POWER SUPPLY
A power supply unit (PSU) converts alternating current (AC) electric power to low-voltage
DC power for the internal components of the computer. Some power supplies have a switch
to change between 230 V and 115 V. Other models have automatic sensors that switch
input voltage automatically, or are able to accept any voltage between those limits. Power
supply units used in computers are nearly always switch mode power supplies (SMPS). The
SMPS provides regulated direct current power at the several voltages required by the
motherboard and accessories such as disk drives and cooling fans.
Page | 37
CHAPTER 3: COMPUTER SOFTWARE

3.1. Definition
Software: The set of instructions that operates various parts of the hardware. Also termed
as computer program
Computer Instructions or data, anything that can be stored electronically is Software.
Main types of computer Software
a. System Software
b. Application Software
3.2. System Software

System software is a term referring to any computer software which manages and
controls the hardware so that application software can perform a task.
System Software includes the Operating System and all the utilities that enable the
computer to function. It interacts directly with the computer Hardware where by Other
Software normally do not directly interact with the hardware, but through the System
software.
The System Software Performs its work invisibly to control the internal functions of a
computer, e.g. maintaining files on the disk drive, managing the screen, controlling
which tasks the Application software performs and in what order.
Example: Windows, Mac OS, Linux, UNIX, Solaris, DOS, etc.
Page | 38
System software is a program that manages and supports the computer resources and
operations of a computer system while it executes various tasks such as processing data
and information, controlling hardware components, and allowing users to use
application software. That is, systems software functions as a bridge between computer
system hardware and the application software. System software is made up of many
control programs, including the operating system, communications software and
database manager. There are many kinds of computers these days. Some of them are
easier to learn than others. Some of them perform better than others. These differences
may come from different systems software.
The Three components of System Software
Systems software consists of three kinds of programs. The system management
programs, system support programs, and system development programs are they.
These are explained briefly.
i. System Management Programs
These are programs that manage the application software, computer hardware, and
data resources of the computer system. These programs include operating systems,
operating environment programs, database management programs, and
telecommunications monitor programs. Among these, the most important system
management programs are operating systems. The operating systems are needed to
study more details. There are two reasons. First, users need to know their functions
first. For the second, there are many kinds of operating systems available today.
Telecommunications monitor programs are additions of the operating systems of
microcomputers. These programs provide the extra logic for the computer system to
control a class of communications devices.
ii. System Support Programs
These are the programs that help the operations and management of a computer
system. They provide a variety of support services to let the computer hardware and
other system programs run efficiently. The major system support programs are system
utility programs, system performance monitor programs, and system security monitor
programs (virus checking programs).
iii. System Development Programs
These are programs that help users develop information system programs and prepare
user programs for computer processing. These programs may analyze and design
systems and program itself. The main system development programs are programming
language translators, programming environment programs, computer-aided software
engineering packages.
Page | 39
Operating Systems
An operating system is commonly also referred to system software. An operating
system is a collection of integrated computer programs that provide recurring services
to other programs or to the user of a computer. These services consist of disk and file
management, memory management, and device management. In other words, it
manages CPU operations, input/output activities, storage resources, diverse support
services, and controls various devices.
Operating system is the most important program for computer system. Without an
operating system, every computer program would have to contain instructions telling
the hardware each step the hardware should take to do its job, such as storing a file on a
disk. Because the operating system contains these instructions, any program can call on
the operating system when a service is needed.
Functions of an Operating System
An operating system executes many functions to operate computer system efficiently.
Among them, four essential functions are the followings.
i. Resource Management: An operating system manages a collection of computer
hardware resources by using a variety of programs. It manages computer system
resources, including its CPU, primary memory, virtual memory, secondary
storage devices, input/output peripherals, and other devices.
ii. Task Management: The function of the operating system that controls the running
of many tasks. It manages one program or many programs within a computer
system simultaneously. That is, this function of operating system manages the
completion of users' tasks. A task management program in an operating system
provides each task and interrupts the CPU operations to manage tasks efficiently.
Task management may involve a multitasking capability.
iii. File management: This is a function that manages data files. An operating system
contains file management programs that provide the ability to create, delete,
enter, change, ask, and access of files of data. They also produce reports on a file.
iv. User Interface: It is a function of an operating system that allows users to interact
with a computer. A user interface program may include a combination of menus,
screen design, keyboard commands. A well-designed user interface is essential
for an operating system to be popular. Because of the function, users can load
programs, access files, and accomplish other tasks.
Page | 40
3.3. Application Software

Application software are programs that interact directly with the user for the
performance of a certain type of work therefore Application Software includes
programs that do real work for user.
Example: Payroll systems, Inventory Control, Manage student database, Word
Processor, Spreadsheet and Database Management System etc.
Application software utilizes the capacities of a computer directly for a dedicated task.
Application software is able to manipulate text, numbers and graphics. It can be in the
form of software focused on a certain single task like word processing, spreadsheet or
playing of audio and video files. Here we look at the application software types along
with some examples of application software of each type.
Different Types of Application Software
Word Processing Software: This software enables users to create and edit
documents. The most popular examples of this type of software are MS-Word,
WordPad and Notepad among other text editors.
Database Software: Database is a structured collection of data. A computer
database relies on database software to organize data and enable database users to
perform database operations. Database software allows users to store and retrieve
data from databases. Examples are Oracle, MSAccess, etc.
Spreadsheet Software: Excel, Lotus 1-2-3 and Apple Numbers are some examples
of spreadsheet software. Spreadsheet software allows users to perform
calculations using spreadsheets. They simulate paper worksheets by displaying
multiple cells that make up a grid.
Multimedia Software: They allow users to create and play audio and video files.
They are capable of playing media files. Audio converters, audio players, burners,
video encoders and decoders are some forms of multimedia software. Examples of
this type of software include Real Player and Media Player.
Presentation Software: The software that is used to display information in the
form of a slide show is known as presentation software. This type of software
includes three functions, namely, editing that allows insertion and formatting of
text, methods to include graphics in the text and a functionality of executing slide
shows. Microsoft PowerPoint is the best example of presentation software.
Page | 41
Enterprise Software: It deals with the needs of organization processes and data
flow. Customer relationship management or the financial processes in an
organization are carried out with the help of enterprise software.
Information Worker Software: Individual projects within a department and
individual needs of creation and management of information are handled by
information worker software. Documentation tools, resource management tools
and personal management systems fall under the category of this type of
application software.
Educational Software: It has the capabilities of running tests and tracking
progress. It also has the capabilities of collaborative software. It is often used in
teaching and self-learning. Dictionaries like Britannica and Encarta, mathematical
software like Matlab and others like Google Earth and NASA World Wind are some
of the well-known names in this category.
Simulation Software: Used to simulate physical or abstract systems, simulation
software finds applications in both, research and entertainment. Flight simulators
and scientific simulators are examples of simulation software.
Content Access Software: It is used to access content without editing. Common
examples of content access software are web browsers and media players.
Application Suites: An application suite is an important type of application
software. It consists of a group of applications combined to perform related
functions. OpenOffice.org and Microsoft Office are the best examples of this type of
application software. These application suites, as you know, come as bundles of
applications like word processors, spreadsheets, presentation software, etc.
Applications in the suite can work together or operate on each other's files.
Software that aid Engineering and Development of Products: These software
are used in the design and development of hardware and software products.
Integrated development environments (IDE) and computer language editing tools
falls under this type of application software. Interestingly, software products are
developed using other software, and software communicate with one another
through software. Application programming interfaces which aid the
communication of two or more software are examples of this application software
type.
Page | 42
Other categories of computer software include:

Custom software vs. Packaged/standard Software
Custom software
Packaged/standard Software
Built specifically to meet your company's Built as generic solution with functions not
standards and business requirements
specific to a company's needs.
Your company could have ownership of this
custom built product at minimal cost. Thus
giving full control of future enhancements
and/or integration with other systems to
accommodate future growth and needs.
Can provide solid

relatively low cost.
functionality
at
Cost of Implementation is low and quick.

Future upgrades are again specific to your
business needs.
Future
upgrades
require
minimal
Implementation cost and/or business rule
adjustments depending on the new
requirements.
Custom solution will be built with our
"Empowered Client" approach and in
partnership with your company's team, thus
there will be total technical knowledge
transfer with product Implementation.
Therefore, providing rapid self-sufficiency.
Flexible and open for future changes and
enhancements.
Your company will never have ownership of

the packaged product, unless it buys the
company that produced the product or buys
full copyright and ownership of the product,
which usually comes with a very hefty price.
What you get with implementing a packaged
solution is the license to use the product
within its limitations.
May provide a broad number of
functionalities. Thus you may be spending
for features that don't meet your needs.
Cost of Implementation is usually higher.
Future upgrades may not benefit your
organization.
Each upgrade may require change in
hardware or platform and business rule
adjustments.
There will be knowledge transfer in term of
how to use the product but your company's
team will not have the option to change and
modify programs to suit their requirements.
Restrictive and closed to any changes and

enhancements. You may need to wait for
and hope your requirements are met in the
next upgrade.
Page | 43
Open source software vs. Proprietary Software

a) Open source software (OSS)
Open source software is computer software whose source code is available under a
license that permits users to use, change, and improve the software, and to redistribute
it in modified or unmodified form.
It is often developed in a public, collaborative manner.
Example: Well-known OSS products are Linux, Netscape, Apache, etc.
b) Proprietary Software
Proprietary software (also called non-free software) is software with restrictions on
using, copying and modifying as enforced by the proprietor. Restrictions on use,
modification and copying are achieved by either legal or technical means or sometimes
both. Proponents of proprietary software are Microsoft.
Example: CAD, Norton Antivirus etc.
Page | 44
CHAPTER 4: OFFICE AUTOMATION

4.1. Introduction
Definition: Office automation refers to the varied computer machinery and software used
to digitally create, collect, store, manipulate, and relay office information needed for
accomplishing basic tasks and goals.
Raw data storage, electronic transfer, and the management of electronic business
information comprise the basic activities of an office automation system.
Office automation software Is a class of software that its goal is to create a "Paperless
Office" and allow groups of workers to share documents and files electronically. Typical
packages include a word processing package, file storage, and calendar.
In its basic form, information exists as letters, memos, graphs, records, messages, and so on.
When that information is electronically transferred, raw data is exchanged between two or
more office employees, either at the same or different locations.
4.2.
Basics of office automation
Generally, there are three basic activities of an office automation system:

1) Storage and manipulation of data: These data usually includes office records and
other primary office forms and documents.
2) Data Exchange: Thus the exchange of stored and manipulated information between
more than one user/participant. Electronic mail and voice mail are examples of
electronic transfer applications.
3) Data Management: Thus management of stored information, task management,
tickler systems or reminder systems, and scheduling programs monitor and control
various projects and activities within the office.
NB: Within each broad application area, hardware and software combine to fulfill basic
functions.
Types of Office Automation

1.
2.
3.
4.
Word Processors
Electronic Spread Sheets
Database management systems
Presentation packages, etc.
Page | 45
4.3. Word processors

Word processing means using a computer to create, edit, and print documents. Of all
computer applications, word processing is the most common.
To perform word processing, you need a computer, a special program called a word
processor and a printer.
Definition: A word processor is a software used to create a document, store it
electronically on a disk, display it on a screen, modify it by entering commands and
characters from the keyboard, and print it on a printer.
The great advantage of word processing over using a typewriter is that you can make
changes without retyping the entire document. If you make a typing mistake, you simply
back up the cursor and correct your mistake.
BASIC FEATURES OF WORD PROCESSORS
There are many types of Word processors and therefore they do vary considerably, but all
word processors support the following basic features:
Inserting text: Allows you to insert text anywhere in the document.
Deleting text: Allows you to erase characters, words, lines, or pages as easily as you
can cross them out on paper.
Cut and Paste: Allows you to remove (cut) a section of text from one place in a
document and insert (paste) it somewhere else.
Copy: Allows you to duplicate a section of text.
Page size and margins: Allows you to define various page sizes and margins, and
the word processor will automatically readjust the text so that it fits.
Search and replace: Allows you to direct the word processor to search for a
particular word or phrase. You can also direct the word processor to replace one
group of characters with another everywhere that the first group appears.
Word wrap: The word processor automatically moves to the next line when you
have filled one line with text, and it will readjust text if you change the margins.
Print: Allows you to send a document to a printer to get hardcopy.
NB: Word processors that support only these features mentioned above (and maybe a
few others) are called Text editors. Most word processors, however, support additional
features that enable you to manipulate and format documents in more sophisticated
ways. These more advanced word processors are sometimes called Full-featured word
processors.
Page | 46
ADVANCED FEATURES OF WORD PROCESSORS

Full-featured word processors usually support the following features:
o File management: Many word processors contain file management capabilities
that allow you to create, delete, move, and search for files.
o Font specifications: Allows you to change fonts within a document. For
example, you can specify bold, italics, and underlining. Most word processors
also let you change the font size and even the typeface/font type/font style.
o Footnotes and cross-references: Automates the numbering and placement of
footnotes and enables you to easily cross-reference other sections of the
document.
o Graphics: Allows you to embed illustrations and graphs into a document. Some
word processors let you create the illustrations within the word processor;
others let you insert an illustration produced by a different program.
o Headers, footers, and page numbering: Allows you to specify customized
headers and footers that the word processor will put at the top and bottom of
every page. The word processor automatically keeps track of page numbers so
that the correct number appears on each page.
o Layout: Allows you to specify different margins within a single document and
to specify various methods for indenting paragraphs.
o Merges: Allows you to merge text from one file into another file. This is
particularly useful for generating many files that have the same format but
different data. Generating mailing labels is the classic example of using merges.
o Spell checker: A utility that allows you to check the spelling of words. It will
highlight any words that it does not recognize.
o Tables of contents and indexes: Allows you to automatically create a table of
contents and index based on special codes that you insert in the document.
o Thesaurus: A built-in thesaurus that allows you to search for synonyms
without leaving the word processor.
o Windows: Allows you to edit two or more documents at the same time. Each
document appears in a separate window. This is particularly valuable when
working on a large project that consists of several different files.
o WYSIWYG (what you see is what you get): With WYSIWYG, a document
appears on the display screen exactly as it will look when printed
There are many types of word processor but the most commonly known word processor is
Microsoft Word (MS Word). Many word processors are almost alike in style, shapes and
functionality. Therefore when you understand and master the MS Word then you can
switch to any other word processor whenever you want.
Page | 47
CHAPTER 5: DATA COMMUNICATION

5.1. Definition
Data Communications is concerned with the transmission of digital messages to devices
external to the message source.
As a rule, the maximum permissible transmission rate of a message is directly proportional
to signal power and inversely proportional to channel noise. It is the aim of any
communications system to provide the highest possible transmission rate at the lowest
possible power and with the least possible noise.
5.2. Basic Elements of a Communication System

The following are the basic requirements for working of a communication System.
1. The sender (source) who creates the message to be transmitted
2. A medium that carries the message
3. The receiver (sink) who receives the message
In data communication four basic terms are frequently used. They are:
1) Data: A collection of facts in raw forms that become information after Process ing.
2) Signals: Electric or electromagnetic encoding of data. Thus converting digital data
into electromagnetic form.
3) Signaling: Propagation of signals across a communication medium.
4) Transmission: Communication of data achieved by the processing of signals.
5.3. Data Communication Protocols

Computers send and receive data across communication links through the help of data
communication software. It is this software that enables us to communicate with other
systems. The data communication software instructs computer systems and devices as to
how exactly data is to be transferred from one place to another. The procedure of data
transformation in the form of software is commonly known as protocol.
The data transmission software or protocols perform the following functions for the
efficient and error free transmission of data
1) Data sequencing: A long message to be transmitted is broken into smaller packets
of fixed size for error free data transmission.
2) Data Routing: It is the process of finding the most efficient route between source
and destination before sending the data.
Page | 48
3) Flow control: All machines are not equally efficient in terms of speed. Hence the
flow control regulates the process of sending data between fast sender and slow
receiver.
4) Error Control: Error detecting and recovering is the one of the main functions of
communication software. It ensures that data are transmitted without any error.
5.4. Data transmission modes

There are three ways for transmitting data from one point to another:
1) Simplex: In simplex mode the communication can take place in one direction. The
receiver receives the signal from the transmitting device. In this mode the flow of
information is Uni-directional. Hence it is rarely used for data communication.
2) Half-duplex: In half-duplex mode the communication channel is used in both
directions, but only in one direction at a time. Thus a half-duplex line can alternately
send and receive data.
3) Full-duplex: In full duplex the communication channel is used in both directions at
the same time. Use of full-duplex line improves the efficiency as the line turnaround
time required in half-duplex arrangement is eliminated. Example of this mode of
transmission is the telephone line.
5.5. Digital vs. Analog Transmission

Data is transmitted from one point to another point by means of electrical signals that may
be in digital and analog form. So it is important to know the fundamental difference
between analog and digital signals.
Analog Transmission: In analog signal the transmission power varies over a continuous
range with respect to sound, light and radio waves. Analog signal is measured in Volts and
its frequency is in Hertz (Hz).
Digital Transmission: On the other hand, a digital signal may assume only discrete set of
values within a given range. Examples are computer and computer related equipment. A
digital signal is a sequence of voltage represented in binary form.
Modulation, Demodulation and Modem

When digital data are to be sent over an analog form the digital signal must be converted to
analog form.
So the technique by which a digital signal is converted to analog form is known as
MODULATION.
Page | 49
Also the reverse process, that is the conversion of analog signal to its digital form, is known
as DEMODULATION.
The device, which converts digital signal into analog, and the reverse, is known as MODEM.
5.6. Asynchronous and Synchronous Transmission

Data transmission through a medium can be either asynchronous or synchronous.
Asynchronous transmission: In asynchronous transmission data is transmitted character
by character as you go on typing on a keyboard. Hence there are irregular gaps between
characters. However, it is cheaper to implement, as you do not have to save the data before
sending.
Synchronous transmission: in the synchronous mode, the saved data is transmitted block
by block. Each block can contain many characters. Synchronous transmission is well suited
for remote communication between a computer and related devices like card reader and
printers.
5.7. Data communication front end processors

There are various types of data communication processors including:
Multiplexer: A multiplexer, sometimes referred to as a multiplexor or simply a mux,
is an electronic device that selects from several input signals and transmits one or
more output signals. In its simplest form, a multiplexer will have two signal inputs,
one control input and one output.
Example: One example of an analog multiplexer is the source control on a home
stereo unit that allows the user to choose between the audio from a compact disc
(CD) player, digital versatile disc (DVD) player and cable television line, for example.
Concentrators: A device that connects a number of links with only one destination.
Thus the device has got many inputs but are all linked towards a single output.
In data transmission, a functional unit that permits a common path to handle more
data sources than the channels currently available within the path.
Network Cards: A network card is a piece of hardware that allows a computer to
connect to a computer network. Sometimes the network card is integrated on the
motherboard. Each network card has a unique number; this is used for addressing.
It is called the address.
Page | 50
5.8. Data communication channels

A communications channel is a pathway over which information can be conveyed. These
communications media include telephone lines (twisted pairs), coaxial cable, fiber-optic
cable, microwave, and satellite. In general, there can be two ways of connecting
microcomputers with each other and with other equipment: guided and radiated media.
1) Guided Media: Refer to channels that allow the transmission of data and
information through a physical media such as a twisted pair wire, coaxial cable, or
fiber optic cable.
2) Radiated media: Refer to those that transmit data and information through the air
such as microwave, or satellite.
Types of Communication Channels:
1. Wire Pairs: Wire pairs are commonly used in local telephone communication and
for short distance digital data communication. They are usually made up of copper
and the pair of wires is twisted together. Data transmission speed is normally 9600
bits per second in a distance of 100 meter.
2. Coaxial Cables: Coaxial cable is groups of specially wrapped and insulated wires
that are able to transfer data at higher rate. They consist of a central copper wire
surrounded by an insulation over which copper mesh is placed. They are used for
long distance telephone lines and local area network for their noise immunity and
faster data transfer.
3. Fiber-optic cables: A fiber-optic cable consists of tubes of glass through which data
are transmitted as pulses of light. Although a fiber- optic cable is diametrically
smaller than a human hair, it has 26,000 times the transmission capacity of twisted
pair media. A major advantage of fiber-optic media is its high level of security. These
communications channels are not susceptible to electronic interference. Therefore,
they are a more reliable form of data transmission. Fiber-optic cables are also
significantly less expensive than coaxial cable. A disadvantage of fiber-optic
channels is that they cannot carry information over great distances.
4. Microwave: Microwaves are high-frequency radio waves that can only be directed
in straight lines. Microwave data transmission differs from the previously
mentioned communications channels in that data is transmitted through the air
instead of through cables or wires. Consequently, microwave transmission is usually
limited to communications occurring within the limits of a particular city or
community. For microwave transmissions to be able to occur over larger distances,
data messages must be relayed from one location to another using antenna placed at
high altitudes usually twenty to thirty miles apart.
5. Satellites: Instead of antennas, satellites can also be used to transfer microwave
messages from one location to another. Satellites rotate approximately 23,300 miles
Page | 51
above the earth in precise locations. Satellite transmission stations that can both
send and receive messages are known as earth stations. A major advantage of
satellite transmission is that large volumes of data can be communicated at once. A
particular drawback of several disadvantages is bad weather can severely affect the
quality of satellite transmissions. Another one is that it has a serious security
problem, because it is easy to intercept the transmission as it travels through the air.
5.9. Types of Computer network

1. LAN
o Local Area Network
o Is a group of computers and network devices connected together, usually
within the same building. It can be within the same building or compound.
o E.g. The University of Dar es Salaam or NSSF building network.
2. WAN
o Wide Area Network
o Wide Area Network (WAN) is used to connect the devices which are
geographically located at large distances.
o WAN can be used to connect two or more LANs together, that may be
geographically separated.
3. MAN
o Metropolitan Area Network
o Is a larger network that usually spans several buildings in the same city ortown.
o A good example of MAN is part of the telephone company network that can
provide a high speed communication line to the customer within the same city.
5.10. Network Topologies

What is a Topology?
o Is the way the computers are interconnected within the network.
o The physical topology of a network refers to the configuration of cables, computers,
and other peripherals.
Main Types of Physical network Topologies
1. Bus topology.
2. Star topology.
3. Ring topology.
4. Tree topology.
5. Mesh topology.
Page | 52
1. Bus topology
In bus topology computers are connected via a common bus or network link.
Advantages of a Bus Topology

o Easy to connect a computer or peripheral to a linear bus.
o Requires less cable length than a star topology.
Disadvantages of a Topology
o Entire network shuts down if there is a break in the main cable.
o Terminators are required at both ends of the backbone cable.
o Difficult to identify the problem if the entire network shuts down.
o Not meant to be used as a stand-alone solution in a large building.
2. Star topology
A star topology is designed with each node (server computer, workstations, and
peripherals) connected directly to a central network or the central server computer.
o Advantages of a Star Topology

Easy to install and wire.
No disruptions to the network then connecting or removing devices.
Easy to detect faults and to remove parts
o Disadvantages of a Star Topology
Requires more cable length than a linear topology.
If the hub or concentrator fails, nodes attached are disabled.
Page | 53
More expensive than linear bus topologies because of the cost of the
concentrators.
3. Tree topology
In tree topology there is one computer acting as a head connected to multiple computers
forming a tree-like structure. A tree topology combines characteristics of linear bus and
star topologies. It consists of groups of star-configured workstations connected to a linear
bus backbone cable.
Advantages of a Tree Topology

o Point-to-point wiring for individual segments.
o Supported by several hardware and software venders
Disadvantages of a Tree Topology
o Overall length of each segment is limited by the type of cabling used.
o If the backbone line breaks, the entire segment goes down.
o More difficult to configure and wire than other topologies.
4. Tree topology
In tree topology there is one computer acting as a head connected to multiple computers
forming a tree-like structure. A tree topology combines characteristics of linear bus and
star topologies. It consists of groups of star-configured workstations connected to a linear
bus backbone cable.
Advantages of a Tree Topology
o Point-to-point wiring for individual segments.
o Supported by several hardware and software venders
Page | 54
Disadvantages of a Tree Topology

o Overall length of each segment is limited by the type of cabling used.
o If the backbone line breaks, the entire segment goes down.
o More difficult to configure and wire than other topologies.
5.11. Computer Network Connecting Devices - Hub, Repeater, Switch,

Bridge, outer, and Gateway
To understand what connecting devices are, it is important to know about Backbone

Networks. Backbone Network is a means of connecting 2 LANs. It provides a transmission
channel for packets from being transmitted from one LAN to the other. The individual
LANs are connected to the Backbone Network by using some types of devices such as
Hubs, Repeaters, Switches, Bridges, Routers and Gateways.
Although these terms sound familiar, not many of us know the purpose of using these
devices difference between these devices. Hence, it is very important to know the basic
function of these devices in order to decide upon the device that is to be used for a
particular purpose.
a) Hub
A hub is basically a non-intelligent device, and has no decision making capability. What a
Hub basically does is take the input data from one of the ports and broadcast the
information to all the other ports connected to the network.
Page | 55
Fig 1: 4 port network

To demonstrate its working, consider a 4 port network as shown in Fig 1. There are 4
computers connected to the 4 ports. Suppose, if Computer A wants to send some data to
Computer B using a Hub, then, Computer A broadcasts the data on the network, and
Computer B, being connected to the network, has access to the data. But, in this case all the
other ports connected to the network has access to the data that is being transmitted by
Computer A. This happens because, the Hub works in the Physical Layer and hence it does
not know about the addresses of the ports connected to the network. So, there is a lack of
security in the Hub.
Fig 2: USB Hub
The picture shows a USB Hub, wherein the data is fed into the input port and is
broadcasted to all the other 4 ports. The Network Hubs are outdated and are out of the
market.
Page | 56
b) Repeater
A repeater is a device similar to the Hub, but has additional features. It also works in the
Physical layer. Repeaters receives signal and amplifies it then resend it to the other end of
the network connected. Therefore repeaters are used in places where amplification of
input signal is necessary. But, the kind of amplification done by the repeater is different
from the regular amplification by amplifiers. The regular amplifies everything fed into it.
That means, if the input signal has noise induced into it, both the desired signal and noise
signal are together amplified. But, in the case of a repeater, it regenerates the input signal,
and amplifies only the desirable signal. Hence, the noise component of the signal is
eliminated.
Fig 3: Repeater
The repeaters are necessary since, during the transmission of the signals over long
distances, the signal has attenuation, delay distortions and noise, which lead in loss of data.
Hence, in order to prevent this, the regenerative repeaters are used. Hence, the repeater
regenerates the faded signal. In addition, it has all the features of a Hub. One common
problem between the repeaters and the Hubs are that only one transmission can take place
on the network at a particular time. If multiple devices transmit data simultaneously, there
will be data collision.
c) Switch
A switch is an intelligent device. The term intelligent refers to the decision making capacity
of the Switch. It has knowledge of the addresses of the ports in the network.
Page | 57
Fig 4: Switch
Hence, in the Fig 1, if data has to be sent from Computer A to Computer B, then, the data is
transferred to the Computer B only, and not to any other computers connected on the
network. Hence, it establishes a link between the sender and the receiver based on the
addresses. This also means that when data is being sent from A to B, Computer C can
establish a link with Computer D and communication can take place between them. So,
simultaneous data transfer is possible in a switch. Also, Hub divides bandwidth, but a
Switch does not.
It is also to be noted that a switch is a secure device, because it sends information only to
the desired destinations, and also certain security features such as firewalls can be
implemented in the Switches.
d) Bridge
A bridge is also a device which interconnects computer networks, but is more primitive
when compared to a switch. Initial bridges were used to connect only 2 LANs, but the most
recent ones perform similar operation as the switches. It also works on the principle of
transfer of information using the addresses of the ports.
Fig 5: Bridge
The only difference is that, when bridging is used, each time the device has to be connected
to the internet; it has to dial to the internet and establish a connection. Also, a bridge alone
cannot be used to connect to the internet, because, has no knowledge of the IP Addresses,
which are used in the Internet.
Page | 58
e) Router
Router is a device which is used when multiple devices need to connect to the Internet
using the same Internet Protocol.
Any computer can be connected to the internet via MODEM, which performs the
MODulation and the DEModulation operations. But, when there are more than one
computer at home or in an organization, and you have a single internet connection, you
need a Router. Router is a device which is used when multiple devices need to connect to
the Internet using the same IP.
Any Internet Service Provider (ISP) provides a single Internet Protocol (IP), and especially
for personal use, the IP address is assigned dynamically. This is done because, suppose, an
ISP has 1000 IP addresses, it does not mean that it has 1000 customers. An ISP assumes
that not all devices will be connected to the internet at the same time. Hence, when a user
wants to access the internet, any IP address from the pool of IP addresses from the ISP will
be assigned to connect the user to the internet.
Fig 6: Router
Hence, the router does the job of connecting multiple devices in a LAN to the internet using
the same IP address. Since the router works in the Network Layer, it does forwarding on
the basis of IP addresses.
The Wi-Fi routers that are commonly used now are the IEEE 802.11 b/g standard router,
which is explained below.
IEEE 802.11
IEEE 802.11 is a standard for Wi-Fi. There are several different technologies/ generations
that have been implemented. As mentioned, the recent modems are IEEE 802.11 b/g
modems. The word b/g has the meaning as follows:
An IEEE 802.11 b standard uses 2.4GHz band and has a maximum transfer rate of 11 Mbps,
while the IEEE 802.11 g standard uses 2.4 GHz band and has maximum transfer rate of 54
Page | 59
Mbps. Thus the b/g modem refers to a dual bandwidth modem, which is compatible with
both the b and g standards. The standards are mainly differentiated based on the distance
and speed of data transfer.
The more recent IEEE 802.11 N standard has the capability to provide speeds of over 100
Mbps. It basically uses multiple wireless signals and antennas, and has increased signal
intensity in order to be able to provide network for greater distances. It employs MIMO
technology, wherein spatial encoding is used. The spatial pre-coding is done at the
transmitter and the post-coding is done at the receiver. Recently, Reliance Communications
was in news for implementing MIMO technology to improve its 3G data transfer speeds.
f) Gateway
The Gateway devices work where the different network technologies are implemented. A
gateway is necessary when there are different technologies implemented by the different
LANs which are to be connected together.
Fig 7: Gateway function
The Fig 7 shows the working of a gateway. Consider 2 networks, say in New York, and a
network in London. If data has to be sent from one place to another, we need to ensure that
the network technologies that are being used by both the networks are the same. If not, we
need to use a Gateway.
In the more common example, we use a telephone network and internet networks, which
works on different technologies. The telephone network follows the ISDN, and the Internet
follows the IP. Here, 2 different technologies are being used. In this case, the router fails to
work, since the router cannot understand the functionalities of both the networks. Hence,
Page | 60
we require a Gateway, which acts as a translator in communicating between the 2

networks.
g) Connecting Cables
While connecting different networks, we come across different connecting cables, which
are as follows:
RJ45/ RJ 11 Connectors: The RJ45 (Registered Jack 45) cable or the Cat 5 cable, is used to
connect the two different LANs together. This is normally confused with the RJ11 cable,
which is used in the interconnections in the telephone network.
Crossover cables: Crossover cables are generally used when 2 different computers are to be
connected together. They get the name because, in these cables, a crossover is made
between the Transmitter and Receiver ports, i.e., Transmitter of one end of the cable is
connected to the Receiver port at the other end and vice versa.
Null Modem Cables: The null modem cables are also those which are used in connecting 2
different computers to form a network. They also have a crossover, but generally, the term
null modem cables are used for RS232 standard cables.
Optical Fibers: The optical fibers are used when gigabit Ethernet is used and very high
rates of data transmission is necessary.
Fig 8: Connecting Cables
Summary:
The features of the connecting devices can be explained in brief as follows:
Hub- Broadcasts data from one port to all other ports in the network.
Repeater- Regenerates the input data which is subjected to attenuation.
Switch- Intelligent device which sends data to particular port.
Bridge-Same function as switch but much more primitive and has lesser ports.
Router-Connects all computers from a LAN to internet using same IP.
Page | 61
IEEE 802.11- Wi-Fi standard- 802.11 b has speed of 11 Mbps, 802.11 g has a speed of 54
Mbps and 802.11 N uses multiple wireless signals and antennas and has speeds of over
100Mbps.
Gateway-Needed when 2 different network technologies are being used. Acts as translator.
Connecting Cables- RJ 11(Telephone Cable), RJ 45 (LAN Cable), twisted pair cables (used in
connecting 2 computers), Null Modem Cable (RS232), Optical Fiber Cable (Gigabit
Ethernet).
5.12. Information security assurance
The greatest challenge that faces the data or information communication is the security of
information that is channeled between the sender and receiver.
Definition: Information Assurance (IA) is the study of how to protect your information
assets from destruction, degradation, manipulation and exploitation. But also, how to
recover should any of those happen.
5.12.1.
The aspects of information needing protection include:
1. Availability: timely, reliable access to data and information services for authorized
users;
2. Integrity: protection against unauthorized modification or destruction of
information;
3. Confidentiality: assurance that information is not disclosed to unauthorized
persons;
4. Authentication: security measures to establish the validity of a transmission,
message, or originator i.e. the assurance that the communicating entity is the one
that it claims to be.
5. Non-repudiation: assurance that the sender is provided with proof of a data
delivery and recipient is provided with proof of the senders identity, so that neither
can later deny having processed the data.
Importance of Information Security
Human safety
Environmental safety
Property safety
Economic stability and security
Social stability
Page | 62
Privacy, both individual and corporate

National security
5.12.2.
THE SECURITY TRINITY
This is a mode that is used in handling the security threats. The three legs of the "security
trinity" include: prevention, detection, and response, comprise the basis for security. The
security trinity should be the foundation for all security policies and measures that an
organization develops and deploys.
DETECTION
RESPONSE
PREVENTION
5.12.3.
Classes of Security attacks
Security attacks can be classified into:
1. Passive attacks: These are in the nature of eavesdropping on, or monitoring of,
transmissions. The goal of the opponent is to obtain information that is being
transmitted. Two types of passive attacks are release of message contents and traffic
analysis.
2. Active attacks: These involve some modification of the data stream or the creation
of a false data stream.
5.12.4.
1.
2.
3.
4.
Forms of Security attacks

Interruption: This is an attack on availability
Interception: This is an attack on confidentiality
Modification: This is an attack on integrity
Fabrication: This is an attack on authenticity
5.12.5.
Data communication and information systems security threats
One of the two most publicized threats to security is the intruder (the other is viruses),
generally referred to as a hacker or cracker.
A hacker is a person who is proficient in using and creating computer software to
gain illegal access to information.
Page | 63
A cracker uses various tools and techniques to gain illegal access to various
computer platforms and networks with the intention of harming the system.
There are three classes of intruders
i. Masquerader: An individual who is not authorized to use the computer and who
penetrates a system's access controls to exploit a legitimate user's account.
(Outsider).
ii. Misfeasor: A legitimate user who accesses data, programs, or resources for which
such access is not authorized, or who is authorized for such access
iii. Clandestine user: An individual who seizes supervisory control of the system and
uses this control to evade auditing and access controls or to suppress audit
collection. (Either insider or outsider).
The most common known information security is computer virus
It was estimated that a virus by the name of mydoom infected well over a quarter a million
computers in one day back in 2004. There are tens of thousands of worms and viruses now
being spread via the internet with new ones being discovered each and every day. It is
often through quite innocuous and normal internet activities like the exchange of files like
music, photos and others that many people are infected with these unwanted and
sometimes dangerous programs
There are a whole group of people that spend a tremendous amount of time looking for
what have been termed backdoors into your computer so they can find ways to inject their
code into your computer and use it for their own intentions.
5.12.6.
Computer virus
What Is A Computer Virus?

There are many types of computer viruses but what is a computer virus? A computer
virus has been defined as a set of computer instructions that reproduces itself and it may
attach to other executable code. Usually this code is a short program that may either embed
in other code or stand on it's own. In essence, this computer program is designed to infect
some aspect of the host computer and then copy itself as much and as often as it has the
chance.
There are a whole group of people that spend a tremendous amount of time looking for
what have been termed backdoors into your computer so they can find ways to inject their
code into your computer and use it for their own intentions.
What does a virus do?
Page | 64
The task of a virus is not always destructive like deleting files that may be important or
something like causing your hard drive to crash. Many viruses these days are more
interested in harvesting information from your computer and or using it as a zombie for
their
intentions
like
spam
or
other
illegal
purposes.
In times past it was often the intention of a virus to do damage just for the sake of
destruction and maybe bragging rights among peers but almost all viruses today that are
widespread have at their root some economic agenda.
How does a virus spread?
One of the intents of all types of computer viruses that gets installed on your computer
will be to spread itself. This happens in a fashion that is not all that different from what
happens with a virus in the human population. It is through exposure that the virus spreads
when the computers defenses are down or non existent. Also like their biological
counterpart the computer virus can be spread rapidly and are not very easy to get rid of.
Because the way a virus operates is to be stealthy, coupled with the rapid communications
that happen between todays, it is easy to dramatically increase the speed at which a virus
that is targeting a newly discovered vulnerability can move around the web
A virus that targets a network of computers can even more easily spread since so many
computers are connected and most likely will have the same vulnerability and easy access
to one another. Often viruses will spread via shared folders, email or over other media that
is often exposed to other computers via removable media like cds and flash drives.
Because there are so many types of computer viruses, a virus can infect another computer
unintentionally anytime that program is run and the virus is activated. Something like
opening a email attachment or downloading a file off the internet or giving or receiving a
copy of a program or file from a co-workers thumb drive can expose you and others to a
computer
virus.
Literally the gamut of these types of computer viruses can expose you whenever you have a
downloaded file or a external drive attached to your pc. The most common way they spread
is via email attachments or with the use or transfer of files via instant messaging.
The Types Of Computer Viruses
There are number of broad categories or types of computer viruses, some of these include:
1. Boot Sector Virus
Page | 65
2. File Infection Virus

3. Multipartite Virus
4. Network Virus
5. E-mail Virus
6. Macro Virus
7. Polymorphic Virus
8. Web Scripting Virus
9. Resident Virus
10. Direct Action Virus
1. Boot sector virus
Viruses that aim at the boot sector of a hard drive are infecting a very crucial component of
the boot process. The boot sector holds critical information that controls the hard drive and
also the part of the operating program that is in charge of the whole boot process. These
types of computer viruses go a long way toward the assurance they will be successful in
their mission by absolutely loading into the system memory while the boot cycle is starting.
Unlike other viruses the boot virus does not affect files, instead it goes after the drive itself
on which the virus is saved and this is part of the reason that it is no longer as big a threat
as it used to be. Since the advent of cds and dvds and the drives that carry them it is not
possible to infect the programs that they carry. In the days of floppy drives the virus could
spread quite quickly from computer to computer via the disks but since it is not possible to
infect a cd or dvd this virus has become almost a non threat. Another reason this types of
computer viruses have become less common is that now operating systems stand guard
over the boot sector and that makes it very hard for the virus to have any effect.
File Infection Virus
File viruses are coded so that they will attach themselves to exe files, compressed files like
zip files and driver files. The can be set into actions when the program they are attached to
is started. Then after the virus is set into motion it will attach itself to other programs and
system files and start along it's intended path for which it was written. So you see it is a two
prong approach. First depending on the types of computer viruses it will duplicate and then
go about its intended mission. The virus will search through the programs in the system
and find places to infect with the code and then it will activate when that program is run
next time. It will continue to duplicate until it is all over the computer and probably any
computer
that
is
attached
to
the
original
system.
Often these viruses will harbor special code that causes them to be activated when certain
Page | 66
events take place. The event often is a date or some other trigger event that is easily
defined
on
any
computer
system
you
may
have.
Multipartite Virus
That which has been termed the multipartite virus are the types of computer viruses that
are both a file virus and a boot sector virus. They enter the computer via various sorts of
media and then embed themselves in the system memory. They then go into the hard drive
and infect the boot sector. Once installed in the boot sector these types of computer viruses
infect
executable
files
and
spread
themselves
in
the
system.
This is another virus that has past its prime for various reasons but in times past these
types of computer viruses were responsible for many infections because they combined
characteristics
of
two
different
viruses
into
one.
Network virus
A virus that is especially made for networks is uniquely created to quickly spread
throughout the local area network and generally across the internet as well. Most of the
time is moves within shared resources like drives and folders. Once it finds entry into a
system it will search for vulnerable computers in the network and likewise infect that
system and do the same again and again always on the hunt for new vulnerable systems.
Email virus
Most of the time a e-mail virus is one of those types of computer viruses that is generally a
macro virus and it will multiply itself by seeking out the other contacts in a e-mail address
book and then send itself to those addresses in hopes that they will activate the virus too.
Thus it spreads over and over again exponentially. There are even times an email virus can
spread by only previewing it in the mail client. One that was very successful in spreading
worldwide was the ILOVEYOU virus and it was destructive too.
Macro Virus
Macro viruses as the name implies, will infect files of programs that use macros in the
program itself. The most common of these are the Microsoft Office files created in Excel
spreadsheets, Word documents, Access databases, Powerpoint presentations and these
Page | 67

type
of
files
from
AmiPro

and
Corel
Draw
and
others.
These types of computer viruses are programmed using the language that the application
understands and not in the language of the operating system thus they are operating in a
way that is independent of the operating system so it can infect any kind of system be it
Mac, PC or even Linux just as long as the computer is running the application that
understands the macro virus. As the macro language has become more and more powerful
the threat of these types of computer viruses has graduated to more critical types of
computer viruses. These viruses have been around since 1995 and the first was found to
infect Microsoft Word but now have moved to other programs and they number in the
thousands.
Polymorphic virus
Polymorphic virus actually mutates/multiply over time or after every execution, changing
the code used to deliver its payload. Alternatively, or in addition, a Polymorphic virus may
guard itself with an encryption algorithm that automatically alters itself when certain
conditions are met.
The goal of this trickery is evasion. Antivirus programs often find viruses by the specific
code used. Obscuring or changing the code of a virus can help it avoid detection.
Direct Action Virus
This type of virus, unlike most, only comes into action when the file containing the virus is
executed. The payload is delivered and then the virus essentially becomes dormant it
takes no other action unless an infected file is executed again.
Resident Virus
This broad virus definition applies to any virus that inserts itself into a systems memory. It
then may take any number of actions and run independently of the file that was originally
infected.
A resident virus can be compared to a direct payload virus, which does not insert itself into
the systems memory and therefore only takes action when an infected file is executed.
Web Scripting Virus
Many websites execute complex code in order to provide interesting content. Displaying
online video in your browser, for example, requires the execution of a specific code
language that provides both the video itself and the player interface.
Page | 68
Of course, this code can sometimes be exploited, making it possible for a virus to infect a
computer or take actions on a computer through a website. Although malicious sites are
sometimes created with purposely infected code, many such cases of virus exist because of
code inserted into a site without the webmasters knowledge.
One should always be on the lookout for these types of computer viruses and should take
every precaution to avoid them. Be ever watchful of every file you open.
Hint: Another common type of computer security threat is a computer worm
What is a worm?
A worm is a special kind of computer virus that propagates by self-replication over a
computer network. This propagation can be either via e-mail or other means such as files
being copied over a network.
5.13. Computer Virus vs. Computer Worm

Computer Virus
Computer Worm
Definition
The virus is the program code

that
attaches
itself
to
application program and
when application program
run.
The worm is code that

replicate itself in order to
consume resources to bring it
down.
Whose speed is more?
Virus is slower than worm.
Worm is faster than virus. E.g.

The code red worm affected 3
lack PCs in just 14 Hrs.
How does it infect a It inserts itself into a file or It exploits a weakness in an

computer system?
executable program.
application
or
operating
system.
How can it spread?
It has to rely on users

transferring
infected
files/programs
to
other
computer systems.
It can use a network to

replicate itself to other
computer systems without
user intervention.
Page | 69
Do it infects file?
Yes, it deletes.modifies the No, it only monopolies the

file.And also change the CPU and memory.
location of file.
Can it be controlled No
remotely?
Yes
5.13.1.
Security Mechanisms
A security mechanism is a method, tool, or procedure for enforcing a security policy. There
are various ways of enforcing a security policy so as to deal with security threats. These
include:
1) Encryption: transforming data into something an attacker cannot understand,
i.e., providing a means to implement confidentiality, as well as allowing user to
check whether data have been modified.
Terminologies:
Encryption Is the process of encoding a message so that its meaning is not
obvious.
Decryption is the reverse process, transforming an encrypted message back
into its normal, original form
A system for encryption and decryption is called a cryptosystem.
Key: Piece of data used in the encryption and decryption process.
Plaintext: The original form of a message is known as plaintext i.e. Plaintext:
input to the encryption process.
Cipher text: The encrypted form of a message is called cipher text i.e.
Cryptography: science and art of designing ciphers.
Cryptanalysis: science and art of breaking ciphers.
2) Authentication: verifying the claimed identity of a subject, such as user name,
password, etc.
3) Authorization: checking whether the subject has the right to perform the action
requested.
4) Auditing: tracing which subjects accessed what, when, and which way. In
general, auditing does not provide protection, but can be a tool for analysis of
problems.
Page | 70
CHAPTER 6: INTERNET
6.1. What is Internet?
o The internet is a network of the interlinked computers worldwide, which is accessible
to the general public. These interconnected computers work by transmitting data
through a special type of standard Internet protocol which is known as the IP or the
internet protocol (TCP/IP).
o Information can pass from one computer to another through several other computers.
o Internet is such a huge network of several different interlinked networks relating to
the business, government, academic, and even smaller domestic networks, therefore
internet is known as the network of all the other networks. These networks enable the
internet to be used for various important functions which include the several means of
communications like the file transfer, the online chat and even the sharing of the
documents and web sites on the WWW, or the World Wide Web.
6.2. Historical development of the internet

The history of the Internet began with the development of computers in the 1950s. This
began with point-to-point communication between mainframe computers and terminals,
expanded to point-to-point connections between personal computers.
In 1982 the Internet Protocol Suite (TCP/IP) was standardized and the concept of a worldwide network of fully interconnected TCP/IP networks called the Internet was introduced.
Commercial internet service providers (ISPs) began to emerge in the late 1980s and 1990s
providing more access to internet services to more and more people.
Since the mid-1990s the Internet has had a drastic impact on culture and commerce,
including the rise of near-instant communication by electronic mail, instant messaging,
Voice over Internet Protocol (VoIP) "phone calls", two-way interactive video calls, and the
World Wide Web with its discussion forums, blogs, social networking, and online shopping
sites.
6.3. The World Wide Web
Definition: A collection of multimedia hypertext documents that reside on computers and
that can be accessed by other computers on the Internet. It is abbreviated as WWW.
Page | 71
Some common terms associated with the World Wide Web:

Webpage: Is a document on the World Wide Web that consist of multimedia
documents such as text, images, sounds, drawings and videos as well as links to
other documents on the web.
A Webpage, identified by a unique address called the Uniform Resource Locator,
or URL.
URL commonly referred to as a Web address.
A URL is a type of Uniform Resource Identifier (URI), which is a generic term for
many types of names and addresses on the World Wide Web.
Web site: refers to the location on the Internet of the Web pages and related files
(such as graphic files) that belong to a company, organization, or individual.
Originally, people created Web pages using Hypertext Markup Language.
Domain Name (DNS) Is the name that uniquely identifies the website. E.g.
www.yahoo.com or www.covenantfinco.com
Hypertext Markup Language (HTML): is a simple language used to create the Web
pages that appear on the World Wide Web. Web pages are created using Hypertext
Markup Language (HTML), which is the authoring language used to create
documents on the World Wide Web
A markup language: is a set of characters or symbols that define a documents
logical structure or how a document should be printed or displayed.
A hypertext link or hyperlink: contains a reference to a specific Web page that you
can click to quickly open that Web page.
Hypertext linking: refers to accessing cross-referenced documents. This is
probably the most important aspect of the Web because it allows you to quickly
open other Web pages
Hypertext: is the text that allows creating a link in a Web page that leads to any
other pages on the Web. Hence information on the Web can be accessed from many
different locations.
Universality: means that any computer can read a Web page regardless on
platforms or operating systems.
Page | 72
Web Servers: Web pages are stored on a Web server, or host, which is a computer
that stores and sends (serves) requested Web pages and other files.
Publishing a website is copying Web pages and other files to a Web server.
Web page design, or Web design, refers to the visual design and creation of the
documents that appear on the World Wide Web.
A Web browser, also called a browser, is a program that interprets and displays
Web pages and enables you to view and interact with a Web page.
Examples: Microsoft Internet Explorer, Opera, Netscape, Mozilla Firefox, etc.
Browser implements the following functions:
1. Search and access to a Web-server.
2. Loading, formatting, and displaying HTML-document.
3. Hyperlink detection and moving from one document to another.
4. Execute other programs
5. Enhance applications such as real-time audio or video
Types of internet
1. Intranet
o A network based on TCP/IP protocols (an internet) belonging to an organization,
usually a corporation, accessible only by the organization's members,
employees, or others with authorization
o A TCP/IP network located within a single organization for purposes of
communications and information processing
o An intranet's Web sites look and act just like any other Web sites, but the
firewall surrounding an intranet fends off unauthorized access
o A firewall can be defined as a system designed to prevent unauthorized access to
or from a private network
2. Extranets
o Formed when firms permit outsiders to access their internal TCP/IP networks
o Partially accessible to authorized outsiders.
o Whereas an intranet resides behind a firewall and is accessible only to people
who are members of the same company or organization, an extranet provides
various levels of accessibility to outsiders
o You can access an extranet only if you have a valid username and password, and
your identity determines which parts of the extranet you can view.
Page | 73
o Extranets are becoming a very popular means for business partners to exchange
information.
5.4. Internet protocols

There are many other Internet protocols and utility programs that provide service to users
in the form of Internet applications that run on clients and servers that enables the data
transfer from one location in the internet to another.
Example:
HTTP, E mail Protocols, FTP, Telnet, and, SSL

HTTP
o Hyper Text Transfer Protocol
o Protocol used to transfer Web pages
SMTP
o Simple Mail Transfer Protocol
o Protocol used to send e mail to a server
SSL
o Secure Sockets Layer
o Protocol that secures communications between client and the server
FTP
o File Transfer Protocol
o Part of TCP/IP protocol
o Permits users to transfer file from the server to their client personal computer,
and vice versa.
Connecting to the internet
A computer alone is not enough to access the internet. In addition to web browser
software, the computer needs specific hardware and a connection to an Internet Service
Provider to view web pages
The necessary components
A modem or network card: Hardware that enables a computer to connect to a
network.
Register with an Internet Service Provider (ISP), an organization or company that
supplies the internet service access to various clients.
5.5. What is an Email?
Definition: Electronic mail, commonly known as email or e-mail, is a method of exchanging
digital messages from an author to one or more recipients.
An email message consists of three components
Page | 74
1. Message envelope
2. Message header
3. message body
The message header contains control information, including, minimally, a senders email
address and one or more recipient addresses. Usually descriptive information is also
added, such as a subject header field and a message submission date/time stamp.
Basic Features of Email
Email Address: This uniquely identifies the sender and the receiver of the digital
messages sent by means of an email.
The structure of email Most often take the form of loginID@domain-name; e.g.
godson@covenantfinco.com No spaces, no parentheses, and no commas in the
address!
The message receiver addresses: are to be written when attempting to send an
email.
Subject: The subject to abstract the contents of the message.
The Body of the message.
Inbox: The inbox displays a list of received messages. Each message header shows
you who sent the mail, the subject line, the time and date it was sent, and at times,
the size of the message.
Sent items/messages: Displays a list of sent messages.
Drafts: the place where messages can be temporarily stored so that they can be
sent in the near future.
Uses of Email
Email allows individuals and groups to communicate with one another. Some of the
common uses of email include:
Information Exchange
Brainstorming and Problem Solving
Record Keeping
Group Work
Staying in Touch Professionally
Staying in Touch Socially
Transmitting Documents
Advantages of email
a. Fast and cheap
b. Ideal way to reach persons who are difficult to get on the phone.
c. Because it is written, you can compose and review your message before sending.
Page | 75
d. Ideal for international communications (expense, problems reaching colleagues,

differences in time zones)
e. Convenient and non-intrusive: e.g. can be answered anytime of you preference.
f. You can check your email from any computer in the world; e.g., while visiting, from
the office, in your car, etc.
g. Ability to send same message to predefined groups of people
h. Ability to include attached files, documents, pictures, datasets.
i.
Messages easily achievable; search by sender, date, subject, or put into separate
mailboxes
j.
Ability to paste from other applications directly into email document (e.g., a review
of a paper found on a website)
k. You can easily include all or part of previous messages, or the message you are
responding to, including point by point responses to questions, etc.
Disadvantages of email
a. Privacy issues
Interception: By unauthorized users on the Web (email can be encrypted)
Difficult to delete: Emails are stored in a variety of places on computer disks.

Difficult to completely erase and destroy.
Masquerade: Someone can masquerade as you; send emails in your name. No

unique signature.
Forwarding function: A recipient can remail a sender's message to a large

number of people; e.g., you criticize the boss, and your colleague forwards your
critical letter to all the employees in the company
b. Easy to get swamped (but you can filter and sort messages)
c. A hazard for emotionally "fiery" people; you get mad, you fire off an email, the
recipient forwards it to 10 other people, including the target of your anger, and you
pay the consequences for many months to come.
d. You don't always know when/if your message has been read (some email programs
notify sender when email has been read)
Page | 76
CHAPTER 7: E-COMMERCE
7.1. Definition
E-commerce refers to aspects of online business involving exchanges among

customers, business partners and vendors.
E-commerce describes the process of buying, selling, transferring, or exchanging
products, services, and/or information via computer networks, including the
Internet
For example
Suppliers interact with manufacturers
Suppliers interact with manufacturers, customers interact with sales
representatives
And shipment providers interact with distributors.
E-commerce transforms economic activities into digital media; thus as exchange of
information, content, agreements, and services among parties that are connected to
through the Internet.
Enables new ways of creating, delivering and capturing value to customers by
convenience and superior information.
7.2. E-commerce technology unique features

Ubiquity
Internet/Web technology is available everywhere; At home, office, anywhere via
mobile device anytime.
Global reach
o The technology reaches across national boundaries, around the world
o Commerce is enabled across cultural and national boundaries
o Market place includes potentially billions of consumers and millions of
business worldwide
Universal standard
o There is one set of technology standards, namely internet standards
o One set of technical media standards across the world (TCP/IP)
Richness
o Video, audio, and text marketing messages are integrated into single
market message and consuming experience
o Hence, video, audio, and text messages are possible
Interactivity
o The technology works through interaction with the user
Page | 77
o Customers are engaged in a dialog that dynamically adjusts the

experience to the individual, and makes the customer a co participant in
the process of delivering goods to the market
Information density
o The technology reduces information costs and raises quality
o Information processing, storage and communication costs drop
dynamically, while currency, accuracy, and timeliness improve greatly
o Information becomes plentiful, cheap, and accurate
Personalization/customization
o The technology allows personalized messages to be delivered to
individuals as well as group
o Personalization of marketing messages and customization of products
and services are based on individual characteristics
Social technology
o User content generation and social networking
o New business social business models enable user content creation and
distribution, and support social networks
7.3. Types of E-commerce

1. B2C-Business- to- consumer
e.g., Amazon is a general merchandiser that sells consumer products to retail
consumers
2. B2B-Business- to- Business
e.g., Food trade is an independent 3rd party commodity exchange, auctions
provider, and market information source that serves the food and
agricultural industry
3. C2C-Consumer-to-Consumer
Web auction sites where consumers can auction or sell goods directly to
other consumers
e.g., www.eBay.com,
4. P2P-Peer-to-Peer
e.g., BitTorrent is a software application that permits consumers to share
video and other high bandwidth content with one another directly, without
the intervention of a market marker
5. M-Commerce-Mobile commerce
Wireless devices can be used to conduct commercial transactions
e.g., PDA, Cell phones
Page | 78
7.4. Objectives of E-commerce

The objectives of e-commerce can be analyzed by asking our self, why get online?
Promote awareness of your Organization
Sell a product
Customer support
Information and contact page
Networking
Everyone else has a web page now days
How to Market your e-commerce Web site
When managing your e-commerce website you should ask yourself how do people find
your website?
ONLINE Strategy
Links from related and / or popular web sites
Search Engines
Online Advertisements
Informed by other users
OFFLINE Strategy
Show Your URL i.e. www.MYCOMPANY.com
Stationary
Advertising on conventional media
Trade shows
7.5. Benefits of E-commerce

The positive behavior could be due to the benefits that online shopping provides, including:
the simplicity of shopping,
the quantity of products offered,
the reasonable prices
more option to choose,
shopping with no queues
And the utilize of HTTPS websites which gives security certificates.
Other benefits include:
No vendors and no pressure
Benefits individuals and society as hall, no human resources required to
browse online mall
On top of that there is no pressure to buy the products that customers need
No More Driving
Page | 79
Enables customers to get all of the gifts they want with a few clicks of the
mouse without starting up the engine.
More comparison of product price and features
Gives more product comparison; consumers could evaluate and compare
products with less effort before they make up decision
Ultimate convenience
Enables consumers to shopping while they sit at home which allow them to
save time and find the product more easily
This includes the overall ease of finding a product, time spent on shopping,
minimization of overall shopping effort
By definition, an online store is open 24 hours a day, seven days a week.
Infinite shelf place available
Consumers want diversity of products as they can choose the right one out of
many that would suit them
There are unlimited products available online as it enables consumers to
browse products that are available throughout the world with no
geographical limit.
7.6. Barrier to adoption of E-commerce

The negative behavior might be due to the concerns and problems that could come up
while shopping; the concerns are mostly dealing with the secrecy (privacy) and security of
transactions.
Page | 80
CHAPTER 8: COMPUTERIZED ACCOUNTING SYSTEMS

3.1. Introduction
Transaction processing system (TPS) is the first stage of computerized accounting system.
The purpose of any TPS is to record, process, validate and store transactions that occur in
various functional areas of a business for subsequent retrieval and usage. TPS involves
following steps in processing a transaction: Data Entry, Data Validation, Processing and
Revalidation, Storage, Information and Reporting.
Computerized accounting system is one of the transaction processing systems which is
concerned with financial transactions only. When a system contains only human resources
it is called manual system; when it uses only computer resources, it is called computerized
system and when it uses both human and computer resources, it is called computer-based
system.
The computerised accounting is one of the database-oriented applications wherein the
transaction data is stored in well- organized database. The user operates on such database
using the required interface and also takes the required reports by suitable
transformations of stored data into information.
Therefore, the fundamentals of computerised accounting include all the basic requirements
of any database-oriented application in computers.
3.2. Role of computers in accounting

The most popular system of recording of accounting transactions is manual which requires
maintaining books of accounts such as Journal, Cash Book, Special purpose books, ledger
and so on. The accountant is required to prepare summary of transactions and financial
statements manually. The advanced technology involves various machines capable of
performing different accounting functions, for example, a billing machine. This machine is
capable of computing discount, adding net total and posting the requisite data to the
relevant accounts.
With substantial increase in the number of transactions, a machine was developed which
could store and process accounting data in no time. Such advancement leads to number of
growing successful organizations. A newer version of machine is evolved with increased
speed, storage, and processing capacity. A computer to which they were connected
operated these machines. As a result, the maintenance of accounting data on a real-time
basis became almost essential. Now maintaining accounting records become more
convenient with the computerised accounting.
The computerised accounting uses the concept of databases. For this purpose an
accounting software is used to implement a computerised accounting system. It does away
the necessity to create and maintain journals, ledgers, etc., which are essential part of
manual accounting. Some of the commonly used accounting software are Tally, Cash
Manager, Best Books, etc. Accounting software is used to implement a computerised
accounting. The computerised accounting is based on the concept of database. It is basic
Page | 81
software which allows access to the data contained in the data base. It is a system to
manage collection of data insuring at the same time that it remains reliable and
confidential.
3.3. Components of Computerized accounting software

1. Preparation of accounting documents
Computer helps in preparing accounting documents like Cash Memo, Bills and invoices
etc., and preparing accounting vouchers.
2. Recording of transactions
Every day business transactions are recorded with the help of computer software.
Logical scheme is implied for codification of account and transaction. Every account and
transaction is assigned a unique code. The grouping of accounts is done from the first
stage. This process simplifies the work of recording the transactions.
3. Preparation of Trial Balance and Financial Statements
After recording of transaction, the data is transferred into Ledger account automatically
by the computer. Trial Balance is prepared by the computer to check accuracy of the
records. With the help of trial balance the computer can be programmed to prepare
Trading, Profit and Loss account and Balance Sheet.
These steps can be explained with an example making use of Automatic Teller Machine
(ATM) facility by a Bank-Customer.
1. Data Entry: Processing presumes data entry. A bank customer operates an ATM facility
to make a withdrawal. The actions taken by the customer constitute data which is
processed after validation by the computerized personal banking system.
2. Data Validation: It ensures the accuracy and reliability of input data by comparing the
same with some predefined standards or known data. This validation is made by the
Error Detection and Error Correction procedures. The control mechanism, wherein
actual input data is compared with predetermined norm is meant to detect errors while
error correction procedures make suggestions for entering correct data input. The
Personal Identification Number (PIN) of the customer is validated with the known data.
If it is incorrect, a suggestion is made to indicate the PIN is invalid. Once the PIN is
validated, the amount of withdrawal being made is also checked to ensure that it does
not exceed a pre-specified limit of withdrawal.
3. Processing and Revalidation: The processing of data occurs almost instantaneously
in case of Online Transaction Processing (OLTP) provided a valid data has been fed to
the system. This is called check input validity. Revalidation occurs to ensure that the
transaction in terms of delivery of money by ATM has been duly completed. This is
called check output validity.
Page | 82
4. Storage: Processed actions, as described above, result into financial transaction data
i.e. withdrawal of money by a particular customer, are stored in transaction database of
computerized personal banking system. This makes it absolutely clear that only valid
transactions are stored in the database.
5. Information: The stored data is processed making use of the Query facility to produce
desired information.
6. Reporting: Reports can be prepared on the basis of the required information content
according to the decision usefulness of the report.
3.4. Need and requirements of computerized accounting

The need for computerized accounting arises from advantages of speed, accuracy and
lower cost of handling the business transactions.
Numerous Transactions
The computerized accounting system is capable of handling large number of transactions
with speed and accuracy.
Instant Reporting
The computerized accounting system is capable of offering quick and quality reporting
because of its speed and accuracy.
Reduction in paper work
A manual accounting system requires large physical storage space to keep accounting
records/books and vouchers/ documents. The requirement of stationery and books of
accounts along with vouchers and documents is directly dependent on the volume of
transactions beyond a certain point. There is a dire need to reduce the paper work and
dispense with large volumes of books of accounts. This can be achieved by introducing
computerized accounting system.
Flexible reporting
The reporting is flexible in computerized accounting system as compared to manual
accounting system. The reports of a manual accounting system reveal balances of accounts
on periodic basis while computerized accounting system is capable of generating reports of
any balance as when required and for any duration which is within the accounting period.
Accounting Queries
There are accounting queries which are based on some external parameters. For example, a
query to identify customers who have not made the payments within the permissible credit
period can be easily answered by using the structured query language (SQL) support of
database technology in the computerized accounting system. But such an exercise in a
manual accounting system is quite difficult and expensive in terms of manpower used. It
will still be worse in case the credit period is changed.
On-line facility
Computerized accounting system offers online facility to store and process transaction data
so as to retrieve information to generate and view financial reports.
Page | 83
Scalability
Computerized accounting systems are fully equipped with handling the growing
transactions of a fast growing business enterprise. The requirement of additional
manpower in Accounts department is restricted to only the data operators for storing
additional vouchers. There is absolutely no additional cost of processing additional
transaction data.
Accuracy
The information content of reports generated by the computerized accounting system is
accurate and therefore quite reliable for decision making.
In a manual accounting system the reports and information are likely to be distorted,
inaccurate and therefore cannot be relied upon.
It is so because it is being processed by many people, especially when the number of
transactions to be processed to produce such information and report is quite large.
Security
Under manual accounting system it is very difficult to secure such information because it is
open to inspection by any eyes dealing with the books of accounts. However, in
computerized accounting system only the authorized users are permitted to have access to
accounting data. Security provided by the computerized accounting system is far superior
compared to any security offered by the manual accounting system.
Basic requirements of the computerised accounting system

The basic requirements of any computerised accounting system are the followings:
Accounting framework
It is the application environment of the computerised accounting system.
A healthy accounting framework in terms of accounting principles, coding and grouping
structure is a pre-condition for any computerised accounting system.
Operating procedure
A well-conceived and designed operating procedure blended with suitable operating
environment of the enterprise is necessary to work with the computerised accounting
system.
3.5.
Difference between Manual accounting and Computerised accounting
Point of Difference
1. Recording
2. Classification
Manual Accounting
Records
of
financial
Transactions is through books of
original entry.
Transactions recorded in books
of original entry are further
classified by posting them into
ledger accounts. This results in
transaction data duplicity.
Computerised Accounting
Data
content
of
these
transactions is stored in welldesigned data base.
No such data duplications is
made. In order to produce
ledger accounts the stored
transaction data is processed to
appear as classified transaction
so that same is presented in the
Page | 84

form of report.
3. Summarizing
4. Adjusting entries
5. Financial
Statements
3.6.
Transactions are summarized to

produce trial balance by
ascertaining the balances of trial
balance various accounts.
Adjusting entries are made
entries to adhere to the principle
of and matching.
The generation of ledger

accounts is not necessary
condition for trial balance.
There is nothing like making
adjusting entries for errors
rectifications.
The preparation of financial The preparation of financial

statements
assumes
the statements is independent of
statements are independent of producing the trial balance.
availability of trial balance.
Limitations of a computer and computerized accounting systems
The limitations of computer are depending upon the operating environment they work in.
These limitations are given below as:
Cost of Installation
Computer hardware and software needs to be updated from time to time with availability
of new versions. As a result heavy cost is incurred to purchase a new hardware and
software from time to time.
Cost of Training
To ensure efficient use of computer in accounting, new versions of hardware and software
are introduced. This requires training and cost is incurred to train the staff personnel.
Self-Decision Making
The computer cannot make a decision like human beings. It is to be guided by the user.
Maintenance
Computer requires to be maintained properly to help maintain its efficiency. It requires a
neat, clean and controlled temperature to work efficiently.
Dangers for Health
Extensive use of computer may lead to many health problems such as muscular pain,
eyestrain, and backache, etc. This affects adversely the working efficiency and increasing
medical expenditure.
Page | 85
Authors Biography
Godson Hance Mkaro is a successful multi-profession expert with
diverse skills in Information and Communication technology
combined with Finance expertise.
He holds a Bachelor of Science in Computer Science which he
pursued at the University of Dodoma, Accounting Technician
cerficate as well as CPA (T) W.I.P
He has a fine defined experience in both ICT and Finance industries
due to his background and hand on practice in the fields.
IT technician in the hardware department at the University Computing Center (UCC)
headquarters at UDSM main campus Dar-es-Salaam.
From July 2009 to October 2009
IT consultant and tutor at Igans Computing Center (ICC) Mwanza
From July 2010 to October 2010
Later on he become a freelancer and developed a number of reputable websites in
Tanzania such as www.bongomovies.com as well as www.swahilistores.com which is an ecommerce website under his affiliate company known as Swahili online store.
From October 2010 to May 2011
Finance officer at Advans bank. Specialized in BOT regulatory returns preparation, UMOJA
switch ATM reconciliation, Cheque clearing, Management Information System reports
preparation, TISS and SWIFT operation and management, Supplier payments controls,
Bank reconciliations as well as treasury Tanzania
From May 2012 to May 2013
Finance Officer at Diamond Trust Bank Tanzania, Specialized in BOT regulatory reports,
Management reporting, Management Information Systems reports automation, Flexicube
system Finance support.
From May 2013 to date
Financial analyst consultant and Tutor part time NBAA professional exams (evening
classes) at Covenant Financial Consultant
From May 2011 to date
Page | 86

It Manual PDF

Загружено:

Сведения о документе

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

It Manual PDF

Загружено:

Авторское право:

Доступные форматы

COVENANT FINANCIAL CONSULTANTS

CPA (T) REVIEW CLASSES

DESIGNATED FOR ATEC II - NBAA SYLABUS

Phone: +255 717 348 616, +255 769 348 616

COVENANT FINANCIAL CONSULTANTS

CPA (T) REVIEW CLASSES

What Is Information Technology (IT)? .......................................................................................... 4

What is a Computer? .................................................................................................................... 5

What is ICT? .................................................................................................................................. 9

What is Internet? ........................................................................................................................ 10

What is e-commerce? ................................................................................................................. 10

What is Multimedia? ................................................................................................................... 10

Computer languages ................................................................................................................... 11

Information and computing revolution/evolution ..................................................................... 14

Importance of information and Communication Technology in community and social

CHAPTER 2: COMPUTER HARDWARE .......................................................................................... 33

Components of the computer hardware .................................................................................... 33

CHAPTER 3: COMPUTER SOFTWARE ............................................................................................ 38

System Software ......................................................................................................................... 38

CHAPTER 4: OFFICE AUTOMATION ............................................................................................... 45

Basics of office automation......................................................................................................... 45

Word processors ......................................................................................................................... 46

COVENANT FINANCIAL CONSULTANTS

CPA (T) REVIEW CLASSES

CHAPTER 5: DATA COMMUNICATION .......................................................................................... 48

Basic Elements of a Communication System .............................................................................. 48

Data Communication Protocols .................................................................................................. 48

Data transmission modes............................................................................................................ 49

Digital vs. Analog Transmission ................................................................................................... 49

Asynchronous and Synchronous Transmission ........................................................................... 50

Data communication front end processors ................................................................................ 50

Data communication channels ................................................................................................... 51

Types of Computer network ....................................................................................................... 52

5.10. Network Topologies .................................................................................................................... 52

Internet protocols ....................................................................................................................... 74

What is an Email? ........................................................................................................................ 74

CHAPTER 7: E-COMMERCE ............................................................................................................... 77

CHAPTER 8: COMPUTERIZED ACCOUNTING SYSTEMS ........................................................... 81

Role of computers in accounting ................................................................................................ 81

Components of Computerized accounting software .................................................................. 82

Need and requirements of computerized accounting ................................................................ 83

COVENANT FINANCIAL CONSULTANTS

CPA (T) REVIEW CLASSES

Difference between Manual accounting and Computerised accounting ................................... 84

COVENANT FINANCIAL CONSULTANTS

CPA (T) REVIEW CLASSES

The transition from Facts to Information

1.2. What is a Computer?

A processor to interpret and execute programs

COVENANT FINANCIAL CONSULTANTS

CPA (T) REVIEW CLASSES

An Example of a desktop computer

COVENANT FINANCIAL CONSULTANTS

CPA (T) REVIEW CLASSES

Consider the following computer sales advertisement:

Illustration1: The overview of general computer specifications.

COVENANT FINANCIAL CONSULTANTS

CPA (T) REVIEW CLASSES

COVENANT FINANCIAL CONSULTANTS

CPA (T) REVIEW CLASSES

II. Computer Software

1.3. What is ICT?

COVENANT FINANCIAL CONSULTANTS