What is an online processing system?

• A. Where each transaction is entered directly into computer when it occurs
• B. Interactive system or in-line system
• C. A batch processing system
• D. A manual system

Answer: (A)

Online processing means entering each transaction directly into the computer at the moment it happens and processing it in real time. This approach keeps records up to date, provides immediate feedback, and supports quick decision-making. It contrasts with batch processing, where transactions are collected and processed later in groups, and with manual systems, which rely on paper and manual entry. While online systems can be interactive, the key idea is the immediate, direct entry and processing of data as events occur.