What is the primary function of a transaction processing system (TPS)?

The primary function of a transaction processing system (TPS) is to record daily transactions of the business. This encompasses capturing, storing, and managing data related to transactions that occur in the organization. The TPS operates in real-time or batch processing modes and is designed to handle large volumes of routine transactions efficiently and accurately.

By focusing on the recording of transactions, a TPS ensures that all business activities are documented in an orderly manner, which is crucial for maintaining accurate financial records and facilitating subsequent reporting and analysis. This structured data collection forms the foundation for other systems to interpret and analyze, ensuring that financial statements and other reports reflect the most current and reliable information.

Other options may include processes that are associated with the overall handling of data and information, such as converting data into meaningful information, monitoring performance, or providing flexible information access, but these activities depend on the accurate and comprehensive recording of transactions that a TPS provides. Thus, the accurate recording of daily transactions is fundamental to the functioning of any business, making it the correct answer regarding the primary function of a TPS.