Database technology refers to a set of techniques used for designing a database. Database design requires use of several techniques of certain concepts at the same time. These concepts consist of reality, data, database, information, DBMS and database system.
Reality - Reality refers to an aspect of the real world. Let us consider an organization. It has different departments and components and also it has a set of an environment in which it exists and operates. Each organization operates within an environment. While operating, the organization interacts, influences and gets influenced by the environment.
Data - Data means meaningful facts related to the resources, such as people, places, objects, entities, events or even concepts. Data can be quantitative and qualitative or financial and non - financial.
Database - Database system is a system where the data required for operation is collected, stored and disseminated under a single administration. The collected and stored data can be used by a number of users. Thus, database has two important properties, ie., it is integrated and it is shared. A database is a shared collection of interrelated data tables, files or structures, which are designed to meet the varied informational needs of an organization. Integrated data implies that distinct data tables have been logically organized to reduce duplicity and for easy data access. Shared property implies that all those who are authorized to use data have access to the relevant data. Accordingly, accounting database is a collection of related accounting data to represent some aspect of an accounting information system. Database is designed, built and populated with data for a specific purpose.
Information - Information refers to information generated in a suitable format, by the processing of data, for easy understanding and, thus, decision - making. In other words, the raw data when processed generates information. For example, transactions (raw data) are recorded in the accounting software, which the software processes to generate information, ie., ledger, trial balance and financial statements.