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Computer-Application-II

Introduction to ict (Masinde Muliro University of Science and Technology)

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MINISTRY OF EDUCATION
DIPLOMA IN
INFORMATION COMMUNICATION
TECHNOLOGY

KENYA INSTITUTE OF CURRICULUM DEVELOPMENT

STUDY NOTES

Computer Application II

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MODULE 2: SUBJECT NO 5
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Contents
CHAPTER 1: FINANCIAL APPLICATIONS ........................................................................................ 5
Fundamentals of accounting ..................................................................................................................... 5
Definition of accounting........................................................................................................................ 5
Basic Accounting Principles................................................................................................................... 5
Elements of Accounting ........................................................................................................................ 5
Accounting Equation ............................................................................................................................. 6
Double Entry Accounting System .......................................................................................................... 7
The Accounting Cycle ................................................................................................................................ 7
Bookkeeping vs Accounting ...................................................................................................................... 7
Bookkeeping and Transaction Entry system ............................................................................................. 8

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Single-entry system ............................................................................................................................... 9

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Double-entry system ............................................................................................................................. 9

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Ledgers .................................................................................................................................................... 10
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Recording Transactions ........................................................................................................................... 13
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Accounting application program – QuickBooks ...................................................................................... 23

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Understanding QuickBooks Lists ......................................................................................................... 23

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Transactions in QuickBooks ................................................................................................................ 34

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Reporting on Lists ............................................................................................................................... 38

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CHAPTER 2: COMPUTER AIDED DESIGN (CAD) .......................................................................... 40

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Fundamental of technical drawing ......................................................................................................... 40

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Meaning and importance of computer-aided design ............................................................................. 42

AutoCAD ................................................................................................................................................ 44
Career and application Information of AutoCAD ................................................................................ 44
Advantages of a CAD system .............................................................................................................. 45
Features of a CAD system ................................................................................................................... 45
Typical screen layout of a CAD system ............................................................................................... 49
AutoCAD's Cartesian Workspace ........................................................................................................ 50
AutoCAD configuration- Units and Scales ........................................................................................... 52
Basic AutoCAD Commands ................................................................................................................. 56
Projection ............................................................................................................................................ 70
CHAPTER 3: GEOGRAPHYCAL INFORMATION SYSTEM (GIS)............................................... 75

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What is GIS – Definition? .................................................................................................................... 75

History of GIS: ..................................................................................................................................... 76
Component of GIS: .............................................................................................................................. 77
Area of GIS Applications...................................................................................................................... 77
GIS Data Models.................................................................................................................................. 78
GIS Data Types .................................................................................................................................... 78
Sources of Data ................................................................................................................................... 88
Data Input Techniques ........................................................................................................................ 90
CHAPTER 4: ARTIFICIAL INTELLIGENCE .................................................................................... 95
What is Artificial Intelligence? ................................................................................................................ 95
Goals of AI ............................................................................................................................................... 95

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Benefits and Challenges of Artificial Intelligence.................................................................................... 95

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Pros of Artificial Intelligence: .................................................................................................................. 95

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The Cons of Artificial Intelligence ........................................................................................................... 96
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What Contributes to AI? ......................................................................................................................... 97
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Applications of AI .................................................................................................................................... 98
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History of AI ............................................................................................................................................ 99
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AI - Intelligent Systems ......................................................................................................................... 100

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Meaning of Intelligence .................................................................................................................... 100

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Types of Intelligence ......................................................................................................................... 100

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Composition of Intelligence .............................................................................................................. 101

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Difference between Human and Machine Intelligence .................................................................... 102

AI – Category Research Areas ............................................................................................................... 103
Neural Networks ............................................................................................................................... 103
Robotics............................................................................................................................................. 105
Fuzzy Logic Systems .......................................................................................................................... 106
AI - Natural Language Processing...................................................................................................... 110
Expert Systems .................................................................................................................................. 113
Speech and Voice Recognition .............................................................................................................. 119
Task Classification of AI ......................................................................................................................... 120
AI - Agents & Environments .................................................................................................................. 122
Nature of Environments........................................................................................................................ 126

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Breakthroughs Unleashing AI on the World ......................................................................................... 127

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CHAPTER 1: FINANCIAL APPLICATIONS

Fundamentals of accounting
Definition of accounting
It is a systematic process of identifying, recording, measuring, classifying, verifying, summarizing,
interpreting and communicating financial information. It reveals profit or loss for a given period, and the
value and nature of a firm's assets, liabilities and owners' equity. Accounting provides information on
the.

Basic Accounting Principles

Accounting assumptions and principles provide the bases in preparing, presenting and
interpreting general-purpose financial statements.

The basic principles that accountants follow include:

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1. Accrual – Income is recognized when earned regardless of when collected, and expenses are
recognized when incurred regardless of when paid.

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2. Going Concern – Also known as continuing concern concept or continuity assumption, it means
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that a business entity will continue to operate indefinitely.
3. Accounting Entity Concept – A specific business enterprise is treated as one accounting entity,
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separate and distinct from its owners.

4. Time Period Assumption – The indefinite life of an enterprise is subdivided into time periods or
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accounting periods which are usually of equal length for the purpose of preparing financial
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reports.
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5. Monetary Unit Assumption – Transactions are recorded in terms of money (quantifiability). The
currency used has a stable purchasing power (stability).
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Elements of Accounting
The elements of accounting pertain to assets, liabilities, and capital. Assets are resources owned
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by a company; liabilities are obligations to creditors and lenders; and capital refers to the interest
of the owners in the business after deducting all liabilities from all assets (or, what is left for the
owners after all company obligations are paid).
Assets: Assets can be classified as current or non-current. An asset is considered current if it is for sale,
if it can be realized within 12 month from the end of the accounting period or within the company's
normal operating cycle if it exceeds 12 months. In addition, cash is generally considered current asset.

Current assets include: Cash and Cash Equivalents, Marketable Securities, Accounts Receivable,
Inventories, and Prepaid Expenses. Assets that do not meet the criteria to be classified as current
are, by default, non-current assets. Examples of non-current assets are: Long-term Investments;
Property, Plant and Equipment; and Intangibles.

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Liabilities: Liabilities can also be classified as current or non-current. A liability is considered current of
they are payable within 12 months from the end of the accounting period, or within the company's
normal operating cycle if the cycle exceeds 12 months.

Current liabilities include: Accounts Payable, Short-term Notes Payable, Tax Payable, Accrued
Expenses, and other short-term obligations. Non-current liabilities include those that do not meet
the above criteria. Examples of non-current liabilities are: Loans Payable and Bonds Payable
which are long-term in nature, and Deferred Tax Liabilities.

Capital: Capital refers to the interest of the owner/s of the business. The owner's interest is the value of
total assets left after all liabilities to creditors and lenders are settled. Capital is increased by
contributions by the owner/s and income. It is decreased by withdrawals by owners (dividends in
corporations) and expenses.
Income: Income refers to an increase in assets or decrease in liability, and an increase in capital other
than that arising from contributions made by owner/s. Examples of income accounts include: Sales,

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Service Revenue, Professional Fees, Interest Income, Rent Income, and others.

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Expense: Expenses result in decrease in assets or increase in liabilities, and decrease in capital other

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than those arising from withdrawals of the owner/s. Some examples are: Cost of Sales, Salaries Expense,
Rent Expense, Utilities Expense, Delivery Expense, and others.
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Accounting Equation
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The accounting equation shows the relationships between the accounting elements: assets,
liabilities and capital. The basic accounting equation is:
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Assets = Liabilities + Capital

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It shows that assets owned by a company are coupled with claims by creditors and lenders, and
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by the owners of the business.

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When business transactions take place, the values of the elements in the accounting equation
change. Nonetheless, the equation always stays in balance. This is due to the two-fold effect of
transactions. The total change on the left side is always equal to the total change on the right.
Thus, the resulting balances of both sides are equal.

The accounting equation may be rewritten as:

Liabilities = Assets - Capital, or Capital = Assets - Liabilities.

The capital element may also be spread-out into its components, and thus resulting into the
expanded accounting equation:

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Assets = Liabilities + Capital - Withdrawals + Income - Expenses

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Assets = Liabilities + (Capital, beginning + Additional Contributions - Withdrawals +

Income - Expenses)

Double Entry Accounting System

The double entry accounting system recognizes a two-fold effect in every transaction. Thus,
business transactions are recorded in at least two accounts.

Under the double entry accounting system, transactions are recorded through debits and credits.
Debit means left. Credit means right. The effect of recording in debit or credit depends upon the
normal balance of the account debited or credited.

The general rules are: to increase an asset, you debit it; to decrease an asset, you credit it. The

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opposite applies to liabilities and capital: to increase a liability or a capital account, you credit

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it; to decrease a liability or a capital account, you debit it. Expenses are debited when incurred,
and income is credited when earned.

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The Accounting Cycle
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The accounting cycle is a sequence of steps in the collection, processing, and presentation of
accounting information. It is made up of the following steps:
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1. Identifying and analyzing business transactions and events

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2. Recording transactions in the journals

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3. Posting journal entries to the ledger

4. Preparing an unadjusted trial balance
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5. Recording and posting adjusting entries

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6. Preparing an adjusted trial balance

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7. Preparing the financial statements

8. Recording and posting closing entries
9. Preparing a post-closing trial balance

Reversing entries may be prepared at the beginning of the new accounting period to enable a
smoother recording process. In this step, some adjusting entries are simply reversed.
Nevertheless, reversing entries are optional.

Bookkeeping vs Accounting
It is very common for non-accountants to think that bookkeeping and accounting are of the same
thing. Although they both involve the process of recording the financial transactions of a
business, bookkeeping and accounting are two different topics.

Bookkeeping is the process of recording, in chronological order, the daily transactions of a

business entity. It forms part of the accounting information system.

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Accounting is an information system – includes the process of recording, classifying,

summarizing, reporting, analyzing and interpreting the financial condition and performance of a
business – in order to communicate it to stakeholders for business decision making.

Illustration
To provide a clear understanding of the difference between bookkeeping and accounting, take a
look at this sample illustration.

Imagine there‘s one piece of apple pie divided into 6 slices. Each slice was given a
corresponding name as recording, classifying, summarizing, reporting, analyzing, and
interpreting. The whole one piece of apple pie is called the accounting information system which
represents accounting. On the other hand, bookkeeping represents one slice of the apple pie
which is recording.

The Accounting Process

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Bookkeeping and Transaction Entry system

Systematic recording of financial aspects of business transactions in appropriate books of
account
Bookkeeping is the recording, on a day-today basis of the financial transactions and information
pertaining to a business.

Entry systems: Two common bookkeeping systems used by businesses and other organizations are the
single-entry bookkeeping system and the double-entry bookkeeping system. Single-entry bookkeeping
uses only income and expense accounts, recorded primarily in a revenue and expense journal. Single-
entry bookkeeping is adequate for many small businesses. Double-entry bookkeeping requires posting
(recording) each transaction twice, using debits and credits.

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Single-entry system
The primary bookkeeping record in single-entry bookkeeping is the cash book, which is similar
to a checking (cheque) account register but allocates the income and expenses to various income
and expense accounts. Separate account records are maintained for petty cash, accounts payable
and receivable, and other relevant transactions such as inventory and travel expenses. These
days, single entry bookkeeping can be done with DIY bookkeeping software to speed up manual
calculations.

Double-entry system
A double-entry bookkeeping system is a set of rules for recording financial information in a
financial accounting system in which every transaction or event changes at least two different
nominal ledger accounts.

Double-entry bookkeeping, in accounting, is a system of bookkeeping so named because every

entry to an account requires a corresponding and opposite entry to a different account. For
instance, recording earnings of $100 would require making two entries: a debit entry of $100 to

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an account called "Cash" and a credit entry to an account called "Income."

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In the double-entry accounting system, two accounting entries are required to record each

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financial transaction. These entries may occur in asset, liability, income, expense, or capital
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accounts. Recording of a debit amount to one or more accounts and an equal credit amount to
one or more accounts results in total debits being equal to total credits for all accounts in the
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general ledger. If the accounting entries are recorded without error, the aggregate balance of all
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accounts having positive balances will be equal to the aggregate balance of all accounts having
negative balances. Accounting entries that debit and credit related accounts typically include the
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same date and identifying code in both accounts, so that in case of error, each debit and credit
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can be traced back to a journal and transaction source document, thus preserving an audit trail.
The rules for formulating accounting entries are known as "Golden Rules of Accounting". The
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accounting entries are recorded in the "Books of Accounts". Regardless of which accounts and
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how many are impacted by a given transaction, the fundamental accounting equation A = L + OE
will hold, i.e. assets equals liabilities plus owner's equity.
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Ledgers
A ledger is a record of accounts. These accounts are recorded separately showing their
beginning/ending balance.
A journal lists financial transactions in chronological order without showing their balance but
showing how much is going to be charged in each account.

A ledger takes each financial transaction from the journal and records it into the corresponding
account for every transaction listed. The ledger also sums up the total of every account which is
transferred into the balance sheet and income statement. There are 3 different kinds of ledgers
that deal with book-keeping. Ledgers include:

 Sales ledger, which deals mostly with the accounts receivable account. This ledger
consists of the financial transactions made by customers to the business.
 Purchase ledger is a ledger that goes hand and hand with the Accounts Payable account.
This is the purchasing transaction a company does.
 General ledger representing the original 5 main accounts: assets, liabilities, equity,

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income, and expenses

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The ledger is a special book in which transactions are recorded. In other words, a book in which

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accounts are kept. 73
The ledger differs from other books in the way columns are drawn to record transactions as
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follows:
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Dr The Ledger Cr
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Date Details Folio Amount Date Details Folio Amount

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$ $
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Types of ledger:
In a real business, there are so many accounts to keep and each account may need lots of space to
record transactions for the whole accounting year. For this reason, a business usually keeps, not
one, but several ledgers. These ledgers are classified into three types:

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Sales Ledger
The book (or set of books) in which the personal accounts of credit customers are kept.

A credit customer is also called a debtor.

The balance of a customer‘s account shows the amount that the customer owes the business.
Therefore, the total of balances in the sales ledger is the total amount the business is owed by its
credit customers. This amount is called trade receivables or accounts receivables.

Trade receivables is shown as a current asset in the balance sheet.

Purchases Ledger
The book (or set of books) in which the personal accounts of credit suppliers are kept.

A credit supplier is also called a creditor.

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The balance of a supplier‘s account shows the amount that the business owes the supplier.

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Therefore, the total of balances in the purchases ledger is the total amount the business owes by
its credit suppliers. This amount is called trade payables or accounts payables.

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Trade payables is shown as a current liability in the balance sheet.
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General Ledger
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The book (or set of books) in which all other accounts are kept.
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Account categories and debits and credits

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The kind of impact (debit or credit) that a transaction makes on each ledger account depends on
which of five chart of account categories the accounts belong to.
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First, there are the so-called "balance sheet" account categories:

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1. Asset accounts: Things of value that are owned and used by the business.
Example: Cash on hand
Example: Accounts receivable
2. Liability accounts: Debts that are owed by the business.
Example: Accounts payable
Example: Salaries payable
3. Equity accounts: The owner's claim to business assets.
Example: Owner capital
Example: Retained earnings

Secondly, there are the so-called "income statement" account categories:

4. Revenue accounts: The amounts earned from the sale of goods and services, or investment
income, or extraordinary income.
Example: Product sales revenues

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Example: Interest earned revenues

5. Expense accounts: Costs incurred in the course of business.
Example: Direct labor costs
Example: Advertising expenses

In practice, even a small organization may list a hundred or more such accounts as the basis
for its accounting system, and very large and complex organizations may use many
more. Nevertheless, for bookkeeping and accounting purposes, all named accounts fall into one
of the five categories above.

Every financial transaction brings as a journal entry, then becomes a ledger entry, with at least
two equal and offsetting account changes. The change in one account is called a debit (DR) and
the change in another account called a credit (CR). Whether a debit or a credit increases or
decreases the account balance depends on the kind of account involved, as shown in Exhibit
below:

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Debit (DR) Entry ... Credit (CR) Entry ...

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Increases (adds to) Decreases (subtracts from)
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Asset acct
account balance account balance
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Decreases (subtracts from) Increases (adds to)

Liability acct
account balance account balance
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Decreases (subtracts from) Increases (adds to)

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Equity acct
account balance account balance
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Decreases (subtracts from) Increases (adds to)

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Revenue acct
account balance account balance
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Increases (adds to) Decreases (subtracts from)

Expense acct
account balance account balance

Exhibit: As debits and credits are entered into the journal and ledger for different accounts, the impact of the
entry either adds to or subtracts from the current value (balance) of the accounts. Whether a debit or a
credit adds or subtracts value depends on account category—asset, liability, equity, revenue, or expense. It also
depends on whether or not the account is a contra account within a category.

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Recording Transactions
 Credit an entry in the right hand column of an account; credits increase liability, income, and
equity accounts and decrease asset and expense accounts
 Debit an entry in the left hand column of an account to record a debt; debits increase asset and
expense accounts and decrease liability, income, and equity accounts
 Account A registry of pecuniary transactions; a written or printed statement of business
dealings or debts and credits, and also of other things subjected to a reckoning or review

T Accounts
The simplest ledger account structure is shaped like the letter T. The account title and account
number appear above the T. Debits (abbreviated Dr.) always go on the left side of the T, and
credits (abbreviated Cr.) always go on the right.

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Accountants‘ record increases in asset, expense, and owner's drawing accounts on the debit side,
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and they record increases in liability, revenue, and owner's capital accounts on the credit side. An
account's assigned normal balance is on the side where increases go because the increases in
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any account are usually greater than the decreases. Therefore, asset, expense, and owner's
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drawing accounts normally have debit balances. Liability, revenue, and owner's capital accounts
normally have credit balances. To determine the correct entry, identify the accounts affected by a
transaction, which category each account falls into, and whether the transaction increases or
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decreases the account's balance. You may find the following chart helpful as a reference.
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Occasionally, an account does not have a normal balance. For example, a company's checking
account (an asset) has a credit balance if the account is overdrawn.

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The way people often use the words debit and credit in everyday speech is not how accountants
use these words. For example, the word credit generally has positive associations when used
conversationally: in school you receive credit for completing a course, a great hockey player may
be a credit to his or her team, and a hopeless romantic may at least deserve credit for trying.
Someone who is familiar with these uses for credit but who is new to accounting may not
immediately associate credits with decreases to asset, expense, and owner's drawing accounts. If
a business owner loses $5,000 of the company's cash while gambling, the cash account, which is
an asset, must be credited for $5,000. (The accountant who records this entry may also deserve
credit for realizing that other job offers merit consideration.) For accounting purposes, think of
debit and credit simply in terms of the left‐hand and right‐hand side of a T account.

Working Example of Account transaction

Suppose, for example, that a company acquires assets valued at $100,000. The journal entry for
the acquisition will show that an asset account increases $100,000, perhaps asset account
"factory manufacturing equipment." Because this is an asset account, its balance increase is

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called a debit. However, the balance sheet may now be temporarily out of balance until there is

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an offsetting credit of $100,000 to another account, somewhere in the system. This could be, for
instance:

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 A credit of $100,000 to another asset account, reducing that account value by $100,000. This
could be the asset account "cash on hand."
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 If instead of cash, the asset purchase is financed with a bank loan, the offsetting transaction in
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the journal entry could be a credit to a liability account such as "bank loans payable," increasing
that account value by $100,000.
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The debit and the credit from the acquisition will be shown together in the journal entry, but
when transferred to the ledger, they will each impact a different account summary (see the
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journal and ledger entry examples below).

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When the journal entry is complete, the basic accounting equation holds and the balance sheet
stays balanced:

Assets = Liabilities + Equities

And, for the account journal entries that follow from a single transaction:

Debits = Credits

The bookkeeper or accountant dealing with journal and ledger entries faces one complication,
however, in that not all accounts work additively with each other on the primary financial
accounting reports—especially on the income statement and balance sheet. There are cases
where one account offsets the impact of another account in the same category. These are the
contra accounts that "work against" other accounts in their own categories. In some cases, the
contra accounts reverse the debit and credit rules in Exhibit 3 above.

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For example, an "accounts receivable" account and an "allowance for doubtful accounts"
account are both asset accounts. Accounts receivable is said to carry a debit balance, meaning
that debits to this account increase the account balance. "Allowance for doubtful accounts,"
however, is a contra asset account that ultimately reduces the impact (balance) contributed by
"accounts receivable." "Allowance for doubtful accounts" carries a credit balance, meaning that
its value is increased by a credit transaction. When these journal entries make their way into the
ledger and then the financial reports, the balance sheet result is a "net accounts receivable" less
than the "accounts receivable" value.

In any case, the bookkeeper or accountant working with journal entries needs to have a complete
knowledge of the organization's chart of accounts and a solid command of double entry
bookkeeping rules—or else, accounting software that provides clear guidance and good error
checking.

Bookkeeping Basics to Remember

When recording an Accounting transaction or journal entry in accounting software such as

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QuickBooks Pro or Sage Accounting (Peachtree), program, one account is debited and another

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account is credited. In some cases, two accounts may receive the debit or credit. But the total
amount of the debit must equal the total amount of the credit.

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For some transactions, the Accounting software available today automatically chooses one of the
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accounts to either debit and credit, and the user need only select the other account. For instance,
when writing a check, the software knows to credit Cash (or Checking), and the user just needs
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to know which account should receive the debit. However, when posting journal entries, one
must know which accounts both debit and credit.
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If you're new to Accounting or Bookkeeping, check out some of our beginners' tutorials on the
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right sidebar - especially accounting: Making Sense of Debits and Credits.

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Now, let's begin!

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Example 1: Owner invests $5,000 in the company. Analysis: Since money is deposited into the
checking account, Cash is debited (the balance increased by $5,000). What account receives a
credit? An Equity account called Owner‘s Equity or Capital Contribution. Since Equity accounts
are ‗negative‘ accounts, crediting this Equity account increases its balance by $5,000.

Debit Cash (increase its balance)

Credit Owner‘s Equity (increases its balance)

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Example 2: The Company borrowed $8,000 from a bank. Analysis: Since the money will be
deposited into the checking account, Cash is debited (the balance increased by $8,000.) The
account to receive the credit is a Liability account called Loans Payable (you may create a
separate account or sub-account for each loan). Liability accounts are credit accounts, so
crediting the Liability account increases its negative balance by $8,000 (move to the left on the
number line).

Debit Cash (increases its balance)

Credit Loans Payable (increases its balance)

Example 3: Your bank charges you a $14 a month statement fee. Analysis: This transaction
is entered via a journal entry each month when the statement fee is identified on the bank
statement. Since money was removed from the checking account, Cash must be credited (the
balance decreased by $14). The Expense account called Bank Service Charges will receive the
debit.

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Debit Bank Fees (increases its balance)

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Credit Cash (decreases its balance)

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Example 4: You pay $540, via check, on the $8,000 loan acquired in Example 2. Of this
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amount, $500 is applied to the principal, and $40 is loan interest. Analysis: Since a check is
being written, the Accounting software will automatically credit Cash. In this case the debit is
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split between two accounts. To reflect the $500 that has been applied to the loan balance, debit
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the loan account. (Since it is a liability account, a debit will reduce it's balance, which is what
you want.) The $40 interest paid is an expense, so debit the expense account called Interest.
Remember that even though the debit is split between two accounts, the total debit must always
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equal the total credit.

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Debit Loans Payable $500 (decreases its balance)

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Debit Interest Expense $40 (increases its balance)

Credit Cash $540 (decreases its balance)
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Example 5: the Company wrote a check for $8,500 of equipment. Analysis: Since a check
was written, QBP will automatically credit Cash. We will debit an Asset account called
Equipment or something similar. Note: Remember, if you purchase an item for more than about
$500, you should depreciate the item; not expense it. ($500 is a "rule of thumb," but I am not
suggesting you use it.) So the Asset account receives the debit instead of an expense account. To
record the depreciation, journal entries would be entered for one or more years. Always consult
with your Accountant when purchasing company assets.

Debit Equipment (increases its balance)

Credit Cash (decreases its balance)

[Remember: A debit adds a positive number and a credit adds a negative number. But you
NEVER put a minus sign on a number you enter into QBP.]

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Example 6: the Company wrote a check for $318 of office supplies. Analysis: Since a check
was written, QBP will automatically credit Cash. We debit the Expense account called Office.

Debit Office (increases its balance)

Credit Cash (decreases its balance)

Example 7: the Company purchased $300 of office supplies on credit and you entered a bill
into QBP. Analysis: When you enter a bill, QBP automatically credits the Liability account
called Accounts Payable. And since you purchased office supplies, the Office expense account is
debited.

Debit Office (increase its balance)

Credit Accounts Payable (increases its balance)

Example 8: You paid the bill for $300 of office supplies purchased in Example 7. Analysis:
When the bill was entered, Office was debited and A/P was credited. Now as we write a check to

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pay the bill, QBP will automatically credit Cash. And QBP will debit Accounts Payable - in

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effect, reversing the earlier credit.

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Debit Accounts Payable (decreases its balance) 73
Credit Cash (decrease its balance)
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Example 9: the Company paid $450 cash for Product A - a COGS part. Analysis: When you
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write the check, QBP will automatically credit Cash. In the check window, choose the COGS
account from the Expenses tab, or choose an Item from the Items tab and then the COGS account
associated with the Item will be debited.

Debit COGS (increase its balance)

Credit Cash (decrease its balance)

Example 10: the Company sold Product A for $650 cash. Analysis: When you enter the cash
sale, QBP automatically debits Cash (or you could choose to deposit to Undeposited Funds - see
Example 14). You will have to choose an Item for the sale … it might be ―Prod A income‖ and
associated with the Sales account.

Debit Cash (increases its balance)

Credit Sales (increases its balance)

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Example 11: the Company sold Product A for $650 on credit. Analysis: When you create an
invoice, you must specify an Item for each separate charge on the invoice. QBP will
automatically credit the revenue account(s) associated with these Items. And QBP automatically
debits the Invoice amount to A/R.

Debit Accounts Receivable (increases the balance)

Credit Sales (increases the balance)

Example 12: the Company received a payment for the $650 invoice above. Analysis: When
you created the invoice, QBP automatically debited the A/R account. When you post the invoice
payment, QBP will automatically credit A/R - in effect reversing the earlier debit. QBP will debit
Cash.

Debit Cash (increases the balance)

Credit A/R (decreases the balance)

Example 13: The owner’s writes himself a check for $1,000. Analysis: Since a check was

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written, QBP will automatically credit Cash. The account you chose for the debit is and Equity
account called Draw (Sole Proprietor) or Distribution (Corporation). Note: These are the only

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non-contra Equity accounts that are positive accounts and receive debits.
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Debit Owner‘s Draw (increases its balance)
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Credit Cash (decrease its balance)

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Ledger accounts and their balancing

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Cash A/C
Dr Cr
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Particular Amount Particular Amount

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Investment 5000 Equipment 8500

Loan 8000 Bank charge 14
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Sales 650 Loan payment 540

Office supply 318
Debtor 300
Purchases 450
Bal c/d 3528
10122 10122
Bal b/f 3528

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Capital A/C
Dr Cr
Particular Amount Particular Amount
Bal c/d 5000 Cash 5000
5000 5000
Bal b/f 5000

Loan A/C
Dr Cr
Particular Amount Particular Amount
Cash 500 Cash 8000
Bal c/d 7500
8000 8000
Bal b/f 7500

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3
Bank A/C 73
Dr Cr
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Particular Amount Particular Amount

Bal c/d 14 Bank charges 14
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14 14
Bal b/f 14
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Interest Exp A/C

Dr Cr
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Particular Amount Particular Amount

Cash 40 Bal c/d 40
40 40
Bal b/f 40

Equipment A/C
Dr Cr
Particular Amount Particular Amount
Cash 8500 Bal c/d 8500
8500 8500
Bal b/f 8500

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Office supply A/C

Dr Cr
Particular Amount Particular Amount
Cash 318 Bal c/d 618
Debtors 300
618 618
Bal b/f 618

Creditor(A/P) A/C
Dr Cr
Particular Amount Particular Amount
Cash 300 Cash payable 300
Bal c/d 0
300 300

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Bal b/f

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0

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Purchases A/C
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Dr Cr
Particular Amount Particular Amount
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Cash 450 Bal c/d 450

450 450
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Bal c/f 450

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Sales A/C
Dr Cr
Particular Amount Particular Amount
Bal c/d 1300 Cash 650
Prod A 650
1300 1300
Bal b/f 1300

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Debtors(A/R) A/C
Dr Cr
Particular Amount Particular Amount
Purchase prod A 650 Bal c/d 650
650 650
Bal b/d 650

Trial balance statement of the account balancing

ABC LTD
Trial Balance as at 31 December 2011

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Particulars Debit Credit

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Capital 5,000
Loan A/C 7500

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Equipments 73 8500
Creditor 0
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Debtors 650
Cash 3528
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Sales 1300
Office supply A/C 618
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Bank A/C 14
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Interest Exp A/C 40

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Total 13336 13814

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1) Following is an example of Basic Accounting Statement Samples

a. Simple Balance Sheet statement
b. Simple Profit and Loss stetement

My business Balance sheet as at 1/1/2016

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Asserts Liabilities
Current asserts Current liability
Cash 32,800 Account payable 49,000
Account receivable 300 Accrued expenses 450
Prepaid rent 1,000 Unearned revenue 1,000
Inventory 39,800 Total current liability 50,450
Total long term liability 99,500
Total current asserts 73,900 Total liability 149,950
long Term asserts Owners equity
leasehold 100,000 Owners equity

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improvements (2,000) Retained earnings 11,950

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accumulated Common stock 10,000
Depleciation 98,000 Total Owners equity 21,950

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total long term
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asserts 98,000
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Total asserts 171,900 Total liab and owners 171,900

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equity
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My business Profit and loss A/c as at 1/1/2016

Dr Cr
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Particulars Amount Totals Particulars Amount Totals

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Purchases 119,000 Sales 127000

(+)Carriage in 2,000 (-)Returns in 15000 112,000
(-)returns out 10,000 111,000
Gross Profit c/d 1000
112,000 112,000
Expenses Gross profit b/f 1000
Disc allwd 5000 Disc received 6000
Salaries 8000
Rent 5000
Sales promotions 4000
Losses 7000
depreciations 625 29625 Net profit c/d 22625
29625 29625

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Accounting application program – QuickBooks

Understanding QuickBooks Lists
QuickBooks offers several methods for tracking and reporting on your accounting data so you
can review how your business is doing financially. This chapter explains QuickBooks' Chart of
Accounts and other lists available to help analyze your business.

With QuickBooks, you can use the following lists to analyze your business:

1) Chart of Accounts—For organizing your daily transactions.

2) Items List—For tracking the profitability of individual services and products sold.
3) Class List—For tracking different corporate profit centers (divisions).
4) Customer Type List—Capability to view your gross profit by user-defined customer
types.

The QuickBooks chart of accounts is easy to set up. It might already exist if you created your file

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with the Express Start discussed in Chapter 1, “Getting Started with QuickBooks.” What
becomes problematic for some is how to efficiently use each of the available list types when

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you want to segment the business reporting activity in QuickBooks. We will start first with the
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chart of accounts.
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1. Chart of Accounts
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The chart of accounts is a list of asset, liability, equity, income, and expense accounts to which
you assign your daily transactions.
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This list is one of the most important lists you will use in QuickBooks; it helps you keep your
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financial information organized. When this list is created with summary accounts and you use
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the other list types for detail, you can capture information in a timely manner, which will help
you make good financial and management decisions for the business.
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Account types
There are two main types of accounts in the QuickBooks chart of accounts:
 Balance sheet accounts
 Income and expense accounts

Balance sheet accounts

Accounts that appear on a balance sheet report. In QuickBooks, these include the following types
of accounts:
 Bank
 Accounts receivable
 Accounts payable
 Fixed asset, other asset, other current asset
 Other current liability, long term liability
 Credit card

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 Equity
You can think of balance sheet accounts as the money or things that you own and the debts that
you owe. They include assets like bank accounts, buildings, and money that people owe you;
they also include liabilities like credit cards or loans from banks.

Another category of balance sheet accounts is equity accounts. These represent the worth of your
business including any investments the owners have made in the company. Your company's
equity is all of your assets (what you own) minus your liabilities (what you owe). This is
sometimes called the "net worth" of your company.

Each balance sheet account in QuickBooks has its own register that tracks the balance of the
account. You can also see the account balances by looking at your chart of accounts.

Balance sheet is a report that summarizes the financial position of a business. A balance sheet
shows the value of your company's assets, liabilities, and equity as of a particular day. It is
called a balance sheet because the value of the assets is always exactly equal to the combined

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value of the liabilities and equity.

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QuickBooks offers four different preset balance sheet reports. You'll find these reports under
Company & Financial on the Report Center or Reports menu.
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Expense account
An account that tracks and categorizes what your company is spending. (You can think of
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expenses as money that leaves the company.) They work like categories do in Quicken.
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Unlike balance sheet accounts, expense accounts don't have their own register.
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To get a list of the transactions posted to an expense account

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1. Go to the Lists menu and click Chart of Accounts.

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2. Select the expense account.

3. Click Reports at the bottom of the list and then click QuickReport.

Income account
An account that tracks the source of your company's income. (You can think of income as money
that comes into the company.)

Unlike balance sheet accounts, income accounts don't have their own register. You can get a list
of the transactions posted to an income account by selecting the account in the chart of accounts
and clicking QuickReport.

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Account Types Details

Understanding the chart of accounts isn‘t complicated. There are six standard account categories
used for tracking the financial activity of your business: assets, liabilities, equity, income, cost of
goods sold, and expense.
Assets: Assets include something you have purchased in the past that will be used in the future to
generate economic benefit. QuickBooks offers these categories in the order of how liquid the asset is—
or in simple terms, how quickly you can turn the asset into cash:

 Bank—Used to track your cash in and out of the business. This account type and the credit card
account type are the only account types you can select as the payment account in the Pay Bills
or Write Checks dialog box.
 Accounts Receivable—This account type requires a Customer or Customer and Job name with
each entry. You use this account type when generating an invoice or credit memo transaction or
when receiving a customer payment. You can create more than one Accounts Receivable
account if needed. However, I do not recommend it because it adds the extra work of recording
customer payments to the correct Accounts Receivable account.

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 Other Current Asset—This account type is general in nature and includes the QuickBooks

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Inventory Asset and the Undeposited Funds account. The Undeposited Funds account is used
like a “desk drawer” in that it holds customer payments to be totaled on a single deposit ticket.

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 Fixed Asset—Used to track purchases of tangible property that will have a useful life of longer
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than one year. Accumulated Depreciation totals are also held in this account type as a negative
fixed asset.
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 Other Assets—Intangible assets that have a life of more than one year; also any asset that is not
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a Fixed Asset or Current Asset.

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Liabilities: Liabilities are the debts the company has yet to pay. QuickBooks includes these subgroups:
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 Accounts Payable—This account type is reserved for the QuickBooks Accounts Payable account
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where vendor bills and bill payments reside. You can create multiple Accounts Payable accounts.
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However, I do not recommend it as it adds complexity in the enter bill and pay bill processes.
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 Credit Cards—Optionally, use this grouping to track the charges and payments made against a
company credit card. One benefit is that you can reconcile this account as you do your bank
account and also download your credit card transactions directly into QuickBooks.
 Other Current Liability—This is debt that is expected to be paid within one year. This grouping
includes the QuickBooks-created Payroll Liabilities account and Sales Tax Payable account, in
addition to other user-defined liability accounts.
 Long-Term Liability—This is debt that will not be paid within one year.

Equity: The Equity account category holds the owners (or owners’) residual interest in the business
after the liabilities are paid. Accounts in this category include common stock; owner’s investments and
draws; retained earnings; and opening balance equity (an account created by QuickBooks that is
discussed in more detail in “Closing Opening Balance Equity into Retained Earnings” in Chapter 15,
“Reviewing Your Data”).

Income: Money earned from the sale of your products or services is recorded as income. Your company
might have one income account or several, depending on the detail needed for your financial analysis.

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Another category of income is Other Income, or income generated from the sale of a product or service
not normal to your operations. Interest Income is an example of an Other Income account type.

Cost of Goods Sold: The Cost of Goods Sold account is for costs directly related to producing a service
or good for sale. There is a direct relationship between these costs and your revenue. If your company
sells a product, your cost of goods sold (COGS) expenses would be the material, labor, and other costs
incurred to make and sell the product. By contrast, your office expenses for rent or advertising are
considered indirect and should not be posted to the Cost of Goods Sold account type.

Note: When you are creating your Cost of Goods Sold accounts, consider using summary
accounts, such as material, labor, and subcontract, and letting your Item List track more detail.
For example, if you are a construction company and you have expenses for site work, concrete,
framing, painting, and so on, rather than having a Cost of Goods Sold account for each trade, use
the Item List for these. See the section ―Adding an Item‖ in this chapter for more details. Reports
by item are available to break down the total of Cost of Goods Sold account into more detail.

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Expense: An expense is recorded when an asset is used or there is an outflow of cash. The expense
accounts were created during the Express Start or Advanced Setup and provide you with the basic

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classifications needed for properly tracking your expenses. 73
Although QuickBooks does not automatically create other groupings within the expenses
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category, a recommendation would be to group your expenses by fixed (or uncontrollable) and
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variable (or controllable) costs. When you review your costs, these additional groupings make
easy work of determining which costs you have more control over.
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You can also categorize an expense as an Other Expense, which is an expense that is not normal
to your operations. You should contact your accountant for advice on what expenses are
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appropriate to record to an Other Expense category type.

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Adding a New Account

If you created your own new data file using one of the methods taught in Chapter 1, you might
already have the basics of your chart of accounts created for you. Let‘s think positively and use
the example that your business is doing so well you have opened a new money market account
with your bank. You know you need to create a new bank account in QuickBooks so that you
can reconcile your banking activity with your financial institution‘s records.

Creating a New Account

To practice adding a new account record, open the sample data file as instructed in Chapter 1. If
you are working in your own file, use these instructions to create a new bank (or other type of
account) in your chart of accounts:

1. From the menu bar, select Lists, Chart of Accounts, or use the keyboard shortcut of Ctrl+A.
2. In the Chart of Accounts dialog box, select New from the Account drop-down list. Optionally,
use the keyboard shortcut Ctrl+N.

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3. In the Add New Account dialog box (see Figure 1 below), click the Bank option button and then
click Continue.

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Figure1. When creating a new account, useful information about the account type is
displayed on the right.

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4. In the Account Name field, type Money Market and in the Number field (if account numbering is
enabled), type 10600 (see Figure 2 below).
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Figure 2. Adding a new account when account numbering is enabled.

5. Optionally, select the Subaccount Of checkbox and select the account you want to associate this
account with. (Typically you would not make a bank account a subaccount of another account.)
6. Enter an optional description; this description will display in certain reports.
7. Accept the default Tax-Line Mapping, which comes from your sample data file or the choices
you made when creating your own new file using the Express or Advanced Setup option

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discussed in Chapter 1. You can also select the drop-down list and choose a different tax line
assignment, or click the “How do I choose the right tax line?” link for more information. If
opened, close the help dialog box to continue.

The tax line is necessary only if you or your accountant prepares the business‘s tax return
using software that integrates with QuickBooks.

8. Click No if the Set Up Online Services dialog displays. Or if you’re working in your own data file,
you might want to click Yes. More details are available in Chapter 13, “Working with Bank and
Credit Card Accounts.”
9. Click Save & Close.

The Add New Account dialog box also includes several other important fields:

 Bank Acct No.—This information is used if you set up your QuickBooks bank account for online
banking downloads. For more information, see Chapter 13.


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Routing Number—This information is used if you set up your QuickBooks bank account for

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online banking downloads (see Chapter 13).
 Enter Opening Balance—This button opens the Enter Opening Balance dialog box where you
can enter your Statement Ending Balance and Statement Ending Date. Click the “Should I enter

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an opening balance?” link for help in entering these important starting numbers.
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This dialog box also enables you to request a reminder to order checks when you reach a specific
check number or order checks directly from Intuit.
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The specific details required when creating a new account will vary depending on the type of
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account you are adding to the chart of accounts.

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Creating a new account in the chart of accounts is simple. However, if after reviewing the
content in this chapter you find the need to make corrections, read the section ―Modifying an
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Account in the Chart of Accounts‖ in this chapter

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2. Items
Items are what you sell or buy and are used on all customer transactions and optionally on
purchase transactions. Items provide a quick means for data entry. However, a more important
role for items is to handle the behind-the-scenes accounting while tracking product- or service-
specific costs and revenue detail.

Adding an Item
Adding items to your QuickBooks file takes some planning, but the effort will pay off with
improved reporting on the different services or products your company provides.

Later in this chapter you will learn how to add multiple items at a time using the Add/Edit
Multiple List Entries. In this example, you will be adding a single new Service item type to the
sample data file.

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Adding a New Service Item

To practice adding a new service item, open the sample data file as instructed in Chapter 1. If
you are working in your own file, use these instructions to begin creating your own service
items.

1. From the menu bar, select Lists, Item List to open the Item List dialog box.
2. Select New from the Item drop-down list. Optionally, use the keyboard shortcut Ctrl+N.
3. From the Type drop-down list select Service.
4. In the Item Name/Number field, type Inspection.
5. Select the This Service Is Used in Assemblies or Is Performed by a Subcontractor or Partner
checkbox, as shown in Figure 1 below. This makes the item “two-sided,” assigning both an
expense account when used with a purchase transaction and an income account when used
with a sales transaction.

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Figure 1. Items are used on customer sales transactions and purchase transactions.

6. In the Purchase Information text box, type Inspection.

7. Enter a default Cost. This amount will default on a purchase transaction, but can also be
changed at the time of entry. If you do not want a default cost for the item, leave the box blank.
8. In the Expense Account field, select the appropriate account. For this example, we will use the
Cost of Goods Sold account because the item is directly related to our Customers or Jobs.
9. In the Preferred Vendor field assign a vendor or leave blank. When a preferred vendor is
assigned QuickBooks will pre-fill that vendor name on a purchase order transaction when the
item is selected.
10. Accept the default description in the Sales Information text box or type a unique description.
This description will default on your sales transactions for this item. Optionally, enter a default
Sales Price. This amount will default on sales transactions, but can be changed at the time of
entry.

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11. From the Tax Code drop-down list, select Non. In your own file, select the tax code, choosing Tax
if the item is subject to sales tax or Non for nontaxable services. Check with your state’s taxing
authority if you have any questions about an item or service you sell being taxable or not.
12. From the Income Account drop-down list, for this practice, select the Subcontracted Labor
Income account.
13. If you are finished adding items, click OK to save and exit the New Item dialog box. If you want
to continue adding items, click Next to add another item.

Note: Use the Items tab on expense transactions such as Write Checks or Enter Bills to ensure
that you have the detailed reporting you need to review customer or job profitability.

These reports are useful for a business owner who would like to know the profitability of
individual customers or jobs.

Item Types
QuickBooks has 11 item types to choose from (not including the Fixed Asset Item), although

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some of the items might not be listed in your data file if the related feature is not enabled. You

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can choose the type to assign to a list item; however, each type has certain unique characteristics.
Here are some general guidelines about the proper use for item types:

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
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Service—Create this type for services offered by you or your subcontractors.
 Inventory Part—This type displays only if you select the Inventory and Purchase Orders Are
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Active checkbox on the Items & Inventory—Company Preferences tab of the Preferences dialog
box. (Access the dialog box from the menu bar by selecting Edit, Preferences.) Inventory is used
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to track products you make or buy, place in a warehouse location, and later sell to a customer.
Inventory is increased with a received purchase order or bill and is decreased on a customer
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invoice.
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 Inventory Assembly—This item type is an assembling of multiple inventory components, as in a

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Bill of Materials. When an inventory assembly is built, the individual items (components of the
assembly) are deducted from inventory and the quantity of the finished assembly product is
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increased. The assembly functionality is available only in QuickBooks Premier, Professional

Bookkeeper, Accountant, or Enterprise.
 Non-inventory Part—This type is used for products you purchase but do not track as inventory.
Correct use of this type would include products you purchase that are ordered for a specific
customer and directly shipped to the customer, or for materials and supplies you purchase but
do not sell to the customer.
 Other Charge—This is a multipurpose item type. Freight, handling, and other miscellaneous
types of charges are examples of the proper use of the Other Charge item type. Using this type
makes it possible to segregate sales of your service or product from other types of revenue and
expenses in reports.
 Subtotal—This type is used to add subtotal line items on sales and purchase transactions. This
item is especially useful if you want to calculate a specific discount on a group of items on a
customer invoice.
 Group—This type is used to quickly assign a grouping of individual items on sales and purchase
transactions. Unlike assemblies, groups are not tracked as a separate finished unit. Groups can

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save you data entry time and enable you to display or hide details on a customer’s printed
invoice.
 Discount—This type facilitates dollar or percent deductions off what your customers owes. This
item type cannot be used on purchase transactions.
 Payment—This item type is not always necessary to set up. You create this item type if you
record the payment directly on an invoice as a line item, such as with a Daily Sales Summary (see
the QuickBooks Help for more details). On typical customer invoices, you should not record
payments in this manner because there is no tracking of the customer’s check or credit card
number.
 Sales Tax Item—This type is available only if you enabled sales tax on the Sales Tax—Company
Preferences tab of the Preferences dialog box. (Access the dialog box from the menu bar by
selecting Edit, Preferences.) In most cases, QuickBooks automatically assigns this item to an
invoice. In some states or industries where there are multiple sales tax rates for a given sale, you
can also add this item to an invoice as a separate line item.
 Sales Tax Group—This type is used to group multiple tax district flat-rate sales tax items that are
combined and charged as one sales tax rate.

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CAUTION: Carefully determine the correct item type to use when creating items. After they are

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created, the following item types cannot be changed to any other item type: service, inventory
assembly, subtotal, discount, payment, sales tax item, and sales tax group.

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If you find you have set up the wrong item type, correcting it might require making an
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accounting adjustment. To avoid using the incorrect item on future transactions, mark the item as
inactive by selecting Lists, Item List from the menu bar to open the Item List dialog box. Select
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Edit Item from the Item drop-down list and then select the Item Is Inactive checkbox. When
this box is selected, as Figure 2 below shows, the item is not included in any drop-down lists on
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transactions, but is included in reports if used during the period being reported.
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Figure 2. Marking a list item inactive only removes it from drop-down lists, not reports.

However, do not make an inventory type inactive if QuickBooks still shows available inventory
quantity.

3. Class
Another method for segmenting your QuickBooks financial information is by using classes. The
use of classes is a preference setting and must first be enabled by logging in to the data file as the
Admin or External Accountant user.

To enable classes, follow these steps:

1. From the menu bar, select Edit, Preferences.

2. In the Preferences dialog box, select the Accounting preference on the left.
3. Select the Company Preferences tab.
4. Select the Use Class Tracking for Transactions checkbox, as shown in Figure 3 below.

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Figure 3. Class tracking provides another method for financial reporting for management
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purposes.
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5. Click OK to save your changes and close the dialog box.

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Classes are typically used when a company has multiple revenue-generating business types or
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multiple profit centers. These class list items are then assigned to each transaction, as in Figure 4.
Examples of classes might be a construction company that offers either new construction or
remodeling services, or a restaurant with multiple locations. In both examples, using classes that
are assigned to each transaction line for both revenue and costs enables you to report profit and
loss by class.

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Figure 4. Assigning a class list item to a check transaction line provides additional management-
reporting capabilities.

4. Customer/Supplier Type

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You can use customer types to categorize your customers in ways that are meaningful to your
business. A retailer might use customer types to track retail versus wholesale; a medical office

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might track types of services; a service company might track what marketing event brought in
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the customer. You can filter certain reports by these customer types, giving you critical
information for making business management decisions. These customer types can also be useful
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for marketing purposes when you want to direct a letter to a specific customer type.
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To create or edit a customer record and assign a customer type, follow these steps:
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1. On the Home page, click the Customers button. Optionally, use the shortcut Ctrl+J.
2. Double-click to select a customer name in the list that displays.
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3. In the Edit Customer dialog box, click the Additional Info tab and select a type from the Type
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drop-down list. Optionally, select <Add New> from the drop-down list to add a new type, as
shown in Figure 5.
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Figure 5. Assign a customer type for additional segmented reporting.

4. Click OK to save your changes.

Many of the customer reports can be filtered by customer type, making it another useful list for
management reporting.

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Transactions in QuickBooks
1. Buying and selling
A sale is the exchange of a commodity or money as the price of a good or a service with a
customer. Sales (plural only) is activity related to selling or the amount of goods or services sold
in a given time period as recorded in the book/QuickBooks system.

A Purchase is the exchange of a commodity or money as the price of a good or a service with a
seller. Purchases (plural only) is activity related to buying or the amount of goods or services
bought in a given time period as recorded in the book/QuickBooks system.

All buying and selling is done in QuickBooks from the Supplier and customer area respectively

(Supplier/Custome menu or Group on the Home navigation area)

Purchases
in QuickBooks we can buy in two ways (use two document of transaction)

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1) Purchase order: Used if the transaction involved an order issued for items that will be

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delivered and payment made on delivery or after
Procedure: Make a Purchase order for good ordered – Receive good with/without Bill for

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goods received – Pay bill(then/Later) for bill received 73
2) Bill: Used if the transaction involved items received on the counter on request and payment
made on promptly or after
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Procedure: Enter a bill of good bought – Enter payment if good were paid or let the bill
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outstand till when it will be paid

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Sales

In QuickBooks we can buy in two ways (use two document of transaction)

3) Invoice: Used if the transaction involved items given on the counter(or on sale order) on
request and payment made after
Procedure: Make an Invoice to outstand debt with customer – Enter Receive payment for
amount cleared by a customer – Record deposit to bank
4) Receipt: Used if the transaction involved items given on the counter on request and payment
made promptly
Procedure: Make an Receipt for items sold cash to a customer – Record deposit to bank

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2. QuickBooks Account Activities

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a) Journal entry
A journal entry is the record of a financial transaction entered into a journal. The journal
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details all the financial transactions of the business and it makes note of which accounts these
transactions affected. All journal entries are made using either the double entry or single entry
method of bookkeeping

The Purpose of Journal Entries

Journal entries provide foundational information for all of a business's other financial reports.
They're used by auditors to analyze how financial transactions impact a business.

Each entry should include the date of the transaction, the parties involved, a debit from at least
one account, a credit to at least one other account, a receipt or check number, and a memo
describing other details involved in the transaction – anything you might not be likely to
remember months or years later.

If you purchase and use accounting system software, it will most likely take care of all these
details for you. But you should be able to handle your journal entries and ledger yourself with
some basic understanding of the process if you don't think that kind of expense is necessary quite

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yet because you're just starting out.

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Double Entry Accounting with Journal entry
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A journal entry using the double entry method of accounting includes a variety of information in
various columns on the same line. In a double entry system, you might have a debit for the
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computer purchase, then a credit or increase to your overall office equipment expenses would
appear on the same line but in a different column to offset the debit. These columns should be
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equal, such as -$2,000 as the debit and +$2,000 for the credit.
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You might have to use even more columns depending on the nature of your entry, but at a
minimum, there should be two, one each for debits and credits. Double entry accounting
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typically makes a journal entry not for the transaction itself, but for the account it affects: assets,
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liabilities, equity, revenue and expenses. Debits and credits to each are all noted on the same line.
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At the end of the year or any other accounting period you select, all your journal entries for
debits should correspond to and equal your journal entries for total credits. This means your
account is "balanced."

b) Moving Money between Accounts

Note, the process of moving cash from one bank account to another within the same
business is NOT income when it comes to recording the transaction in QuickBooks (though
that would be nice for sure!).

Rather, all that is being done in this case is the transfer of funds from one asset account to
another within the same business.

Example - a business transfers $10,000 from a Checking account into a Savings account to put
the money away for a rainy day.

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In QuickBooks, there are two ways to go about recording this transfer in your accounting
records:

1. Use the Transfer Funds button found in the Banking option in the menu bar.

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2. Use the Write Checks window 73
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Either option gets the job done for you. Option 1 is probably easier if you move the money via an
online electronic transfer and Option 2 is easier if you are actually making a physical deposit of a
check at the bank.

Even better, by using either of the options above, your accounting records will properly
reflect the transaction being made. No more will you have a profit and loss report showing
income that doesn't exist.

c) To make deposit, follow these steps:

1. Choose Banking → Make Deposits. ...

2. Select the payments that you want to deposit. ...

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3. Click OK. ...

4. Tell QuickBooks into which bank account you want to deposit the money. ...
5. Specify the deposit date. ...
6. (Optional) Add a memo description if you want to.
7. Specify the cash-back amount.

Reporting on Lists
With a QuickBooks file created and lists entered, you can now review the efforts of your work.

Let‘s start with a simple listing of your vendors.

1. From the menu bar select Reports, List. Take a moment of your time to review the many lists
available for reporting on in this menu. Some lists will display only if the associated preference
in QuickBooks is enabled.
2. Select the Vendor Contact List. Optionally, click the Customize Report button.
3. The Modify Report dialog opens with the Display tab selected. From the Columns listing, add or

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remove checkmarks to include or exclude information from the list report.

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4. Click OK when finished.

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Reviewing your lists before you begin entering transactions can ensure that the information
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provided in reports is correct.
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Types of report likely to matter in a business and procedure to access them:

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Trial balance – A list of all business account balancing

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Profit and loss statement and Balance sheet – A summary of the business status in terms of profit/loss
and assert base

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CHAPTER 2: COMPUTER AIDED DESIGN (CAD)

Fundamental of technical drawing
Technical drawing, also known as drafting or draughting, is the act and discipline of
composing plans that visually communicate how something functions or is to be constructed.
Technical drawing is essential for communicating ideas in industry and engineering. To make the
drawings easier to understand, people use familiar symbols, perspectives, units of measurement,
notation systems, visual styles, and page layout. Together, such conventions constitute a visual
language, and help to ensure that the drawing is unambiguous and relatively easy to understand.
This need for precise communication in the preparation of a functional document distinguishes
technical drawing from the expressive drawing of the visual arts. Artistic drawings are
subjectively interpreted; their meanings are multiply determined. Technical drawings are
understood to have one intended meaning.
A drafter, draftsperson, or draughtsman is a person who makes a drawing (technical or
expressive). A professional drafter who makes technical drawings is sometimes called a drafting

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technician.

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Methods of technical drawing

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1. Sketching 73
A sketch is a quickly executed, freehand drawing that is not intended as a finished work. In
general, sketching is a quick way to record an idea for later use. Architect's sketches primarily
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serve as a way to try out different ideas and establish a composition before undertaking a more
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finished work, especially when the finished work is expensive and time consuming.
Architectural sketches, for example, are a kind of diagrams. These sketches, like metaphors, are
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used by architects as a means of communication in aiding design collaboration. This tool helps
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architects to abstract attributes of hypothetical provisional design solutions and summarize their
complex patterns, hereby enhancing the design process.
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2. Manual or by instrument
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The basic drafting procedure is to place a piece of paper (or other material) on a smooth surface
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with right-angle corners and straight sides—typically a drawing board. A sliding straightedge
known as a T-square is then placed on one of the sides, allowing it to be slid across the side of
the table, and over the surface of the paper.
"Parallel lines" can be drawn simply by moving the T-square and running a pencil or technical
pen along the T-square's edge. The T-square is used to hold other devices such as set squares or
triangles. In this case the drafter places one or more triangles of known angles on the T-square—
which is itself at right angles to the edge of the table—and can then draw lines at any chosen
angle to others on the page. Modern drafting tables come equipped with a drafting machine that
is supported on both sides of the table to slide over a large piece of paper. Because it is secured
on both sides, lines drawn along the edge are guaranteed to be parallel.

In addition, the drafter uses several technical drawing tools to draw curves and circles. Primary
among these are the compasses, used for drawing simple arcs and circles, and the French curve,
for drawing curves. A spline is a rubber coated articulated metal that can be manually bent to
most curves.

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Types of technical drawings

The two types of technical drawings are based on graphical projection. This is used to create an
image of a three-dimensional object onto a two-dimensional surface.
Two-dimensional representation: uses orthographic projection to create an image where only two
of the three dimensions of the object are seen.
Three-dimensional representation: also referred to as a pictorial, all three dimensions of an object
are visible.

Views
1. A section, or cross-section, is a view of a 3-dimensional object from the position of a plane
through the object.
A cross section is a common method of depicting the internal arrangement of a 3-dimensional
object in two dimensions. It is often used in technical drawing and is traditionally crosshatched.
The style of crosshatching indicates the type of material the section passes through.
A 2-D cross-sectional view of a compression seal.
2. An elevation is a view of a 3-dimensional object from the position of a vertical plane beside an

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object. In other words, an elevation is a side-view as viewed from the front, back, left or right

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(and referred to as a front elevation, [left/ right] side elevation, and a rear elevation). It is the
corollary to the concept of a "view" (which is always overhead and is therefore referred to as an

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An elevation is a common method of depicting the external configuration and detailing of a 3-
dimensional object in two dimensions. Building façades are shown as elevations in architectural
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drawings and technical drawings.

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Elevations are the most common orthographic projection for conveying the appearance of a
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building from the exterior. Perspectives are also commonly used for this purpose. A building
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elevation is typically labeled in relation to the compass direction it faces; the direction from
which a person views it. E.g. the North Elevation of a building is the side that most closely faces
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true north on the compass.

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- A developed elevation is a variant of a regular elevation view in which several adjacent non-
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parallel sides may be shown together, as if they have been unfolded. For example, the north and
west views may be shown side-by-side, sharing an edge, even though this does not represent a
proper orthographic projection.
3. A plan is a view of a 3-dimensional object from the position of a horizontal plane through,
above, or below the object. In such views, the portion of the object in front of the plane is
omitted to reveal what lies beyond. In the case of a floor plan, the roof and upper portion of the
walls may be omitted. Elevations, top (roof) plans, and bottom plans are orthographic
projections, but they are not sections as their viewing plane is outside of the object.
A plan is a common method of depicting the internal arrangement of a 3-dimensional object in
two dimensions. It is often used in technical drawing and is traditionally cross-hatched. The style
of crosshatching indicates the type of material the section passes through.
4. An auxiliary view is a view taken from an angle that is not one of the primary views. An
auxiliary view is a view at an angle used to give deeper insight into the actual shape of the
object. An auxiliary view is used to show a slanted surface in true size and shape. This is
accomplished by providing a view that is perpendicular to the slanted surface.

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Meaning and importance of computer-aided design

Introduction to CAD (Computer aided design)
Computer-aided design (CAD) is the use of computer systems to assist in the creation,
modification, analysis, or optimization of a design. CAD software is used to increase the
productivity of the designer, improve the quality of design, improve communications through
documentation, and to create a database for manufacturing. CAD output is often in the form of
electronic files for print, machining, or other manufacturing operations.
Computer-aided design is used in many fields. Its use in designing electronic systems is known
as electronic design automation, or EDA. In mechanical design it is known as mechanical design
automation (MDA) or computer-aided drafting (CAD), which includes the process of creating
a technical drawing with the use of computer software.
CAD software for mechanical design uses either vector-based graphics to depict the objects of
traditional drafting, or may also produce raster graphics showing the overall appearance of
designed objects. However, it involves more than just shapes. As in the manual drafting of
technical and engineering drawings, the output of CAD must convey information, such as
materials, processes, dimensions, and tolerances, according to application-specific conventions.

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CAD may be used to design curves and figures in two-dimensional (2D) space; or curves,

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surfaces, and solids in three-dimensional (3D) space.
CAD is an important industrial art extensively used in many applications, including automotive,

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shipbuilding, and aerospace industries, industrial and architectural design, prosthetics, and many
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more. CAD is also widely used to produce computer animation for special effects in movies,
advertising and technical manuals, often called DCC digital content creation. The modern
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ubiquity and power of computers means that even perfume bottles and shampoo dispensers are
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designed using techniques unheard of by engineers of the 1960s. Because of its enormous
economic importance, CAD has been a major driving force for research in computational
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geometry, computer graphics (both hardware and software), and discrete differential geometry.
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The design of geometric models for object shapes, in particular, is occasionally called computer-
aided geometric design (CAGD).
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Uses/importance of CAD
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Computer-aided design is one of the many tools used by engineers and designers and is used in
many ways depending on the profession of the user and the type of software in question.

CAD is one part of the whole Digital Product Development (DPD) activity within the Product
Lifecycle Management (PLM) processes, and as such is used together with other tools, which are
either integrated modules or stand-alone products, such as:
Computer-aided engineering (CAE) and Finite element analysis (FEA)
Computer-aided manufacturing (CAM) including instructions to Computer Numerical Control
(CNC) machines
Photo realistic rendering and Motion Simulation.
Document management and revision control using Product Data Management (PDM).

CAD is also used for the accurate creation of photo simulations that are often required in the
preparation of Environmental Impact Reports, in which computer-aided designs of intended
buildings are superimposed into photographs of existing environments to represent what that

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locale will be like, where the proposed facilities are allowed to be built. Potential blockage of
view corridors and shadow studies are also frequently analyzed through the use of CAD.

CAD has been proven to be useful to engineers as well. Using four properties which are history,
features, parameterization, and high level constraints. The construction history can be used to
look back into the model's personal features and work on the single area rather than the whole
model. Parameters and constraints can be used to determine the size, shape, and other properties
of the different modeling elements. The features in the CAD system can be used for the variety
of tools for measurement such as tensile strength, yield strength, electrical or electro-magnetic
properties. Also its stress, strain, timing or how the element gets affected in certain temperatures,
etc.

Types of CAD
There are several different types of CAD, each requiring the operator to think differently about
how to use them and design their virtual components in a different manner for each.
There are many producers of the lower-end 2D systems, including a number of free and open

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source programs. These provide an approach to the drawing process without all the fuss over

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scale and placement on the drawing sheet that accompanied hand drafting, since these can be
adjusted as required during the creation of the final draft.

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3D wireframe is basically an extension of 2D drafting (not often used today). Each line has to be
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manually inserted into the drawing. The final product has no mass properties associated with it
and cannot have features directly added to it, such as holes. The operator approaches these in a
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similar fashion to the 2D systems, although many 3D systems allow using the wireframe model
to make the final engineering drawing views.
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3D "dumb" solids are created in a way analogous to manipulations of real world objects (not
often used today). Basic three-dimensional geometric forms (prisms, cylinders, spheres, and so
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on) have solid volumes added or subtracted from them, as if assembling or cutting real-world
objects. Two-dimensional projected views can easily be generated from the models. Basic 3D
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solids don't usually include tools to easily allow motion of components, set limits to their motion,
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or identify interference between components.

Solid Modeling There are two types of solid modeling
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1). 3D parametric solid modeling allows the operator to use what is referred to as "design
intent". The objects and features created are modifiable. Any future modifications can be made
by changing how the original part was created. If a feature was intended to be located from the
center of the part, the operator should locate it from the center of the model. The feature could be
located using any geometric object already available in the part, but this random placement
would defeat the design intent. If the operator designs the part as it functions the parametric
modeler is able to make changes to the part while maintaining geometric and functional
relationships.
2). Explicit Modellers or Direct 3D CAD Modelers provide the ability to edit geometry without a
history tree. With direct modeling once a sketch is used to create geometry the sketch is
incorporated into the new geometry and the designer just modifies the geometry without needing
the original sketch. As with Parametric modeling, Direct modeling has the ability to include
relationships between selected geometry (e.g., tangency, concentricity).
Top end systems offer the capabilities to incorporate more organic, aesthetics and ergonomic
features into designs. Freeform surface modeling is often combined with solids to allow the

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designer to create products that fit the human form and visual requirements as well as they
interface with the machine.

AutoCAD
AutoCAD stands for Automatic Computer Aided Design. AutoCAD is a computer-aided
drafting software program used to create blueprints for buildings, bridges, and computer chips,
among other things. Discover how AutoCAD is used by drafters and other professionals.
AutoCAD is a commercial software application for 2D and 3D computer-aided design (CAD)
and drafting — available since 1982 as a desktop application and since 2010 as a mobile web-
and cloud-based app marketed as AutoCAD.
Developed and marketed by Autodesk, Inc. and is used across a wide range of industries, by
architects, project managers, engineers, designers, and other professionals.

Career and application Information of AutoCAD

While drafters work in a number of specialties, the five most common specialization areas are as

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follows: mechanical, architectural, civil, electrical, and electronics.

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 Mechanical drafters prepare plans for machinery and mechanical devices.
 Architectural drafters draw up plans for residential and commercial buildings.

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 Civil drafters draw up plans for use in the design and building of roadways, bridges, sewer systems,
and other major projects.
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 Electrical drafters work with electricians to prepare diagrams of wiring electrical system layouts.
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 Electronics drafters also prepare wiring diagrams for use in the making, installing, and repairing of
electronic gadgets.
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 Applications for technical drawing

Architecture: To plan a renovation, this architect takes measurements, which he later enters
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into his computer-aided design software.

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The art and design that goes into making buildings is known as architecture. To communicate
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all aspects of the shape or design, detail drawings are used. In this field, the term plan is
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often used when referring to the full section view of these drawings as viewed from above.
Architectural drawings describe and document an architect's design.
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Engineering: Engineering can be a very broad term. It stems from the Latin ingenerare,
meaning "to create". Because this could apply to everything that humans create, it is given a
narrower definition in the context of technical drawing. Engineering drawings generally deal
with mechanical engineered items, such as manufactured parts and equipment.
Engineering drawings are usually created in accordance with standardized conventions for
layout, nomenclature, interpretation, appearance (such as typefaces and line styles), size, etc.
Its purpose is to accurately and unambiguously capture all the geometric features of a product
or a component. The end goal of an engineering drawing is to convey all the required
information that will allow a manufacturer to produce that component.

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Advantages of a CAD system

 Decrease in error percentage: As the CAD software makes use of some of the best tools,
the percentage of error that occurred because of manual designing is significantly reduced.
 Decrease in effort: When it comes to the amount of effort that was needed for the sake of
designing the different models, it has been reduced significantly because the software
automates most of the task.
 Saves time: When you are using the computer aided design software, it will save your time
and you can make better and more efficient designs in shorter time duration.
 Easy to edit: When you are making designs, you may find the need to make alterations.
When you are using computer aided design software, it will be much easier to make any
changes because you can fix the errors and modify the drawings easily.
 Code re-use: As the entire task is carried out with the help of computer tools, it removes the
problem of duplication of labor, you can copy the different parts of code and design which
can then be reused multiple times over and over again.
 Improved accuracy: There is absolutely no doubt about the fact that the kind of accuracy
that CAD software will offer can never be achieved by opting for manual drawings. You

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have tools to measure the precision, skill and accuracy level of the designs.

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 Easy to share: The CAD tools make it easier to save the files and store it in a way that you
can use it time and again and send it without any unwanted hassles too.

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Features of a CAD system
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Key Features and Benefits
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Document
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AutoCAD is synonymous with documentation for good reason.

Drive your projects from concept to completion with the powerful documentation tools in
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AutoCAD. Work faster with automation, management, and editing tools that minimize repetitive
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tasks and speed your time to completion.

No matter your project‘s size or scope, y AutoCAD can help you meet the challenge with
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AutoCAD — continuously leading and innovating documentation for over 25 years.

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Communicate
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With AutoCAD, communication is a seamless operation.

Share critical design data securely, efficiently, and accurately with AutoCAD.
Experience the benefits of native DWG™ support, the worlds most widely used design data
format, allowing you to keep everyone in the loop at all times.
Take your ideas to the next level with presentation-ready graphics, rendering tools, and some of
the best plotting and 3D printing capabilities in the business. It‘s communication at its best.
Explore
AutoCAD gives you 3D power to explore your ideas in almost any shape imaginable.
AutoCAD and a blank canvas have a lot in common. Both give you the ability to create the
previously unimaginable. But AutoCAD provides the flexibility to explore design ideas in both
2D and 3D, with intuitive tools that help your concepts become real. The world is your canvas —
what will you create next?
Customize
Customize and configure AutoCAD in ways you never thought possible.
Your job is unique. Your software should be as well. Customizing AutoCAD to meet your
unique needs is easier than you ever thought possible. Configure your settings, extend the

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software, build custom workflows, develop your own application or leverage one already built.
Some think you have to choose between flexibility and power. With AutoCAD, you can have
both.

Document
Feature Benefit
Parametric Drawing Dramatically slash your design revision time with parametric drawing. By
defining persistent relationships between objects, parallel lines remain parallel
and concentric circles remain centered, all automatically.
Sheet Sets Organization isn‘t a luxury. The AutoCAD Sheet Set Manager organizes your
drawing sheets, reduces steps to publish, automatically creates layout views,
links sheet set information into title blocks and plot stamps, and performs tasks
across a sheet set so everything is in one convenient place.
Annotation Scaling Spend less time creating and managing multiple items across multiple layers.
With annotation scaling tools, you can create a single annotative-type object that
automatically resizes to reflect the current viewport or model-space scale.
Text Editing Now you can easily manipulate text by viewing, sizing, and positioning text as

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you type. Adjust the text

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‘s appearance as needed using familiar tools common in text-editing applications,
including paragraph and column tools to achieve professional-quality formatting.

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Multiple Leaders With multileader tools, creating and editing leaders is a breeze. Define
multileader styles to
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provide consistency across leaders, add multiple leader lines to a single leader
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object, and even include bubbles or blocks as leader content.

Tables Increase your productivity by automating the tedious task of creating and
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maintaining tables. You can define table styles to easily apply consistent table
formatting including fonts, colors, borders, and much more.
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Data Extraction Quickly and easily extract property data from objects in drawings (including
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blocks and attributes) and drawing information with the Data Extraction wizard.
The extracted data can then be automatically output to a table or an external file.
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Data Linking Easily link Microsoft®Office Excel®data to your AutoCAD designs for
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consistency and efficiency. Data links can be updated in both directions,

reducing the need to update tables or external spreadsheets independently. All
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linked information can easily be kept current and in sync automatically.

Dynamic Blocks Save time and standardize drawings with ease. With Dynamic Blocks, you no
longer have to redraw repetitive standard components, and you can reduce your
cumbersome block libraries in the process. Dynamic Blocks make individual
block geometry editable and reduce the need to define a new block for every
variation of shape and size.
Layer Management Create and edit layer properties faster, and reduce errors at the same time. With
the
Layer Dialog box, changes are instantly reflected in the drawing as they are
made in the dialog.
Prompts and Editing Focus on the design, not the tools. Dynamic Input displays a command line type
of prompt right at the cursor so you can launch commands, view dimensions, and
enter values without even having to look at the command line. With the Quick
Properties menu you can dramatically save time by viewing and modifying
relevant object properties right at your cursor.
Efficient User Interface Working with several files doesn‘t have to be painful anymore. The
Quick View feature uses thumbnails in addition to file names, so you can

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visually find and open the correct drawing file and layout even faster than before.
Within the Menu Browser you can also quickly browse files, examine thumbnail
images, and get detailed information about file size and file creator.

Communicate

Feature Benefit
DWG Save and share files with confidence. DWG technology from Autodesk is the
genuine and one of the most accurate ways to store and share design data when
working with anyone in the industry.
PDF Integration Sharing and reusing designs has never been easier in AutoCAD thanks to a long
list of upgrades made in the name of streamlined communication. Publish PDF
files directly from AutoCAD drawings and attach and snap to PDF files as
underlays.
Autodesk Design With built-in tools to publish and import DWF™ files within AutoCAD,
Review collaborating on projects is more seamless than ever. Autodesk®Design Review
software is the free, integrated, digital solution for clients or vendors to view,

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print, and mark up designs without needing the original software.

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Autodesk Impression Supercharge your design presentations with a hand-drawn look. Autodesk®
3 (Available to Impression software lets you create compelling presentation-ready graphics

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subscription directly from your DWG and DWF files.
customers only)
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Photo-realistic With the latest in rendering technology, you can create stunning models in less
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Rendering time.
Capabilities include a slider control that graphically displays the trade-off
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between time and rendering quality.

3D Printing Do more than just visualize your designs—make them real. Your design can now
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sit in the palm of your hand with your 3D printer or through a connected service
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provider. ShowMotion With ShowMotion®technology, you have the power to

create camera animations to navigate through your design. The ShowMotion
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control panel displays thumbnail images of the view categories and view shots
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saved in the drawing.

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Explore

Feature Benefit
Free-Form Design You now have the power to design ideas in almost any form you can imagine.
Simply push/ pull faces, edges, and vertices to model complex shapes, add
smooth surfaces, and much more.
Solid and Surface Shape your ideas in 3D just like you have in 2D. With an easy-to-learn
Modeling environment for creating both solids and surfaces, you can now create and edit
3D shapes with the familiarity of 2D tools.

Visualization Visualize your ideas like never before. Choose from over 300 materials, apply
photometric lighting, and control the display to create highly accurate, photo-
realistic rendered images.
3D Navigation Walk or fly through a model with the click of a button. Quickly rotate and orient
any solid or surface model with the ViewCube®tool, or pan, center, and zoom on

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any object with the SteeringWheels®tool.

Customize

Feature Benefit
Programming Take advantage of our flexible development platform to boost your productivity.
Interface With direct access to database structures, the graphics system, and native
command definitions, you can specialize design and drafting applications to
perfectly fit your needs.
Action Recorder Save time and increase productivity by automating repetitive tasks without
requiring the assistance of a CAD manager. Now you can record tasks, add text
messages, and request user input, then quickly select and play back recorded
macros.
Autodesk Partner Get the most out of thousands of Autodesk‘s software partners from around the
Products and Services world. These partners can further enhance your software with a broad range of
fully integrated and interoperable solutions no matter what you‘re designing.

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Autodesk Developer If you‘re creating innovative software built on AutoCAD, you‘ll want to join the

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Network Autodesk®Developer Network. Training and support enables your software or
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plug-in to tightly integrate with your workflow with the latest AutoCAD release.
Ribbon User Interface Pump up overall drafting productivity with the ribbon interface. The ribbon is
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both easily customizable and expandable so that it can be optimized for each user
and can help meet each company‘s standards.
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Typical screen layout of a CAD system

AutoCAD's program window is divided into eight major areas:

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1. The Title Bar is located across the top of the window. At the right end of the title bar are the
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standard Windows buttons for minimizing the window, resizing the window, and exiting the
program.
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2. The Drawing Windows are the areas of the screen where the drawings appear. Inside the
drawing window, crosshairs indicate the current pointer location. The lower left corner of the
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window may also display a pair of arrows, called the UCS icon, that indicates the current
drawing plane. Drawing windows can be resized, minimized, and maximized.

3. The Layout Tabs divide your working area into the Model, where you draw the full-sized
objects, and any number of layouts, where you prepare the drawing to print. You select a tab to
switch to it.

4. The Command Line is the single most important part of the AutoCAD interface. All
commands and functions are issued through this small text window located at the bottom of the
screen.

5. The Pull-down Menus provide easy access to AutoCAD commands and settings.

6. Toolbars contain buttons for commonly used commands. There are many toolbars, each of
which contains buttons for related commands. Six toolbars are open by default: Standard and
Styles (below the pull-down menus), Layers and Properties (below Standard), Draw and Modify
(along the left and right edges of the screen). To open other toolbars, right-click on any tool

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button to bring up a shortcut menu, and select the toolbar you want.

7. Tool Palettes Tool Palettes offer quick access to often-used drawing components and
commands. The palette window can be turned on or off as needed. For the beginning of class,
close the Tool Palettes window by picking the "x" at the top of the window.

8. The Status Bar displays and allows you to change many of AutoCAD's drafting settings. You
may see an additional window called the Sheet Set Manager when you open AutoCAD. This is
an advanced feature for organizing sets of drawings and sheets. For the beginning of class,
close this window by picking the "x" at the top of the window.

AutoCAD's Cartesian Workspace

How AutoCAD Locates Points
AutoCAD uses Cartesian (X,Y)
coordinates to indicate locations in a
drawing. Points are located by
designating a horizontal (X) and vertical

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(Y) distance as measured from the origin

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(0,0). (There is also a third coordinate, Z,
which is used only in 3D drawing.)

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Many commands in AutoCAD require

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that the user input a point. For example,

in order to draw a line, you must tell AutoCAD where to begin and end the line. You can
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specify the point in one of two basic methods:

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1. Picking a point on the screen with the pointing device.

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2. Typing in coordinates at the Command: prompt (when it is requesting point entry)

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in the form X,Y. For example, the point (6,4) would be typed at the keyboard as
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6,4.

Finding Coordinates: the ID Command

AutoCAD displays the current coordinate location of the cursor in the Status Bar. You
can also have AutoCAD report the coordinates of any point you pick. The ID command
(Inquiry toolbar) reports on the Command Line the X, Y, and Z coordinates of any point
you pick on the screen.

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Drawings Are Created at Full Scale

AutoCAD's Cartesian workspace is essentially
unlimited in size. Whatever the object you are
creating, you will typically draw it at full scale.
Whether you are drawing a building that's 100
meters by 200 meters, a city that's 10 square
miles, or an IC chip that is 0.1" by 0.1", you
always draw in the real units of the object.
Your drawing area is a big as you need it to
be. In fact, the entire solar system can be
drawn at full scale in AutoCAD. (Scaling the
drawing only becomes necessary when it is
printed.)

Points in Cartesian Workspace

Besides being enormous, the AutoCAD

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drawing plane is also remarkably precise. Each point you enter in AutoCAD has an

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accuracy of 14 significant digits (1.0000000000000).

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How AutoCAD Measures Angles 73
Along with the Cartesian coordinate system, you also need to understand how angles
work in AutoCAD. This will be crucial for coordinate entry, rotating objects, and for
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working with arcs. AutoCAD measures angles in a counter-clockwise direction relative

to the positive X-axis.
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Entering Points in AutoCAD

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You can enter points directly on the command line using three different systems.
The one you use will depend on which is more applicable for the situation. The three systems are as
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follows:
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1. ABSOLUTE CO-ORDINATES - Using this method, you enter the points as they relate to the
origin of the WCS. To enter a point just enter in the exact point as X,Y.
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2. RELATIVE CO-ORDINATES - This allows you to enter points in relation to the first point you
have entered. After you've entered one point, the next would be entered as @X,Y. This means that
AutoCAD will draw a line from the first point to another point X units over and Y units up relative to
the previous point.
3. POLAR CO-ORDINATES - You would use this system if you know that you want to draw a line
a certain distance at a particular angle. You would enter this as @D<A. In this case, D is the distance
and A is the angle. Example: @10<90 will draw a line 10 units straight up from the first point.

The three ways of entering co-ordinates shown above are the ONLY way AutoCAD accepts input.
First decide which style you need to use, and then enter as shown.
Remember that X is always before Y (alphabetical). Don't forget the '@' symbol when you are
entering relative points. Any typing error or omission will give you results you don't want. If you
make a mistake and need to see what you typed, press F2 to bring up the text screen and check your
typing. (Press F2 to get back to your drawing.)

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AutoCAD configuration- Units and Scales

Introduction
Among the most important concepts that newcomers to AutoCAD need to get to grips with are
those of drawing scale and drawing units. You cannot start creating sensible drawings with
AutoCAD until you are familiar with scale, units and the commands you use to control them.
This tutorial discusses these concepts, starting with the two most commonly asked questions in
this subject area.

At what scale should I draw?

As a general rule, everything you draw with AutoCAD will be drawn full size. This often comes
as quite a surprise to those who are new to CAD and have spent a number of years working on a
drawing board. When you start drawing with AutoCAD you do not have to decide upon a
drawing scale as you do when using a drawing board. When drawing on paper you must decide
do draw at say, 1:20 or 1:200 depending upon the size of the object that you are drawing so that
your scaled drawing will fit on the drawing sheet, be that A3 or A1. In AutoCAD you do not
need to decide upon a drawing scale until you come to print the drawing and because the scaling

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of your drawing takes place at the printing stage, you can create drawings at a scale of 1:1. This
has particular advantages because you can, for example, measure lengths, areas and volumes

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within an AutoCAD drawing and not need to compensate for any scale factor.
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Am I drawing in metres or millimetres?
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Most people who use AutoCAD, draw using decimal drawing units. What these drawing units
represent is entirely up to the individual. However, you must decide what units you will use
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before you start drawing. One drawing unit could represent one millimetre, one centimetre, one
metre, kilometre, mile, furlong or fathom. It is entirely up to you. However, in most parts of the
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world it is common practice to work in either millimetres or metres. Which of these two units
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you use will largely depend upon the type of drawing you are creating. For example, if you were
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creating a detail drawing of a flight of steps, you would most likely use millimetres (Architects
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will almost always use millimetres). If, on the other hand you are drawing a landscape
masterplan, you would probably want to work in metres (Landscape Architects and Civil
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Engineers usually use metres).

By way of example, consider a drawing where you need to draw a footpath in plan. The footpath
is two metres wide. If you are working in millimetres, the footpath would be drawn 2,000
drawing units wide but if you are working in metres, the footpath would be drawn just 2 drawing
units wide. To translate this into practical terms, if you had drawn one edge of the path and you
intended to draw the other edge using the Offset command, you would enter either "2,000" or "2"
for the offset value depending upon whether you were using millimetres or metres respectively.

Although decimal drawing units are the most commonly used, you can configure AutoCAD to
work with other types of drawing units. To change the unit type, you must use the Drawing Units
dialogue box.

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Units Control
Toolbar none
Pull-down Format Units…
Keyboard UNITS

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When you start the Units command, the first thing you see is the Drawing Units dialogue box,
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shown on the right. The dialogue box is divided into four main sections. The upper two are
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"Length", which refers to linear units and "Angles", referring to angular units. Settings for linear
units and angular units can be made independently and in each case, you can control both the
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type and precision. In addition, the Angles section also allows you to specify the direction in
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which angles are measured. See below for more details.

A third section, entitled Drawing units for Design Center blocks allows you to assign a specific
unit to the drawing so that when blocks are inserted via the AutoCAD Design Centre, they will
automatically be scaled. The final section, Sample Output, gives you a preview of the drawing
units as they will be displayed using the current settings.

Linear Units
You can see from the dialogue box that there are five different linear unit types for you to choose
from, one of which is "Decimal", the default. The table below shows the effect of the different
unit settings on two drawing unit values to give you an idea how the various settings might be
used along with a brief description.

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Unit Type 1.5 Drawing Units 1500 Drawing Units Description

Decimal 1.5000 1500.0000 Metric or SI units
Scientific 1.5000E+00 1.5000E+03 Decimal value raised to a power
Engineering 0'-1.5000" 125'-0.0000" Feet and decimal inches
Architectural 0'-1 1/2" 125'-0" Feet and fractional inches
Fractional 1 1/2 1500 Whole numbers and fractions

Notice that when you change the unit type, the co-ordinate display on the status bar changes to
show co-ordinates using the current unit type. Changing the unit type also affects the way
distances, areas and volumes are reported when using the appropriate inquiry command.

For the most part you should not need to change the unit type. Units such as "Architectural" and
"Engineering" are there mainly for AutoCAD users in the USA where Feet and Inches are still in
common use.

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Angular Units

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Looking at the Drawing Units dialogue box again, you will notice that there are also five angular
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unit types. The default is decimal degrees, but there are other options. The table below shows the
effect of the different unit types on two angular unit values. As with the linear units, there are not
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many circumstances under which you would want to use anything other than the default.
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Unit Type 12.5 Angular Units 180 Angular Units Description

Decimal Degrees 12.500 180.000 Metric units
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Deg/Min/Sec 12d30'0" 180d0'0" Degrees, Minutes and Seconds

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Grads 13.889g 200.000g 400 grads = 360 degrees

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Radians 0.218r 3.142r 2 Pi radians = 360 degrees

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Surveyor N 77d30'0" E W Compass bearings

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AutoCAD also allows you to control the direction in which angular units are measured and the
position of the start angle. By default, AutoCAD starts with the zero angle at the 3 o'clock
position (East) with angles increasing in an anti-clockwise direction. For the most part this does

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not present any problems once you get used to the idea. However, there are specific situations
where it may be desirable to have the zero angle at the 12 o'clock position (North) and angles

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increasing in a clockwise direction. For example, if you are working on a surveyors drawing or a

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map base, this latter situation enables you to specify angles with respect to North. To change the
direction of angular measurement, use the Clockwise check box in the Angle section of the

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Drawing Units dialogue box. When this box is checked, positive angles are measured in a
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clockwise direction, when it is not checked (the default), positive angles are measured in an anti-
clockwise direction.
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To change the start angle, click on the "Direction…" button in the Drawing Units dialogue box.
The Direction Control dialogue box appears. You can set the Base Angle to any of the circle
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quadrants by clicking on the appropriate radio button or you can set it to a specific angle with the
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"Other" option. You can enter a specific angle into the edit box or you can pick an angle using
the Pick an angle button. The ability to specify an "Other" or user angle can be useful if, for
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example, your drawing is not oriented to North but where you still want angular measurements to
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be made with respect to North. To change the direction of angular measurement, simply click on
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the appropriate radio button.

Unit Precision
The Drawing Units dialogue box can also be used to set the precision of linear and angular units.
By default, AutoCAD sets the linear unit precision to four places of decimal, so distances appear
in the form 0.0000. Angular unit precision is set to whole degrees only.

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To change the precision with which linear and angular values are displayed, simply click the
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down arrow against the appropriate drop-down list (see illustration on the left) and select the
number of decimal places required. The default setting of four decimal places is usually adequate
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for linear units. It is, however, often necessary to change the precision for angular units. Working
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in whole degrees does not usually give an adequate level of detail for many drawing functions.
However, you do not need to change the precision of either linear or angular units unless you
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have a specific reason for doing so.

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Changing the unit precision does not make your drawing more accurate, it just means that the co-
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ordinate display on the status bar and the results from the various inquiry commands will be
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displayed with a higher degree of precision. The accuracy of your drawing will be determined by
the values you enter for the size of objects when you draw and edit them and by the correct use
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of the various object snaps and drawing aids.

Basic AutoCAD Commands

These commands may be used at any time, but are mainly called upon more during the
beginning of the drawing process.

Commands for Setting the Drawing Environment

These commands may be used at any time, but are mainly called upon more during the beginning
of the drawing process.

 Units: Specifies the display format and precision. This command dictates whether the units are
displayed as decimals or as a fraction, as well as how many decimal places the number will go. Also
specifies how angles will be represented, either as decimal degrees, radians, etc., as well as how
angles will be measured, i.e. clockwise vs. counterclockwise.

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 Limits: Sets limits to the boundary and size of the current drawing. The user must specify the lower
left-hand corner and the upper right-hand corner. This setting may be turned on or off – when on,
points may not be specified outside the currently set limits.
 Qtext: Quick text – may be turned on or off, like the Limits command. When switched on, text is
displayed in rectangles, showing the extent of the text. When off, just the text is displayed, without
the rectangle.
 Viewres: Performs two functions: first, it lets the user disable fast zoom, which makes sense when
conforming a more modern version of AutoCAD to an earlier one that lacks the fast zoom capability.
Second, Viewres allows the user to control the smoothness and speed of circles and arcs drawn in
the display. The user does this by choosing the number of sides circles will have. It is recommended
this value be set at 2000.
 Blipmode: Blips are small crosses used to mark screen positions that the user has pointed to. They
can be useful reference points, but too many of them can crowd the screen, making it difficult for
the user to see. Engaging Blipmode allows the small crosses to stay up in the wake of the pointer,
and turning it off makes them disappear. Blips are not part of the final drawing and are removed
when the drawing is complete.
 Fill: When this command is engaged, solids, traces, wide polylines, and donuts that are drawn are

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then filled in with color, as opposed to just being outlines. This command does not affect the

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drawing’s plotted output, and, when using this command, there is a trade-off between regeneration
time and the image’s quality.

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Status: This command simply lists, on the Text Screen, the current drawing environment, the modes,
and statuses that are engaged for this drawing.
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Commands for Drawing Entities

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Once the drawing environment has been set, these commands are used to actually draw the
entities.
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 Line: Allows for the sequential drawing of one or more straight lines. Once engaged, this command
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elicits a prompt of “From point:”, at which point the user specifies a starting point for a line, or they
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may press RETURN, which starts the line at the end of the previous line or arc that was drawn. Next,
the prompt “To point:” is displayed, allowing the user to specify a sequence of points to which the
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line will extend. They may also type the letter C to close the polygon, or the letter U to undo the
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previous line segment, or they may simply press RETURN to complete the command.
 Point: Draws a single marker/point, which is, by default, a single dot, but may be changed to
something else if desired.
 Circle: Draws a circle by letting the user specify the center point, then dictating the circle’s size by
entering a value for either the circle’s radius or its diameter. Another option to creating a circle with
this command is to specify three points on the circle’s circumference, two end-points of its
diameter, or its radius along with two other lines or circles to which the new circle will be tangential.
 Arc: This command draws arcs, and, like circles, may be dictated in one of several ways. The various
methods for constructing arcs with this command are as follows: (1) specify three different points,
(2) starting point, center, and end point, (3) starting point, center, and included angle, (4) starting
point, center, and length of chord, (5) starting point, ending point, and radius, (5) starting point,
ending point, and included angle, (6) starting point, ending point, and starting direction, and finally,
(7) starting point and direction of previous line or arc, plus ending point.
 Ellipse: Ellipses are constructed by specifying the two end points of one of the major or minor axes,
followed by a distance value defining half the length of the other axis.

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 Pline: Draws 2D polylines, which are continuous sequences of straight lines and/or arc segments
with varying line length, dictated by the user. You are able to close a polyline to form a polygon. It
also may be helpful to know that polylines may be exploded into separate line and arc entities if
necessary.
 Polygon: Draws regular polygons by entering the number of edges, then specifying the shape’s
center and radius, or by locating the endpoints of any of its edges. Once created, polygons are to be
treated as closed polylines.
 Hatch: Within one or many closed boundaries, a cross-hatch pattern may be created with the Hatch
command. The boundaries must be well-defined, otherwise, the cross-hatch may leak out
unexpectedly. The user may select pre-determined patterns supplied by AutoCAD, or they may
enter their own and add them to the set that’s already there.
 Bhatch: A newer command in the AutoCAD quiver, it helps the user to better use the previously
discussed Hatch command. It supports boundary hatching, allowing the user to pick a point that is
adjacent to the boundary they wanted, and this new command lets AutoCAD search for the nearest
entity, then constructs a closed boundary by tracing in a counterclockwise fashion to look for
intersection points as well as connecting lines or arcs. Bhatch is convenient in that it allows the user
to preview adjustments without having to start over each time.

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 Dtext: Allows you to draw text dynamically, changing text height and rotation, allowing it to be

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moved, centered, stretched between two points, aligned, overscored, underscored, have symbols
added, fonts changed, etc.

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Utility Commands
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These are some basic and useful commands that may be used more than other more specific
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commands.
 Redraw: Refreshes the program and re-displays the graphics on the screen, but without extraneous
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graphics, such as blips, that may have been left behind from earlier operations.
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 Save: Saves all current changes and drawings to be saved to the disk. As with any important project
done on a computer, it’s best to get into the habit of saving regularly, especially during long drawing
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sessions, to prevent any work from being lost.

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 End: Finishes the current session, saves the work, and takes you back to AutoCAD’s main menu.
 Quit: Finishes the current session, but does NOT save the changes that were made to the current
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drawing, then returns you to the main menu.

Drawing and Manipulation Commands

These commands alter your drawings, allowing you to enlarge and reduce views, maintain
graphic accuracy, and manipulate space and viewports, among other things.

Moving Around the Drawing Area

 Zoom Scale: Allows the user to enter a magnification or reduction factor. Numbers less than 1 will
reduce the drawing, those greater than 1 will expand it. The Zoom Scale amount is applied to the
entire drawing, and doesn’t change the actual size of the entities, simply the magnification.
 Zoom Extents: Commands AutoCAD to display all of the current drawing’s graphics, using the largest
possible image, not necessarily extending it to the user-defined limits.
 Zoom All: Displays the drawing to the drawing limits.
 Zoom Window: Prompts the user to define which part of the drawing is to be magnified, by defining
the lower left-hand and upper right-hand corners of the box to be zoomed in on.

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 Zoom Center: The user enters a point, which the program uses as the center of an area to be
magnified, then they enter a value to be applied to the new, magnified image’s height.
 Zoom Left Corner: Like Zoom Center, the specified point is the lower left-hand corner of the new
display.
 Zoom Previous: Commands the program to revert back to the prior view displayed. Up to five views
may be stacked up for comparison.
 Zoom Dynamic: The most powerful of the Zoom options, it allows for quick movement around the
drawing.
 Pan: Permits panning across the current drawing without changing the scale.
 Vpoint: Establishes a viewpoint from anywhere in space, which may be entered as a 3D point, a
spherical point, or dynamic (simply press RETURN instead of entering a specific point).
 Dview: Provides a dynamic tool for viewing an object in 3D as either a parallel projection or a
perspective. Using a camera along with target concept, AutoCAD is able to manipulate the viewing
position, direction of view, focal length, and viewing distance.
 Plan: Puts the user back in plan view when done working in 3D.

Model Space, Paper Space, Viewports

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Tilemode: Switching Tilemode to off (setting the value to 0), turns AutoCAD to paper space. Setting
the value to 1, AutoCAD switches to model space.
 Vports: Only available when Tilemode is on, it allows the user to establish up to 16 viewports on the

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screen, so that each one holds a different view of the drawing. You are able to work in only one
viewport at a time, but may easily move among the different ones.

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View: Saves the current view under a name the user specifies, or restores a previously saved view,
and may be used in model or paper space,
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 Mview: Used when Tilemode is off, Mview creates and defines various viewports’ characteristics
while in paper space. They may be turned on and off and linked with views that have been
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previously saved with the previous View command.

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 Mspace: Also used when Tilemode is off, this command allows the user to switch to model space,
then edit their drawing inside a paper space viewport.
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 Pspace: With Tilemode off and model space active, the user may switch back to paper space and
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edit graphics.
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Drawing Tools
 UCS: The User Coordinate System (UCS) is set up to be positioned and oriented anywhere in 3D
space. After the UCS is implemented, the previous 2D drawing is now done in the X-Y plane of the
new UCS. The user is now able to easily draw anywhere in space, and also aids when drawing in 2D.
 Snap: Sets up a grid that is both invisible and orthogonal, square or rectangular, which all points
entered with the mouse may be locked onto.
 Grid: This command sets up a visible grid of white dots that is used for referencing purposes.
 Axis: Similar to the Grid command, except the white dots are replaced with two intersecting axes
with tick marks.
 Ortho: When turned on, Ortho mode makes all lines drawn with the mouse parallel to the axes.
 Osnap: (Object Snap) In Osnap’s “Running Mode”, it allows points to be precisely located on
reference points of existing objects. They may be overridden by selecting different object snap
modes for a specific entry.
 Aperture: Sets the size of the Osnap target box, where values ranging from 1-50 screen units are
valid.

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Deletion Commands
Only two commands are in this group, used to delete objects and entities.
 Erase: This removes a selected group of entities, which may be entered before or after the
command itself is entered.
 Oops: Restores the most recently deleted object group from using the previous Erase command.
This command may not be repeated, as it only restores one group of deleted objects.

Transformation Commands
The following group of commands allows the user to select a group of objects that need to be
transformed in one way or another.
 Move: The user may dictate the direction and length of a move of specified objects by indicating
two points which define a vector between the objects.
 Copy: Similar to the Move command, Copy does not affect the original group of objects, with the
copied objects being completely independent of the original objects.
 Rotate: Providing a specific base point and angle, the user may rotate an object of their choosing
with this command. Negative angles will provide a clockwise rotation, while a positive angle gives a

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counterclockwise rotation.

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 Scale: Enlarge or shrink a selected group of objects by selecting a base point for the scaling as well
as applying a factor for which to scale.

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 Mirror: This command produces a mirror copy of a selected object group by specifying the two ends
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of the mirror line. Then, the mirrored objects may be deleted or kept, depending upon the user’s
preference.
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 Stretch: Allows the user to move a portion of a drawing while retaining its connections to other
parts of the drawing, thus stretching it out. Blocks, Hatch patterns, and Text entities may NOT be
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stretched.
 Array: Produces multiple copies of selected objects that are arranged in a rectangular or circular
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 Offset: Constructs a new entity parallel to an existing one. This could be a single line, polyline, arc,
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circle, or curve.
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Error Recovery Commands

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These commands bring back errors made during the editing process.
 U: The U command undoes the most recent drawing or editing and may be used repeatedly, all the
way back to the beginning of the session.
 Redo: This command is used immediately after an error to redo what was undone.
 Undo: This is like the U command but a bit more complicated. It is able to undo several commands
at once, allows the user to set mark points and later undo back to those points, and to group
operations together and undo them simultaneously.

Commands that Change Existing Entities

These commands allow different editing changes to be made to existing entities.
 Change: This command covers a lot of ground, with two basic main capabilities: first, use this
command to change properties that all entities possess, for example, layer name, color, line type.
Second, change the geometry and attributes of specific types of entities.
 Pedit: This is the command used to make changes to polylines, such as width, taper, closing an
opening, breaking one into two, moving, adding, and deleting vertices, etc.

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 Break: This command splits an already existing line, arc, circle, or polyline into two separate parts,
producing an erased portion in between them.
 Trim: This command trims parts of certain objects in a drawing in order to finish them precisely at
some cutting edge (or edges) that are established by one or more other objects. One or several
lines, arcs, circles or polylines must first be identified to serve as cutting edges, which may be
selected by any of the methods available. Next, pointing is used to select the parts of the objects
that are to be trimmed. Many objects may be selected in this way for trimming, including ones that
had been specified as cutting edges.
 Extend: Complementing the Trim command, Extend operates similarly, but the selected lines are
extended to end exactly at the specified boundary edges.
 Fillet: This command connects two existing lines, circles, or arcs by adding an arc with a specific
radius (a fillet), and allows the user to change the current default radius prior to filleting.
 Chamfer: Like the Fillet command, this one chamfers, or cuts away, as in carpentry, corners with a
straight edge.
 Divide: Divides an object into a specified number equal parts, from 2 to 32,767 parts.
 Measure: This measures an object, from one end to the other.

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Enquiry Commands
This final group of AutoCAD commands are used to obtain information a drawing‘s object‘s

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position and nature.

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List: Lists stored information about any selected entities found within the current drawing.
 Dist: Calculates and displays the distance and angle between two points in a drawing.
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 Area: Calculates and displays any region’s area and perimeter, as long as it is defined by a sequence
of specified points on the drawing, as long as they form a closed polygon.
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Note: The command are to be used in the command line, this commands may be accessed in
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respective tool bars as tools

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A. Tools
Drawing tools – on the drawing tool bar or Drawing menu

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Modifying tools – on the Modifying toolbar or modifying menu

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Dimensioning tools – on the Dimensioning toolbar or Dimensioning menu
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1. Linear dimensions are used for dimensioning either horizontal or vertical distances.
2. Aligned dimensions will measure the actual length of an angled line parallel.
3. Radius dimensions will give you the radius of either arcs or circles.
4. Diameter dimensions are used on circles.
5. Angular dimensions will measure the angle between two lines that you pick.
6. Baseline dimensions are a special type – elements with a common baseline
7. Continued dimensions are a special type – elements that dimension from a previous dimension

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B. Object Snaps
Suppose you want to draw a line from the center of the circle to the middle of the vertical line you
extended earlier. AutoCAD has a feature that makes this very easy. These are the Object Snaps (or
Osnaps "Oh-Snaps"). Type OS <ENTER>
You will see this dialog box appear.

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Endpoint - snaps to either the beginning or the end of an object such as a line -
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END
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Midpoint - snaps to the exact middle of a line or an arc - MID

Center - snaps to the center-point of a circle or arc - CEN
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Node - snaps to 'nodes' (not covered in this course) - NOD

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Quadrant - snaps to any of the four quadrants of a circle - QUA

Intersection - snaps to the point where two object cross - INT
Extension - Snaps to the phantom extension of an arc or line - EXT
Insertion - snaps to the insertion point of an object (such as a block or text) - INS
Perpendicular - will snap so that the result is perpendicular to line selected - PER
Tangent - snaps to create a line tangent to a circle or arc - TAN
Nearest - will find the closest point an object and snap to that point - NEA
Parallel -Snaps parallel to a specified line - PAR
None - temporarily turns off all Osnaps. (Pressing your F3 Key is quicker) - NON
Osnap settings - opens the Osnap dialog box.
Temporary Tracking - Creates a temporary tracking point (see Object Tracking).
From - Allows you to select a point, and then denote a new location 'from' that point using relative
co-ordinates. This can save you the time of drawing (and erasing) construction lines.

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C. Layers
A LAYER is a CAD feature used to organize drawings (organize drawing to sections for else of
management). On format menu, click Layers then use the Layer manager window that appears to
organize the drawing
i.e. Create different layers(from layers toolbar) and properties and draw on respective layers.

D. Blocks
A BLOCK is a collection of simple entities (lines, arcs, circles, text, etc.) that form a more complex
entity that normally represents an object in the real world, e.g. a door, a chair, a window, a computer.
Select the various drawing entities and on drawing menu, choose block to create a single entity of the
drawing.

E. Hatch
Hatching in AutoCAD is a way of filling in areas of your drawing with a preformatted pattern to
represent certain materials. It is usually used in sectional views.
There are two types of hatching you can use.

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Steps
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On drawing menu, choose hatch then cover an area with preformatted pattern.
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3-D CAD Concept

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Terminology
Elevation - The difference between an object being at zero on the Z-axis and the height that it is
above zero.
Extrude - The extrude command raises the shape of a 2D outline into a 3D solid. For example, a
circle would be extruded into a cylinder.
Face - The simplest true 3-D surface.
Facet - A three or four sided polygon that represents a piece (or section) of a 3-D surface.
Hidden line removal - A way of hiding lines that would not be visible if you were viewing the
actual object you have drawn in AutoCAD. (Command: HIDE)
Region - A 2-D area consisting of lines, arcs, etc.
Thickness - A property of lines and other objects that give them a 3-D like appearance.
Z-Axis - The third axis that defines the depth.
UCS - The User Co-ordinate System. This is defined by the user.
WCS World Co-ordinate System is define as the default CAD origin

Types of 3D Models
Several types of 3D modeling are available in AutoCAD. Each of these 3D modeling

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technologies offer a different set of capabilities.

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Wireframe Models:
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1) Consists of lines, arcs, and curves that define the object

2) There are no surfaces. Objects appear as outlines only
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3) Time consuming to make it part

Surface Models
1) Represent a thin layer or shell of the shape of an object
2) Made up of edges and surfaces
3) Surfaces models are created by using sweeping, lofting, or revolving 2D lines or arcs

Solid Models
1) Are made up of surfaces and the volume inside
2) Solid models have properties of mass, volume, center of gravity, and moments-of-inertia
3) You can easily create 3D primitives such as boxes, cones, cylinders, and spheres or create
3D models from sweeping, lofting, or extruding 2D closed objects or profiles.

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Mesh Models
1) Consists of vertices, edges, and faces that use triangles and quads to define the 3D shape
2) Meshes have to mass properties
3) Meshes allow greater ability to manipulate and deform surfaces
4) You can covert meshes into solid models

 Wireframe modeling is useful for initial design iterations and as reference geometry, serving
as a 3D framework for subsequent modeling or modification.
 Solid modeling is efficient to use, easy to combine primitives and extruded profiles, and
offers mass properties and sectioning capabilities.
 Surface modeling offers fine control over curved surfaces for precise manipulation and
analysis.
 Mesh modeling provides freeform sculpting, creasing, and smoothing capabilities.

A 3D model can include combinations of these technologies, and you can convert between them.
For example, you can convert a primitive 3D solid pyramid to a 3D mesh to perform mesh

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smoothing. You can then convert the mesh to a 3D surface or back to a 3D solid to take

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advantage of their respective modeling features.

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3D AutoCAD (Advantages of 3D models)

• Models can be rotated or viewed from any position
• You can generate section and auxiliary views
• You can remove hidden lines and do realistic shading
• You can run part interference checks for engineering analysis
• You can add lighting and realistic rendering to models
• You can create animations
• You can extract manufacturing data for making the part

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Developing a 3-D object

To start developing a 3D object, we have two options
1) Develop an object in 2D (circle, rectangle, polygon, but not lines) then activate the property of the
object find thickness property and add some value for thickness (extrude)
2) Go to view menu – 3D views and choose either of the isometric views and start developing the 3-D
object along all its axis (X, Y, Z)

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Projection
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When three-dimensional graphics are displayed on a flat computer screen or printed on paper,
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they must be projected onto the viewing plane. A projection is a way of converting positions in
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3D space into locations in the 2D viewing plane. Engineering supports two types of projections-
parallel and perspective-for each view.
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Types of Projections
The projections are classified according to the method of taking the projection on the plane.
Classifications of projection are: Perspective and Parallel

Parallel Projections
A parallel projection projects objects in 3D space onto the 2D viewing plane along parallel rays.
The figure below shows a parallel projection; note that two objects that are the same size but at
different locations still appear to be the same size when projected onto the viewplane.
Figure : In a Parallel Projection, Rays Do Not Converge at the Eye

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Perspective Projections
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A perspective projection projects objects in 3D space onto the 2D viewing plane along rays that
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converge at the eye position. The figure below shows a perspective projection; note that objects
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that are farther from the eye appear smaller when projected onto the viewplane.
Figure: In a Perspective Projection, Rays Converge at the Eye
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Parallel projection
When you look at a machine, you see that the machine has planes based on parallel lines. For
example, a lathe machine has a rectangular base, which is a combination of parallel lines. If
parallel lines are drawn to represent the parallel lines actually present on the machine, we call it a
parallel projection. This type of projection is widely used by draftsman and architects to make
blueprints and schematics.

1. Orthographic Projection

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Orthographic projection is the most common parallel projection due to its simplicity. It is
represented using three views; front view, side view and top view. In graphical terms, you need

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To draw the front view you just imagine how the object looks at front. Don‘t think about slope of
the object, just draw whatever it looks. Similarly, the top and side view of the object can be
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drawn (refer the image).

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Through this projection, accurate measurement can be obtained because all the views are drawn
using same scale. However, it doesn‘t provide a realistic projection of a 3-D model; besides, it
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requires multiple views to feel the object design.

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The orthographic projection can be drawn two ways, first angle projection and third angle
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projection. Both of them have differences only in the positioning of various views. In first angle
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projection, the front view is placed onto first quadrant; top and side view are placed onto the
forth and second quadrants, respectively. In the third angle projection, the third quadrant is used
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for front view; whereas top and side view are placed onto the second and forth quadrants.
2. Axonometric Projection
Axonometric projection is a type of parallel projection. Drawing the object in this method is
somewhat complex because it requires only one image to draw the 3-D structure of the object
onto a plane paper. Suppose you are using a projector and an object is placed in front of projector
lines. Now, you can see the image of 3-D object onto a 2-D plane just behind the object. This
projection is nothing but an axonometric projection.

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Axonometric projection is classified into three categories depending upon orientation of the
object.
The first and most convenient type is isometric. In this type of projection, angles between the
three axes are equal. As the diagram says, if we project a cube onto a 2-D surface, you see all the
three sides AB, AC, and AD are equal.
The second type is diametric projection, in which only two angles between the axes are equal.

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You can see the diagram in which only two sides AB and AC are equal.

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The third is trimetric projection that can be drawn using three axes having different angles
between them. It‘s the most common type of axonometric projection and the object can be placed

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All these methods are used for furniture and structural design. Axonometric projection is good
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for rectangular structures rather than curved objects.

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3. Oblique Projection
Oblique projection is comparatively easier than axonometric projection. It requires only one
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image and traditional equipments to draw any object. In this method, first you need to draw the
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front view or side view and then draw rest of the object with respect to it.
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 Draw the front or side view of the object just like in orthographic projection.
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 The measurements drawn backwards must be in the scale equal to half of the actual
measurement.
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 The lines drawn backwards should have the angle in between 30 to 45 ; however it is
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convenient if you use 45 angles.

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Oblique projection is further divided into two types based on scaling.

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The first one is cavalier projection, in which the length in X and Z axis are
drawn in scale 1:1 and there is no required scaling for the length of the Y-
axis. It is very easy to draw and often used for drawing an object when
you can use only your hands such as drawing a cube on the blackboard.
The most common use of this type of projection is in military fortification.
The other type is cabinet projection. Unlike cavalier
projection, this method uses the 2:1scale to draw
lengths in X and Z direction, respectively. Besides,
lengths in Y-axis must also be scaled properly. This
projection is very useful in furniture industries.

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Perspective Projection

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Perspective projection doesn‘t use parallel lines to project an object, instead it is a projection
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along the lines emerging from a single point. Due to this, the nearer part appears bigger than
distant part. This is much like the working of our eyes in respect to depth perception. For
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example, when we see a railway line, it appears converging towards a single point called the
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vanishing point. View of the object feels more realistic using this projection.

You can use any type of projection for drawing an object onto plane surface. However, it
requires good imagination power so as the object would become more realistic. The scaling must
be done properly to avoid distortion. Always use clips to place the drawing sheet rigidly on the
desk. Furthermore, use clean equipment to draw a neat and clean image.

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CHAPTER 3: GEOGRAPHYCAL INFORMATION

SYSTEM (GIS)
What is GIS – Definition?
Geographic Information System (GIS) is a computer system build to capture, store,
manipulate, analyze, manage and display all kinds of spatial or geographical data. GIS
applications are tools that allow end users to perform spatial query, analysis, edit spatial data and
create hard copy maps. In simple way GIS can be define as an image that is referenced to the
earth or has x and y coordinate and it‘s attribute values are stored in the table. These x and y
coordinates are based on different projection system and there are various types of projection
system. Most of the time GIS is used to create maps and to print. To perform the basic task
in GIS, layers are combined, edited and designed.

GIS can be used to solve the location based question such as ―What is located here‖ or Where to
find particular features? GIS User can retrieve the value from the map, such as how much is the

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forest area on the land use map. This is done using the query builder tool. Next important

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features of the GIS is the capability to combine different layers to show new information. For
example, you can combine elevation data, river data, land use data and many more to show

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information about the landscape of the area. From map you can tell where is high lands or where
is the best place to build house, which has the river view . GIS helps to find new information.
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Figure: Gis Model

How GIS Works:

 Visualizing Data: The geographic data that is stored in the databases are displayed in the GIS
software.

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 Combining Data: Layers are combined to form a maps of desire.

 The Query: To search the value in the layer or making a geographic queries.

Definition by others:
A geographic information system (GIS) lets us visualize, question, analyze, and interpret data to
understand relationships, patterns, and trends. (ESRI)

In the strictest sense, a GIS is a computer system capable of assembling, storing, manipulating,
and displaying geographically referenced information (that is data identified according to their
locations). (USGS)

Advantage of GIS:
 Better decision made by government people
 Improve decision making with the help of layered information
 Citizen engagement due to better system

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 Help to identify communities that is under risk or lacking infrastructure

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 Helps in identifying criminology matters
 Better management of natural resources

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 Better communication during emergency situation 73
 Cost savings due to better decision

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Finding different kinds of trends within the community

 Planning the demographic changes
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History of GIS:
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Modern GIS has seen series of development. GIS has evolved with the computer system. Here
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are the brief events that has happened for the development of the GIS system.
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Year 1854 – The term GIS that used scientific method to create maps was used by John Snow in
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1854. He used points on London residential map to plot outbreak of Cholera.

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Year 1960 – Modern computerized GIS system began in year 1960.

Year 1962 – Dr. Roger Tomlinson created and developed Canadian Geographic Information
System (CGIS) to store, analyze and manipulate data that was collected for the Canada Land
Inventory (CLI). This software had the capacity to overlay, measurement and digitizing
(converting scan hardcopy map to digital data). It is never provided in commercial format but Dr.
Tomlinson is the father of GIS.

Year 1980 – This period saw rise of commercial GIS software‘s like M&S Computing,
Environmental Systems Research Institute (ESRI) and Computer Aided Resource Information
System (CARIS). These all software were similar to CGIS with more functionality and user-
friendliness. Among all the above the most popular today is ESRI products like ArcGIS,
ArcView which hold almost 80 % of global market.

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Component of GIS:
Hardware: Hardware is the physical component of the computer and GIS runs on it. Hardware
may be hard disk, processor, motherboard and so on. All these hardware work together to
function as a computer. GIS software run on these hardware. Computer can be standalone called
desktop or server based. GIS can run on both of them.

Software: GIS Software provides tools and functions to input and store spatial data or
geographic data. It provides tool to perform geographic query, run analysis model and display
geographic data in the map form. GIS software uses Relation Database Management System
(RDBMS) to store the geographic data. Software talks with the database to perform geographic
query.

Data: Data are the fuel for the GIS and the most important and expensive component.
Geographic data are the combination of physical features and it‘s information which is stored in
the tables. These tables are maintained by the RDBMS. The process of capturing the geographic
data are called digitization which is the most tedious job. It is the process of converting scanned

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hardcopy maps into the digital format. Digitization is done by tracing the lines along the

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geographic features for example to capture a building you will trace around the building on the
image.

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People: People are the user of the GIS system.
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People use all above three component to run a GIS system. Today‘s computer are fast and user
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friendly which makes it easy to perform geographic queries, analysis and displaying maps.
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Today everybody uses GIS to perform their daily job.

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Area of GIS Applications

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Major areas of GIS application can be grouped into five categories as follows.
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Facilities Management: Large scale and precise maps and network analysis are used mainly for
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utility management. AM/FM is frequently used in this area.

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Environment and Natural Resources Management: Medium or small scale maps and overlay
techniques in combination with aerial photographs and satellite images are used for management
of natural resources and environmental impact analysis.

Street Network: Large or medium scale maps and spatial analysis are used for vehicle routing,
locating house and streets etc.

Planning and Engineering: Large or medium scale maps and engineering models are used
mainly in civil engineering.

Land Information System: Large scale cadastre maps or land parcel maps and spatial analysis
are used for cadastre administration, taxation etc.

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GIS Data Models

A GIS stores information about the world as a collection of thematic layers that can be linked
together by geography. This simple but extremely powerful and versatile concept has proven
invaluable for solving many real-world problems from tracking delivery vehicles, to recording
details of planning applications, to modeling global atmospheric circulation. The thematic layer
approach allows us to organize the complexity of the real world into a simple representation to
help facilitate our understanding of natural relationships.

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The thematic layer approach allows us to organize the complexity of the real world
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GIS Data Types

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The basic data type in a GIS reflects traditional data found on a map. Accordingly, GIS
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technology utilizes two basic types of data. These are:

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 Spatial data: describes the absolute and relative location of geographic features.
 Attribute data: describes characteristics of the spatial features. These characteristics can be
quantitative and/or qualitative in nature. Attribute data is often referred to as tabular data.

The coordinate location of a forestry stand would be spatial data, while the characteristics of that
forestry stand, e.g. cover group, dominant species, crown closure, height, etc., would be attribute
data. Other data types, in particular image and multimedia data, are becoming more prevalent
with changing technology. Depending on the specific content of the data, image data may be
considered either spatial, e.g. photographs, animation, movies, etc., or attribute, e.g. sound,
descriptions, narration's, etc.

Spatial Data Models

Traditionally spatial data has been stored and presented in the form of a map. Three basic types
of spatial data models have evolved for storing geographic data digitally. These are referred to
as:

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1. Vector;
2. Raster;
3. Image.

The following diagram reflects the two primary spatial data encoding techniques. These are
vector and raster. Image data utilizes techniques very similar to raster data, however typically
lacks the internal formats required for analysis and modeling of the data. Images reflect pictures
or photographs of the landscape.

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Representation of the real world and showing differences in how a vector and a raster GIS will
represent this real world.

Vector Data Formats

All spatial data models are approaches for storing the spatial location of geographic features in a
database. Vector storage implies the use of vectors (directional lines) to represent a geographic
feature. Vector data is characterized by the use of sequential points or vertices to define a linear
segment. Each vertex consists of an X coordinate and a Y coordinate.

Vector lines are often referred to as arcs and consist of a string of vertices terminated by a node.
A node is defined as a vertex that starts or ends an arc segment. Point features are defined by one
coordinate pair, a vertex. Polygonal features are defined by a set of closed coordinate pairs. In
vector representation, the storage of the vertices for each feature is important, as well as the
connectivity between features, e.g. the sharing of common vertices where features connect.

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Vector Data: There are three types of vector data, points, lines and polygons. These data are
created by digitizing the base data. They store information in x, y coordinates. Vectors models
are used to store data which have discrete boundaries like country borders, land parcels and
roads.

Several different vector data models exist, however only two are commonly used in GIS
data storage.

The most popular method of retaining spatial relationships among features is to explicitly record
adjacency information in what is known as the topologic data model. Topology is a mathematical
concept that has its basis in the principles of feature adjacency and connectivity.

The topologic data structure is often referred to as an intelligent data structure because spatial
relationships between geographic features are easily derived when using them. Primarily for this
reason the topologic model is the dominant vector data structure currently used in GIS
technology. Many of the complex data analysis functions cannot effectively be undertaken

4
without a topologic vector data structure. Topology is reviewed in greater detail later on in the

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book.

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The secondary vector data structure that is common among GIS software is the computer-aided
drafting (CAD) data structure. This structure consists of listing elements, not features, defined
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by strings of vertices, to define geographic features, e.g. points, lines, or areas. There is
considerable redundancy with this data model since the boundary segment between two polygons
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can be stored twice, once for each feature. The CAD structure emerged from the development of
computer graphics systems without specific considerations of processing geographic features.
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Accordingly, since features, e.g. polygons, are self-contained and independent, questions about
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the adjacency of features can be difficult to answer. The CAD vector model lacks the definition
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of spatial relationships between features that is defined by the topologic data model.
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GIS MAP Structure - VECTOR systems (Adapted from Berry)

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Raster Data Formats

Raster data models incorporate the use of a grid-cell data structure where the geographic area is
divided into cells identified by row and column. This data structure is commonly called raster.
While the term raster implies a regularly spaced grid other tessellated data structures do exist in
grid based GIS systems. In particular, the quadtree data structure has found some acceptance as
an alternative raster data model.

Raster Data: Raster data store information of features in cell based manner. Satellite images,
photogrammetry and scanned maps are all raster based data. Raster model are used to store data
which varies continuously as in aerial photography, a satellite image or elevation values (DEM-
Digital Elevation Model).

The size of cells in a tessellated data structure is selected on the basis of the data accuracy and
the resolution needed by the user. There is no explicit coding of geographic coordinates required
since that is implicit in the layout of the cells. A raster data structure is in fact a matrix where any

4
coordinate can be quickly calculated if the origin point is known, and the size of the grid cells is

44
known. Since grid-cells can be handled as two-dimensional arrays in computer encoding many
analytical operations are easy to program. This makes tessellated data structures a popular choice

3
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for many GIS software. Topology is not a relevant concept with tessellated structures since
adjacency and connectivity are implicit in the location of a particular cell in the data matrix.
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Several tessellated data structures exist, however only two are commonly used in GIS's. The
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most popular cell structure is the regularly spaced matrix or raster structure. This data structure
involves a division of spatial data into regularly spaced cells. Each cell is of the same shape and
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size. Squares are most commonly utilized.

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Since geographic data is rarely distinguished by regularly spaced shapes, cells must be classified
as to the most common attribute for the cell. The problem of determining the proper resolution
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for a particular data layer can be a concern. If one selects too coarse a cell size then data may be
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overly generalized. If one selects too fine a cell size then too many cells may be created resulting
in a large data volume, slower processing times, and a more cumbersome data set. As well, one
can imply accuracy greater than that of the original data capture process and this may result in
some erroneous results during analysis.

As well, since most data is captured in a vector format, e.g. digitizing, data must be converted to
the raster data structure. This is called vector-raster conversion. Most GIS software allows the
user to define the raster grid (cell) size for vector-raster conversion. It is imperative that the
original scale, e.g. accuracy, of the data be known prior to conversion. The accuracy of the data,
often referred to as the resolution, should determine the cell size of the output raster map during
conversion.

Most raster based GIS software requires that the raster cell contain only a single discrete value.
Accordingly, a data layer, e.g. forest inventory stands, may be broken down into a series of raster
maps, each representing an attribute type, e.g. a species map, a height map, a density map, etc.
These are often referred to as one attribute maps. This is in contrast to most conventional vector

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data models that maintain data as multiple attribute maps, e.g. forest inventory polygons linked
to a database table containing all attributes as columns. This basic distinction of raster data
storage provides the foundation for quantitative analysis techniques. This is often referred to as
raster or map algebra. The use of raster data structures allow for sophisticated mathematical
modelling processes while vector based systems are often constrained by the capabilities and
language of a relational DBMS.

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GIS MAP Structure - RASTER systems (Adapted from Berry)

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This difference is the major distinguishing factor between vector and raster based GIS software.
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It is also important to understand that the selection of a particular data structure can provide
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advantages during the analysis stage. For example, the vector data model does not handle
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continuous data, e.g. elevation, very well while the raster data model is more ideally suited for
this type of analysis. Accordingly, the raster structure does not handle linear data analysis, e.g.
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shortest path, very well while vector systems do. It is important for the user to understand that
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there are certain advantages and disadvantages to each data model.

The selection of a particular data model, vector or raster, is dependent on the source and type of
data, as well as the intended use of the data. Certain analytical procedures require raster data
while others are better suited to vector data.

Image Data
Image data is most often used to represent graphic or pictorial data. The term image inherently
reflects a graphic representation, and in the GIS world, differs significantly from raster data.
Most often, image data is used to store remotely sensed imagery, e.g. satellite scenes or
orthophotos, or ancillary graphics such as photographs, scanned plan documents, etc. Image data
is typically used in GIS systems as background display data (if the image has been rectified and
georeferenced); or as a graphic attribute. Remote sensing software makes use of image data for
image classification and processing. Typically, this data must be converted into a raster format
(and perhaps vector) to be used analytically with the GIS.

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Image data is typically stored in a variety of de facto industry standard proprietary formats.
These often reflect the most popular image processing systems. Other graphic image formats,
such as TIFF, GIF, PCX, etc., are used to store ancillary image data. Most GIS software will read
such formats and allow you to display this data.

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Image data is most often used for remotely sensed imagery such as satellite imagery or digital
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orthophotos.
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Vector and Raster - advantages and disadvantages

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There are several advantages and disadvantages for using either the vector or raster data model to
store spatial data. These are summarized below.
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Vector Data
Advantages : Disadvantages:
1) Data can be represented at its original 1) The location of each vertex needs to be stored
resolution and form without explicitly.
generalization. 2) For effective analysis, vector data must be
2) Graphic output is usually more converted into a topological structure. This is
aesthetically pleasing (traditional often processing intensive and usually requires
cartographic representation); extensive data cleaning. As well, topology is
3) Since most data, e.g. hard copy maps, is static, and any updating or editing of the vector
in vector form no data conversion is data requires re-building of the topology.
required. 3) Algorithms for manipulative and analysis
4) Accurate geographic location of data is functions are complex and may be processing
maintained. intensive. Often, this inherently limits the
5) Allows for efficient encoding of functionality for large data sets, e.g. a large

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topology, and as a result more efficient number of features.

operations that require topological 4) Continuous data, such as elevation data, is not
information, e.g. proximity, network effectively represented in vector form. Usually
analysis. substantial data generalization or interpolation is
required for these data layers.
5) Spatial analysis and filtering within polygons
is impossible

Raster Data
Advantages : Disadvantages:
1) The geographic location of each cell is 1) The cell size determines the resolution at which
implied by its position in the cell matrix. the data is represented.
Accordingly, other than an origin point, 2) It is especially difficult to adequately represent
e.g. bottom left corner, no geographic linear features depending on the cell resolution.
coordinates are stored. Accordingly, network linkages are difficult to
2) Due to the nature of the data storage establish.

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technique data analysis is usually easy to 3) Processing of associated attribute data may be

44
program and quick to perform. cumbersome if large amounts of data exists.
3) The inherent nature of raster maps, e.g. Raster maps inherently reflect only one attribute

3
one attribute maps, is ideally suited for or characteristic for an area.
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mathematical modeling and quantitative 4) Since most input data is in vector form, data
analysis. must undergo vector-to-raster conversion. Besides
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4) Discrete data, e.g. forestry stands, is increased processing requirements this may
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accommodated equally well as continuous introduce data integrity concerns due to

data, e.g. elevation data, and facilitates the generalization and choice of inappropriate cell
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integrating of the two data types. size.

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5) Grid-cell systems are very compatible 5) Most output maps from grid-cell systems do
with raster-based output devices, e.g. not conform to high-quality cartographic needs.
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electrostatic plotters, graphic terminals.

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It is often difficult to compare or rate GIS software that use different data models. Some personal
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computer (PC) packages utilize vector structures for data input, editing, and display but convert
to raster structures for any analysis. Other more comprehensive GIS offerings provide both
integrated raster and vector analysis techniques. They allow users to select the data structure
appropriate for the analysis requirements. Integrated raster and vector processing capabilities are
most desirable and provide the greatest flexibility for data manipulation and analysis.

Attribute Data Models

A separate data model is used to store and maintain attribute data for GIS software. These
data models may exist internally within the GIS software, or may be reflected in external
commercial Database Management Software (DBMS). A variety of different data models exist
for the storage and management of attribute data. The most common are:

 Tabular
 Hierarchial
 Network

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 Relational
 Object Oriented

The tabular model is the manner in which most early GIS software packages stored their attribute
data. The next three models are those most commonly implemented in database management
systems (DBMS). The object oriented is newer but rapidly gaining in popularity for some
applications. A brief review of each model is provided.

Tabular Model
The simple tabular model stores attribute data as sequential data files with fixed formats (or
comma delimited for ASCII data), for the location of attribute values in a predefined record
structure. This type of data model is outdated in the GIS arena. It lacks any method of checking
data integrity, as well as being inefficient with respect to data storage, e.g. limited indexing
capability for attributes or records, etc.

Hierarchical Model

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The hierarchical database organizes data in a tree structure. Data is structured downward in a
hierarchy of tables. Any level in the hierarchy can have unlimited children, but any child can

3
have only one parent. Hierarchial DBMS have not gained any noticeable acceptance for use
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within GIS. They are oriented for data sets that are very stable, where primary relationships
among the data change infrequently or never at all. Also, the limitation on the number of parents
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that an element may have is not always conducive to actual geographic phenomenon.
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Network Model
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The network database organizes data in a network or plex structure. Any column in a plex
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structure can be linked to any other. Like a tree structure, a plex structure can be described in
terms of parents and children. This model allows for children to have more than one parent.
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Network DBMS have not found much more acceptance in GIS than the hierarchical
DBMS. They have the same flexibility limitations as hierarchical databases; however, the more
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powerful structure for representing data relationships allows a more realistic modelling of
geographic phenomenon. However, network databases tend to become overly complex too
easily. In this regard it is easy to lose control and understanding of the relationships between
elements.

Relational Model
The relational database organizes data in tables. Each table, is identified by a unique table name,
and is organized by rows and columns. Each column within a table also has a unique name.
Columns store the values for a specific attribute, e.g. cover group, tree height. Rows represent
one record in the table. In a GIS each row is usually linked to a separate spatial feature, e.g. a
forestry stand. Accordingly, each row would be comprised of several columns, each column
containing a specific value for that geographic feature. The following figure presents a sample
table for forest inventory features. This table has 4 rows and 5 columns. The forest stand number
would be the label for the spatial feature as well as the primary key for the database table. This

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serves as the linkage between the spatial definition of the feature and the attribute data for the
feature.
UNIQUE DOMINANT AVG. TREE STAND STAND AGE
STAND COVER HEIGHT SITE
NUMBER GROUP INDEX
001 DEC 3 G 100
002 DEC-CON 4 M 80
003 DEC-CON 4 M 60
004 CON 4 G 120

Data is often stored in several tables. Tables can be joined or referenced to each other by
common columns (relational fields). Usually the common column is an identification number for
a selected geographic feature, e.g. a forestry stand polygon number. This identification number
acts as the primary key for the table. The ability to join tables through use of a common column

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is the essence of the relational model. Such relational joins are usually ad hoc in nature and form

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the basis of for querying in a relational GIS product. Unlike the other previously discussed
database types, relationships are implicit in the character of the data as opposed to explicit

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characteristics of the database set up. 73
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The relational database model is the most widely accepted for managing the attributes of
geographic data.
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There are many different designs of DBMSs, but in GIS the relational design has been the most
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useful. In the relational design, data are stored conceptually as a collection of tables. Common
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fields in different tables are used to link them together. This surprisingly simple design has been
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so widely used primarily because of its flexibility and very wide deployment in applications both
within and without GIS.
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In the relational design, data are stored conceptually as a collection of tables. Common fields in
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different tables are used to link them together.

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In fact, most GIS software provides an internal relational data model, as well as support for
commercial off-the-shelf (COTS) relational DBMS'. COTS DBMS' are referred to as external
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DBMS'. This approach supports both users with small data sets, where an internal data model is
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sufficient, and customers with larger data sets who utilize a DBMS for other corporate data
storage requirements. With an external DBMS the GIS software can simply connect to the
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database, and the user can make use of the inherent capabilities of the DBMS. External DBMS'
tend to have much more extensive querying and data integrity capabilities than the GIS' internal
relational model. The emergence and use of the external DBMS is a trend that has resulted in the
proliferation of GIS technology into more traditional data processing environments.

The relational DBMS is attractive because of its:

1) simplicity in organization and data modelling.
2) flexibility - data can be manipulated in an ad hoc manner by joining tables.
3) efficiency of storage - by the proper design of data tables redundant data can be minimized;
and
4) the non-procedural nature - queries on a relational database do not need to take into account
the internal organization of the data.

The relational DBMS has emerged as the dominant commercial data management tool in GIS
implementation and application.

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The following diagram illustrates the basic linkage between a vector spatial data (topologic
model) and attributes maintained in a relational database file.

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Basic linkages between a vector spatial data (topologic model) and attributes maintained in a
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relational database file (From Berry)

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Object-Oriented Model
The object-oriented database model manages data through objects. An object is a collection of
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data elements and operations that together are considered a single entity. The object-oriented
database is a relatively new model. This approach has the attraction that querying is very natural,
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as features can be bundled together with attributes at the database administrator's discretion. To
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date, only a few GIS packages are promoting the use of this attribute data model. However,
initial impressions indicate that this approach may hold many operational benefits with respect to
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geographic data processing. Fulfilment of this promise with a commercial GIS product remains
to be seen.

Sources of Data
As previously identified, two types of data are input into a GIS, spatial and attribute. The data
input process is the operation of encoding both types of data into the GIS database formats.

The creation of a clean digital database is the most important and time consuming task upon
which the usefulness of the GIS depends. The establishment and maintenance of a robust spatial
database is the cornerstone of a successful GIS implementation.

As well, the digital data is the most expensive part of the GIS. Yet often, not enough attention is
given to the quality of the data or the processes by which they are prepared for automation.

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The general consensus among the GIS community is that 60 to 80 % of the cost incurred during
implementation of GIS technology lies in data acquisition, data compilation and database
development.

A wide variety of data sources exist for both spatial and attribute data. The most common
general sources for spatial data are:

 hard copy maps;

 aerial photographs;
 remotely-sensed imagery;
 point data samples from surveys; and
 existing digital data files.

Existing hard copy maps, e.g. sometimes referred to as analogue maps, provide the most popular
source for any GIS project.

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Potential users should be aware that while there are many private sector firms specializing in

44
providing digital data, federal, provincial and state government agencies are an excellent source
of data. Because of the large costs associated with data capture and input, government

3
departments are often the only agencies with financial resources and manpower funding to invest
73
in data compilation. British Columbia and Alberta government agencies are good examples. Both
provincial governments have defined and implemented province wide coverage of digital base
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map data at varying map scales, e.g. 1:20,000 and 1:250,000. As well, the provincial forestry
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agencies also provide thematic forest inventory data in digital format. Federal agencies are also
often a good source for base map information. An inherent advantage of digital data from
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government agencies is its cost. It is typically inexpensive. However, this is often offset by the
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data's accuracy and quality. Thematic coverages are often not up to date. However, it is
important to note that specific characteristics of government data varies greatly across North
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America.
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Attribute data has an even wider variety of data sources. Any textual or tabular data than can be
referenced to a geographic feature, e.g. a point, line, or area, can be input into a GIS. Attribute
data is usually input by manual keying or via a bulk loading utility of the DBMS software.
ASCII format is a de facto standard for the transfer and conversion of attribute information.

The following figure describes the basic data types that are used and created by a GIS.

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The basic data types that are used and created by a GIS (after Berry).

3
Data Input Techniques 73
Since the input of attribute data is usually quite simple, the discussion of data input techniques
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will be limited to spatial data only. There is no single method of entering the spatial data into a
GIS. Rather, there are several, mutually compatible methods that can be used singly or in
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combination.
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The choice of data input method is governed largely by the application, the available budget, and
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the type and the complexity of data being input.

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There are at least four basic procedures for inputting spatial data into a GIS. These are:
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 Manual digitizing;
 Automatic scanning;
 Entry of coordinates using coordinate geometry; and the
 Conversion of existing digital data.

Digitizing
While considerable work has been done with newer technologies, the overwhelming majority of
GIS spatial data entry is done by manual digitizing. A digitizer is an electronic device consisting
of a table upon which the map or drawing is placed. The user traces the spatial features with a
hand-held magnetic pen, often called a mouse or cursor. While tracing the features the
coordinates of selected points, e.g. vertices, are sent to the computer and stored. All points that
are recorded are registered against positional control points, usually the map corners, that are
keyed in by the user at the beginning of the digitizing session. The coordinates are recorded in a
user defined coordinate system or map projection. Latitude and longitude and UTM is most often
used. The ability to adjust or transform data during digitizing from one projection to another is a

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desirable function of the GIS software. Numerous functional techniques exist to aid the operator
in the digitizing process.

Digitizing can be done in a point mode, where single points are recorded one at a time, or in a
stream mode, where a point is collected on regular intervals of time or distance, measured by an
X and Y movement, e.g. every 3 metres. Digitizing can also be done blindly or with a graphics
terminal. Blind digitizing infers that the graphic result is not immediately viewable to the person
digitizing. Most systems display the digitized linework as it is being digitized on an
accompanying graphics terminal.

Most GIS's use a spaghetti mode of digitizing. This allows the user to simply digitize lines by
indicating a start point and an end point. Data can be captured in point or stream mode. However,
some systems do allow the user to capture the data in an arc/node topological data structure. The
arc/node data structure requires that the digitizer identify nodes.

Data capture in an arc/node approach helps to build a topologic data structure immediately. This

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lessens the amount of post processing required to clean and build the topological definitions.

44
However, most often digitizing with an arc/node approach does not negate the requirement for
editing and cleaning of the digitized linework before a complete topological structure can be

3
obtained. 73
The building of topology is primarily a post-digitizing process that is commonly executed in
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batch mode after data has been cleaned. To date, only a few commercial vector GIS software
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offerings have successfully exhibited the capability to build topology interactively while the user
digitizes.
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Manual digitizing has many advantages. These include:

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1. Low capital cost, e.g. digitizing tables are cheap;

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2. Low cost of labour;

3. Flexibility and adaptability to different data types and sources;
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4. Easily taught in a short amount of time - an easily mastered skill

5. Generally the quality of data is high;
6. Digitizing devices are very reliable and most often offer a greater precision that the data
warrants; and
7. Ability to easily register and update existing data.

For raster based GIS software data is still commonly digitized in a vector format and converted
to a raster structure after the building of a clean topological structure. The procedure usually
differs minimally from vector based software digitizing, other than some raster systems allow the
user to define the resolution size of the grid-cell. Conversion to the raster structure may occur
on-the-fly or afterwards as a separate conversion process.

Automatic Scanning
A variety of scanning devices exist for the automatic capture of spatial data. While several
different technical approaches exist in scanning technology, all have the advantage of being able

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to capture spatial features from a map at a rapid rate of speed. However, as of yet, scanning has
not proven to be a viable alternative for most GIS implementation. Scanners are generally
expensive to acquire and operate. As well, most scanning devices have limitations with respect to
the capture of selected features, e.g. text and symbol recognition. Experience has shown that
most scanned data requires a substantial amount of manual editing to create a clean data layer.
Given these basic constraints some other practical limitations of scanners should be identified.
These include :

1. hard copy maps are often unable to be removed to where a scanning device is available, e.g.
most companies or agencies cannot afford their own scanning device and therefore must send
their maps to a private firm for scanning;
2. hard copy data may not be in a form that is viable for effective scanning, e.g. maps are of
poor quality, or are in poor condition;
3. geographic features may be too few on a single map to make it practical, cost-justifiable, to
scan;
4. often on busy maps a scanner may be unable to distinguish the features to be captured from

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the surrounding graphic information, e.g. dense contours with labels;

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5. with raster scanning there it is difficult to read unique labels (text) for a geographic feature
effectively; and

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6. scanning is much more expensive than manual digitizing, considering all the
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cost/performance issues.
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Consensus within the GIS community indicates that scanners work best when the information on
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a map is kept very clean, very simple, and uncluttered with graphic symbology.
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The sheer cost of scanning usually eliminates the possibility of using scanning methods for data
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capture in most GIS implementations. Large data capture shops and government agencies are
those most likely to be using scanning technology.
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Currently, general consensus is that the quality of data captured from scanning devices is not
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substantial enough to justify the cost of using scanning technology. However, major
breakthroughs are being made in the field, with scanning techniques and with capabilities to
automatically clean and prepare scanned data for topological encoding. These include a variety
of line following and text recognition techniques. Users should be aware that this technology has
great potential in the years to come, particularly for larger GIS installations.

Coordinate Geometry
A third technique for the input of spatial data involves the calculation and entry of coordinates
using coordinate geometry (COGO) procedures. This involves entering, from survey data, the
explicit measurement of features from some known monument. This input technique is obviously
very costly and labour intensive. In fact, it is rarely used for natural resource applications in GIS.
This method is useful for creating very precise cartographic definitions of property, and
accordingly is more appropriate for land records management at the cadastral or municipal scale.

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Conversion of Existing Digital Data

A fourth technique that is becoming increasingly popular for data input is the conversion of
existing digital data. A variety of spatial data, including digital maps, are openly available from a
wide range of government and private sources. The most common digital data to be used in a
GIS is data from CAD systems. A number of data conversion programs exist, mostly from GIS
software vendors, to transform data from CAD formats to a raster or topological GIS data
format. Several ad hoc standards for data exchange have been established in the market place.
These are supplemented by a number of government distribution formats that have been
developed. Given the wide variety of data formats that exist, most GIS vendors have developed
and provide data exchange/conversion software to go from their format to those considered
common in the market place.

Most GIS software vendors also provide an ASCII data exchange format specific to their
product, and a programming subroutine library that will allow users to write their own data
conversion routines to fulfil their own specific needs. As digital data becomes more readily
available this capability becomes a necessity for any GIS. Data conversion from existing digital

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data is not a problem for most technical persons in the GIS field. However, for smaller GIS

44
installations who have limited access to a GIS analyst this can be a major stumbling block in
getting a GIS operational. Government agencies are usually a good source for technical

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information on data conversion requirements. 73
Some of the data formats common to the GIS marketplace are listed below. Please note that most
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formats are only utilized for graphic data. Attribute data is usually handled as ASCII text files.
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Vendor names are supplied where appropriate.

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IGDS - Interactive Graphics This binary format is a standard in the turnkey CAD market and
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Design Software has become a de facto standard in Canada's mapping industry. It

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(Intergraph / Microstation) is a proprietary format, however most GIS software vendors

provide DGN translators.
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DLG - Digital Line Graph This ASCII format is used by the USGS as a distribution standard
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(US Geological Survey) and consequently is well utilized in the United States. It is not
used very much in Canada even though most software vendors
provide two way conversion to DLG.
DXF - Drawing Exchange This ASCII format is used primarily to convert to/from the
Format (Autocad) Autocad drawing format and is a standard in the engineering
discipline. Most GIS software vendors provide a DXF translator.
GENERATE - ARC/INFO A generic ASCII format for spatial data used by the ARC/INFO
Graphic Exchange Format software to accommodate generic spatial data.
EXPORT - ARC/INFO An exchange format that includes both graphic and attribute data.
Export Format . This format is intended for transferring ARC/INFO data from one
hardware platform, or site, to another. It is also often used for
archiving.

ARC/INFO data. This is not a published data format, however

some GIS and desktop mapping vendors provide translators.

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EXPORT format can come in either uncompressed, partially

compressed, or fully compressed format

A wide variety of other vendor specific data formats exist within the mapping and GIS industry. In
particular, most GIS software vendors have their own proprietary formats. However, almost all provide
data conversion to/from the above formats. As well, most GIS software vendors will develop data
conversion programs dependant on specific requests by customers. Potential purchasers of commercial
GIS packages should determine and clearly identify their data conversion needs, prior to purchase, to
the software vendor.

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CHAPTER 4: ARTIFICIAL INTELLIGENCE

What is Artificial Intelligence?
According to the father of Artificial Intelligence, John McCarthy, it is “The science and
engineering of making intelligent machines, especially intelligent computer programs”.

Artificial Intelligence is a way of making a computer, a computer-controlled robot, or a

software think intelligently, in the similar manner the intelligent humans think.

AI is accomplished by studying how human brain thinks, and how humans learn, decide, and
work while trying to solve a problem, and then using the outcomes of this study as a basis of
developing intelligent software and systems.

Goals of AI

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 To Create Expert Systems − The systems which exhibit intelligent behavior, learn,

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demonstrate, explain, and advice its users.
To Implement Human Intelligence in Machines − Creating systems that understand, think,

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
learn, and behave like humans.
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Benefits and Challenges of Artificial Intelligence

People fear artificial intelligence, but balancing AI pros and cons suggests it's a necessary evil –
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and even vital in places.

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Pros of Artificial Intelligence:

The pros of artificial intelligence are numerous.
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1) Mundane tasks: humans get bored, machines don't. Let them do the humdrum jobs. "A.I. allows
for more intricate process automation, which increases productivity of resources and takes
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repetitive, boring labor off the shoulders of humans. They can focus on creative tasks instead,"
said Felicia Schneiderhan, CEO of 30SecondToFly, an AI virtual travel assistant.
2) Faster actions and decisions: A.I. and cognitive technologies help in making faster actions and
decisions. "Areas like automated fraud detection, planning and scheduling further demonstrate
this benefit," said Kalyan Kumar, executive vice president at HCL Technologies, an IT services
provider in India.
3) Machine Learning: Big Data means datasets in the petabytes, far too much for a human to sift
through. AI can chew through that data as fast as the Xeon processors in the servers can go and
derive insights from the data much faster than any human could.

CloudPassage co-founder and CTO Carson Sweet argues this isn‘t actual AI. "A lot of the big
data processing and analysis being attributed to AI is really just the work of machine learning.
True AI would need to take things so much further; toward genuine self-learning using artificial
neural networks that emulate the structure and functions of neural networks in human brains," he
said.

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4) Error-Free Processing: To error is human. Computers don't. The only mistakes they make is
when you don't program them properly. AI processing will insure error-free processing of data,
no matter how large the dataset. Judgement calls, however, are a different matter.

"Computers are 'stupid,' but that is their brilliance - they demand such a high level of rigor and
AI adds quantitative rigor on top of that, that to use AI at all you first have to ask yourself the
very challenging but stimulating question of what you're trying to do, with a new level of
acuity," said Dr. Nathan Wilson, CTO and co-founder of Nara Logics, synaptic intelligence
company.

5) Taking the Risk: AI-powered machines are doing jobs humans either can't do or would have to
do very carefully. Space exploration is one of them. The Mars rover Curiosity is an example. It is
freely roaming Mars because it examines the landscape as it explores and determines the best
path to take. The result is that Curiosity is learning to think for itself.
6) Better research outcomes: "AI-based technologies like computer vision help in achieving better
outcomes through improved prediction, which can include medical diagnosis, oil exploration and

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demand forecasting," said Kumar.

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The Cons of Artificial Intelligence

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The Cons of Artificial Intelligence provoke a gut-level response.
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1) Job losses: There is no way around it, AI will cost lesser-skilled people their jobs. Robots have
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already taken many jobs on assembly lines and as AI gets better at doing complex tasks, even
more low-skill jobs will be taken.
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"AI will create much more wealth than it destroys, but it will not be equitably distributed,
especially at first," said Wilson. Driverless cars is one obvious singular tech that will displace
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millions of human drivers fairly quickly, although the recent fatality involving a Tesla car on
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auto-drive may have set the whole effort back a bit.

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The changes will be subliminally felt and not overt, said Wilson. "A tax accountant won‘t one
day receive a pink slip and meet the robot that is now going to sit at her desk. Rather, the next
time the tax accountant applies for a job, it will be a bit harder to find a job."

2) A concentration of power: AI could mean a lot of power will be in the hands of a few who are
controlling it. "AI de-humanizes warfare as the nations in possession of advanced AI technology
can kill humans without involving an actual human to pull the trigger," said Schneiderhan.
3) Bad calls: AI does not have the ability to make a judgement call and may never get that ability.
A really good example happened in Sydney, Australia in 2014, when there was a shooting and
hostage drama downtown. People began ringing up Uber to get out of the affected area, and
because of the surge in demand in a concentrated area, Uber's algorithms fell back on the trusted
economics of supply-and-demand and ride rates skyrocketed.

The Uber algorithms didn't take into account the violent crisis impacting downtown, and affected
riders didn't care. They were livid that they had been gouged at a time of crisis. It forced Uber to

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reevaluate how it handles such emergencies. Perhaps in the future it will handle them better, but
for a few Aussies, it left a bad taste in their mouths.

"There is nothing artificial about intelligence," said Kartik Iyengar, senior vice president of IoT
& Skylab at VirtusaPolaris, a global IT consulting and technology services company.
"Intelligence is a fine balance of emotions and skill that is constantly developing. Today, shades
of gray exist when we make judgements. Our behavior is an outcome of the world around us –
the more artificial it becomes, the more our definitions are subject to deciding on simply right or
wrong, rather than the quick mid-course corrections that make us human. Replacing adaptive
human behavior with rigid, artificial intelligence could cause irrational behavior within
ecosystems of people and things."

4) Judgement calls, part 2: The Uber situation highlights the fact that unless all such solutions are
anticipated and specifically programmed to be out of bounds, an AI can arrive at a situation and
implement it to the detriment of people or the environment. Dr. Tim Lynch, who has a doctorate
in the psychology of computers and intelligent machines, calls this "Perverse Instantiation."

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What that means is an AI can be programmed with a benign goal but implement it in a perverse
manner just because the solution is logical and expeditious. "So if there is a problem with the

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food supply, an AI's solution may be to reduce the population by any means available rather than
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find ways to increase food production or decrease food waste," he said.
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In short, an ultimate pro and con of artificial intelligence: AI still isn't all that smart.
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What Contributes to AI?

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Artificial intelligence is a science and technology based on disciplines such as Computer

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Science, Biology, Psychology, Linguistics, Mathematics, and Engineering. A major thrust of AI

is in the development of computer functions associated with human intelligence, such as
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reasoning, learning, and problem solving. Out of the following areas, one or multiple areas can
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contribute to build an intelligent system.

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Programming Without and With AI 73
The programming without and with AI is different in following ways −
Programming Without AI Programming With AI
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A computer program without AI can answer the A computer program with AI can answer the
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specific questions it is meant to solve. generic questions it is meant to solve.

Modification in the program leads to change in its AI programs can absorb new modifications by
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structure. putting highly independent pieces of information

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together. Hence you can modify even a minute

piece of information of program without affecting
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its structure.
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Modification is not quick and easy. It may lead to Quick and Easy program modification.
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affecting the program adversely.

Applications of AI
AI has been dominant in various fields such as −

 Gaming − AI plays crucial role in strategic games such as chess, poker, tic-tac-toe, etc.,
where machine can think of large number of possible positions based on heuristic
knowledge.
 Natural Language Processing − It is possible to interact with the computer that
understands natural language spoken by humans.
 Expert Systems − There are some applications which integrate machine, software, and
special information to impart reasoning and advising. They provide explanation and
advice to the users.
 Vision Systems − These systems understand, interpret, and comprehend visual input on
the computer. For example,

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o A spying aeroplane takes photographs, which are used to figure out spatial
information or map of the areas.
o Doctors use clinical expert system to diagnose the patient.
o Police use computer software that can recognize the face of criminal with the
stored portrait made by forensic artist.
 Speech Recognition − Some intelligent systems are capable of hearing and
comprehending the language in terms of sentences and their meanings while a human
talks to it. It can handle different accents, slang words, noise in the background, change
in human‘s noise due to cold, etc.
 Handwriting Recognition − The handwriting recognition software reads the text written
on paper by a pen or on screen by a stylus. It can recognize the shapes of the letters and
convert it into editable text.
 Intelligent Robots − Robots are able to perform the tasks given by a human. They have
sensors to detect physical data from the real world such as light, heat, temperature,
movement, sound, bump, and pressure. They have efficient processors, multiple sensors
and huge memory, to exhibit intelligence. In addition, they are capable of learning from

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their mistakes and they can adapt to the new environment.

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History of AI
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Here is the history of AI during 20th century −
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Year Milestone / Innovation

1923 Karel Čapek play named ―Rossum's Universal Robots‖ (RUR) opens in London, first use
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of the word "robot" in English.

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1943 Foundations for neural networks laid.

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1945 Isaac Asimov, a Columbia University alumni, coined the term Robotics.
1950 Alan Turing introduced Turing Test for evaluation of intelligence and published
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Computing Machinery and Intelligence. Claude Shannon published Detailed Analysis of

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Chess Playing as a search.

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1956 John McCarthy coined the term Artificial Intelligence. Demonstration of the first running
AI program at Carnegie Mellon University.
1958 John McCarthy invents LISP programming language for AI.
1964 Danny Bobrow's dissertation at MIT showed that computers can understand natural
language well enough to solve algebra word problems correctly.
1965 Joseph Weizenbaum at MIT built ELIZA, an interactive problem that carries on a dialogue
in English.
1969 Scientists at Stanford Research Institute Developed Shakey, a robot, equipped with
locomotion, perception, and problem solving.
1973 The Assembly Robotics group at Edinburgh University built Freddy, the Famous Scottish
Robot, capable of using vision to locate and assemble models.
1979 The first computer-controlled autonomous vehicle, Stanford Cart, was built.
1985 Harold Cohen created and demonstrated the drawing program, Aaron.
1990 Major advances in all areas of AI −

 Significant demonstrations in machine learning

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 Case-based reasoning
 Multi-agent planning
 Scheduling
 Data mining, Web Crawler
 natural language understanding and translation
 Vision, Virtual Reality
 Games

1997 The Deep Blue Chess Program beats the then world chess champion, Garry Kasparov.
2000 Interactive robot pets become commercially available. MIT displays Kismet, a robot with
a face that expresses emotions. The robot Nomad explores remote regions of Antarctica
and locates meteorites.

AI - Intelligent Systems
While studying artificially intelligence, you need to know what intelligence is. This chapter

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covers Idea of intelligence, types, and components of intelligence.

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Meaning of Intelligence
The ability of a system to calculate, reason, perceive relationships and analogies, learn from

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experience, store and retrieve information from memory, solve problems, comprehend complex
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ideas, use natural language fluently, classify, generalize, and adapt new situations.
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Types of Intelligence
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As described by Howard Gardner, an American developmental psychologist, the Intelligence

comes in multifold −
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Intelligence Description Example

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Linguistic intelligence The ability to speak, recognize, and use Narrators, Orators
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mechanisms of phonology (speech sounds),

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syntax (grammar), and semantics (meaning).

Musical intelligence The ability to create, communicate with, and Musicians,
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understand meanings made of sound, Singers,

understanding of pitch, rhythm. Composers
Logical-mathematical The ability of use and understand relationships in Mathematicians,
intelligence the absence of action or objects. Understanding Scientists
complex and abstract ideas.
Spatial intelligence The ability to perceive visual or spatial Map readers,
information, change it, and re-create visual Astronauts,
images without reference to the objects, construct Physicists
3D images, and to move and rotate them.
Bodily-Kinesthetic The ability to use complete or part of the body to Players, Dancers
intelligence solve problems or fashion products, control over
fine and coarse motor skills, and manipulate the
objects.
Intra-personal The ability to distinguish among one‘s own Gautam Buddhha
intelligence feelings, intentions, and motivations.
Interpersonal The ability to recognize and make distinctions Mass

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intelligence among other people‘s feelings, beliefs, and Communicators,

intentions. Interviewers

You can say a machine or a system is artificially intelligent when it is equipped with at least
one and at most all intelligences in it.

Composition of Intelligence
The intelligence is intangible. It is composed of −

 Reasoning
 Learning
 Problem Solving
 Perception
 Linguistic Intelligence

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Let us go through all the components briefly −

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 Reasoning − It is the set of processes that enables us to provide basis for judgement,
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making decisions, and prediction. There are broadly two types −

Inductive Reasoning Deductive Reasoning

It conducts specific observations to makes It starts with a general statement and examines
broad general statements. the possibilities to reach a specific, logical
conclusion.
Even if all of the premises are true in a If something is true of a class of things in
statement, inductive reasoning allows for the general, it is also true for all members of that
conclusion to be false. class.
Example − "Nita is a teacher. All teachers are Example − "All women of age above 60 years
studious. Therefore, Nita is studious." are grandmothers. Shalini is 65 years.
Therefore, Shalini is a grandmother."

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 Learning − It is the activity of gaining knowledge or skill by studying, practising, being

taught, or experiencing something. Learning enhances the awareness of the subjects of
the study.

The ability of learning is possessed by humans, some animals, and AI-enabled systems.
Learning is categorized as −

o Auditory Learning − It is learning by listening and hearing. For example,

students listening to recorded audio lectures.
o Episodic Learning − To learn by remembering sequences of events that one has
witnessed or experienced. This is linear and orderly.
o Motor Learning − It is learning by precise movement of muscles. For example,
picking objects, Writing, etc.
o Observational Learning − To learn by watching and imitating others. For
example, child tries to learn by mimicking her parent.
o Perceptual Learning − It is learning to recognize stimuli that one has seen

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before. For example, identifying and classifying objects and situations.

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o Relational Learning − It involves learning to differentiate among various stimuli
on the basis of relational properties, rather than absolute properties. For Example,

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Adding ‗little less‘ salt at the time of cooking potatoes that came up salty last
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time, when cooked with adding say a tablespoon of salt.
o Spatial Learning − It is learning through visual stimuli such as images, colors,
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maps, etc. For Example, A person can create roadmap in mind before actually
following the road.
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o Stimulus-Response Learning − It is learning to perform a particular behavior

when a certain stimulus is present. For example, a dog raises its ear on hearing
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doorbell.
 Problem Solving − It is the process in which one perceives and tries to arrive at a desired
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solution from a present situation by taking some path, which is blocked by known or
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unknown hurdles.
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Problem solving also includes decision making, which is the process of selecting the best
suitable alternative out of multiple alternatives to reach the desired goal are available.

 Perception − It is the process of acquiring, interpreting, selecting, and organizing

sensory information.

Perception presumes sensing. In humans, perception is aided by sensory organs. In the

domain of AI, perception mechanism puts the data acquired by the sensors together in a
meaningful manner.

 Linguistic Intelligence − It is one‘s ability to use, comprehend, speak, and write the
verbal and written language. It is important in interpersonal communication.

Difference between Human and Machine Intelligence

 Humans perceive by patterns whereas the machines perceive by set of rules and data.

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 Humans store and recall information by patterns, machines do it by searching algorithms. For
example, the number 40404040 is easy to remember, store, and recall as its pattern is simple.
 Humans can figure out the complete object even if some part of it is missing or distorted;
whereas the machines cannot do it correctly.

AI – Category Research Areas

The domain of artificial intelligence is huge in breadth and width. While proceeding, we consider
the broadly common and prospering research areas in the domain of AI −

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Neural Networks
Yet another research area in AI, neural networks, is inspired from the natural neural network of
human nervous system.

What are Artificial Neural Networks (ANNs)?

The inventor of the first neurocomputer, Dr. Robert Hecht-Nielsen, defines a neural network as −
"...a computing system made up of a number of simple, highly interconnected processing elements,
which process information by their dynamic state response to external inputs.”

Basic Structure of ANNs

The idea of ANNs is based on the belief that working of human brain by making the right
connections can be imitated using silicon and wires as living neurons and dendrites.

The human brain is composed of 100 billion nerve cells called neurons. They are connected to
other thousand cells by Axons. Stimuli from external environment or inputs from sensory organs

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are accepted by dendrites. These inputs create electric impulses, which quickly travel through the
neural network. A neuron can then send the message to other neuron to handle the issue or does
not send it forward.

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ANNs are composed of multiple nodes, which imitate biological neurons of human brain. The
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neurons are connected by links and they interact with each other. The nodes can take input data
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and perform simple operations on the data. The result of these operations is passed to other
neurons. The output at each node is called its activation or node value.
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Each link is associated with weight. ANNs are capable of learning, which takes place by altering
weight values. The following illustration shows a simple ANN −
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Types of Artificial Neural Networks

There are two Artificial Neural Network topologies − FeedForward and Feedback.

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FeedForward ANN
The information flow is unidirectional. A unit sends information to other unit from which it does
not receive any information. There are no feedback loops. They are used in pattern
generation/recognition/classification. They have fixed inputs and outputs.

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FeedBack ANN

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Here, feedback loops are allowed. They are used in content addressable memories.
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Robotics
Robotics is a domain in artificial intelligence that deals with the study of creating intelligent and
efficient robots.

What are Robots?

Robots are the artificial agents acting in real world environment.

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Objective
Robots are aimed at manipulating the objects by perceiving, picking, moving, modifying the
physical properties of object, destroying it, or to have an effect thereby freeing manpower from
doing repetitive functions without getting bored, distracted, or exhausted.

What is Robotics?
Robotics is a branch of AI, which is composed of Electrical Engineering, Mechanical
Engineering, and Computer Science for designing, construction, and application of robots.

Aspects of Robotics
 The robots have mechanical construction, form, or shape designed to accomplish a
particular task.
 They have electrical components which power and control the machinery.
 They contain some level of computer program that determines what, when and how a
robot does something.

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Difference in Robot System and Other AI Program
Here is the difference between the two −

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AI Programs Robots
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They usually operate in computer- They operate in real physical world
stimulated worlds.
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The input to an AI program is in symbols Inputs to robots is analog signal in the form of speech
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and rules. waveform or images

They need general purpose computers to They need special hardware with sensors and effectors.
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operate on.
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Robot Locomotion
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Locomotion is the mechanism that makes a robot capable of moving in its environment. There are
various types of locomotions −
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 Legged
 Wheeled
 Combination of Legged and Wheeled Locomotion
 Tracked slip/skid

Fuzzy Logic Systems

Fuzzy Logic Systems (FLS) produce acceptable but definite output in response to incomplete,
ambiguous, distorted, or inaccurate (fuzzy) input.

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What is Fuzzy Logic?

Fuzzy Logic (FL) is a method of reasoning that resembles human reasoning. The approach of FL
imitates the way of decision making in humans that involves all intermediate possibilities
between digital values YES and NO.

The conventional logic block that a computer can understand takes precise input and produces a
definite output as TRUE or FALSE, which is equivalent to human‘s YES or NO.

The inventor of fuzzy logic, Lotfi Zadeh, observed that unlike computers, the human decision
making includes a range of possibilities between YES and NO, such as −

CERTAINLY YES

POSSIBLY YES

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CANNOT SAY

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POSSIBLY NO

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CERTAINLY NO
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The fuzzy logic works on the levels of possibilities of input to achieve the definite output.
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Implementation
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 It can be implemented in systems with various sizes and capabilities ranging from small
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micro-controllers to large, networked, workstation-based control systems.

 It can be implemented in hardware, software, or a combination of both.
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Why Fuzzy Logic?

Fuzzy logic is useful for commercial and practical purposes.

 It can control machines and consumer products.

 It may not give accurate reasoning, but acceptable reasoning.
 Fuzzy logic helps to deal with the uncertainty in engineering.

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Fuzzy Logic Systems Architecture

It has four main parts as shown −

 Fuzzification Module − It transforms the system inputs, which are crisp numbers, into
fuzzy sets. It splits the input signal into five steps such as −

LP x is Large Positive
MP x is Medium Positive
S x is Small
MN x is Medium Negative
LN x is Large Negative

 Knowledge Base − It stores IF-THEN rules provided by experts.

 Inference Engine − It simulates the human reasoning process by making fuzzy inference
on the inputs and IF-THEN rules.
 Defuzzification Module − It transforms the fuzzy set obtained by the inference engine

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into a crisp value.

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The membership functions work on fuzzy sets of variables.

Membership Function
Membership functions allow you to quantify linguistic term and represent a fuzzy set
graphically. A membership function for a fuzzy set A on the universe of discourse X is defined
as μA:X → [0,1].

Here, each element of X is mapped to a value between 0 and 1. It is called membership value or
degree of membership. It quantifies the degree of membership of the element in X to the fuzzy
set A.

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 x axis represents the universe of discourse.

 y axis represents the degrees of membership in the [0, 1] interval.

There can be multiple membership functions applicable to fuzzify a numerical value. Simple
membership functions are used as use of complex functions does not add more precision in the
output.

All membership functions for LP, MP, S, MN, and LN are shown as below −

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The triangular membership function shapes are most common among various other membership
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function shapes such as trapezoidal, singleton, and Gaussian.

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Here, the input to 5-level fuzzifier varies from -10 volts to +10 volts. Hence the corresponding
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output also changes.

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Example of a Fuzzy Logic System

Let us consider an air conditioning system with 5-level fuzzy logic system. This system adjusts
the temperature of air conditioner by comparing the room temperature and the target temperature
value.

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AI - Natural Language Processing

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Natural Language Processing (NLP) refers to AI method of communicating with an intelligent

systems using a natural language such as English.
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Processing of Natural Language is required when you want an intelligent system like robot to
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perform as per your instructions, when you want to hear decision from a dialogue based clinical
expert system, etc.

The field of NLP involves making computers to perform useful tasks with the natural languages
humans use. The input and output of an NLP system can be −

 Speech
 Written Text

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Components of NLP
There are two components of NLP as given −
1. Natural Language Understanding (NLU)

Understanding involves the following tasks −

 Mapping the given input in natural language into useful representations.

 Analyzing different aspects of the language.

2. Natural Language Generation (NLG)

It is the process of producing meaningful phrases and sentences in the form of natural language
from some internal representation.

It involves −

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 Text planning − It includes retrieving the relevant content from knowledge base.

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 Sentence planning − It includes choosing required words, forming meaningful phrases,

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setting tone of the sentence.
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Text Realization − It is mapping sentence plan into sentence structure.
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The NLU is harder than NLG.

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Difficulties in NLU
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NL has an extremely rich form and structure.

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It is very ambiguous. There can be different levels of ambiguity −

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 Lexical ambiguity − It is at very primitive level such as word-level.

 For example, treating the word ―board‖ as noun or verb?
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 Syntax Level ambiguity − A sentence can be parsed in different ways.

 For example, ―He lifted the beetle with red cap.‖ − Did he use cap to lift the beetle or he
lifted a beetle that had red cap?
 Referential ambiguity − Referring to something using pronouns. For example, Rima
went to Gauri. She said, ―I am tired.‖ − Exactly who is tired?
 One input can mean different meanings.
 Many inputs can mean the same thing.

NLP Terminology
 Phonology − It is study of organizing sound systematically.
 Morphology − It is a study of construction of words from primitive meaningful units.
 Morpheme − It is primitive unit of meaning in a language.
 Syntax − It refers to arranging words to make a sentence. It also involves determining the
structural role of words in the sentence and in phrases.

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 Semantics − It is concerned with the meaning of words and how to combine words into
meaningful phrases and sentences.
 Pragmatics − It deals with using and understanding sentences in different situations and
how the interpretation of the sentence is affected.
 Discourse − It deals with how the immediately preceding sentence can affect the
interpretation of the next sentence.
 World Knowledge − It includes the general knowledge about the world.

Steps in NLP
There are general five steps −

 Lexical Analysis − It involves identifying and analyzing the structure of words. Lexicon
of a language means the collection of words and phrases in a language. Lexical analysis
is dividing the whole chunk of txt into paragraphs, sentences, and words.
 Syntactic Analysis (Parsing) − It involves analysis of words in the sentence for
grammar and arranging words in a manner that shows the relationship among the words.

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The sentence such as ―The school goes to boy‖ is rejected by English syntactic analyzer.

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 Semantic Analysis − It draws the exact meaning or the dictionary meaning from the text.
The text is checked for meaningfulness. It is done by mapping syntactic structures and
objects in the task domain. The semantic analyzer disregards sentence such as ―hot ice-
cream‖.

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 Discourse Integration − The meaning of any sentence depends upon the meaning of the
sentence just before it. In addition, it also brings about the meaning of immediately
succeeding sentence.
 Pragmatic Analysis − During this, what was said is re-interpreted on what it actually
meant. It involves deriving those aspects of language which require real world
knowledge.

Implementation Aspects of Syntactic Analysis

There are a number of algorithms researchers have developed for syntactic analysis, but we
consider only the following simple methods −

Context-Free Grammar - It is the grammar that consists rules with a single symbol on the left-hand side
of the rewrite rules. Let us create grammar to parse a sentence − “The bird pecks the grains”

Top-Down Parser - Here, the parser starts with the S symbol and attempts to rewrite it into a
sequence of terminal symbols that matches the classes of the words in the input sentence until it

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consists entirely of terminal symbols.

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These are then checked with the input sentence to see if it matched. If not, the process is started

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over again with a different set of rules. This is repeated until a specific rule is found which
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describes the structure of the sentence.
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Expert Systems
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Expert systems (ES) are one of the prominent research domains of AI. It is introduced by the
researchers at Stanford University, Computer Science Department.
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What are Expert Systems?

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The expert systems are the computer applications developed to solve complex problems in a
particular domain, at the level of extra-ordinary human intelligence and expertise.
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Characteristics of Expert Systems

 High performance
 Understandable
 Reliable
 Highly responsive

Capabilities of Expert Systems

The expert systems are capable of −

 Advising
 Instructing and assisting human in decision making
 Demonstrating
 Deriving a solution
 Diagnosing
 Explaining

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 Interpreting input
 Predicting results
 Justifying the conclusion
 Suggesting alternative options to a problem

They are incapable of −

 Substituting human decision makers

 Possessing human capabilities
 Producing accurate output for inadequate knowledge base
 Refining their own knowledge

Components of Expert Systems

The components of ES include −

 Knowledge Base

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 Inference Engine

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 User Interface

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Let us see them one by one briefly − 73
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Knowledge Base
It contains domain-specific and high-quality knowledge. Knowledge is required to exhibit
intelligence. The success of any ES majorly depends upon the collection of highly accurate and
precise knowledge.

What is Knowledge?
The data is collection of facts. The information is organized as data and facts about the task
domain. Data, information, and past experience combined together are termed as knowledge.

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Components of Knowledge Base

The knowledge base of an ES is a store of both, factual and heuristic knowledge.

 Factual Knowledge − It is the information widely accepted by the Knowledge Engineers

and scholars in the task domain.
 Heuristic Knowledge − It is about practice, accurate judgement, one‘s ability of
evaluation, and guessing.

Knowledge representation
It is the method used to organize and formalize the knowledge in the knowledge base. It is in the
form of IF-THEN-ELSE rules.

Knowledge Acquisition
The success of any expert system majorly depends on the quality, completeness, and accuracy of

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the information stored in the knowledge base.

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The knowledge base is formed by readings from various experts, scholars, and the Knowledge

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Engineers. The knowledge engineer is a person with the qualities of empathy, quick learning,
and case analyzing skills.
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He acquires information from subject expert by recording, interviewing, and observing him at
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work, etc. He then categorizes and organizes the information in a meaningful way, in the form of
IF-THEN-ELSE rules, to be used by interference machine. The knowledge engineer also
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monitors the development of the ES.

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Inference Engine
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Use of efficient procedures and rules by the Inference Engine is essential in deducting a correct,
flawless solution.
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In case of knowledge-based ES, the Inference Engine acquires and manipulates the knowledge
from the knowledge base to arrive at a particular solution.

In case of rule based ES, it −

 Applies rules repeatedly to the facts, which are obtained from earlier rule application.
 Adds new knowledge into the knowledge base if required.
 Resolves rules conflict when multiple rules are applicable to a particular case.

To recommend a solution, the Inference Engine uses the following strategies −

 Forward Chaining
 Backward Chaining

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Forward Chaining
It is a strategy of an expert system to answer the question, “What can happen next?”

Here, the Inference Engine follows the chain of conditions and derivations and finally deduces
the outcome. It considers all the facts and rules, and sorts them before concluding to a solution.

This strategy is followed for working on conclusion, result, or effect. For example, prediction of
share market status as an effect of changes in interest rates.

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Backward Chaining 73
With this strategy, an expert system finds out the answer to the question, “Why this
happened?”
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On the basis of what has already happened, the Inference Engine tries to find out which
conditions could have happened in the past for this result. This strategy is followed for finding
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out cause or reason. For example, diagnosis of blood cancer in humans.

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User Interface
User interface provides interaction between user of the ES and the ES itself. It is generally
Natural Language Processing so as to be used by the user who is well-versed in the task domain.
The user of the ES need not be necessarily an expert in Artificial Intelligence.

It explains how the ES has arrived at a particular recommendation. The explanation may appear
in the following forms −

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 Natural language displayed on screen.

 Verbal narrations in natural language.
 Listing of rule numbers displayed on the screen.

The user interface makes it easy to trace the credibility of the deductions.

Requirements of Efficient ES User Interface

 It should help users to accomplish their goals in shortest possible way.
 It should be designed to work for user’s existing or desired work practices.
 Its technology should be adaptable to user’s requirements; not the other way round.
 It should make efficient use of user input.

Expert Systems Limitations

No technology can offer easy and complete solution. Large systems are costly, require
significant development time, and computer resources. ESs have their limitations which include
−

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 Limitations of the technology
 Difficult knowledge acquisition

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 ES are difficult to maintain 73
 High development costs
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Applications of Expert System

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The following table shows where ES can be applied.

Application Description
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Design Domain Camera lens design, automobile design.

Medical Domain Diagnosis Systems to deduce cause of disease from observed data,
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conduction medical operations on humans.

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Monitoring Systems Comparing data continuously with observed system or with prescribed
behavior such as leakage monitoring in long petroleum pipeline.
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Process Control Systems Controlling a physical process based on monitoring.

Knowledge Domain Finding out faults in vehicles, computers.
Finance/Commerce Detection of possible fraud, suspicious transactions, stock market
trading, Airline scheduling, cargo scheduling.

Expert System Technology

There are several levels of ES technologies available. Expert systems technologies include −

 Expert System Development Environment − The ES development environment

includes hardware and tools. They are −
o Workstations, minicomputers, mainframes.
o High level Symbolic Programming Languages such as LISt Programming (LISP)
and PROgrammation en LOGique (PROLOG).
o Large databases.

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 Tools − They reduce the effort and cost involved in developing an expert system to large
extent.
o Powerful editors and debugging tools with multi-windows.
o They provide rapid prototyping
o Have Inbuilt definitions of model, knowledge representation, and inference design.
 Shells − A shell is nothing but an expert system without knowledge base. A shell
provides the developers with knowledge acquisition, inference engine, user interface, and
explanation facility. For example, few shells are given below −
o Java Expert System Shell (JESS) that provides fully developed Java API for
creating an expert system.
o Vidwan, a shell developed at the National Centre for Software Technology,
Mumbai in 1993. It enables knowledge encoding in the form of IF-THEN rules.

Development of Expert Systems: General Steps

The process of ES development is iterative. Steps in developing the ES include −
Identify Problem Domain

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 The problem must be suitable for an expert system to solve it.

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 Find the experts in task domain for the ES project.
 Establish cost-effectiveness of the system.

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Design the System
 Identify the ES Technology
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 Know and establish the degree of integration with the other systems and databases.
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 Realize how the concepts can represent the domain knowledge best.
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Develop the Prototype

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From Knowledge Base: The knowledge engineer works to −

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
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Acquire domain knowledge from the expert.

 Represent it in the form of If-THEN-ELSE rules.
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Test and Refine the Prototype

 The knowledge engineer uses sample cases to test the prototype for any deficiencies in
performance.
 End users test the prototypes of the ES.

Develop and Complete the ES

 Test and ensure the interaction of the ES with all elements of its environment, including end
users, databases, and other information systems.
 Document the ES project well.
 Train the user to use ES.

Maintain the ES
 Keep the knowledge base up-to-date by regular review and update.
 Cater for new interfaces with other information systems, as those systems evolve.

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Benefits of Expert Systems

 Availability − They are easily available due to mass production of software.
 Less Production Cost − Production cost is reasonable. This makes them affordable.
 Speed − They offer great speed. They reduce the amount of work an individual puts in.
 Less Error Rate − Error rate is low as compared to human errors.
 Reducing Risk − They can work in the environment dangerous to humans.
 Steady response − They work steadily without getting motional, tensed or fatigued.

Speech and Voice Recognition

These both terms are common in robotics, expert systems and natural language processing.
Though these terms are used interchangeably, their objectives are different.

Speech Recognition Voice Recognition

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The speech recognition aims at understanding and The objective of voice recognition is to recognize
comprehending WHAT was spoken. WHO is speaking.

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It is used in hand-free computing, map, or menu It is used to identify a person by analysing its
navigation.
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tone, voice pitch, and accent, etc.
Machine does not need training for Speech This recognition system needs training as it is
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Recognition as it is not speaker dependent. person oriented.

Speaker independent Speech Recognition systems Speaker dependent Speech Recognition systems
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are difficult to develop. are comparatively easy to develop.

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Working of Speech and Voice Recognition Systems

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The user input spoken at a microphone goes to sound card of the system. The converter turns the
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analog signal into equivalent digital signal for the speech processing. The database is used to
compare the sound patterns to recognize the words. Finally, a reverse feedback is given to the
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database.

This source-language text becomes input to the Translation Engine, which converts it to the
target language text. They are supported with interactive GUI, large database of vocabulary, etc.

Real Life Applications of AI Research Areas

There is a large array of applications where AI is serving common people in their day-to-day
lives −

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Sr.No. Research Areas Example

1 Expert Systems

Examples − Flight-tracking systems, Clinical systems.

2 Natural Language Processing

Examples: Google Now feature, speech recognition,

Automatic voice output.

3 Neural Networks

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Examples − Pattern recognition systems such as face

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recognition, character recognition, handwriting

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recognition.
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Robotics
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Examples − Industrial robots for moving, spraying,

painting, precision checking, drilling, cleaning, coating,
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carving, etc.
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5 Fuzzy Logic Systems

Examples − Consumer electronics, automobiles, etc.

Task Classification of AI
The domain of AI is classified into Formal tasks, Mundane tasks, and Expert tasks.

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Task Domains of Artificial Intelligence

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Mundane (Ordinary) Tasks Formal Tasks Expert Tasks

Perception  Mathematics  Engineering
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 Geometry  Fault Finding

 Computer Vision  Logic  Manufacturing
 Speech, Voice  Integration and  Monitoring
Differentiation

Natural Language Processing Games Scientific Analysis

 Understanding  Go
 Language Generation  Chess (Deep Blue)
 Language Translation  Ckeckers

Common Sense Verification Financial Analysis

Reasoning Theorem Proving Medical Diagnosis
Planing Creativity
Robotics

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 Locomotive

Humans learn mundane (ordinary) tasks since their birth. They learn by perception, speaking,
using language, and locomotives. They learn Formal Tasks and Expert Tasks later, in that order.

For humans, the mundane tasks are easiest to learn. The same was considered true before trying
to implement mundane tasks in machines. Earlier, all work of AI was concentrated in the
mundane task domain.

Later, it turned out that the machine requires more knowledge, complex knowledge
representation, and complicated algorithms for handling mundane tasks. This is the reason why
AI work is more prospering in the Expert Tasks domain now, as the expert task domain
needs expert knowledge without common sense, which can be easier to represent and handle.

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AI - Agents & Environments

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An AI system is composed of an agent and its environment. The agents act in their environment.
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The environment may contain other agents.
What are Agent and Environment?
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An agent is anything that can perceive its environment through sensors and acts upon that
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environment through effectors.

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 A human agent has sensory organs such as eyes, ears, nose, tongue and skin parallel to
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the sensors, and other organs such as hands, legs, mouth, for effectors.
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 A robotic agent replaces cameras and infrared range finders for the sensors, and various
motors and actuators for effectors.
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 A software agent has encoded bit strings as its programs and actions.
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Agent Terminology
 Performance Measure of Agent − It is the criteria, which determines how successful an
agent is.
 Behavior of Agent − It is the action that agent performs after any given sequence of
percepts.
 Percept − It is agent‘s perceptual inputs at a given instance.
 Percept Sequence − It is the history of all that an agent has perceived till date.
 Agent Function − It is a map from the precept sequence to an action.

Rationality
Rationality is nothing but status of being reasonable, sensible, and having good sense of
judgment.

Rationality is concerned with expected actions and results depending upon what the agent has
perceived. Performing actions with the aim of obtaining useful information is an important part
of rationality.

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What is Ideal Rational Agent?

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An ideal rational agent is the one, which is capable of doing expected actions to maximize its
performance measure, on the basis of −
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 Its percept sequence

 Its built-in knowledge base
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Rationality of an agent depends on the following four factors −

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 The performance measures, which determine the degree of success.

Agent‘s Percept Sequence till now.
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
The agent‘s prior knowledge about the environment.
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
 The actions that the agent can carry out.
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A rational agent always performs right action, where the right action means the action that causes
the agent to be most successful in the given percept sequence. The problem the agent solves is
characterized by Performance Measure, Environment, Actuators, and Sensors (PEAS).

The Structure of Intelligent Agents

Agent‘s structure can be viewed as −

 Agent = Architecture + Agent Program

 Architecture = the machinery that an agent executes on.
 Agent Program = an implementation of an agent function.

Simple Reflex Agents

 They choose actions only based on the current percept.
 They are rational only if a correct decision is made only on the basis of current precept.

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 Their environment is completely observable.

Condition-Action Rule − It is a rule that maps a state (condition) to an action.

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Model Based Reflex Agents

They use a model of the world to choose their actions. They maintain an internal state.
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Model − The knowledge about ―how the things happen in the world‖.
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Internal State − It is a representation of unobserved aspects of current state depending on

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percept history.
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Updating the state requires the information about −

 How the world evolves.

 How the agent’s actions affect the world.

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Goal Based Agents
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They choose their actions in order to achieve goals. Goal-based approach is more flexible than
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reflex agent since the knowledge supporting a decision is explicitly modeled, thereby allowing
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for modifications.
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Goal − It is the description of desirable situations.

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Utility Based Agents

They choose actions based on a preference (utility) for each state. Goals are inadequate when −

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 There are conflicting goals, out of which only few can be achieved.
 Goals have some uncertainty of being achieved and you need to weigh likelihood of
success against the importance of a goal.

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Nature of Environments
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Some programs operate in the entirely artificial environment confined to keyboard input,
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database, computer file systems and character output on a screen.

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In contrast, some software agents (software robots or softbots) exist in rich, unlimited softbots
domains. The simulator has a very detailed, complex environment. The software agent needs to
choose from a long array of actions in real time. A softbot designed to scan the online
preferences of the customer and show interesting items to the customer works in the real as well
as an artificial environment.

The most famous artificial environment is the Turing Test environment, in which one real
and other artificial agents are tested on equal ground. This is a very challenging environment as
it is highly difficult for a software agent to perform as well as a human.

Turing Test
The success of an intelligent behavior of a system can be measured with Turing Test.

Two persons and a machine to be evaluated participate in the test. Out of the two persons, one
plays the role of the tester. Each of them sits in different rooms. The tester is unaware of who is

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machine and who is a human. He interrogates the questions by typing and sending them to both
intelligences, to which he receives typed responses.

This test aims at fooling the tester. If the tester fails to determine machine‘s response from the
human response, then the machine is said to be intelligent.

Properties of Environment
The environment has multifold properties −

 Discrete / Continuous − If there are a limited number of distinct, clearly defined, states of
the environment, the environment is discrete (For example, chess); otherwise it is continuous
(For example, driving).
 Observable / Partially Observable − If it is possible to determine the complete state of the
environment at each time point from the percepts it is observable; otherwise it is only
partially observable.
 Static / Dynamic − If the environment does not change while an agent is acting, then it is

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static; otherwise it is dynamic.

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 Single agent / Multiple agents − The environment may contain other agents which may be
of the same or different kind as that of the agent.

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 Accessible / Inaccessible − If the agent‘s sensory apparatus can have access to the complete
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state of the environment, then the environment is accessible to that agent.
 Deterministic / Non-deterministic − If the next state of the environment is completely
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determined by the current state and the actions of the agent, then the environment is
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deterministic; otherwise it is non-deterministic.

 Episodic / Non-episodic − In an episodic environment, each episode consists of the agent
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perceiving and then acting. The quality of its action depends just on the episode itself.
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Subsequent episodes do not depend on the actions in the previous episodes. Episodic
environments are much simpler because the agent does not need to think ahead.
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Breakthroughs Unleashing AI on the World

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AI researchers have predicted that AI is right around the corner, yet until a few years ago it
seemed as stuck in the future as ever. There was even a term coined to describe this era of
meager results and even more meager research funding: the AI winter. Has anything really
changed?

Yes. Three recent breakthroughs have unleashed the long-awaited arrival of artificial
intelligence:

1. Cheap parallel computation

Thinking is an inherently parallel process, billions of neurons firing simultaneously to create
synchronous waves of cortical computation. To build a neural network—the primary architecture
of AI software—also requires many different processes to take place simultaneously. Each node
of a neural network loosely imitates a neuron in the brain—mutually interacting with its
neighbors to make sense of the signals it receives. To recognize a spoken word, a program must
be able to hear all the phonemes in relation to one another; to identify an image, it needs to see

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every pixel in the context of the pixels around it—both deeply parallel tasks. But until recently,
the typical computer processor could only ping one thing at a time.

That began to change more than a decade ago, when a new kind of chip, called a graphics
processing unit, or GPU, was devised for the intensely visual—and parallel—demands of
videogames, in which millions of pixels had to be recalculated many times a second. That
required a specialized parallel computing chip, which was added as a supplement to the PC
motherboard. The parallel graphical chips worked, and gaming soared. By 2005, GPUs were
being produced in such quantities that they became much cheaper. In 2009, Andrew Ng and a
team at Stanford realized that GPU chips could run neural networks in parallel.

That discovery unlocked new possibilities for neural networks, which can include hundreds of
millions of connections between their nodes. Traditional processors required several weeks to
calculate all the cascading possibilities in a 100 million-parameter neural net. Ng found that a
cluster of GPUs could accomplish the same thing in a day. Today neural nets running on GPUs
are routinely used by cloud-enabled companies such as Facebook to identify your friends in

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photos or, in the case of Netflix, to make reliable recommendations for its more than 50 million

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subscribers.

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2. Big Data 73
Every intelligence has to be taught. A human brain, which is genetically primed to categorize
things, still needs to see a dozen examples before it can distinguish between cats and dogs. That's
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even more true for artificial minds. Even the best-programmed computer has to play at least a
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thousand games of chess before it gets good. Part of the AI breakthrough lies in the incredible
avalanche of collected data about our world, which provides the schooling that AIs need.
Massive databases, self-tracking, web cookies, online footprints, terabytes of storage, decades of
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search results, Wikipedia, and the entire digital universe became the teachers making AI smart.
3. Better algorithms
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Digital neural nets were invented in the 1950s, but it took decades for computer scientists to
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learn how to tame the astronomically huge combinatorial relationships between a million—or
100 million—neurons. The key was to organize neural nets into stacked layers. Take the
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relatively simple task of recognizing that a face is a face. When a group of bits in a neural net are
found to trigger a pattern—the image of an eye, for instance—that result is moved up to another
level in the neural net for further parsing. The next level might group two eyes together and pass
that meaningful chunk onto another level of hierarchical structure that associates it with the
pattern of a nose. It can take many millions of these nodes (each one producing a calculation
feeding others around it), stacked up to 15 levels high, to recognize a human face. In 2006, Geoff
Hinton, then at the University of Toronto, made a key tweak to this method, which he dubbed
―deep learning.‖ He was able to mathematically optimize results from each layer so that the
learning accumulated faster as it proceeded up the stack of layers. Deep-learning algorithms
accelerated enormously a few years later when they were ported to GPUs. The code of deep
learning alone is insufficient to generate complex logical thinking, but it is an essential
component of all current AIs, including IBM's Watson, Google's search engine, and Facebook's
algorithms.

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This perfect storm of parallel computation, bigger data, and deeper algorithms generated the 60-
years-in-the-making overnight success of AI. And this convergence suggests that as long as these
technological trends continue—and there's no reason to think they won't—AI will keep
improving.

As it does, this cloud-based AI will become an increasingly ingrained part of our everyday life.
But it will come at a price. Cloud computing obeys the law of increasing returns, sometimes
called the network effect, which holds that the value of a network increases much faster as it
grows bigger. The bigger the network, the more attractive it is to new users, which makes it even
bigger, and thus more attractive, and so on. A cloud that serves AI will obey the same law. The
more people who use an AI, the smarter it gets. The smarter it gets, the more people use it. The
more people that use it, the smarter it gets. Once a company enters this virtuous cycle, it tends to
grow so big, so fast, that it overwhelms any upstart competitors. As a result, our AI future is
likely to be ruled by an oligarchy of two or three large, general-purpose cloud-based commercial
intelligences.

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