Deck 19: Special Topics in Rea Modeling

Question 1

Using an REA database design,which is the most likely primary key for the Inventory-Request_Goods table?

A)Product number.
B)Product number - Purchase order number.
C)Product number - Purchase requisition number.
D)Purchase order number.

Answer 1

C

Question 2

The minimum cardinality from the Sales event to the Services entity is most likely 1 because

A)every sale includes performing a service.
B)a service is only recorded once a sale has occurred.
C)only 1 service is provided for each sale.
D)the minimum cardinality is always set to be 1.

Answer 2

A

Question 3

Warehouse number is most likely to be a foreign key in

A)Order Inventory.
B)Disburse Cash.
C)Receive Inventory.
D)Inventory.

Answer 3

C

Question 4

Since the same inventory items may be stored in several different warehouses,the maximum cardinality from Inventory to Warehouse is most likely

A)0.
B)N.
C)1.
D)M.

Question 5

Using an REA database design,which of the below is false with regards to cost data?

A)Cost information is stored in several tables.
B)Standard cost is stored as an attribute of the Inventory table because it is the same for all units of a given inventory item for a fiscal year.
C)In contrast, the actual cost of inventory is stored in a relationship table because prices can vary over time.
D)Actual cost can be stored as an attribute of the Inventory table for organizations that value inventory based on the most recent amount paid.

Question 6

Picking ticket number is most likely to be a foreign key in which entity of an expanded revenue cycle REA diagram?

A)Customers.
B)Fill Customer Order.
C)Ship Order.
D)Take Customer Order.

Question 7

In an REA model,rental transactions differ from sales transactions in that

A)each rental has a part number.
B)each rental has a unique serial number.
C)rental transactions require completely different REA models than sales transactions.
D)each rental has a renter number.

Question 8

The relationship between the Rent Item and Return Item events is most likely 1:1 for all except which of the following reasons?

A)A return must be for a rented item.
B)A rented item can only be returned once.
C)Rented items are accounted for separately.
D)All rented items must be returned.

Question 9

Picking ticket number is most likely to be a primary key in which entity of an expanded revenue cycle REA diagram?

A)Call on Customers.
B)Fill Customer Order.
C)Ship Order.
D)Take Customer Order.

Question 10

In an expenditure cycle diagram,which of the following is an example of an event that larger organizations might want to include in their extended REA model?

A)Request.
B)Order.
C)Ship Order.
D)Fill Order.

Question 11

A dental office would likely model the relationships between the Sales event and both the Services and Supplies Resource entities as

A)M:N.
B)1:1.
C)1:N.
D)1:M.

Question 12

Using an REA database design,which is the most likely primary key for the Pay for Goods table?

A)Cash transaction number.
B)Check number.
C)Invoice number.
D)Receiving report number.

Question 13

Supplier number is least likely to be a foreign key in

A)Order Inventory.
B)Disburse Cash.
C)Receive Inventory.
D)Warehouse.

Question 14

Many companies sell software,music,or digital photographs over the Internet.They provide each customer with a digital copy of those resources,but not the actual resource itself.How will this company's REA model differ from those selling tangible inventory?

A)These companies do not need an Inventory table.
B)The structure of Inventory table is completely different from that of mass-produced merchandise.
C)The Inventory table is only different in that it doesn't need attributes such as quantity-on-hand, quantity-available, reorder point, and standard reorder quantity.
D)The Inventory table need not include information about the standard list price of each item and its description.

Question 15

In a relational database,details about activities such as Cleaning,X-Rays,Fillings,Root Canals,Crowns,and Extractions would all be stored in which table?

A)Services.
B)Sales.
C)Inventory.
D)Patient.

Question 16

Customer number is least likely to be a foreign key in which entity of an an expanded revenue cycle REA diagram?

A)Call on Customers.
B)Customers.
C)Fill Customer Order.
D)Take Customer Order.

Question 17

Sales order number is most likely to be a primary key in which entity of an expanded revenue cycle REA diagram?

A)Call on Customers.
B)Fill Customer Order.
C)Ship Order.
D)Take Customer Order.

Question 18

Concerning the relationship from the Rent Item to the Receive Cash events: The minimum cardinality is ________ because customers typically pay first,prior to taking possession of the item.The maximum cardinality is ________ because there may be additional charges imposed when the item is returned.

A)0; 1
B)1; 1
C)1; N
D)N; M

Question 19

Sales order number is most likely to be a foreign key in which entity of an expanded revenue cycle REA diagram?

A)Call on Customers.
B)Fill Customer Order.
C)Ship Order.
D)Take Customer Order.

Question 20

For a service business,the minimum cardinalities between Sales event and Inventory entity are most likely both 0 for all except which of the following reasons?

A)Service businesses don't sell inventory, they only use inventory to perform services.
B)A sale doesn't have to include any inventory.
C)Inventory can exist that hasn't been part of a sale yet.
D)Some services only require labor.

Question 21

One of the benefits of an integrated enterprise-wide data model is that

A)auditors can use it to guide the development of queries to validate the completeness and accuracy of transaction processing.
B)journals and ledgers will be more accurate than in a traditional AIS data model.
C)workers can understand information flows better.
D)All of the above are benefits of an integrated enterprise-wide data model.

Question 22

Identify the inventory valuation method below that cannot be calculated in a database created using an REA modeling approach.

A)LIFO.
B)FIFO.
C)Weighted Average.
D)none of the above

Question 23

Identify the business activity below that cannot be modeled using an REA diagram.

A)Purchase requisitions.
B)Rental transactions.
C)Intangible assets.
D)All of the above can be modeled by an REA diagram.

Question 24

Which of the following diagrams represents a situation where one or more warehouses may be empty,and production of new products has been delayed due to difficulty obtaining materials?

A)

B)

C)

D)

Question 25

Supplier number is most likely to be a foreign key in

A)Inventory-Request_Inventory.
B)Receive Inventory.
C)Supplier.
D)Warehouse.

Question 26

Assume an organization sells digital photographs to customers through its website (the company only sells photographs in digital format,it does not provide a physical copy of any photograph).Identify the attribute below that the organization would not need in its Inventory entity.

A)Reorder point.
B)Price.
C)Photograph description.
D)Primary key.

Question 27

In which entity would an item's actual cost information most likely be maintained?

A)Inventory entity.
B)Order_Inventory entity.
C)Inventory-Order_Inventory entity.
D)Cost entity.

Question 28

Which of the following diagrams represents a situation where deliveries are frequently made to the specific warehouse where the delivered goods will be stored?

A)

B)

C)

D)

Question 29

Financial Institution number is most likely to be a foreign key in

A)Cash.
B)Disburse Cash.
C)Receive Inventory.
D)Warehouse.

Question 30

An organization that sells digital products,such as access to view online videos,does not need an inventory table in its database.

Question 31

Which of the following diagrams represents a situation where a firm offers some services that have not ever been sold,offers other services that have been performed many times,and provides services sometimes performed together to clients?

A)

B)

C)

D)

Question 32

Which of the following diagrams represents the cardinality pairs in a situation where customer orders are individually filled,but not all the items on a customer order are always available?

A)

B)

C)

D)

Question 33

Which of the following diagrams represents a situation where a business that rents lawn mowers (not all of which get rented)writes separate rental agreements for each mower,so renters don't have to return all the rented items at the same time?

A)

B)

C)

D)

Question 34

In which entity would an item's standard cost information most likely be maintained?

A)Inventory entity.
B)Order_Inventory entity.
C)Inventory-Order_Inventory entity.
D)Cost entity.

Question 35

Which of the following diagrams represents the cardinality pairs in a situation where goods don't have to be requisitioned,but if they are,requisitions are approved and processed before purchase orders are issued?

A)

B)

C)

D)

Question 36

If the actual cost of an inventory item is maintained as an attribute in the Inventory table,which inventory valuation method would an organization have to use?

A)LIFO.
B)FIFO.
C)Weighted Average.
D)Specific Identification.

Question 37

The cardinality pair from the Financial Institution entity to the Cash resource has a ________ minimum and an ________ maximum because companies will probably only keep information about financial institutions with which they have accounts but may have more than one account at the same financial institution.

A)0; N
B)0; 1
C)1; N
D)M; N

Question 38

Why is cost information stored in several relational tables?

Question 39

The temporal difference between Request Inventory and Order Inventory is reflected by the

A)Request Inventory minimum cardinality of 1.
B)Request Inventory maximum of N.
C)Order Inventory maximum of N.
D)Order Inventory minimum of 0.

Question 40

Which of the following diagrams represents a situation where items rented by a customer must be returned intact,and several rented items could be returned at the same time?

A)

B)

C)

D)

Question 41

Data about actual raw materials used in production is most appropriately stored which of the entities below?

A)Finished Goods.
B)Raw Materials.
C)Raw Materials Issuance.
D)Work-in-Process.

Question 42

Why might an REA diagram show relationships between resources and agents?

Question 43

M:N agent-event relationships occur whenever an activity is performed by ________ employee and management wants to retain the ability to monitor ________ performance.

A)more than one; group
B)more than one; individual
C)one; group
D)one; individual

Question 44

The attributes of which type of entity would provide a way for the system to compare an employee's reimbursement request with the permissible range of the amount of reimbursement permitted?

A)Resources
B)Events
C)Agents
D)Type

Question 45

What are the benefits of an integrated enterprise-wide data model?

Question 46

An REA diagram for the production cycle models the relationships between the Perform Job Operations event and the Job Operations List entity as 1:N because

A)time standards change over time.
B)one specific activity has only one standard time for completion.
C)activities are only performed once on work in process jobs.
D)many activities are usually required for specific work in process jobs.

Question 47

Type and group entities are similar in that both are abstractions that represent sets of

A)objects.
B)semantics.
C)attributes.
D)tables.

Question 48

A groups entity is used to depict the ________ relationship.

A)is-a-kind-of
B)is-a-member-of
C)is-a-piece-of
D)is-a-group-of

Question 49

A REA diagram can be used to verify whether job functions are properly segregated.

Question 50

Why might an REA diagram show relationships between agents?

Question 51

While not required,connecting the Time Used entity to specific business events enables

A)evaluating performance at a very detailed level.
B)general performance evaluation.
C)evaluating the quality of the services received.
D)determining productivity of employees, such as how many customer calls were made, or how many sales were made.

Question 52

A type entity is used to depict the ________ relationship.

A)is-a-kind-of
B)is-a-member-of
C)is-a-piece-of
D)is-a-group-of

Question 53

The ________ entity is used to collect and summarize data about the raw materials,labor,and machine operations used during production of inventory.

A)Finished Goods Inventory
B)Raw Materials
C)Issue Raw Materials
D)Work-in-Process

Question 54

Digital assets will affect the REA models of the revenue and expenditure cycles.

Question 55

Explicitly identifying the different employees who participate in each event by their job functions is helpful when verifying

A)internal controls.
B)job descriptions.
C)proper supervision.
D)segregation of duties.

Question 56

Give an example of an M:N Agent-Event relationship.

Question 57

Information about job roles is simply another ________ in the Employee table.

A)resource
B)event
C)agent
D)attribute

Question 58

Relationships between resources and agents,such as Inventory and Supplier,reflect the best practice of identifying preferred and alternative suppliers for specific inventory items.Similar relationships between resources and employees can be used to model ________ and ________.

A)cost; revenue
B)performance; behavior
C)responsibility; accountability
D)segregation of duties; internal control

Question 59

The minimum cardinalities between a location,such as Warehouse,and a resource,like Inventory,will likely be 0 for all except which of the following reasons?

A)One specific inventory item could be stored at several different warehouses.
B)A warehouse could be currently empty.
C)Not all kinds of inventory are stored at each warehouse.
D)Inventory could include products not yet available for sale.

Question 60

In addition to modeling Resources,Events,and Agents,identify the two additional concepts an organization will need to incorporate if it wishes to extend the REA to include information about firm policies.

A)Type and Rules.
B)Rules and Group.
C)Group and Rules.
D)Type and Group.

Question 61

Which of the following diagrams represents the cardinality pairs in a situation where a finished product requires one or more labor operations,and labor usage is recorded to specific production runs?

A)

B)

C)

D)

Question 62

Which of the following is not one of the four main events in a typical production cycle REA diagram?

A)Issuance of raw materials.
B)Order raw materials.
C)Use of labor in production.
D)Use of machinery and equipment in production.

Question 63

In the table called Perform Machine Operations,which is the most likely primary key?

A)Equipment Number.
B)Job Operation Number.
C)Machine Operation Number.
D)Machine Operations List Number.

Question 64

Identify the entity linked to almost every other entity in an REA diagram for HRM/payroll cycles.

A)Employee.
B)Job title.
C)Payroll.
D)Salary.

Question 65

Which of the following diagrams represents the cardinality pairs in a situation where a specific production run results in a specific finished good,and a specific finished good is produced periodically?

A)

B)

C)

D)

Question 66

In an REA diagram for the HR/Payroll cycle,the relationship between Employees and Training is typically M:N for all except which of the following reasons?

A)One employee may attend the same training event more than once.
B)Each employee may attend more than one training event.
C)Each training event may have more than one employee attend.
D)One training event may be offered more than once.

Question 67

Which of the following diagrams represents the cardinality pairs for a repair shop where supervisors place items that need repair in a common area where any available employee can work on the item? Naturally,employees are always repairing more than one item at a time,and more than one supervisor can drop off items that need repair.

A)

B)

C)

D)All of the above.

Question 68

Identify the entity that stores most of the data typically found in the employee master file.

A)Time Worked.
B)Employee.
C)Salary.
D)Payroll.

Question 69

In which entity would information about depreciation formula(s)and assumption(s)be stored in an REA model?

A)Resource.
B)Event.
C)Agent.
D)Both resource and agent.

Question 70

In a database created using an REA model,the Bill of Materials entity is most analogous to

A)the "bill" that can be sent to the customer who order the finished good(s).
B)the "recipe" needed to produce the finished good(s).
C)the "receipt" for the purchase of specific raw materials.
D)the "audit trail" that can be used to verify a finished good(s)was actually produced.

Question 71

In an REA diagram for the HR/Payroll cycle,the ________ relationship between Skills and Recruiting reflects the fact that one specific advertisement may list several specific skills and,over time,there may be several advertisements for one specific skill.

A)1:1
B)1:N
C)M:N
D)1:M

Question 72

Which of the following diagrams represents the cardinality pairs for a typical,hierarchical organization?

A)

B)

C)

D)All of the above.

Question 73

Describe the four main events of interest included in a typical production cycle REA diagram.

Question 74

Employee number is most likely to be a foreign key in

A)Perform Job Operations.
B)Perform Machine Operations.
C)Machine Operations List.
D)Work in Process.

Question 75

A relationship between Skills and Employees is typically modeled as M:N in an REA database model since

A)one employee may possess many skills, and one skill may be possessed by more than one employee.
B)many employees possess skills, and many skills are possessed by employees.
C)employees can be trained to learn all skills, and all skills are possessed by at least one employee.
D)The relationship would be 1:N not M:N, because most employees are hired for a specific job that requires a specific skill, even though a specific job could be done by many employees.

Question 76

In an REA database model,the Bill of Materials entity contains information about what?

A)The raw materials used to make a finished product.
B)The actual cost of the raw materials used to make a finished product.
C)The vendor from whom the raw materials was purchased
D)All of the above.

Question 77

Where are depreciation expenses recorded in a database created using an REA modeling approach?

A)As a resource.
B)As an event.
C)As an agent.
D)Depreciation expenses would not be modeled.

Question 78

Which of the following represents the cardinality pairs in a situation where a finished product requires one or more machine operations,and machines usage is tracked by specific production run(s)?

A)

B)

C)

D)

Question 79

The relationship between the Recruiting event and Job Applicants is modeled as being ________ because many people typically apply for each job opening,but a given individual may also respond to more than one recruiting event.

A)1:1
B)1:N
C)M:N
D)1:M

Question 80

Which of the following accurately represents typical cardinalities for two entities in the production cycle?

A)

B)

C)

D)