Deck 17: Database Design Using the Rea Data Model

Question 1

Explain specifically what is meant by the following statement: "Accountants can and should participate in all stages of the database design process."

Answer 1

Accountants are in a unique position within a business organization.They are intimately acquainted with the many business transactions that occur in an organization and they are knowledgeable about the policies and practices of the business itself as well as the environment within which it operates.The knowledge base and skill sets of the accountant should be put to good use in the development of database design to the fullest extent possible (although some accountants may not possess AIS coding and development skill sets).Consider that during the planning stage accountants provide some of the information used to evaluate the feasibility of the proposed project and they participate in making the decision itself.Accountants can identify user information needs and develop logical schema during the requirement analysis and design stages.Accountants can also help test the accuracy of the new database and application programs during the implementation stage of development.Accountants can also act as "subject matter experts" since they are knowledgeable users of the new system.They can also serve as managers of the system once it is up and running.

Question 2

Besides modeling entities as rectangles,there are no industry standards for entity-relationship diagrams.

Answer 2

True

Question 3

It is industry standard to model relationships as ________ in entity-relationship diagrams.

A)rectangles
B)ovals
C)diamonds
D)There is no industry standard.

Answer 3

D

Question 4

In creating an entity-relationship diagram,________ is anything about which an organization wants to collect and store information.

A)a data model
B)an entity
C)a schema
D)a tuple

Question 5

________ includes all the activities associated with transferring data from existing systems to the new database AIS,testing the new system,and training employees how to use it.

A)Systems analysis
B)Conceptual design
C)Physical design
D)Implementation and conversion

Question 6

With regards to the database design process,accountants may provide the greatest value to their organization by participating in

A)implementation and conversion.
B)data modeling.
C)database operation and maintenance.
D)system auditing.

Question 7

The REA data model approach facilitates efficient operations by all the following except

A)standardizing source document format.
B)identifying non-value added activities.
C)storing financial and nonfinancial data in the same database.
D)organizing data to simplify data retrieval and analysis.

Question 8

In which stage(s)of the database design process does data modeling occur?

A)During the systems analysis stage.
B)During the design stage.
C)During both the systems analysis and design stages.
D)After the design stage.

Question 9

It is industry standard to model entities as rectangles on entity-relationship diagrams.

Question 10

________ consists of translating the internal-level schema into the actual database structures that will be implemented in the new system.

A)Systems analysis
B)Conceptual design
C)Physical design
D)Implementation and conversion

Question 11

Which of the following statements about REA modeling and REA diagrams is false?

A)REA is an acronym for Resources, Entities, and Agents.
B)REA data modeling does not include traditional accounting elements such as ledgers, chart of accounts, debits and credits.
C)REA data modeling could be referred to as an events-based model.
D)REA diagrams must include at least two activities, which together represent a give-get economic exchange.

Question 12

An entity-relationship diagram

A)can represent the contents of any database.
B)is only used in conjunction with REA models.
C)can show a limited number of entities and relationships.
D)is used only to design new databases.

Question 13

Describe data modeling.

Question 14

The process of defining a database so that it faithfully represents all aspects of the organization including its interactions with the external environment is called

A)data modeling.
B)data designing.
C)data development.
D)data definition.

Question 15

A(n)________ diagram graphically depicts a database's contents by showing entities and relationships.

A)data flow
B)flowchart
C)entity-relationship
D)REA

Question 16

In which stage(s)of the database design process should accountants participate?

A)the systems analysis stage
B)the conceptual design stage
C)the implementation and conversion stage
D)in all of the stages above

Question 17

In which stage(s)of the database design process is the completed data model used?

A)only in the systems analysis stage
B)only in the conceptual design stage
C)in both the systems analysis and design stages
D)neither the systems analysis nor the design stages

Question 18

An entity-relationship diagram represents entities as ________ and the relationships between them as lines and ________.

A)circles; squares
B)squares; diamonds
C)rectangles; diamonds
D)rectangles; circles

Question 19

________ includes carefully monitoring system performance and user satisfaction to determine the need for making system enhancements and modifications.

A)Operation and maintenance
B)Conceptual design
C)Physical design
D)Implementation and conversion

Question 20

Data modeling is an element of

A)systems analysis.
B)conceptual design.
C)system analysis and conceptual design.
D)system analysis and physical design.

Question 21

Identify the notation below that is not used to represent cardinality information.

A)UML.
B)(Min, Max).
C)DFD.
D)Maximums only.

Question 22

The "get" event represents an activity which

A)includes a promise to engage in future economic exchanges.
B)increases the organization's stock of an economic resource.
C)reduces the organization's stock of a resource that has economic value.
D)increases the organization's liabilities.

Question 23

Describe an REA data model.

Question 24

Describe what is a E-R diagram and provide an example.

Question 25

Assume that you are looking at a REA diagram that depicts only one event.Which of the following must be on the REA diagram?

A)An external agent.
B)An internal agent.
C)both A and B
D)neither A nor B

Question 26

The REA data model

A)is used in many areas of business and science.
B)was developed specifically for use in designing accounting information systems.
C)classifies data into relationships, entities and accounts.
D)is a graphical technique for portraying a database schema.

Question 27

What is the minimum number of external agents that must participate in each REA event?

A)0
B)2
C)1
D)3

Question 28

Which is a true statement about the REA data model?

A)The REA data model classifies entities into three distinct categories.
B)The term REA is an acronym that stands for resources, entities, and agents.
C)Using an REA data model is not helpful when creating an R-E diagram.
D)The term REA is an acronym that stands for resources, entities, and activities.

Question 29

REA models are usually depicted in which diagramming form?

A)Entity-relationship diagrams.
B)Economics-relationship diagrams.
C)Entity-resource diagrams.
D)Stock-flow diagrams.

Question 30

A graphical depiction of a database's contents showing the various entities being modeled and the important relationships among them is called a(n)

A)REA diagram.
B)data diagram.
C)ERP diagram.
D)ER diagram.

Question 31

E-R diagrams can be used to represent the contents of any kind of database.

Question 32

The "give" event represents an activity which

A)includes a promise to engage in future economic exchanges.
B)increases the organization's stock of an economic resource.
C)reduces the organization's stock of a resource that has economic value.
D)reduces the organization's liabilities.

Question 33

Identify the notation often used to represent cardinality information.

A)Dotted lines.
B)Greek characters.
C)Crow's feet.
D)Color coding.

Question 34

Identify the item below that would be classified as a resource by the REA data model.

A)An IOU from a customer.
B)The customer.
C)A customer sale.
D)A loan from a vendor.

Question 35

Identify the item below that would be classified as an agent by the REA data model.

A)An IOU from a customer.
B)The customer.
C)A customer sale.
D)A loan from a vendor.

Question 36

Identify the item below that would be classified as an event by the REA data model.

A)An IOU from a customer.
B)The customer.
C)A customer sale.
D)A loan from a vendor.

Question 37

Relationships that affect the quantity of a resource are sometimes referred to as ________ relationships.

A)commitment
B)exchange
C)stockflow
D)duality

Question 38

It is industry standard to model attributes as ________ in entity-relationship diagrams.

A)rectangles
B)ovals
C)diamonds
D)There is no industry standard.

Question 39

Which of the following is not one of the rules in creating an REA data model?

A)Each event is linked to at least one resource that it affects.
B)Each event is linked to at least one other event.
C)Each event is linked to at least two participating agents.
D)All of the above are important rules.

Question 40

What is the minimum number of agents that must participate in each REA event?

A)0
B)2
C)1
D)3

Question 41

How many types of relationships are possible between entities?

A)One.
B)Two.
C)Three.
D)Four.

Question 42

Every company can have more than one banking relationships,and each bank can have a business relationship with more than one company.Thus,the cardinality that exists between company and bank is

A)one-to-one.
B)one-to-many.
C)many-to-many.
D)many-to-none.

Question 43

The maximum cardinality of any REA diagram relationship is

A)zero or one.
B)one or many.
C)zero or many.
D)many or none.

Question 44

Every person in the world can have more than one friend,and each person in the world can be a friend to more than one person.Thus,the cardinality that exists between friends and people is

A)one-to-one.
B)one-to-many.
C)many-to-many.
D)many-to-none.

Question 45

Identify the statement below that is false with respect to cardinalities.

A)Cardinalities describe the nature of the relationship between two entities.
B)No universal standard exists for representing information about cardinalities in REA diagrams.
C)The minimum cardinality can be zero or one.
D)The maximum cardinality can be zero, one, or many.

Question 46

Which of the following graphical symbols represents a minimum cardinality of zero and a maximum cardinality of many?

A)

B)

C)

D)

Question 47

Which of the following graphical symbols represents a minimum cardinality of zero and a maximum cardinality of one?

A)

B)

C)

D)

Question 48

Identify the minimum cardinality of any REA diagram relationship.

A)0 or 1.
B)0 or N.
C)1 or N.
D)none of the above.

Question 49

Which of the following graphical symbols represents a minimum cardinality of one and a maximum cardinality of many?

A)

B)

C)

D)

Question 50

An REA diagram must link every event to at least one ________ and two ________.

A)resource; agents
B)agent; resources
C)transaction; entities
D)resource; relationships

Question 51

Every citizen in the United States has one social security number,but no two citizens have the same social security number.Thus,the cardinality that exists between social security numbers and citizens is

A)one-to-one.
B)one-to-many.
C)many-to-many.
D)many-to-none.

Question 52

Every person in the world has a birthdate,but no person has more than one birthdate.Thus,the cardinality that exists between birthdate and people is

A)one-to-one.
B)one-to-many.
C)many-to-many.
D)many-to-none.

Question 53

Which of the following graphical symbols represents a minimum cardinality of one and a maximum cardinality of one?

A)

B)

C)

D)

Question 54

Each event in an REA model will in most cases have at least one ________ agent and one ________ agent involved with the event.

A)internal; resource
B)external; entity
C)internal; employee
D)internal; external

Question 55

The first step in developing an REA diagram for a specific transaction cycle begins with identifying

A)relevant events.
B)agents involved.
C)resources affected.
D)relationship cardinalities.

Question 56

What is the standard cardinality pattern for a relationship between an event and an agent?

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

Question 57

Which of the following statements is true about the development of an REA model?

A)Events that pertain to the entry of data are included in the REA model.
B)The objective is to model basic value-chain activities.
C)REA diagrams model individual transactions and data collections.
D)Information retrieval events are modeled as events in the REA model.

Question 58

Identify the most likely relationship where cardinalities have zero minimums and N maximums.

A)Agent-event relationship.
B)Resource-event relationship.
C)Event-event relationship.
D)Agent-agent relationship.

Question 59

Which of the following statements is false regarding REA diagrams?

A)Each organization will have its own unique REA diagram.
B)An REA diagram for a given organization will change over time.
C)Data modeling and REA diagram development involve complex and repetitive processes.
D)Redrawing an REA diagram several times during development is uncommon.

Question 60

What is Cardinalities?

Question 61

Helge Autoparts sells new and refurbished auto parts exclusively to auto dealers.Helge purchases inventory from distributors at trade conventions.Each time Helge makes a purchase,the company records the suppliers name,address,date,specific items purchased,price paid for each,and the total amount spent.Helge later researches the inventory items to set the customer price.The company assigns an inventory number to each item purchased and records the customer price for each item.Helge buys price tags and display supplies from Alwin Incorporated,a company that sells them at all trade conventions.All inventory and supplies purchases are immediately paid for with cash or with checks from a bank account in Helge's name.All cash received from sales are also deposited to the same bank account.Several times a year Helge rents display space at dealer conventions.A deposit is always required,and the entire fee is due the day the convention starts.Helge records the deposit and final payment,along with the convention's name and address,in the same worksheet on which purchases of inventory and supplies are recorded. Consider Helge's processes regarding the purchasing inventory and supplies,renting display space,and paying for purchased items.A well-designed REA diagram would

A)reflect minimum cardinalities of 1 for the relationship between Vendor and Cash Disbursement entities.
B)reflect the same number of 0 and 1 minimum cardinalities.
C)reflect more maximum cardinalities of M than of 1.
D)reflect maximum cardinalities of M for the relationship between Inventory and Purchase entities.

Question 62

Describe the possible relationships between entities,in terms of cardinalities.

Question 63

Define cardinality.

Question 64

Which of the following transactions is represented by the diagram below?

A)A lumber yard where customers may pay with cash for all purchases.
B)A buy-here-pay-here auto dealer where a car buyer sends monthly cash payments to the dealer.
C)A consulting firm that offers a variety of consulting services to other businesses.
D)A department store that allows customers to carry a balance and to make installment payments, if they choose.

Question 65

Describe the three basic rules that apply to the REA model pattern.

Question 66

Which of the following transactions is represented by the diagram below?

A)A junkyard holds weekly sales where it sells its entire inventory.
B)A shoe store sells products to consumers.
C)A stay-at-home mom creates furniture for doll houses. When one piece is finished, she sells it on Amazon.com.
D)Netflix sells movies to consumers through its online downloading service.

Question 67

Helge Autoparts sells new and refurbished auto parts exclusively to auto dealers.Helge purchases inventory from distributors at trade conventions.Each time Helge makes a purchase,the company records the suppliers name,address,date,specific items purchased,price paid for each,and the total amount spent.Helge later researches the inventory items to set the customer price.The company assigns an inventory number to each item purchased and records the customer price for each item.Helge buys price tags and display supplies from Alwin Incorporated,a company that sells them at all trade conventions.All inventory and supplies purchases are immediately paid for with cash or with checks from a bank account in Helge's name.All cash received from sales are also deposited to the same bank account.Several times a year Helge rents display space at dealer conventions.A deposit is always required,and the entire fee is due the day the convention starts.Helge records the deposit and final payment,along with the convention's name and address,in the same worksheet on which purchases of inventory and supplies are recorded. Consider Helge's processes regarding the purchasing inventory and supplies,renting display space,and paying for purchased items.In a well-designed REA diagram,what entities would reflect economic duality?

A)Purchases and Cash Disbursements
B)Display Space Rental and Cash Disbursements
C)Inventory and Purchases
D)Cash and Cash Disbursements

Question 68

Define minimum and maximum cardinalities.

Question 69

A dental office employs three dentists and five dental hygienists.One of the dentists is a very recent dental school graduate and can't yet see patients on her own until she passes boards and obtains a license.Dentists perform all procedures personally,except for regular cleaning and x-rays,which are performed exclusively by dental hygienists.Three of the five dental hygienists perform only regular cleaning and x-rays.The other two hygienists each assist a specific dentist during procedures,as well as performing regular cleaning and x-rays.One of the hygienists will be assigned to the new dentist when she begins seeing patients.Hygienists usually 'shadow' other hygienists and dentists for two weeks prior to seeing patients.
Patients schedule appointments directly with dentists and hygienists,depending on the type of dental service needed.Patients do not have to choose a dentist until they need service other than routine cleaning or x-rays.Patients are assigned to a specific dental hygienist when they schedule their first appointment.The customer master file has 549 records.Diagram the agents described,relationships between agents,and the cardinality pairs for each relationship.

Question 70

Describe the steps in developing an REA diagram.

Question 71

Which of the following transactions is represented by the diagram below?

A)A junkyard holds weekly sales where it sells its entire inventory.
B)A shoe store sells products to consumers.
C)A stay-at-home mom creates furniture for doll houses. When one piece is finished, she sells it on Amazon.com.
D)Netflix sells movies to consumers through its online downloading service.

Question 72

Which of the following transactions is represented by the diagram below?

A)A lumber yard where customers may pay with cash for all purchases.
B)A buy-here-pay-here auto dealer where a car buyer sends monthly cash payments to the dealer.
C)A consulting firm that offers a variety of consulting services to other businesses.
D)A department store that allows customers to carry a balance and to make installment payments, if they choose.

Question 73

Explain how an AIS system can be viewed as a set of "give-to-get" exchanges.

Question 74

Which of the following transactions is represented by the diagram below?

A)A junkyard holds weekly sales where it sells its entire inventory.
B)A shoe store sells products to consumers.
C)A stay-at-home mom creates furniture for doll houses. When one piece is finished, she sells it on Amazon.com.
D)Netflix sells movies to consumers through its online downloading service.

Question 75

Helge Autoparts sells new and refurbished auto parts exclusively to auto dealers.Helge purchases inventory from distributors at trade conventions.Each time Helge makes a purchase,the company records the suppliers name,address,date,specific items purchased,price paid for each,and the total amount spent.Helge later researches the inventory items to set the customer price.The company assigns an inventory number to each item purchased and records the customer price for each item.Helge buys price tags and display supplies from Alwin Incorporated,a company that sells them at all trade conventions.All inventory and supplies purchases are immediately paid for with cash or with checks from a bank account in Helge's name.All cash received from sales are also deposited to the same bank account.Several times a year Helge rents display space at dealer conventions.A deposit is always required,and the entire fee is due the day the convention starts.Helge records the deposit and final payment,along with the convention's name and address,in the same worksheet on which purchases of inventory and supplies are recorded. Consider Helge's processes regarding the purchasing inventory and supplies,renting display space,and paying for purchased items.A well-designed REA diagram would

A)include eight unique entities.
B)include nine unique entities.
C)include seven unique entities.
D)include ten unique entities.

Question 76

Which of the following transactions is represented by the diagram below?

A)A lumber yard where customers may pay with cash for all purchases.
B)A buy-here-pay-here auto dealer where a car buyer sends monthly cash payments to the dealer.
C)A consulting firm that offers a variety of consulting services to other businesses.
D)A department store that allows customers to carry a balance and to make installment payments, if they choose.

Question 77

Helge Autoparts sells new and refurbished auto parts exclusively to auto dealers.Helge purchases inventory from distributors at trade conventions.Each time Helge makes a purchase,the company records the suppliers name,address,date,specific items purchased,price paid for each,and the total amount spent.Helge later researches the inventory items to set the customer price.The company assigns an inventory number to each item purchased and records the customer price for each item.Helge buys price tags and display supplies from Alwin Incorporated,a company that sells them at all trade conventions.All inventory and supplies purchases are immediately paid for with cash or with checks from a bank account in Helge's name.All cash received from sales are also deposited to the same bank account.Several times a year Helge rents display space at dealer conventions.A deposit is always required,and the entire fee is due the day the convention starts.Helge records the deposit and final payment,along with the convention's name and address,in the same worksheet on which purchases of inventory and supplies are recorded. Consider Helge's processes regarding the purchasing inventory and supplies,renting display space,and paying for purchased items.A well-designed REA diagram would

A)reflect nine 1:N relationships.
B)reflect two M:N relationships.
C)reflect ten 1:N relationships.
D)include two 1:1 relationships.

Question 78

A relationship is diagrammed below using the [Min,Max] notation.Which of the diagrams below represents the same relationship using the "crow's feet" notation?

A)

B)

C)

D)

Question 79

Which of the following transactions is represented by the diagram below?

A)A junkyard holds weekly sales where it sells its entire inventory.
B)A shoe store sells products to consumers.
C)A stay-at-home mom creates furniture for doll houses. When one piece is finished, she sells it on Amazon.com.
D)Netflix sells movies to consumers through its online downloading service.

Question 80

Prescott Dolls sells porcelain dolls exclusively at antique shows.Prescott Dolls purchases inventory from individuals at garage sales,flea markets,antique malls,and estate sales.Each time Dahlia Prescott (the owner)makes a purchase,she records the person's name,address,date,specific items purchased and price paid,and total amount spent.Later at home,Dahlia cleans,researches and prices the inventory for sale to customers.She assigns an inventory number to each item and records the "asking" price.Dahlia buys price tags and display supplies from a company that sells at flea market and antique shows.All inventory and supplies purchases are immediately paid for using cash or with company checks from a bank account in Prescott Doll's name.Cash received from customer sales are also deposited in this account.Three times a year,Dahlia rents a booth at antique shows.A deposit is always required,with the balance due at the start of the show.Dahlia records the deposit and final payment,along with the show organizer's name and address,in the same worksheet on which purchases of inventory and supplies are recorded.
Draw an REA diagram for Prescott Dolls,related to purchasing inventory and supplies,renting booths,and paying for all items.