Deck 18: Implementing an Rea Model in a Relational Database

Question 1

Combining REA diagrams for individual transaction cycles into a single,enterprise-wide model adds two more rules to the three basic principles for drawing REA diagrams.Which of the following is not one of those two new rules?

A) Every resource must be linked to at least one event that increments that resource and to at least one event that decrements that resource.
B) If a specific event can be linked to more than one other type of event, but cannot be linked simultaneously to all of those other events, then the minimum cardinality between that event and every other event with which it may be associated must be 0.
C) If a specific event can be linked to more than one other type of event, but cannot be linked simultaneously to all of those other events, then the maximum cardinality between that event and every other event with which it may be associated must be 0.
D) All of the above are new rules for drawing integrated REA diagrams.

Answer 1

C

Question 2

Attributes other than the primary key are

A) included to satisfy transaction processing requirements.
B) included to meet management's information needs.
C) both A and B
D) none of the above

Answer 2

C

Question 3

The primary key for a Sales-Inventory table that consists of the Sales Invoice Number and the Inventory Item Number,is known as a

A) concatenated key.
B) condensed key.
C) double key.
D) dual key.

Answer 3

A

Question 4

The primary key for M:N relationship tables

A) is a single attribute.
B) always consists of two attributes.
C) is the primary key of the most important entity linked to that relationship.
D) does not exist. Many-to-many relationship tables only use foreign keys.

Question 5

REA diagrams for different organizations may be similar,but will likely result in different relationship cardinalities because of

A) differences in business policies.
B) different designers of REA diagrams.
C) different methods of drawing REA diagrams.
D) errors in drawing REA diagrams.

Question 6

Concerning REA diagrams and relational databases,which of the following is true?

A) A well-designed relational database is the starting point for creating an REA diagram.
B) A well-designed REA diagram minimizes update, insert or delete anomaly problem when the diagram is implemented into a relational database.
C) REA diagrams and database design are generic across organizations.
D) The design of a relational database is specific to the organization being modeled.

Question 7

An integrated REA diagram merges multiple copies of some entities in order to

A) minimize the repetition of agent entities.
B) maximize the legibility of the diagram by avoiding the need to have relationship lines cross one another.
C) Both A and B are true.
D) Both A and B are false.

Question 8

An integrated REA diagram merges multiple copies of ________ and ________ entities but retains multiple copies of ________ entities.

A) resource; event; agent
B) event; agent; resource
C) resource; agent; event
D) None of the above. An integrated REA diagram merges multiple copies of all entities.

Question 9

Which of the following is not one of the three steps to implementing an REA diagram in a relational database?

A) Assign attributes to appropriate tables.
B) Create a table for each distinct entity in the diagram and for each many-to-many relationship.
C) Every event must be linked to at least one resource.
D) Use foreign keys to implement one-to-one and one-to-many relationships.

Question 10

Which of the following is not one of the steps in implementing an REA diagram in a relational database?

A) implement many-to-many relationships with foreign keys
B) create tables for entities
C) assign attributes to tables and identify primary keys
D) implement one-to-many relationships with foreign keys

Question 11

What is the first step to implementing an REA diagram in a relational database?

A) Assign attributes to appropriate tables.
B) Create a table for each distinct entity in the diagram and for each many-to-many relationship.
C) Identify cardinalities.
D) Use foreign keys to implement one-to-one and one-to-many relationships.

Question 12

When using an REA diagram to develop a database,many-to-many relationships must be

A) broken into multiple one-to-one relationships.
B) combined into a single one-to-one relationship.
C) combined into a one-to-many relationship.
D) broken into multiple one-to-many relationships.

Question 13

Concerning a correctly drawn enterprise-wide REA diagram,which of the following statements is not true?

A) Every event must be linked to at least one resource.
B) Merging two transaction cycles on a common event may affect the minimum cardinalities between the merged event and the other events.
C) Events can only be merged if they share the same resources and events.
D) Creating a set of tables from an REA diagram automatically results in a well-structured relational database.

Question 14

An integrated REA diagram could contain multiple copies of

A) customers.
B) sales.
C) inventory.
D) sales-inventory.

Question 15

Integrating separate REA diagrams developed for individual transaction cycles into a single,comprehensive enterprise-wide data model

A) is possible.
B) requires understanding what the cardinalities in each separate diagram reveal about the organization's business policies and activities.
C) provides a single comprehensive enterprise-wide model of the organization.
D) All of the above are true.

Question 16

Concerning the creation of tables from an REA diagram,which of the following is false?

A) A properly designed relational database has a table for each distinct entity in an REA diagram.
B) A properly designed relational database has a table for each many-to-many relationship in an REA diagram.
C) To reduce confusion, table names should not duplicate REA diagram entities' names.
D) Many-to-many relationships will be shown in tables with hyphenated concatenations of the entities' names.

Question 17

Concerning tables for M:N relationships,which of the following statements is false?

A) Non-key attributes may be included.
B) Multiple attribute primary keys are used.
C) Single attribute primary keys may be used.
D) Concatenated keys are used.

Question 18

The type of relationship between two entities is determined by

A) maximum cardinalities only.
B) minimum cardinalities only.
C) minimum and maximum cardinalities.
D) median cardinalities.

Question 19

Nonfinancial information should be collected because

A) it may indicate events that may affect resources.
B) it can be used to plan other activities.
C) it can be used in transaction processing.
D) both A and B

Question 20

When assigning attributes to each table,

A) the database designer must interview users to identify which facts should be included in the database.
B) the database designer must interview management to identify which facts should be included in the database.
C) the database designer must use the REA diagram to help determine in which tables those facts belong.
D) the database designer must do all of the above.

Question 21

Information traditionally found in journals are stored where in an REA database?

A) Event entity
B) Agent entity
C) Relationship
D) Resource entity

Question 22

Which of the following is not part of a "final accuracy check" when creating relational tables from an REA diagram?

A) Every attribute in every table is single-valued (i.e., each table is a flat file).
B) Every event must be linked to at least one resource.
C) Every table must have a primary key.
D) Other non-key attributes in each table must be either a fact about the thing designated by the primary key or foreign keys used to link that table to another table.

Question 23

When combining two REA diagrams by merging common entities,changes in the cardinality of the merged entity is needed when it is a(n)

A) agent.
B) event.
C) relationship.
D) resource.

Question 24

Concerning REA diagrams for individual transaction cycles,which of the following is false?

A) They depict basic give-to-get economic duality relationships.
B) They usually provide only a partial view of resources.
C) They need to be combined in order to provide a comprehensive enterprise-wide data model.
D) They show both how resources are acquired and how they are used.

Question 25

When comparing REA diagrams used to design an AIS with a traditionally designed AIS,

A) traditional AIS information, such as journals and ledgers no longer exist.
B) similar information is present as in a traditional AIS, but stored in a different format.
C) queries are used to input data into the AIS.
D) an REA designed AIS cannot recreate a traditional journal.

Question 26

The major benefits of using the REA model as the basis for designing an AIS include all of the following except

A) the REA data model integrates non-financial and financial data in the AIS.
B) the REA data model makes both non-financial and financial data easily accessible to management.
C) the REA data model provides the basis for building the kind of flexible AIS that is responsive to management's changing information needs.
D) the REA data model reduces the need for accountants to understand the underlying accounting journals and ledgers.

Question 27

Concerning the creation of tables from an REA diagram,which of the following is false?

A) M:N relationships must be implemented as separate tables.
B) 1:N relationships are implemented with the primary key of the 1 side becoming a foreign key on the N side.
C) 1:1 relationships are implemented with the primary key of either entity included as a foreign key in the table representing the other entity.
D) All of the above are true.

Question 28

Concerning REA models,which of the following is false?

A) Many financial statement accounts are represented as resources in the REA model.
B) Accounts such as Accounts Receivable show up as entities in the REA model.
C) Some accounts represent an imbalance between two related events in the REA model.
D) Much of the information about an organization's assets that is traditionally recorded in ledgers is stored in resource tables in an REA-based relational database.

Question 29

Integrating separate REA diagrams into a single comprehensive enterprise-wide model of the organization requires understanding what the ________ in each separate diagram reveal about the organization's business policies and activities.

A) cardinalities
B) data
C) events
D) transactions

Question 30

Concerning enterprise-wide REA diagrams,which of the following is false?

A) Merging two or more REA diagrams that contain the same resource entity does not require any changes to the cardinality pairs in the individual diagrams.
B) Merging two or more diagrams that contain a common event entity, however, often requires changing the minimum cardinalities associated with the other events to 0, to reflect the fact that the merged event may be connected to any one of several different events, but not to all of them simultaneously.
C) The minimum cardinalities associated with agents may also have to be changed to 0.
D) All of the above are true.

Question 31

In comparing the REA model to the traditional AIS,which of the following is false?

A) Traditional AISs contain only data about the financial aspects of transactions.
B) A major advantage of the REA data model is that it integrates non-financial and financial data in the AIS and makes both types of data easily accessible to management.
C) In the REA model, many financial statement items can be displayed by querying a single table.
D) Accounts in the traditional AIS are analogous to resources in the REA-based relational database.

Question 32

Which table is most likely to have a concatenated key?

A) customer
B) sales
C) customer-sales
D) accounts receivable

Question 33

How many tables are needed to implement an REA data model that has five distinct entities,two M:N relationships and three 1:N relationships in a relational database?

A) 5
B) 7
C) 8
D) 10

Question 34

In an REA-based relational database,the information normally found in a ________ is contained in the tables used to record data about ________.

A) journal, events
B) journal, resources
C) ledger, events
D) ledger, resources

Question 35

Concatenated keys are

A) only needed when combining two or more REA diagrams.
B) foreign keys used to implement 1:N or 1:1 relationships.
C) multiple attribute keys used to implement 1:N relationships.
D) required to implement M:N relationships.

Question 36

How many tables are needed to implement an REA data model that has six distinct entities,three M:N relationships and four 1:N relationships in a relational database?

A) 6
B) 9
C) 11
D) 13

Question 37

Much of the information about an organization's assets that is traditionally recorded in ledgers is stored in ________ tables in an REA-based relational database.

A) Account
B) Agent
C) Event
D) Resource

Question 38

Concerning the generation of financial statements from an REA-based relational database,which of the following is false?

A) It is possible to use a completed REA diagram to guide the writing of queries to produce the information that would be included in financial statements.
B) Many financial statement items can be displayed by querying a single table.
C) It is unnecessary to understand the REA data model to know which tables need to be included in each query to generate the correct answers to financial statement questions.
D) A major advantage of the REA data model is that it integrates non-financial and financial data.

Question 39

Concerning the use of REA diagrams to retrieve information from a database

A) although neither journals nor ledgers appear explicitly in an REA diagram, each can be created through appropriate queries.
B) the information normally found in a journal is contained in the tables used to record data about events.
C) much of the information about an organization's assets that is traditionally recorded in ledgers is stored in resource tables in an REA-based relational database.
D) all of the above

Question 40

Because information about temporal imbalances between two ________,such as accounts receivable and accounts payable,is needed so frequently,such calculated values are sometimes stored as ________ in the appropriate tables.

A) events, agents
B) events, attributes
C) resources, agents
D) resources, attributes

Question 41

A query that extracts,for a given time period,all purchases for which there is no corresponding disburse cash event will yield

A) a cash account ledger.
B) a credit sales journal.
C) an accounts receivable ledger.
D) an accounts payable journal.

Question 42

Which entity is likely to be part of both the payroll cycle and the expenditure cycle?

A) Receive Goods
B) Customer
C) Disburse Cash
D) Inventory

Question 43

In an integrated REA diagram,every resource must be must be linked to

A) at least two events.
B) at least two agents.
C) at least one other resource.
D) at least two other resources.

Question 44

Which entity is likely to be part of both the revenue cycle and the expenditure cycle?

A) Receive Goods
B) Customer
C) Receive Cash
D) Inventory

Question 45

Implementation of this REA diagram into a relational database would require how many tables?

A) 12
B) 13
C) 8
D) 9

Question 46

Which entity is likely to be part of the payroll cycle,expenditure cycle,and the revenue cycle?

A) Customer
B) Cash
C) Supplier
D) Inventory

Question 47

In a relational database,which of the following attributes would typically be included in the table that stores data about the Customer entity?

A) Invoice number
B) Credit limit
C) Product code
D) Backorder

Question 48

Which of the following would be true when implementing this REA diagram into a relational database?

A) The primary key for Employee would be a foreign key for Cash Receipts.
B) The primary key for Cash Receipts would be a foreign key for Cash.
C) The primary key for Parts would be a foreign key for Service Request.
D) The primary key for Sales would be a foreign key for Service Request.

Question 49

In a relational database,which of the following attributes would typically be represented by a foreign key in the table that stores data about a Disburse Cash entity?

A) Amount
B) Date
C) Vendor number
D) Product number

Question 50

When integrating separate REA diagrams,

A) common resources are placed between the events that affect them.
B) each resource is connected to two agents.
C) resources are duplicated to show the give and get of economic duality relationships.
D) resources are merged if both events in the stockflow relationship are modeled.

Question 51

In an integrated REA diagram,every agent must be must be linked to

A) at least one resource.
B) at least two resources.
C) at least one event.
D) at least two events.

Question 52

A query that extracts,for a given time period,the total amount of all sales events for which there is no corresponding receive cash event will yield

A) a cash account ledger.
B) a credit sales journal.
C) an accounts receivable ledger.
D) an accounts payable journal.

Question 53

In an integrated REA diagram,every event must be linked to

A) at least two resources.
B) at least two agents.
C) at least one other event.
D) at least two other events.

Question 54

In a relational database,which of the following attributes would typically be represented by a foreign key in the table that stores data about a Receive Inventory entity?

A) Purchase order number
B) Payment terms
C) Product code
D) Date

Question 55

Which entity is likely to be part of both the payroll cycle and the revenue cycle?

A) Cash
B) Customer
C) Receive Goods
D) Inventory

Question 56

In which of the following cases is the relationship between entities not implemented by foreign keys?

A)

B)

C)

D)

Question 57

In which of the following cases is the number of tables required to represent the relationship equal to three?

A)

B)

C)

D)

Question 58

Which of the following is a redundant entity that would be merged when two cycles are combined?

A) Customer
B) Employee
C) Vendor
D) Inventory

Question 59

A query that extracts,for a given time period,all sales events for which there is no corresponding receive cash event on the date of the sales event will yield

A) a cash account ledger.
B) a credit sales journal.
C) an accounts receivable ledger.
D) an accounts payable journal.

Question 60

In a relational database,which of the following attributes would typically be included in the table that stores data about the Vendor entity?

A) Invoice number
B) Outstanding balance
C) Product code
D) Inventory

Question 61

Cosgrove Art & Antiques sells unique art and antiques exclusively at antique shows.Cosgrove purchases inventory from individuals and other dealers at garage sales,flea markets,antique malls,and estate sales.Each time Cosgrove makes a purchase,she records the person's name,address,date,specific items purchased and price paid,and total amount spent.Later at home,Cosgrove cleans,researches and prices the inventory items.She assigns an inventory number to each item and records the "asking" price.Cosgrove buys price tags and display supplies from a company that sells at flea market and antique shows.All inventory and supplies purchases are paid immediately with cash,or with checks from a bank account in the business' name,to which sales are also deposited.Several times a year Cosgrove rents a booth at an antique show.A deposit is always required,with the balance due at the start of the show.Cosgrove 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. Which of the following would be an attribute in the table for booth rental?

A) Organizer's name
B) Deposit paid
C) Balance paid
D) Organizer's address

Question 62

Cosgrove Art & Antiques sells unique art and antiques exclusively at antique shows.Cosgrove purchases inventory from individuals and other dealers at garage sales,flea markets,antique malls,and estate sales.Each time Cosgrove makes a purchase,she records the person's name,address,date,specific items purchased and price paid,and total amount spent.Later at home,Cosgrove cleans,researches and prices the inventory items.She assigns an inventory number to each item and records the "asking" price.Cosgrove buys price tags and display supplies from a company that sells at flea market and antique shows.All inventory and supplies purchases are paid immediately with cash,or with checks from a bank account in the business' name,to which sales are also deposited.Several times a year Cosgrove rents a booth at an antique show.A deposit is always required,with the balance due at the start of the show.Cosgrove 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. Which of the following would not be an attribute in the Inventory table?

A) Total amount of purchase
B) Price paid
C) Asking price
D) Inventory number

Question 63

Explain the five rules for drawing integrated REA diagrams.

Question 64

Explain where in the REA model you can find the information normally found in a journal.

Question 65

Explain a completeness check.

Question 66

Cosgrove Art & Antiques sells unique art and antiques exclusively at antique shows.Cosgrove purchases inventory from individuals and other dealers at garage sales,flea markets,antique malls,and estate sales.Each time Cosgrove makes a purchase,she records the person's name,address,date,specific items purchased and price paid,and total amount spent.Later at home,Cosgrove cleans,researches and prices the inventory items.She assigns an inventory number to each item and records the "asking" price.Cosgrove buys price tags and display supplies from a company that sells at flea market and antique shows.All inventory and supplies purchases are paid immediately with cash,or with checks from a bank account in the business' name,to which sales are also deposited.Several times a year Cosgrove rents a booth at an antique show.A deposit is always required,with the balance due at the start of the show.Cosgrove 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. Which of the following would not be an attribute in the Purchases table?

A) Address of place purchase was made
B) Person's name from whom the purchase was made.
C) Date of purchase
D) Total amount of purchase

Question 67

What are the advantages of the REA data model over the traditional AIS model?

Question 68

Explain where in the REA model you can find the information normally found in a ledger.