Question 1

An integrated REA diagram could contain multiple copies of
A) customers.
B) sales.
C) inventory.
D) sales-inventory.

Accepted Answer

A

Question 2

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.

Accepted Answer

In an integrated REA diagram, each agent must be linked to at least one event. This is because agents are involved in events, which in turn affect the resources. It is not necessary for agents to be linked to resources directly. Therefore, option C is the correct answer. The other options are incorrect as they either require more links than necessary or are not applicable.

Question 3

Which of the below statements is false with respect to REA diagrams for individual transaction cycles?
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.

Accepted Answer

D

Question 4

Which of the following statements is not true with regards to a correctly drawn enterprise-wide REA diagram?
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.

Accepted Answer

This statement is not true as events can be merged even if they involve different resources as long as they affect the same economic entity. For example, a sales event and a collection event can be merged if they both involve the same customer. The minimum cardinalities may still be affected, but it is not required that the merged events share the same resources. The other statements are true, as every event must be linked to at least one resource, merging events can affect minimum cardinalities, and creating tables from an REA diagram does not automatically result in a well-structured database, as additional design considerations and normalization may be necessary.

Question 5

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.

Accepted Answer

When merging common events in two REA diagrams, changes in the cardinality of the merged event may be necessary. This is because events often involve multiple resources and agents, and the number of participants in the merged event may differ from the individual events in the original diagrams. Changes to the cardinality of agents, resources, and relationships are unlikely since they typically represent distinct entities in the business process.

Question 6

Which entity is most likely to be part of both the payroll cycle and the expenditure cycle?
A) Receive Goods
B) Customer
C) Disburse Cash
D) Inventory

Accepted Answer

Disburse Cash is part of both the payroll cycle (for paying employees) and the expenditure cycle (for paying suppliers).

Question 7

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.

Accepted Answer

An integrated REA diagram merges multiple copies of resource and event entities but retains multiple copies of agent entities.

Question 8

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.

Accepted Answer

In an integrated REA diagram, every resource must be linked to at least two events. This is because resources are affected by events and also provide input for events. Therefore, a resource should be connected to two different events to capture its complete lifecycle and the impact it has on the organization's operations. By linking a resource to two events, we can represent how it contributes to the value creation of the organization.

Question 9

Which entity is most likely to be part of the payroll cycle,expenditure cycle,and the revenue cycle?
A) Customer
B) Cash
C) Supplier
D) Inventory

Accepted Answer

Cash is a common element in the payroll cycle (employees are paid), expenditure cycle (payments to suppliers), and revenue cycle (receipts from customers).

Question 10

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.

Accepted Answer

The answer of When integrating separate REA diagrams,
A) common resources...

Question 11

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

Accepted Answer

Inventory is a redundant entity that would be merged when two cycles are combined. Both cycles would have their own inventory, and combining them would result in a single inventory entity. Customers, employees, and vendors are all distinct entities that would not necessarily be merged when combining cycles.

Question 12

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

Accepted Answer

Cardinalities in REA diagrams reveal the nature and strength of relationships between entities, which is crucial for understanding the organization's business policies and activities when integrating separate diagrams into a comprehensive model.

Question 13

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.

Accepted Answer

The answer of In an integrated REA diagram,every event must...

Question 14

Which of the statements below is false with respect to enterprise-wide REA diagrams?
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.

Accepted Answer

All the statements provided accurately describe considerations and adjustments that may be necessary when merging REA diagrams in an enterprise-wide context. Merging diagrams with common entities requires careful consideration of cardinalities to accurately reflect the integrated processes.

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.

Accepted Answer

Integrating separate REA diagrams into a single, comprehensive enterprise-wide data model is possible and requires understanding the cardinalities in each separate diagram to reveal the organization's business policies and activities. By integrating separate REA diagrams, a single comprehensive enterprise-wide model of the organization can be created. Therefore, all of the above choices are true.

Question 16

Explain the five rules for drawing integrated REA diagrams.

Accepted Answer

The answer of Explain the five rules for drawing integrated...

Question 17

Which entity is most likely to be part of both the payroll cycle and the revenue cycle?
A) Cash
B) Customer
C) Receive Goods
D) Inventory

Accepted Answer

Cash is involved in both the payroll cycle (as employees are paid, affecting cash outflows) and the revenue cycle (as customers make payments, affecting cash inflows).

Question 18

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.

Accepted Answer

The answer of An integrated REA diagram merges multiple copies...

Question 19

Which entity is most likely to be part of both the revenue cycle and the expenditure cycle?
A) Receive Goods
B) Customer
C) Receive Cash
D) Inventory

Accepted Answer

Inventory can be part of both the revenue cycle (when it is sold to customers) and the expenditure cycle (when it is received from suppliers).

Question 20

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.

Accepted Answer

The two new rules for combining REA diagrams are:
1. Every resource must be linked to at least one event that increments that resource and to at least one event that decrements that resource.
2. 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. Option C states the opposite of the correct rule, therefore it is not one of the new rules.

Quiz 18: Implementing an Rea Model in a Relational Database

An integrated REA diagram could contain multiple copies of

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

Which of the below statements is false with respect to REA diagrams for individual transaction cycles?

Which of the following statements is not true with regards to a correctly drawn enterprise-wide REA diagram?

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

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

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

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

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

When integrating separate REA diagrams,

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

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.

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

Which of the statements below is false with respect to enterprise-wide REA diagrams?

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

Explain the five rules for drawing integrated REA diagrams.

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

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

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

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?