ACC 3510 chapter 6

Payments

Business activities related to buying inventory from suppliers and making payments to suppliers is called the purchases and Payments

purchase

The "employees" class records information about all employees include those that handle purchase transactions.

There are always at least three foreign keys

Which of the following is true about the cash disbursements table's foreign keys based on a typical UML class model of the purchase and payments process using the REA framework? There are always at least four foreign keys There are always four foreign keys There are always three foreign keys There are always at least three foreign keys

Two pools Message flows

Which of the following would be present in a BPMN collaboration model of the purchases and payments process? Sequence flows Two pools Start events Message flows

Records information about the enterprises' employees

Which of the following best describes the purpose of the employees agent in the generic REA pattern of the purchase and payments process? Records information about employees that handle purchase transactions Records information about the employees that handle cash Records information about the enterprises' employees Records information about the enterprises' departments

The REA framework meets accounting but not broad management information requirements.

Which of the following is not true about the REA framework? The REA framework meets accounting but not broad management information requirements. The REA framework is a proven approach to describing business processes. UML class models are used to present a process or processes in the REA framework. The term REA stands for resources-events-agents.

Each purchase order results in a maximum of one receipt. Each receipt is a result of a maximum of one purchase order. Every receipt is preceded by a purchase order.

Which of the following must be true to collapse the Purchase Order and Receipts events into one event? One purchase order can result in multiple receipts. Each purchase order results in a maximum of one receipt. Each receipt is a result of a maximum of one purchase order. Every receipt is preceded by a purchase order.

many

In the generic REA model of the purchase and payment process, the multiplicities on the association between Suppliers and Purchases indicates that each supplier can participate in a minimum of zero purchases and a maximum of many purchases.

1. Request Prices 2. Place order 3. Receive items 4. send payment

List the basic activities in a BPMN activity diagram in sequence. Request Prices Place order Receive items send payment

purchase

A generic REA model of the purchase and payment process would show two economic events: the purchase event and the "Cash Disbursement" event and the duality association between them.

supplier

For the purchase and payment process, the two agents that participate in process events are the Sunset Partner (internal agent) and the supplier (external agent), as shown in Figure 6.5.

Cash

For the purchase and payment process, the two resources affected by the process events are the Products (inventory) and the cash resources, as shown in Figure 6.5.

commitment

In Figure 6.6, the UML class diagram of Sunset Graphics purchase and payment process, the "Purchase Orders" event is a commitment event.

commitment

In Figure 6.6, the UML class model of Sunset Graphics purchase and payment process, one event: the commitment event (Purchase Orders), doesn't affect the financial statements.

Place Order is more complex

In a BPMN activity diagram of the purchase and payments process, which of the following best indicates why Place Order is modeled as a subprocess, but Receive Items, Assess Items, etc., are modeled as activities? Place Order is more complex Place Order occurs first Place Order is performed by the buying function Receive Items is more complex

Message

In a BPMN collaboration model, MESSAGE flows show the interaction between two pools.

intermediate timer

In a more complex BPMN activity diagram, such as shown in Figure 6.4 describing Sunset Graphic's purchase and payment process, the 30 day delay between the receipt and acceptance of new inventory items and the payment to the supplier is shown as an intermediate timer

external

In the generic REA framework, the suppliers class is an example of an __________ agent.

transactions

In the generic REA model of the purchase and payment process, the "Purchases" event records information about individual purchase transactions

payments

In the generic REA model of the purchase and payment process, the cash disbursement event records information about payments to suppliers from on the company's bank accounts.

commitment

Multiple Choice Question In Figure 6.6, the UML class model of Sunset Graphics purchase and payment process, one event: the ________ event (Purchase Orders), doesn't affect the financial statements. products purchase orders purchase order receipts commitment

receive items

Select the BPMN activity in the purchases and payment process that typically results in recording a purchase in the accounting records.

Two agents Two resources Two events

The generic REA model for the purchases and payments process includes which of the following? Two type images Two agents Two resources Two events

blueprint

The primary purpose of the UML class diagram of the purchase and payments process is to create a for the development of a relational database.

actions or action

To define business rules, after we identify important business events and define the organization's objectives for those events, we need to determine appropriate actions to take based on the conditions.

objective, intention

To define business rules, we first need to identify important business events and then define the organization's objective, intention for those events

False

True or false: In the UML class diagram of Sunset Graphics purchase and payments process shown in Figure 6.6, the Purchase Orders event represents a commitment, which means that Sunset Graphics would increase its inventory value when a purchase order is issued to a supplier. True False

basic

When developing a UML class model of the purchase and payment process, it is best to start with the basic pattern and then modify that diagram to reflect the unique information structure of a particular company.

collapse

When the "Purchase Orders" event always has a one-to-one relationship with the "Receipts" event, the two events can be collapse into one event as long as an attribute indicates that the products were received.

Identify important business events Define organization intentions Determine appropriate actions

Which of the following are steps in defining business rules to implement controls over the purchases and payments process? Identify important business events Identify the auditor for the process Define organization intentions Determine appropriate actions

Each purchase requires one supplier. Each supplier may participate in multiple purchases.

Which of the following are true about the association between the suppliers agent and the purchases event in the generic REA model of the purchase and payments process? Each purchase requires one supplier. Each supplier may participate in multiple purchases. Each purchase requires multiple suppliers. Each supplier participates in one purchase.

The external agent is the supplier of the purchased items. There are two economic events: purchase receipts and cash disbursements. The value of the products resource is increased when items are received.

Which of the following are true about the basic REA pattern for UML class diagrams of the purchase and payments process? The value of the cash resource is increased when items are received. The external agent is the supplier of the purchased items. There are two economic events: purchase receipts and cash disbursements. The value of the products resource is increased when items are received.

Purchase orders specify quantities and prices of items ordered. There is one internal and one external agent participating in each event. There are three events but only two affect the accounting statements.

Which of the following best describe features of a UML class model of Sunset Graphic's purchase and payments process as shown in Figure 6.5? Purchase orders specify quantities and prices of items ordered. There is one internal and one external agent participating in each event. All payments to suppliers are made from one specific bank account. There are three events but only two affect the accounting statements.

Records individual payments to suppliers.

Which of the following best describes the purpose of the cash disbursement event in the generic REA pattern of the purchase and payments process? Records a summary of payments to suppliers during the year. Records individual bank account balances. Records individual purchase transactions. Records individual payments to suppliers.

Records information about individual purchase transactions

Which of the following best describes the purpose of the purchases event in the generic REA diagram of the purchase and payments process? Records information about individual purchase orders Records information about individual checks written to suppliers Records information about the individual products in inventory Records information about individual purchase transactions

three

the cash disbursements table always contains at least three foreign keys.

True

true or false: The purpose of swimlanes in a BPMN activity diagram of the purchase and payments process is to show different organizational responsibilities.