ACCT 3371 EXAM 3

The ________ is a legal contract that defines responsibility for goods that are in transit. A) bill of lading B) packing slip C) back order D) picking list

bill of lading

Which of the following is false regarding a well-structured relational database? A) A foreign key cannot be null. B) A primary key cannot be null. C) Every column in a row must be single valued. D) All nonkey attributes in a table must describe a characteristic of the object identified by the primary key.

A foreign key cannot be null.

Identify the aspect of a well-structured database that is incorrect. A) Data is consistent. B) Redundancy is minimized and controlled. C) All data is stored in one table or relation. D) The primary key of any row in a relation cannot be null.

All data is stored in one table or relation.

Special software packages called ________ can help an organization manage customer service. A) EDI systems B) CRM systems C) POS systems D) VMI systems

CRM systems

Creating an empty table in a relational database requires use of the ________, and populating that table requires the use of ________. A) DDL; DML B) DQL; SQL C) DDL; DQL D) DML; DDA

DDL; DML

If a national sales tax were implemented, which language would be used to add a new field in the sales table to track the sales tax due? A) Data Definition Language B) Data Manipulation Language C) Data Query Language D) Data Update Language

Data Definition Language

When the human resources manager wants to gather data about salary and start date by employees and by departments, the manager would use which language? A) Data Manipulation Language B) Data Query Language C) Data Report Language D) Data Definition Language

Data Query Language

Identify one potential drawback in the design and implementation of database systems for accounting. A) Double-entry accounting relies on redundancy as part of the accounting process, but well-designed database systems reduce and attempt to eliminate redundancy. B) Relational DBMS query languages will allow financial reports to be prepared to cover whatever time periods managers want to examine. C) Relational DBMS provide the capability of integrating financial and operational data. D) Relational DBMS can accommodate multiple views of the same underlying data; therefore, tables storing information about assets can include data about both historical and replacement costs.

Double-entry accounting relies on redundancy as part of the accounting process, but well-designed database systems reduce and attempt to eliminate redundancy.

________ in a well-structured relational database. A) Every table must be related to all other tables B) One table must be related to at least one other table C) Every table must be related to at least one other table D) One table must be related to all other tables

Every table must be related to at least one other table

How is credit approval generally handled for established customers with a documented payment history? A) A new credit application is requested. B) General authorization by a sales clerk C) Specific authorization by the credit manager D) A formal credit check should be made for each sale.

General authorization by a sales clerk

Which statement is true regarding file systems? A) Transaction files are similar to ledgers in a manual AIS. B) Multiple master files create problems with data consistency. C) Transaction files are permanent. D) Individual records are never deleted in a master file.

Multiple master files create problems with data consistency.

Identify the statement below that is false with regards to basic requirements of a relational database model. A) Primary keys can be null. B) Foreign keys, if not null, must have values that correspond to the value of a primary key in another table. C) All non-key attributes in a table should describe a characteristic about the object identified by the primary key. D) Every column in a row must be single-valued.

Primary keys can be null.

________ is not a basic activity of the revenue cycle. A) Sales order entry B) Shipping C) Receiving D) Billing

Receiving

________ is a feature in many database systems that simplifies the creation of reports by allowing users to specify the data elements desired and the format of the output. A) Report printer B) Report creator C) Report generator D) Report writer

Report writer

Which of the statements below is incorrect? A) Semantic data modeling facilitates the efficient design of databases. B) Semantic data modeling facilitates communicating with the intended users of the system. C) Semantic data modeling allows a database designer to use knowledge about business processes to design the database. D) Semantic data modeling follows the rules of normalization in the design of a database.

Semantic data modeling follows the rules of normalization in the design of a database.

What is a typical procedure for processing sales orders from new customers or customers making a purchase that causes their credit limit to be exceeded? A) General authorization to approve the order is given to sales clerks. B) Specific authorization must be granted by the credit manager. C) The sale should be rejected. D) The sales clerk should order a report from a credit bureau before approving the order.

Specific authorization must be granted by the credit manager.

Which statement below concerning the database management system (DBMS) is false? A) The DBMS automatically creates application software for users, based on data dictionary parameters. B) The DBMS automatically maintains the data dictionary. C) Users' requests for information are transmitted to the DBMS through application software. D) The DBMS uses special languages to perform specific functions.

The DBMS automatically creates application software for users, based on data dictionary parameters.

When a customer places an order (on account) for a certain product, what should be done before the order is checked for inventory availability? A) The customer's available credit should be checked. B) The sales order should be created and written to a file. C) Shipping should be notified of an order in process. D) A picking list should be generated for the warehouse.

The customer's available credit should be checked.

Suppose a relational database contained two linked tables. Assuming the organization wants the database to be normalized, which of the following items represents a problem to normalization? A) The database contains only one primary key. B) The database contains two foreign keys. C) The database contains two primary keys. D) The database contains only one foreign key.

The database contains only one primary key.

Which of the following statements is false regarding the use of incentives, commissions and bonuses in the payroll system? A) Using incentives, commissions, and bonuses requires linking the payroll system and the information systems of sales and other cycles in order to collect the data used to calculate bonuses. B) Bonus/incentive schemes must be properly designed with realistic, attainable goals that can be objectively measured. C) Incentive schemes can result in undesirable behavior. D) All of the above are true.

Using incentives, commissions, and bonuses requires linking the payroll system and the information systems of sales and other cycles in order to collect the data used to calculate bonuses, Bonus/incentive schemes must be properly designed with realistic, attainable goals that can be objectively measured, and Incentive schemes can result in undesirable behavior.

Ama Afolayan is chair of the National Owl Society, which maintains a database of all rare owls within the United States. One table will store the name, birth date, and other characteristics of all of the owls that have been registered. Each owl is uniquely identified by a registration number. A second table will contain data that link each owl to its male and female parents by means of their registration numbers. The primary key in the second table is A) name. B) birth date. C) the same as the primary key in the first table. D) a combination of primary keys in the first table.

a combination of primary keys in the first table.

Ama Afolayan is chair of the National Owl Society, which maintains a database of all rare owls within the United States. One table will store the name, birth date, and other characteristics of all of the owls that have been registered. Each owl is uniquely identified by a registration number. A second table will contain data that link each owl to its male and female parents by means of their registration numbers. The primary key in the first table is A) name. B) birth date. C) the primary key in the second table. D) a foreign key in the second table.

a foreign key in the second table.

Helen Fume is a recruiter with The Ladders in Nome, Alaska. The Ladders success is largely attributable to its accounting information system. When a client is hired by an employer, Helen creates a record that identifies the employment relationship. Helen follows up on placements by surveying both employers and clients about the employment experience and then entering the results into the AIS. Clients are uniquely identified by social security number. In records that contain client survey data, the social security number is likely to be A) the primary key. B) a foreign key. C) combined with other data fields to form a primary key. D) null.

a foreign key.

Which would not generally be considered a data dictionary output report? A) a list of cash balances in the organization's bank accounts B) a list of all programs in which a data element is used C) a list of all synonyms for the data elements in a particular file D) a list of all data elements used by a particular user

a list of cash balances in the organization's bank accounts

Two documents usually accompany goods shipped to a customer. What are the two documents? A) a bill of lading and an invoice B) a packing slip and a bill of lading C) an invoice and a packing slip D) an invoice and a sales order

a packing slip and a bill of lading

Identify a useful tool for monitoring accounts receivable. A) ERP exception report B) accounts receivable aging report C) accounts receivable tolerance report D) customer credit limit report

accounts receivable aging report

A relational database in which customer data is not maintained independently of sales invoice data will most likely result in A) an update anomaly. B) an insert anomaly. C) a delete anomaly. D) an integrity anomaly.

an insert anomaly.

The problem of changes being incorrectly recorded in a database is known as A) an update anomaly. B) an insert anomaly. C) a delete anomaly. D) a memory anomaly.

an update anomaly.

The data dictionary usually is maintained A) automatically by the DBMS. B) by the database administrator. C) by the database programmers. D) by top management.

automatically by the DBMS.

In the ________ method of tracking accounts receivable, customers pay according to the amount showing on their monthly statement and payments are applied against the total account balance. A) specific identification B) open-invoice C) balance forward D) remittance advice

balance forward

The accounts receivable management method typically used by credit card companies is A) balance forward. B) postbilling. C) monthly statement. D) open-invoice.

balance forward.

The shipping department at Eka Toys follows policies that determine which carrier will deliver orders according to the size, weight, and destination of the shipment. It maintains standing agreements with shippers that specify legal responsibility for the shipment while it is in transit. The terms of the shipping agreements are documented on A) picking tickets. B) packing slips. C) bills of lading. D) RFID tags.

bills of lading.

The use of a data warehouse in strategic decision making is often referred to as A) business intelligence. B) managerial accounting. C) data analysis. D) analytical modeling.

business intelligence.

How do users retrieve data stored in a database? A) by viewing the appropriate data tables B) by executing a query C) by performing a search D) by specifying the primary keys

by executing a query

The schema that provides an organization-wide view of the entire database is known as the A) external-level schema. B) internal-level schema. C) conceptual-level schema. D) logical view of the database.

conceptual-level schema.

When a customer pays off the balance on an invoice, the payment is credited to the ________ file. A) customer master B) sales transaction C) cash receipts master D) All of the above are correct.

customer master

In a well-designed and normalized database, which of the following attributes would be a foreign key in a cash receipts table? A) customer number B) cash receipt date C) remittance advice number D) customer check number

customer number

A(n) ________ system prepares and mails monthly statements to customers throughout the entire month, instead of just at the end of the month. A) continuous B) open-invoice C) cycle billing D) balance forward

cycle billing

The ________ contains information about the structure of the database. A) data definition language B) data dictionary C) data warehouse D) database management system

data dictionary

Merlin Frodo has been doing custom piercings and tattoos for over thirty years. His home and place of business is a garage in the harbor district of Seattle, Washington. He keeps meticulous records of every job he has ever completed. These have been entered into a computerized accounting information system that his accountant refers to as a "data warehouse." Merlin is considering adding scarification to his service offerings and has asked his accountant to identify past customers who might be likely candidates for this service. Merlin wants his accountant to engage in A) customer auditing. B) customer resource management. C) data mining. D) enterprise resource planning.

data mining.

The ________ is responsible for the database. A) database master B) database manager C) database administrator D) data coordinator

database administrator

The ________ handles the link between the way data are physically stored and each user's logical view of that data. A) database management software (DBMS) B) database manager C) data warehouse D) data dictionary

database management software (DBMS)

What acts as an interface between the database and the various application programs? A) data warehouse B) database administrator C) database system D) database management system

database management system

The combination of the database, the DBMS, and the application programs that access the database through the DBMS is referred to as the A) data warehouse. B) database administrator. C) database system. D) database management system.

database system.

All of the following are benefits of the database approach except A) data integration and sharing. B) decentralized management of data. C) minimal data redundancy. D) cross-functional analysis and reporting.

decentralized management of data.

The problem of losing desired information from a database when an unwanted record is purged from the database is referred to as the ________ anomaly. A) purge B) erase C) delete D) integrity

delete

In a relational database, requiring that every record in a table have a unique identifier is called the A) entity integrity rule. B) referential integrity rule. C) unique primary key rule. D) foreign key rule.

entity integrity rule.

Cornelia Cassidy is a telecom equipment sales representative. Her company has provided her with a laptop computer that uses wireless connectivity to access the accounting information system from virtually anywhere in the country. She has access to view customer and product information. She also has access that allows her to enter and cancel customer orders. The permissions for Cornelia (and other sales reps) define a ________ in the company's database management system. A) conceptual-level schema B) data dictionary C) external-level schema D) physical view

external-level schema

Kai Keoni has created custom statues made out of scrap metal for over ten years. He lives above his shop in Martha's Vineyard, Maryland. Kai is an accounting fanatic and has kept detailed records of every statue he has ever created. For every sale, he obtains the customer's name and address, a description of the statue, and a picture of the statue sold to the customer. His unique style has recently attracted the attention of several celebrities. Ready to take his business to the next level, Kai has hired you to construct an accounting information system, which he wants modeled after his paper records. As you look over his records, you notice that some customer last names have different first names in different records. For example, R. Framington Farnsworth, Bob Farnsworth, and Snake Farnsworth all seem to be the same person. You explain to Kai that every customer must be identified by a unique customer number in the AIS. You are referring to the A) entity integrity rule. B) referential integrity rule. C) update anomaly. D) insert anomaly.

entity integrity rule.

In a well-structured relational database, A) foreign keys cannot be null. B) there must be at least two foreign keys. C) every column in a row must be single valued. D) one table must be related to all other tables.

every column in a row must be single valued.

In the database design approach known as normalization, the first assumption made about data is A) there is no redundancy in the data. B) the delete anomaly will not apply since all customer records will be maintained indefinitely. C) everything is initially stored in one large table. D) the data will not be maintained in 3NF tables.

everything is initially stored in one large table.

A set of individual user views of the database is called the A) conceptual-level schema. B) internal-level schema. C) external-level schema. D) meta-schema.

external-level schema.

Which of the following elements link rows in one table to rows in another table? A) primary keys B) foreign keys C) semantic keys D) link keys

foreign keys

The logical view of a database system refers to A) how a user or programmer conceptually organizes and understands the data. B) how the DBMS accesses data for a certain application program. C) how and where the data are physically arranged and stored. D) how master files store data values used by more than one application program.

how a user or programmer conceptually organizes and understands the data.

The physical view of a database system refers to A) how a user or programmer conceptually organizes and understands the data. B) how the DBMS accesses data for a certain application program. C) how and where the data are physically arranged and stored. D) how master files store data values used by more than one application program.

how and where the data are physically arranged and stored.

If a firm does not use an ERP, the best way to mitigate the risk of the destruction of master data is to A) implement backup and disaster recovery procedures. B) use an ERP. C) proper segregation of duties. D) use of multiple master data files.

implement backup and disaster recovery procedures.

If a firm uses an ERP, the best way to mitigate the risk of the destruction of master data is to A) frequently update the ERP system. B) implement the ERP system in three separate instances. C) periodically audit the ERP system. D) integrate the ERP system with all IT functions.

implement the ERP system in three separate instances.

Kai Keoni has created custom statues made out of scrap metal for over ten years. He lives above his shop in Martha's Vineyard, Maryland. Kai is an accounting fanatic and has kept detailed records of every statue he has ever created. For every sale, he obtains the customer's name and address, a description of the statue, and a picture of the statue sold to the customer. His unique style has recently attracted the attention of several celebrities. Ready to take his business to the next level, Kai has hired you to construct an accounting information system, which he wants modeled after his paper records. As you look over his records, you realize that some customers bought multiple statues at the same time. For example, Yasmeen Ghuari bought a Tin Man Status, a flying horseman statue, and a terrier statue. You realize that in these cases, a single written record will have to be translated into multiple sales records. This is an example of what type of problem in the existing records? A) entity integrity B) referential integrity C) update anomaly D) insert anomaly

insert anomaly

Inability to add new data to a database without violating the basic integrity of the database is referred to as the A) update anomaly. B) insert anomaly. C) integrity anomaly. D) delete anomaly.

insert anomaly.

Shahnaz Vijaya is a new graduate who has been hired by a family-owned furniture manufacturing company in the south. She has been asked to analyze the company's accounting information system and to recommend cost-effective improvements. After noting that the production and sales departments use database systems that are entirely separated, she recommends that they be combined. Implementation of her recommendation would benefit the company by contributing to data A) independence. B) integration. C) redundancy. D) qualifications.

integration.

Record layouts, definitions, addresses, and indexes will be stored at the ________ level schema. A) external B) conceptual C) internal D) meta

internal

A low-level view of the database that describes how the data are actually stored and accessed is the A) conceptual-level schema. B) subschema. C) internal-level schema. D) external-level schema

internal-level schema.

According to generally accepted accounting principles, a sale is recognized when A) cash is received from the customer. B) inventory is removed from the warehouse. C) inventory becomes the legal property of the customer. D) a sales order is approved by sales, inventory control, and credit departments.

inventory becomes the legal property of the customer.

A data warehouse A) is primarily used for analysis rather than transaction processing. B) stores transaction processing records in hard copy. C) replaces traditional transaction processing databases. D) increases the speed of transaction processing.

is primarily used for analysis rather than transaction processing.

A ________ is an abstract representation of a database's contents. A) schema B) logical data model C) physical view D) data dictionary

logical data model

Using a file-oriented approach to data and information, data is maintained in A) a centralized database. B) many interconnected files. C) many separate files. D) a decentralized database.

many separate files.

File-oriented approaches create problems for organizations because of A) multiple transaction files. B) a lack of sophisticated file maintenance software. C) multiple users. D) multiple master files.

multiple master files.

Kekoa Konani is chairman of the Chatty Chihuahua Club, where he maintains a database of registered purebred Chihuahuas and their breeding history. One table will store the name, birth date, and other characteristics of all of the registered Chihuahuas. Each Chihuahua is uniquely identified by a registration number. A second table will contain data that link each Chihuahua to its male and female parents by means of their registration numbers. The entities described by the first table are A) marmosets. B) parental relationships. C) registration numbers. D) names.

marmosets.

Kai Keoni has created custom statues made out of scrap metal for over ten years. He lives above his shop in Martha's Vinyard, Maryland. Kai is an accounting fanatic and has kept detailed records of every statue he has ever created. For every sale, he obtains the customer's name and address, a description of the statue, and a picture of the statue sold to the customer. His unique style has recently attracted the attention of several celebrities. Ready to take his business to the next level, Kai has hired you to construct an accounting information system, which he wants modeled after his paper records. You begin development of the relational database that will form the core of the AIS by envisioning the record stored in a single table with a column that represents each attribute. You then begin to break this table down into smaller tables. This process is called A) integration. B) optimization. C) minimization. D) normalization.

normalization.

The update anomaly in non-normalized database tables A) occurs because of data redundancy. B) restricts addition of new fields or attributes. C) results in records that cannot be updated. D) is usually easily detected by users.

occurs because of data redundancy.

A company uses the method for tracking accounts receivable where customers pay according to individual sales invoices. This describes the ________ method. A) monthly statement B) open-invoice C) balance forward D) cycle billing

open-invoice

A method for tracking accounts receivable that matches specific invoices and payments from the customer is called a(n) ________ method. A) specific identification B) balance forward C) cycle billing D) open-invoice

open-invoice

The ________ should always be included with a merchandise shipment to a customer. A) picking ticket B) packing slip C) sales invoice D) remittance advice

packing slip

The ________ normally triggers the billing process in the revenue cycle. A) sales order received from the sales department B) picking ticket received from the sales department C) packing slip received from the shipping department D) journal voucher received from the shipping department

packing slip received from the shipping department

Ama Afolayan is chair of the National Owl Society, which maintains a database of all rare owls within the United States. One table will store the name, birth date, and other characteristics of all of the owls that have been registered. Each owl is uniquely identified by a registration number. A second table will contain data that link each owl to its male and female parents by means of their registration numbers. The entities described by the second table are A) owls. B) parental relationships. C) registration numbers. D) names.

parental relationships.

Which of the following would not be found in a data dictionary entry for a data item? A) records containing a specific data item B) physical location of the data C) source of the data item D) field type

physical location of the data

Laz Chance wears roller blades and headphones when he is at work at the Squishy Things Toy Company. He is a product packer. The headphones give him computer-generated instructions so he knows the location of each item and quantity that should be included in the order. These instructions are the equivalent of a A) picking ticket. B) bill of lading. C) packing slip. D) sales order.

picking ticket.

Which is probably the most immediate and significant effect of database technology on accounting? A) replacement of the double entry-system B) change in the nature of financial reporting C) elimination of traditional records such as journals and ledgers D) quicker access to and greater use of accounting information in decision-making

quicker access to and greater use of accounting information in decision-making

In a well-structured database, the constraint that ensures the consistency of the data is known as the A) entity integrity rule. B) referential integrity rule. C) unique primary key rule. D) foreign key rule.

referential integrity rule.

The database requirement that foreign keys must be null or have a value corresponding to the value of a primary key in another table is formally called the A) entity integrity rule. B) referential integrity rule. C) unique primary key rule. D) foreign key rule.

referential integrity rule.

Kekoa Konani is chairman of the Chatty Chihuahua Club, where he maintains a database of registered purebred Chihuahuas and their breeding history. One table will store the name, birth date, and other characteristics of all of the registered Chihuahuas. Each Chihuahua is uniquely identified by a registration number. A second table will contain data that link each Chihuahua to its male and female parents by means of their registration numbers. The primary key in the first table is A) name. B) registration number. C) date of birth. D) relationship number.

registration number.

Kekoa Konani is chairman of the Chatty Chihuahua Club, where he maintains a database of registered purebred Chihuahuas and their breeding history. One table will store the name, birth date, and other characteristics of all of the registered Chihuahuas. Each Chihuahua is uniquely identified by a registration number. A second table will contain data that link each Chihuahua to its male and female parents by means of their registration numbers. The primary key in the second table is A) name. B) registration number. C) date of birth. D) relationship number.

relationship number.

The ________ normally triggers the customer payment recording process. A) sales invoice B) deposit slip C) remittance advice D) customer monthly statement

remittance advice

The document a customer returns with their payment and that identifies the source and the amount of the payment is called a A) remittance advice. B) remittance list. C) credit memorandum. D) debit memorandum.

remittance advice.

The basic document created in the billing process is call a ________. A) bill of lading B) sales invoice C) sales order D) packing list

sales invoice

A document typically encountered in the revenue cycle that is both an output document and a source document is the A) sales invoice. B) customer purchase order. C) sales order. D) packing slip.

sales invoice.

The activities involved in soliciting and processing customer orders within the revenue cycle are known as the A) sales order entry process. B) shipping order process. C) revenue process. D) marketing process.

sales order entry process.

The logical structure of a database is described by the A) data dictionary. B) schema. C) database management system. D) context diagram.

schema.

The REA is an example of a database that uses a ________ data modeling approach to database design. A) schema B) logical C) semantic D) normalization

semantic

The database design method in which a designer uses knowledge about business processes to create a diagram of the elements to be included in the database is called A) normalization. B) decentralization. C) geometric data modeling. D) semantic data modeling.

semantic data modeling.

Cornelia Cassidy is a telecom equipment sales representative. Her company has provided her with a laptop computer that uses wireless connectivity to access the accounting information system from virtually anywhere in the country. She, and other sales reps, have access to view customer and product information. All sales reps also have access that allows them to enter and cancel customer orders. The permissions for Cornelia define a ________ in the company's database management system. A) conceptual-level schema B) subschema C) data dictionary D) physical view

subschema

Reports produced using the data dictionary could include all of the following except a list of A) programs where a data item is used. B) synonyms for the data items in a particular file. C) outputs where a data element is used. D) the schemas included in a database.

the schemas included in a database.

Databases were originally developed to address which problem? A) to replace the double entry-system B) to address the proliferation of master files C) to increase the speed that an organization could process transactions D) to decrease the costs associated with manual accounting systems

to address the proliferation of master files

Basic segregation of duties requires the credit manager reports to the ________ and the treasurer report to the ________. A) treasurer; controller B) treasurer; vice president of finance C) controller; vice president of finance D) marketing manager; vice president of finance

treasurer; vice president of finance

A type of business document in which part of the original document is returned to the source for further processing is called a ________ document. A) feedback B) returnable C) closed-loop D) turnaround

turnaround

Suppose a relational database contained two linked tables. Which of the following items is not necessarily present in the database? A) two primary keys B) two foreign keys C) at least one column D) one foreign key

two foreign keys

Identify one potential outcome of the delete anomaly. A) inconsistent data B) inability to add new data C) unintentional loss of data D) none of the above

unintentional loss of data

Kai Keoni has created custom statues made out of scrap metal for over ten years. He lives above his shop in Martha's Vineyard, Maryland. Kai is an accounting fanatic and has kept detailed records of every statue he has ever created. For every sale, he obtains the customer's name and address, a description of the statue, and a picture of the statue sold to the customer. His unique style has recently attracted the attention of several celebrities. Ready to take his business to the next level, Kai has hired you to construct an accounting information system, which he wants modeled after his paper records. As you look over his records, you realize that sometimes the same customer is recorded by a slightly different name. For example, Mike Mulligan bought a horse statue, M. Mulligan bought a pig statue, and Mike M. all seem to be the same person. This is an example of what type of problem in the existing records? A) entity integrity B) referential integrity C) update anomaly D) insert anomaly

update anomaly

The ________ occurs when more than one occurrence of a specific data item in a database exists. A) inconsistency anomaly B) insert anomaly C) delete anomaly D) update anomaly

update anomaly

Checking the quantity of inventory available before accepting a sales order is a good practice for all of the reasons except to A) determine which items may need to be back ordered. B) verify the accuracy of the perpetual inventory records. C) inform the customer about availability and delivery times. D) update inventory records to reduce the quantity available by the number of items ordered.

verify the accuracy of the perpetual inventory records.