ACCT 404 Exam 1 (Baker)

DQ 12-2: Distinguish between document flowcharts, system flowcharts, data flow diagrams, and program flowcharts. How are they similar? How are they different?

- A document flowchart traces the physical flow of documents from where they were first created to their final destination. They provide more detail about documents than do DFDs. - When large computer programs are going to be built, IT professionals often make program flowcharts, which outlines each step the programmers will take and helps them make sure everything will go in the logically correct order. It serves as a planning outline and then a blueprint once approved. - Data flow diagrams do a little bit of everything and are similar to all three. They are primarily used to analyze an existing system or be used as a planning aid for a future one. Then they resemble document and system flowcharts in that they are often used to illustrate the flow of data in AIS.

DQ 3-12: What is client/server computing? How does it differ from host/mainframe computing? What are some of the advantages and disadvantages of client/server systems?

- Client/server computing has tasks shared between a host computer, the server, and another computer, the client. This type of computing takes place when a client asks for access to a database or information that is on the server computer. For host/mainframe computing, it is used in large companies where there is a large amount of data processing needed. - In comparison mainframe computing is a more centralized computing software where the control of the system is more centralized while, Client/server computing accomplishes an enterprise network where the information can be manipulated by any computer connected to the network. - The advantages of a client/server computing is the hardware is more flexible throughout the network and it reduces certain costs that are incurred when using mainframe computing. - Some disadvantages of client/server computing is that it retains multiple copies of the same databases and other documents making backup and recovery procedures more complicated and time consuming.

DQ 14-10. What is the process of normalization? What levels are there, and why do database developers seek to normalize data?

- Normalization is the process of organizing data in a database and ensures that data is stored in appropriate tables. - Database developers seek this process because it ensures that the database promotes data integrity, data accuracy, and non redundant data storage. - First normal form (1NF) occurs when a single record's data fields are singular. - A database is in second normal form (2NF) if it is in first normal form and all the attributes in each record depend entirely on the record's primary key. - Third normal form (3NF) occurs when a database is in second normal form and contains no transitive dependencies.

P 14-13: What attributes (i.e., table columns) would you be likely to include in a Cash table and in a Cash Receipts table?

-In a cash table, you could include an account number, account type, bank name, and balance. - In a cash receipts table, you could include the cash receipt number, employee number for who processed the transaction, customer number for the customer involved, the date of the transaction, and amount received.

DQ 16-15: A database report has seven major sections. Identify each one and provide a short explanation of each section.

1) Report heading - contains the company name and address and date prepared. 2) Page Heading - appears at the top of each page containing identification of each data field below it. 3) Group Heading - appears at the beginning of each group of records. 4) Detail or Body - contains the individual data fields of underlying database tables. 5) Group Footer - controls totals or other statistics such as maximums, minimums, or averages for the group. 6) Page Footer - consists of the page number and report number. 7) Report Footer - consists of the end-of-report identifier and grand totals.

DQ 14-5: Describe each of the following database issues that are relevant to accounting systems, and give an example of each: (1) data integrity, (2) transaction accuracy and completeness, (3) concurrency processing, and (4) security.

2) Transaction accuracy and completeness issues arise when the system does not perform transactions accurately and completely. An example of this is a manager moving units out of raw materials into work in process, however after the units are taken out of raw materials the system stops operating. 3) Concurrency processing issues arise when in a multiuser system, multiple users access the same record from the same table at the same time. An example of this would be two workers accessing the same inventory account at the same time. Worker 1 decreases inventory of 1,000 by 500 and worker 2 increases inventory of 1,000 by 200. Worker 2 submits his request last and the ending balance of the original 1,000 is 1,200 instead of 700. 4) Security issues arise when a company does not properly protect or back up their data. An example of this is how the credit card and debit card numbers of millions of Americans were stolen from Target because the security on their systems was not good enough to protect their data.

DQ 16-10: What is a calculated field in a report? Provide some examples. Why do reports contain calculated fields?

A calculated field in a report is a field that's entry is calculated using other data in the database from other fields. Some examples of calculated fields could be age of a person, which the system can calculate by entering someone's birthday. Reports contain calculated fields so that one does not have to continuously update the database, the system will do it itself as the years/months go on. This saves a lot of time and money as updating each field can become very timely along with paying an employee to do so for all those hours.

DQ 15-3: What are database management systems? Are they the same as databases?

A database management system is not a database as it is a software that enables users to create, delete and alter the information stored in records and reorganize records as needed. They are managed from an individual computer system that allows the data to be managed and altered efficiently. One of the more prominent examples being Microsoft Access , but the most commonly used one is PostgreSQL.

DQ 3-1: Why is it important to view an AIS as a combination of hardware, software, people, data, and procedures?

AIS is about applying IT to accounting system, which consists the five interacting components that help us create needed information from collected data. In this set, an example of hardware can be a multi-screen monitor and software can be Microsoft Office and QuickBooks. With hardware and software, users such as accountants and their clients can input and maintain accounting data. Procedures such as the use of Forms, Queries, Reports etc. allow people to gather and distribute data accurately. AIS will not be able to function properly and efficiently if any component is missing, thus it is important to view AIS as a combination of hardware, software, people, data, and procedures.

DQ 16-1: What are some of the advantages and disadvantages of database forms?

Advantages: They streamline data collection in a user-friendly and accurate manner. They are highly customizable and reduce costs in the long run as well as reduce errors. They also allow for easier modification of entries and translate well to reports. Disadvantages: Some disadvantages would be the relatively high cost on the front end (the effort to produce a well designed form) and low information density.

DQ 16-12: Why are calculated fields created with database queries? Why not create them directly with reports?

Calculated fields are created with database queries because a calculated field cannot be stored in a database table because it breaks the rule of normalization. Which is to never store a value that is dependent on other fields. The only way to get a calculated field is to use a query. Here, a query treats the calculated field like any other data field. Reports are also not as functional as a query since they don't work unless the calculated values are in a table somewhere. For example, when creating a calculated field in a report, it will work as normal. However, if I then try to use that calculated field elsewhere in the report, it will not work and I'll have to manually type out the calculations again on top of whatever else I'm trying to input. This is because the report isn't actually storing the information. Using a query eliminates this problem since it stores the calculated value.

DQ 3-10: What are data communication protocols? Why are they important?

Data communication protocols are the standards that provide this. If communication models do not comply with these protocols, they cannot communicate. Two examples of data communication protocols are HTTP and TCP, which are used for web pages and emails.

DQ 15-8: What are data manipulation languages? How are these languages related to database management systems? How are these languages related to databases?

Data manipulation languages (DMLs) are commands that allow an end user to perform queries and similar tasks on the records in a database in addition to adding, deleting and modifying the data. DMLs are useful in learning how to navigate a DBMS and are commonly used in relational databases. The purpose of DMLs is to help you create dynamic subsets of a database created with queries whereas data definition languages (DDLs) are the framework that you use to initially create a record structure.

DQ 15-6: What is data validation? Why is it important? Give some examples of how to validate data inputs using Access.

Data validation can be thought about as being restrictions for data input or restrictions for what type of data can go where. For example, you can only put numbers in one spot, and a string of letters in another spot. These controls are important because they prevent human error in a database, and they can prevent mistakes that would otherwise cost a company money. Ex) If you had a parking ticket system, validation rules could be made so that fines could only be between $10 and $100, and anything outside of that range would give you an error and make you enter the amount again.

DQ 14-7: What are the database cardinalities? Give some examples of cardinalities for an accounting application other than sales.

Database cardinalities are the relationships between entities, these relationships could be one-to-one, one-to-many, or many-to-many. An example of a cardinality could be a sale of a good from a supplier to a consumer and that would be a zero-to-many relationship, because there is no cap in place on how many sales can occur between vendor and consumer.

DQ 14-1: Why are databases important for accounting information systems? Describe some concerns, and explain why each one is important.

Databases are critical for accounting information systems due to the massive amounts of data required for nearly every aspect a firm's operations. Databases store information about customers, employees, financials, policies, historical records, and algorithms and programs that allow the database itself to function effectively Concerns: 1) Security of the data 2) Data privacy 3) Size and decentralization inherent in accounting firms operations.

DQ 15-5. Why do database developers link tables together? How is this done using Access?

Different tables hold different type of data. In order to create a report which has information from various tables, it is necessary to link all those various tables. By linking database tables to one another, database developers can extract the needed information, to create multi-table reports. This linking is done by creating a relationship between two matching data types found in both tables. For example, if we want to generate a report of all employees from "tblEmployee" who are from a specific department listed under "tblDepartment".

DQ 12-3: What are document flowcharts? How does a document flowchart assist each of the following individuals: (1) a systems analyst, (2) a systems designer, (3) a computer programmer, (4) an auditor, and (5) a data security expert?

Document flowcharts "trace the physical flow of documents through an organization—that is, the flow of documents from the departments, groups, or individuals who first created them to their final destinations. Document flowcharts provide more details about documents than do DFDs." - A systems analyst in a firm uses document flowcharts to make sure each department is getting necessary information and vice versa with unimportant information. - A system designer will use document flowcharts if there are discussions about replacing an existing system. - Computer programmers use document flowcharts in their process of preparing system diagrams. - Auditors have a specific audit process they use and document flowcharts help them with this. - A data security expert uses document flowcharts to monitor internal controls.

DQ 12-1: Why is documentation important to accounting information systems? Why should accountants be interested in AIS documentation?

Documentation is the critical factor in fostering longevity of a business because it creates history for managers, auditors, and directors to reference in order make well informed decisions and determine lawful behavior. Proper documentation as applied to AISs ensures compliance with the Sarbanes-Oxley act, which requires publicly traded companies to document internal control procedures, depicts how the system functions, and standardizes communication throughout the business, among other things. Documentation also establishes accountability for work done (financials, tax returns, work papers, etc.), which in turn fosters higher standards and a paper trail through which errors or excellence can be traced.

DQ 12-10: What is end-user computing? Why is documentation important to end-user computing? What guidelines should companies develop to control end-user computing?

End-user computing is the ability of non-IT employees to create computer applications of their own. It is important for non-IT employees like managers and auditors to understand how computer applications work so they can detect and prevent errors. It is also always important to have multiple people at different levels checking every document. Guidelines a company can follow would be workshops where the IT department explains computer applications and how to make one, involving management in new computer application development, and limiting the number of employees authorized to create end-user applications.

DQ 16-14: A forms navigation bar has five symbols on it. Identify each one and indicate its use.

From left to right, clicking on the first symbol will take you to the first record while the fourth symbol , will take you to the last record in the table. The second symbol displays the record immediately before the current one, while the third symbol displays the next record right after the current one. The last symbol will allow you to add a new record, usually the one at the end of the table. In my example, it will allow me to enter the information for new a customer.

DQ 16-7: The chapter suggested that it is important to design the format of a report before creating the report itself. Do you agree or disagree?

I agree you should design the format before creating the report. It will be easier to see how the report will look finalized if the design is already in place before you begin inputing the data. If you wait until after you have started putting in data or the report is finished, the new formatting could move the data around and make it confusing to read. You would have to go back through all of the data and make sure the design did not shift things around which leaves a lot of room for error.

DQ 16-9: Would you rather use the Report Wizard to create the format of a report or design one yourself from scratch? Why?

I would much rather use Report Wizard rather than designing one myself from scratch because it is able to create reports much quicker and more efficiently than by hand. If I were to do it by hand, it would take much more time to do so and it increases the chances of a mistake, whereas Report Wizard is programmed to not make the mistakes some one would do by hand. Report Wizard automatically orders the data and creates headings efficiently and by hand would make this more complex than necessary.

DQ 16-2: Would you rather use a form or a data sheet for entering data into a database table? Why?

I would rather use a form. Because a form only displays one record at a time, it prevents me from accidentally typing data into the wrong record. Seeing one record at a time helps me to focus on the information specific to that record without being distracted by the data in the other records in the table. The navigation from record to record is also more standardized and less confusing, since I need only use the navigation arrows to move from one record to the next. For records with many data fields, the form is able to display them all at once instead of forcing me to scroll right to see them all. Of course, forms also require a bit more setup than a simple data sheet, and there are more formatting options in the Design view that I must use to make the form look neat and organized. However, I believe the helpful standardization that the form provides outweighs the extra setup and format time that is necessary.

DQ 16-3: To create a form, would you rather use the Form Wizard in Access or create the form from scratch? Why?

In my opinion, using the Form Wizard in Access to create a form would be the much better option. While creating the form from scratch would give the developer full control over the design and everything to do with it, the Form Wizard is definitely faster, gives you pre-formatted data fields, and the design is easy to move around. Creating a form from scratch is only necessary when a professional needs very specific formatting.

DQ 3-2: Why is information technology important to accountants?

Information technology is important to accountants for six different reasons. 1) IT must be compatible with and support the other components of an AIS. 2) accountants sometimes help clients make hardware and software purchases. These can be large costs that take a lot of research so being familiar with the topic is important. 3) auditors evaluate computerized systems. 4) accountants must evaluate efficiency and effectiveness of computer systems to ensure tasks are being performed in the best way they can be. Information technology also affects the way accountants work today and will work in the future. 5) They use a number of computer programs to complete their jobs and more will continue to develop to make things easier and more streamlined. 6) IT is important to accountants is because the knowledge is vital to passing certification exams, as there are sections of both the CPA and CMA exams about information technology.

DQ: 3-3. Why do most AISs try to avoid data transcription?

Most AISs try to avoid data transcription because it is a labor intensive, time consuming process. When people have to manually enter information from source documents to put them in an electronic system, it is very unproductive work. Data entry should not have to be done multiple times for the same information. Having to do essentially the same thing twice costs more money to the company, so it would make sense why they would want to avoid it in order to cut costs. This is also a place where information could be bottlenecked since this would be one of the slowest points of information transfer if data transcription had to happen.

DQ 15-9: What is SQL? How is SQL like an Access query? How is it different?

SQL stands for structured query language. It allows for users to interact with most relational database systems, and facilitates the retrieval data from those systems. SQL and Access queries are both used to create customized subschema. Access queries are a more simple tool used to view a subschema, while SQL can be used to both view and manipulate the format/display of data.

DQ 3-8: What is the function of secondary storage? Describe three types of secondary storage media, and describe the advantages and disadvantages of each type

Secondary storage allows AISs to store data on permanent media, but still allows users to access and modify information quickly and easily. Some examples are: 1. Magnetic (hard) disks- These are built into computers and have very large storage capacities, fast transfer rates, and can directly access any specific record without sequential searching. 2. CD-ROMS- "Compact disk-read only memory." These are helpful because they are removable and still have large storage capacities. They are considered "worm" media (write-once, read-only) so once they are encoded, the information cannot be changed. 3. Flash memory- solid-state memory that comes in different forms (such as a flash drive). Devices are compact, have high transfer rates and are erasable. They are best for backup because they can be lost easily.

(DQ 16-4) What is a subform? Why do forms have subforms? How do you create subforms in Access?

Standard forms have subforms in order to allow users to see more details about one-to-many data within the standard form. In order to create a subform within Access you first need to ensure that the form and potential subform table share a one-to-many relationship. One way to create a subform within a form in access is to do so when creating the original form. For example, while using the Form Wizard tool within Access you can also select to add another table using the drop down menu. When you use this method, holding that you have a one-to-many relationship between the two tables, Access will automatically create the subform for you.

DQ 14-6: What is the REA model? How does REA differ from more traditional accounting views of data collection and storage? Hint: Would a traditional accounting database store data about personnel matters?

The REA model is " an approach to data modeling that focuses on resources (R), events (E), and agents (A)." This model assumes "that business events affect firm resources and involve agents who participate in the event." - REA differs from more traditional accounting views of data collection and storage. REA keeps track of all business and financial events that could affect the firms resources and decisions that the firm will make, whereas traditional accounting views only record financial events.

DQ 16-5: Why do database developers customize forms? Why isn't it sufficient to use the form as initially created by the Form Wizard?

The customization of a form is one of its biggest advantages, and therefore one shouldn't want to use the form initially created by the Form Wizard. By customizing your form, you can add text, logos, artwork, and pictures. Not only this, but customization allows one to add explanations and instructions, as well as tab ordering so that the data is entered as efficiently as possible. Customizing forms allows for them to prevent the most data entry errors possible, which is why one shouldn't use the form as initially created by the Form Wizard.

DQ 12-5: What are the four symbols used in data flow diagrams? What does each mean?

The four symbols used in data flow diagrams are squares, circles or bubbles, lines, and parallel lines or an open rectangle. 1) The square represents an external entity of the diagram (data source or data entity). For example, a different division of the company could represent an external entity in a square. 2) Circles are used for showing a change or a transformation of data. This could mean an employee does something with the data or some other process. A label in the circle should indicate what action is being taken on data. 3) The lines in a diagram are meant to show data flow, and these should end up connecting everything in the diagram to at least one other symbol (square, circle, or open rectangle). 4)The parallel lines or open rectangle represent a storage place for data. This is usually some sort of file or table where data is stored. The book makes the distinction that if the data is permanently stored somewhere, the symbol (either parallel lines or rectangle) must be used.

DQ 14-2: What is the hierarchy of data in databases? Provide an example for a particular accounting application.

The hierarchy of data in databases, in ascending order, is data fields, records, files, and databases. - The data field is information that describes a specific person or object in the database. - The record level of the hierarchy combines data fields of one object to store all the information about it. - The files level consists of related records to form one file. - Lastly, the several files form a database, which contains all the information needed for an accounting application. An example of a particular accounting application would be an inventory application, where the database may contain an inventory file, a supplier file, a products file, and other files that would help users organize, store, access, and process information.

DQ 16-6: What's the purpose of a database report?

The primary purpose of a database report is to administer custom data to users. Database reports can be as broad or specific as the database user wants it to be. They can contain simple information, calculated fields, summary information, or complex information. It is up to the database user, how much or little information that they want the database to output into a report.

DQ 15-12: Use the Web to find current examples of data warehousing software. Why do companies create data warehouses, and what are some accounting uses of such warehouses?

There are a number of products that provide companies with the analytic benefits of data warehousing software including Arm Treasure Data, Amazon Redshift, Snowflake, Databricks Unified Analytics Platform, and Vertica, to name a few (TrustRadius). Companies use data warehousing software as an analytical tool to compile current and historical data in a manner that informs and supplements management decisions. One use of these warehouses in accounting might be recording the interactions between subsidiary transaction ledgers and the general ledger. A data warehouse would also be beneficial when closing out the books at the end of a period. There are vast amounts of data to record and compile when finalizing the general ledger and preparation financial statements and a data warehouse is important in assisting that process.

DQ 3-6: Identify the three sections of a CPU, and describe the functions of each component. How are microprocessor speeds measured? Why are such speeds rarely important to AISs?

There are three sections of a CPU and they are the primary memory, the ALU and the control unit, where both the ALU and the control unit make up the microprocessor. - Primary memory: stores data and program instructions temporarily for immediate processing and execution. A microprocessor can manipulate data or execute instructions directly in primary memory where computers are unable to do so. - ALU (arithmetic-logic unit): performs arithmetic tasks such as addition and multiplication as well as logic tasks such as data comparisons. - The control unit: supervises the actual data processing. -The way to measure a microprocessors speed is in gigabytes - Speeds are rarely important to AISs because it requires the input and output operations as well as the processing procedures, which takes a lot of time. The internal speeds are much quicker than the input/output (I/O) operations, therefore making the speeds rarely important to AISs.

DQ 14-9: Suppose that a data modeler creates a database that includes a Sales table and a Salesperson table. Would you be likely to need a relationship table to link these two entities? Why or why not?

You would likely need a relationship table to link these two entities but it's a matter of what type of relationship you need to link them. If a sale occurs and there is more than one salesperson involved, then a many-to-many relationship would be needed to link the two entities. However, of there is only one salesperson involved in the sale, then this creates a one-to-many relationship. A relationship table is not required when it comes to a one-to-many relationship, therefore a foreign key is needed to link a relationship between the two entities.