AIS Exam #1, Chapters 1 - 6
The relationship between the periodic mode and batch processing is:
Batch processing is the processing of data as a group
Which of the following entities would be considered external to a process in a data flow diagram of a cash receipts process?
Both banks and customers are external entities
What is a physical data flow diagram (DFD)?
A diagram that specifies where, how, and by whom a system's activities are accomplished
Which of the following is a supporting activity in the value chain?
Accounting
When does functional dependence exist?
If a value for the first attribute determines a single value for the second attribute
Which types of updates can be made to master data?
Information processing and data maintenance
If the customer service process were integrated:
Input of the customer name or number gives access to the customer data The system automatically determines the price and the customer's creditworthiness The enterprise system establishes the ATP date by determining whether the item is available in warehouses, scheduled to be manufactured and when it will be available.
Describe the basic differences between ES and NN (expert systems vs neural networks)
NNs develop their own knowledge base and continue to learn
Are the terms system and subsystem synonymous?
No. Each part of a system is known as a subsystem
Structure of tables must comply with several rules called ______ _____ that include specifications that must be met by relational database tables. Failure to follow the rules results in ________ or errors that might occur when adding, changing, or deleting data stored in the database. The goal of normalization is to produce a database model that contains relations that are in ____.
Normal forms anomalies third normal form (3NF).
The relationship between online real-time (OLRT) and immediate mode processing:
OLRT completes all stages of business event data processing in immediate mode
Online transaction entry (OLTE) system and Online real-time (OLRT) systems (or immediate mode)
OLTE is Use of data entry devices to enter business event data directly into the information system at time and place that business event occurs. and OLTR Gathers and records business event data at time of occurrence.
Recursive Relationship
Occurs between two different instances of an entity. Ex) when one employee supervises other employees. a link is created between the employee who is being supervised and the employee who is the supervisor.
If information has reliability, then it is:
Regarded as true and credible
Which software automates sales tasks such as order processing and inventory monitoring?
Sales force automation (SFA) software
Which of the following is a step in the order-to-cash process?
Sales order processing
______ ______ requires summarized and external information.
Strategic management
Which software helps enable the steps in an organization's supply chain?
Supply chain management (SCM) software
A(n) ______ ______ is a graphical representation of a business process.
Systems Flowchart
Legacy systems:
Systems that have existed in an organization over a long period of time and were developed using an organization's previous computer hardware and software platforms
______ ______ require information that is summarized, broader in scope, and need not be accurate
Tactical management
The advantage of a logical DFD is that the focus is on:
The activities that a system performs
business analytics
The analysis of big data is often referred to as BI, and is also sometimes called business analytics
The systems flowchart combines which aspects?
The physical and logical
Which statement is true regarding knowledge management?
The primary enabler is information technology
Classifying and Coding
The process of grouping or categorizing data according to common attributes is CLASSIFYING and coding is the creation of substitute values, or codes, to represent classification categories' long labels.
What is the purpose of a systems flowchart?
The purpose of the systems flowchart is to give the reader a complete picture of a system by combining the physical and logical aspects
What is the purpose of a table of entities and activities?
The table summarizes the narrative so that entities (nouns) and activities (verbs) found in a narrative are clearly identified
Explain when a database designer might use a relationship table in constructing a relational database.
To link two relational tables in a M:N relationship
Why do we need to document an information system?
To understand and improve the system To evaluate the structure of the company's internal controls To comply with regulatory requirements
A ____ contains repeating attributes (fields) within each row (or record).
Unnormalized table
In an automated accounting system, activities include all of the following:
Update AR master data Update GL master data Prepare trial balance
Dependencies cause several problems, called _______ _______:
Update anomalies
Which of the following are activities associated with an automated accounting process?
Update master data
Online real-time (OLRT) systems:
Update the master data essentially instantaneously Provide the results arising from the business event Gather business event data at the time of occurrence,
Add-on modules that complement the core elements of an ERP system do not include:
Vendor relationship management (VRM) software But do: Customer relationship management (CRM) software Customer self-service (CSS) software Supply chain management (SCM) software
The difference between wide area networks (WANs) and local area networks (LANs) is:
WANs link local networks into an integrated communications network LANs link shared devices
When is a set of DFDs balanced?
When two DFDs have equivalent external data flows, the DFDs are balanced
An entity is
an accounting system is a resource, event, or agent about which data are collected. (Resources include inventory, equipment, cash) (Events include orders, sales, purchases Agents include customers, employees, vendors)
A table is in ___ if it doesn't contain repeating groups.
first normal form (1NF)
An instance of an entity:
is one specific thing of the type defined entity
Which of the following SAP modules is used to automate the order-to-cash process?
Sales and Distribution (SD)
The four main elements in a relational database?
1) Tables: A place to store data. 2) Queries: Tools that allow users to access the data stored in various tables and to transform data into information. 3) Forms: Onscreen presentations that allow users to view data in tables or collected by queries from one or more tables and input new data. 4) Reports: Printed lists and summaries of data stored in tables or collected by queries from one or more tables.
Strategy for identifying relationships that should be included in a model.
1. Identify users' information requirements to determine if relationships in the data model can fulfill them. 2. Evaluate each of the entities in pairs to determine which entity in the pair provides a better location to include an attribute. 3. Evaluate each entity to determine if there is a need for two occurrences of the same entity type to be linked.
Creating an individual REA diagram
1. identify the event entities 2. identify the resources entities 3. identify agent entities determine associations and cardinalities between entities
Which of the following statements is true concerning normalization?
2NF does not contain partial dependencies
What is a logical DFD?
A diagram that shows what activities the system is performing
Describe all the symbols used in constructing DFDs.
A data flow symbol represents a pathway for data and a data store symbol represents a place where data are stored An external entity symbol portrays a source or a destination of data outside the system A bubble symbol depicts an entity or a process within which incoming data flows are transformed into outgoing data flows
What is a data flow diagram (DFD)?
A diagram that depicts the data flows among the components in a process and the sources, destinations, and storage of data used in the process
Tuple
A set of data that describes a single instance of the entity represented by a relation.
Model
A simplified representation of a complex entity or phenomenon.
Organization, interrelationships, integration, and central objectives must be present in a system because:
A system is a set of interdependent elements that together accomplish specific objectives
What is a context diagram?
A top-level diagram of a system that depicts the system and all its activities as a single bubble
Which of following activities are not considered on a level 0 DFD depicting a particular grouping of the logical activities?
Activities performed by the operations process Actions performed in other-than-normal situations Actions that merely send or receive data rather than transform data
Internet commerce simplifies the world of E-business by:
Allowing the organization to provide templates based on a customer's needs
What is the relationship between an AIS and an IS?
An AIS cannot be distinguished separately from an IS
The purpose of creating flowcharts is to:
Analyze and understand a system Simplify and clarify a narrative Portray a system's logic and implementation
Intelligent Agents:
Are sometimes called "bots" Are frequently used by search engines Perform their tasks without further direction from the user
Significant digit coding:
Assigns meanings to specific digits.
Sequential (serial) coding
Assigns numbers to objects in chronological sequence. Provides limited flexibility and tells nothing about the object's attributes. Limitations with adding and deleting exist.
Relationships
Associations between entities. Entities must be logically linked to show relationships.
Key Attribute
Attribute whose value is unique for every entity that will ever appear in the database. Most meaningful way of identifying each entity. Becomes the primary key.
Composite Attribute
Attributes that consist of multiple sub-attributes (e.g., City and State for Address attribute).
An enterprise system can support the functioning of an organization's processes by enhancing all of the following:
Automation of business processes Systems integration Communication with the organization
Timeliness
Available to a decision maker before it loses relevance.
In a data flow diagram (DFD), a(n) ______ symbol depicts an entity or a process within which incoming data flows are transformed into outgoing data flows.
Bubble
A data flow diagram consists of which of the following symbols?
Bubble Symbol Data Store Symbol Data Flow Symbol
All of the following is true of databases:
Business event data are copied periodically into a separate database (a data warehouse). A collection of data within an interconnected series of files is a centralized database A collection of data within one or more files is a database NOT: Decentralized data is when the system must store and maintain multiple versions of the same data in different files
Business processes include:
Business operations, events processing, management decision making
Which of the following is NOT one of the main ways users can access information stored in a DBMS(database managements systems)?
By downloading the information onto a separate data drive
Relation
Collection of data representing multiple occurrences of a resource, event, or agent. Correspond to entities in the E-R and REA models
All of the following are true about add-on modules to an ERP system except that they:
Can be used to enhance the interface with business partners but not with customers
Data redundancy:
Can cause conditions which violate data integrity Is a problem that can be solved when using the centralized database approach Is a major issue with the applications approach
Value-added networks (VANs):
Can perform translation services Can perform communication services Operates as a hub by linking many business partners together
Relevance
Capable of making a difference in a decision-making situation by reducing uncertainty or increasing knowledge.
Check digit
Code that includes an extra digit that can be used to check the accuracy of the code.
10 elements are included in the study of AIS:
Communications, accounting and auditing principles Technology, databases, reporting, control Business operations, events processing, management decision making, systems development and operation
What are the limitations of the centralized database approach to business information systems?
Companies that have adopted the centralized database approach have found it necessary to create a database administrator function
B2B systems are limited to:
Companies that sell predominantly over the Internet Retail stores which rely heavily on B2B Companies such as Walmart
Value-added networks (VANs) are used to simplify EDI between two or more companies by:
Connecting directly to a VAN service Using a VAN for translation services Using a VAN for communication services
Lack of systems integration may result in the same data having to be put in multiple times into the systems. This can weaken which of the following data characteristics?
Consistency, accuracy and completeness
What factors distinguish DSS from EIS?
DSSs can provide "recommendations", but EISs do not usually do so
Accuracy
Correspondence or agreement between the information and the actual events or objects it represents.
Which software builds and maintains an organization's customer-related database?
Customer relationship management (CRM) software
Which software and allows a customer to inquire, perform a task, or troubleshoot problems without the help of the organization's employees?
Customer self-service (CSS) software
A(n) ______ ______ depicts a system's components; the data flows among the components; and the sources, destinations, and storage of data.
Data Flow DFD
Which if the following is a graphical representation of systems documentation for a process?
Data flow diagram
A major difference between the centralized database approach and the applications approach is decoupling, also known as _______ ______:
Data independence
All of the following are benefits of a centralized database approach:
Data integrity Data independence Ease of data maintenance
Factors that distinguish data from information are all of the following:
Data must be transformed into information Information is data Data are facts or figures in raw form
Information is all of the following:
Data presented in a form that is useful in a decision-making activity Reduces uncertainty and increases knowledge about a particular area of concern Has value to the decision maker
In a data flow diagram (DFD), a(n) ______ symbol represents a place where data are stored.
Data store
______ ______ is the process of making choices.
Decision making
Block Coding
Dedicates groups of numbers to particular object characteristics. Numbers within each block are generally assigned sequentially. Leads to some of the same adding and deleting limitations as sequential coding.
Completeness
Degree to which information includes data about every relevant object or event necessary to make a decision and includes that information only once.
What roles can an accountant assume/fill in relation to the AIS?
Designer, Auditor, User
The first step in E-R modeling is to:
Determine users' requirements for the database
In entity-relationship modeling the designer:
Draws a diagram of the relational model Identifies the entities Identifies how the things are related to each other
______ ______ is the use of electronic networks (including the Internet) to enable business processes between individuals and organizations.
E-Business
Which of the following is true about enterprise application integration (EAI)?
EAI is an approach that combines processes, software, standards, and hardware to link two or more systems together.
Methods of conducting E-business sometimes do not include:
EDM (electronic document management) but do include: E-mail, Electronic data interchange (EDI) and internet commerce
______ ______ are software packages that can be used to support enterprise systems.
ERP Systems (Enterprise Resource Planning Systems)
The difference between system and subsystem is:
Each part of a system is known as a subsystem
What are the main advantages of using a centralized database approach when designing and implementing business information systems?
Ease of data maintenance Eliminating data redundancy Reduced labor and storage costs
Comparability
Enables users to identify similarities and differences between two pieces of information.
Understandability
Enables users to perceive significance and permits application by the user in a decision-making situation.
E-business is all of the following:
Enabling organizations to become part of new value chains A paper-trail Electronic business events (NOT: E-Commerce)
______ ______ integrate the business processes and information from all of an organization's functional areas.
Enterprise Systems
Themes of this textbook
Enterprise Systems E-Business Controls
The ________ _______ is the central repository for all the data related to the enterprise's business activities and resources:
Enterprise database
Why are some entities found in a narrative included in the context diagram as external entities, whereas others are included as internal entities?
Entities that do not perform any information processing activities are external entities; the remaining entities are internal
Where are error and exception routines shown on systems flowcharts?
Errors and Exceptions are noted on the flowchart with an annotation
Third-party modules are connected to ERP systems using middleware (software for connecting two or more software applications or modules)
Ex) Application programming interface (API) is provided by the application developer. Enterprise application integration (EAI) combines processes, software, standards, and hardware to link two or more systems together, allowing them to act as one.
To improve decision making and operations companies combine their data resources with:
Executive information systems Decision-support systems Group decision systems
The information system is important to the success of the organization by:
Facilitating operations processes and providing information for the organization's management
If information has integrity, then it is:
Free of error and complete
Steps in the order-to-cash process do not include:
Goods receipt
What are the guidelines for grouping logical activities for a logical DFD?
Group activities if they occur in the same place and at the same time Group activities if they occur at the same time but at different places Group activities that seem to be logically related
Risks of Internet commerce include all of the following:
Hackers attempting to access sensitive information such as customer lists Illegal access to customer credit card information Denial-of-service attacks NOT: Organizational change
If information has confidentiality, then it is:
Has restricted access
Verifiability
High degree of consensus about the information among independent measurers using the same measurement methods.
Benefits of EDM (electronic document management) systems include all of the following:
Improved staff productivity Superior customer service Enhanced management of operational workflow
Centralized databases have:
Improved the efficiency of processing business event data
Predictive or feedback value:
Improves the decision maker's capacity to predict, confirm, or correct earlier expectations.
What are the differences among a context diagram, a logical DFD, and a physical DFD?
In a logical DFD (versus a physical or context DFD) we can concentrate on the activities that a system performs. In a logical DFD, (versus a physical or context DFD) bubbles can be broken down into more detail.
Mnemonic coding:
Includes letters as some or all of the code which is done to help humans remember them.
The Sales and Distribution (SD) module in SAP:
Includes recording customer orders, shipping goods to the customer, and billing customers
What are information processing activities?
Information processing activities retrieve data from storage, transform data, or file data.
The following are key features/characteristics of an enterprise resource planning (ERP) system :
Integration of the major business processes Automation or computerization of business process **Consists of modules**
The following are key features/characteristics of an enterprise system:
Integration of the major business processes Automation or computerization of business processes
Qualities of information include all of the following
Integrity, Relevance, Understandability
What are the three steps in decision making?
Intelligence, Design, Choice
______ ______ is a process designed to provide confidence that the organization is achieving its objectives.
Internal Control
A knowledge base:
Is a collection of a company's files and documents Generally contains proprietary information Is analogous (comparable/similar) to a database
Web Services:
Is a software application
WebTrust:
Is displayed by a seal on the client's webpage. Was developed by accountants Is designed to provide assurance
Data warehousing:
Is the use of information systems facilities Is typically created by copying data periodically from the transaction databases Provides users with easy access to large quantities of varied data
A primary key:
Is used for linking database tables together
What are the most important limitations of the applications approach to business information system design?
It is more likely to lead to some data being out of date than when using the centralized database approach It can potentially lead to data integrity problems It can lead to data redundancy
Which of the following is an advantage of eliminating redundant data?
It usually leads to reduced labor and storage costs
Attribute
Item of data that characterizes an entity or relationship. For example, Name, Address, Contact_Person for a CLIENT entity.
The basic subprocesses completed in processing business event data using OLRT processing do NOT include:
Journalize the business event
The basic subprocesses completed in processing business event data using batch processing do NOT include:
Journalize the business event
Which of the following are activities associated with a manual accounting process?
Journalize the business event
Why have knowledge management systems become important?
Knowledge management systems help capture, store, organize, present, distribute, and control access to the knowledge base
On DFD exception routines:
Left on another page of the flowchart
Which of the following cannot be the maximum cardinalities of two relational tables?
M:0
A(n) ______ ______shows the flows of data into and out of the processes and data stores.
Logical DFD
What are three logical components of a business process?
Management, operations and information processes
The difference between business event data and master data is:
Master data is relatively permanent data
Which of the following SAP modules is used to automate the purchase-to-pay process?
Materials Management (MM)
Amazon.com's e-business model is based on:
Online shopping carts Secure transaction software Sophisticated data-analysis programs
How do horizontal and vertical information flows differ?
Operations and information flows are both horizontal and vertical
______ ______ require information that is an aggregate of data related to several business events
Operations managers
The ______ ______is a system consisting of the people, equipment, organization, policies, and procedures whose objective is to accomplish the work of the organization.
Operations process
Hierarchical coding:
Orders items in descending order where each successive rank order is a subset of the rank above it. Specific meaning is attached to particular positions.
Costs of Internet commerce include all the following:
Organizational change to a completely different way of doing business Staffing and training employees to work in a technology-driven environment Buying/leasing equipment and maintaining connection to the Internet NOT: Mailroom and other document preparation and handling costs are eliminated
A(n) ______ ______ shows the system's internal and external entities and the flows of data into and out of these entities.
Physical DFD
A(n) ______ ______ specify where, how, and by whom a system's activities are accomplished.
Physical DFD
Service-oriented architecture is:
Plug-and-play components
SQL
Powerful database language that can be used to define database systems, query the database for information, generate reports from the database, and access databases from within programs.
How are the applications approach and the centralized database approach to business event processing different?
Powerful features that protect the database from unauthorized users compared to the applications approach Decreased need for continuous data protection compared to the applications approach Ease of data maintenance compared to the applications approach
Two types of activities in the value chain are known as:
Primary and supporting
For WebTrust certification a Web site must meet which of the following principles?
Privacy Availability Processing integrity
Which software manages product data during a product's life?
Product life-cycle management (PLM) software
Which of the following is a primary activity in the value chain?
Production
Network providers:
Provide a link to the Internet
Internet assurance services:
Provide limited assurance to users of the vendor's Web site that the site is in fact reliable and event data security is reasonable
An enterprise system:
Provides a central information resource for the organization Makes possible the coordinated operation of the organization's functions Integrates and automates business process functionality and information in an organization
Business Intelligence (BI)
Provides analytical and reporting capability to enable the analysis of data warehouses and to help managers make the best possible decisions for their companies. BI systems are specifically designed to support managers in making tactical and strategic decisions. BI is often installed into an existing ERP as an additional module.
How has technology supported Amazon.com's growth?
Providing Web Services Provide services to competitors Provides "almost-in-time" inventory
E-mail can be adapted to a more structured form to aid in capturing business event data by:
Providing a link to an electronic order form that removes the need for an e-mail message containing an order
Which of the following is a step in the purchase-to-pay process?
Purchase order processing
The use of online transaction entry (OLTE) can increase efficiency by:
Reduces the redundancies in periodic mode processing
E-Business changes organizational processes through:
Reengineering its business processes Participating in new value chains Enabling more efficient operations
Steps in the purchase-to-pay process include:
Requirements determination Payment processing Purchase order processing
Lack of information systems integration when receiving a customer order over the phone can cause all of the following problems :
Sales person may not be able to determine the items current price. Sales person may have to put the customer on hold while checking with another department. Sales person may not be able to determine a customer's creditworthiness. (BUT CAN: determine whether or not an item is available)
Which of the following is NOT one of the five primary schemes for coding data?
Schema
Coding schemes on relational databases include:
Significant digit coding, mnemonic coding, hierarchical coding
Organizations use a database management system to:
Simplify the tasks of creating, accessing, and managing a centralized database Provide data useful to managers Coordinate the activities of functional areas
All of the following are advantages of enterprise systems:
Single database Standardization of business processes
Referential integrity
Specifies that for every attribute value in one relation that has been specified to allow reference to another relation, the tuple being referenced must remain intact.
Participation constraint
Specifies the degree of minimum participation of one entity in a relationship with the other entity. Constraint is either 1 or 0. Provides more information but is used less frequently than the cardinality constraint.
In a data flow diagram (DFD), a(n) ______ symbol portrays a source or a destination of data outside the system.
Square
______is the degree of repetition and routine in the decision.
Structure
What is structure as it relates to decisions?
Structure is the degree of repetition and routine in the decision
Which software manages the interactions with the organizations that supply the goods and services to an enterprise?
Supplier relationship management (SRM) software
One of the most important functions provided by an enterprise system is:
The coordination of value activities in the value chain
How will systems documentation differ between business processes that employ an enterprise system and those that do not?
The data stores would be replaced by one data store labeled "Enterprise database" The context diagram and the logical DFD would not change There might be replacement of paper reports
What is data?
The measurements of objects and events, Can be transformed into information, Facts or figures in raw form
Where are error and exception routines shown on logical DFDs?
They are shown below the level 0 DFD with reject stubs that indicate that exceptional processing must be performed
What advantages do intelligent agents have in the operation of a decision support system?
They can perform time-consuming tasks They can collect specific information from the Internet or large data warehouses They can identify factors that should be considered when using a system for decision making
Which of the following is true of value chains?
They consist of activities performed by the organization to transform inputs into outputs valued by the customer.
Two major functions of an information system are:
This information can supplement accounting information and can assist managers in their decision making
It is important to capture the who, what, where, and when in describing business events because:
This information can supplement accounting information and can assist managers in their decision making.
Cardinality is the degree to which each entity participates in a relationship.
Three relationship types are: 1:N (one-to-many) M:N (many-to-many) 1:1 (one-to-one):
On a physical DFD, reading computer data stores and writing to computer data stores must go:
Through a computer bubble
Which questions do accountants address when designing AIS?
What will be recorded? What controls are necessary? What reports will be produced?
What is a partial dependency?
When an attribute is dependent on a portion of the primary key, not on the entire key
Data captured as business events unfold should be related to the four Ws, which are:
Who, What, Where, When
Best of Breed approach
combines modules from various vendors to create an information system that better meets an organization's needs than a standard ERP system.
What is an entity-relationship model (E-R model)?
diagram of the relational model
REA (Resources-Event-Agents)
helps database designers define a complete set of entities and attributes.
Object-relational databases
include a relational DBMS framework with the capability to store complex data types.
A table is in ___ if it is in 1NF and has no partial dependencies. That is, no non-key attributes that are dependent on only a portion of the primary key.
second normal form (2NF)
In a DFD the customer would be represented by:
square
A table is in ___ if it is in 2NF and has no transitive dependencies.
third normal form (3NF)
Functional dependencies cause several problems called
update anomalies (Updates may require: changes to multiple rows. Data may be inconsistent. Additions and deletions are problematic.)
