Questions AIS

How many tables are needed to implement an REA data model that has three distinct entities, two M:N relationships and two 1:N relationships in a relational database - 5 - 7 - 8 - 10

- 5

Which of the statements below is false when comparing the REA model to the traditional AIS model? - Accounts in the traditional AIS are analogous to resources in the REA-based relational database. - In the REA model, many financial statement items can be displayed by querying a single table. - A major advantage of the REA data model is that it integrates non-financial and financial data in the AIS and makes both types of data easily accessible to management. - Traditional AISs contain only data about the financial aspects of transactions.

- Accounts in the traditional AIS are analogous to resources in the REA-based relational database.

Rebus Fashions provides haircuts to men and women. Rebus uses an REA database to record information that is important to the firm. Rebus has a table named "Customer" where it keeps information about its customers. Identify the attribute below that most likely does not belong in the Customer table. - All of the above are appropriate attributes for the Customer table. - Customer address - Customer hair style - Customer hair color

- All of the above are appropriate attributes for the Customer table.

A well-designed AIS can improve the decision making in an organization. Identify the statement below that describes a situation where an AIS may actually inhibit effective decision making. - An AIS provides information about the results of previous decisions which provides decision makers with feedback that can be used in future decision making. - An AIS reduces uncertainty, and therefore accounting information can provide a basis for choosing among alternative courses of action. - An AIS provides to its users an abundance of information without any filtering or condensing of such information. - An AIS identifies situations requiring management action.

- An AIS provides to its users an abundance of information without any filtering or condensing of such information.

Which SQL function is used to count the number of rows in a SQL query? - COUNT() - SUM() - COUNT(*) - NUMBER()

- COUNT(*)

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? - Data Report Language - Data Definition Language - Data Manipulation Language - Data Query Language

- Data Query Language

Which of the following is not a true statement? - Documentation tools save an organization both time and money. - Documentation tools are used extensively in the systems development process. - Data flow diagrams and flowcharts are the two most frequently used systems development documentation tools. - Data flow diagrams and flowcharts are difficult to prepare and revise using software packages.

- Data flow diagrams and flowcharts are difficult to prepare and revise using software packages.

Which of the following statements is not true with regards to a correctly drawn enterprise-wide REA diagram? - Events can only be merged if they share the same resources and events. - Merging two transaction cycles on a common event may affect the minimum cardinalities between the merged event and the other events. - Every event must be linked to at least one resource. - Creating a set of tables from an REA diagram automatically results in a well-structured relational database.

- Events can only be merged if they share the same resources and events.

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

- multiple master files.

The primary objective of accounting is to - provide useful information to decision makers - ensure the profitability of an organization. - prepare financial statements. - implement strong internal controls.

- provide useful information to decision makers

Common source documents for the revenue cycle include all of the following except - credit memo. - sales order. - receiving report. - delivery ticket.

- receiving report.

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 - referential integrity rule. - entity integrity rule. - unique primary key rule. - foreign key rule

- referential integrity rule.

Inventory information is provided in real time by a firm's accounting information system. The accuracy of this information is questionable, however, since the production manager often reports stock outs of components that the system indicates are in stock. Which of the following characteristics of useful information is absent in the situation described above? - timely - complete - reliable - relevant

- reliable

Pre-numbered invoices and pre-numbered purchase orders are examples of - group codes. - mnemonic codes. - sequence codes. - block codes.

- sequence codes.

Concerning REA models, which of the following is false? Many financial statement accounts are represented as resources in the REA model. Some accounts represent an imbalance between two related events in the REA model. Accounts such as Accounts Receivable show up as entities in the REA model. Much of the information about an organization's assets that is traditionally recorded in ledgers is stored in resource tables in an REA-based relational database.

Accounts such as Accounts Receivable show up as entities in the REA model.

Concerning the creation of tables from an REA diagram, which of the following is false? 1:1 relationships are implemented with the primary key of either entity included as a foreign key in the table representing the other entity. 1:N relationships are implemented with the primary key of the 1 side becoming a foreign key on the N side. M:N relationships must be implemented as separate tables. All of the above are true

All of the above are true

Which of the following statement(s) are true? - An entity is anything about which the organization wants to collect and store information. - Events are the various business activities about which management wants to collect information for planning or control purposes. - E-R Diagrams use diamonds to depict relationships. - All of the above are true.

All of the above are true

An AIS provides value by B) providing timely and reliable information to decision makers. A) improving products or services through information that increases quality and reduces costs D) both A and B C) creating new products

D) both A and B

If information is free from error or bias and accurately represents the events or activities of the organization, it is representative of the characteristic of A) relevancy B) timeliness C) understandability D) reliability

D) reliability

End users would use _ to define or create as a relational database a. DDL (Data Definition Language) b. DML (Data Manipulation Language) c. DQL (Data Query Language) d. OOPL (Object-Oriented Programming Language)

DDL (Data Definition Language)

The second step in developing an REA diagram is: Determine the cardinalities of each relationship Identify the events about which management wants to collect information. Identify the resources affected by each event and the agents who participate in those events. None of the above

Identify the resources affected by each event and the agents who participate in those events.

Which of the following is not one of the steps in implementing an REA diagram in a relational database? Implement many-to-many relationships with foreign keys. Implement one-to-many relationships with foreign keys. Create tables for entities. Assign attributes to tables and identify primary keys.

Implement many-to-many relationships with foreign keys.

Understand the existing system and users' needs is in which stage of the systems development life cycle? a. Systems analysis b. Systems design c. Systems development d. Systems implementation

a. Systems analysis

If a customer can order many items and if an item can be ordered by many customers, then the relationship going from CUSTOMER to ITEM is: a. 0:1 b. 1:1 c. 1:N d. M:N

M:N

Which type of transaction is represented by the diagram below? Consumer retail sales paid in installments to the seller Business that does not allows customers to carry a balance and make installment payments Cash and carry consumer retail sales Business to business sales of nondurable goods

Consumer retail sales paid in installments to the seller

A data flow diagram is a graphical description of the source and destination of data that shows how data flow within an organization. is a graphical description of the flow of documents and information between departments or areas of responsibility. is a graphical description of the relationship among the input, processing, and output in an information system. is a graphical description of the sequence of logical operations that a computer performs as it executes a program.

is a graphical description of the flow of documents and information between departments or areas of responsibility.

Which of the following is not one of the three steps to implementing an REA diagram in a relational database? - Link every event to at least one resource. - Create a table for each distinct entity in the diagram and for each many-to-many relationship. - Assign attributes to appropriate tables. - Use foreign keys to implement one-to-one and one-to-many relationships.

- Link every event to at least one resource.

Which of the following statements is true about the development of an REA model? - The objective is to model basic value-chain activities. - Events that pertain to the entry of data are included in the REA model. - REA diagrams model individual transactions and data collections. - Information retrieval events are modeled as events in the REA model.

- The objective is to model basic value-chain activities.

Wrong statement about ORDER BY keyword is - To sort the records in descending order, use the DECENDING -keyword - To sort the records in ascending order, use the ASC keyword. - Used to sort the result-set in ascending or descending order - The ORDER BY keyword sorts the records in ascending order by default

- To sort the records in descending order, use the DECENDING -keyword

The transaction cycle approach yields efficiencies when processing of a large number of transactions because - a large number of transactions within a given cycle can be categorized into a relatively small number of distinct types. - transaction cycles are easier to computerize. - the transaction cycle approach represents the natural order of business. - transaction cycles are easy to understand.

- a large number of transactions within a given cycle can be categorized into a relatively small number of distinct types.

The passage of the Sarbanes Oxley Act - requires public companies to prepare an annual internal control report. - all of the above - made documentation skills even more important. - mandates that auditors must be able to prepare, evaluate and read documentation tools such as flowcharts.

- all of the above

Flowchart symbols - are unique to the organization creating the flowchart. - are normally drawn using a flowcharting template. - are divided into four categories. - eliminate the need for narrative descriptions or explanations.

- are divided into four categories.

Attributes other than the primary key are - both of the above - included to satisfy transaction processing requirements. - included to meet management's information needs. - none of the above

- both of the above

The general ledger - records all detailed data for any general ledger account that has individual sub-accounts. - contains summary-level data for every account of the organization. - simplifies the process of recording large numbers of repetitive transactions. - is used to record infrequent or non-routine transactions.

- contains summary-level data for every account of the organization.

A DFD created at the highest-level or summary view is referred to as a - overview diagram. - content diagram - context diagram. - process diagram.

- context diagram.

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

- customer number

The ________ contains information about the structure of the database. - database management system - data warehouse - data dictionary - data definition language

- data dictionary

Identify the four parts of the transaction processing cycle. - data input, data recall, data transmission, information output - data input, data recall, data processing, information output - data input, data storage, data processing, information output - data input, data recall, data transmission, data storage

- data input, data storage, data processing, information output

The process of defining a database so that it faithfully represents all aspects of the organization including its interactions with the external environment is called - data modeling. - data designing. - data designing. - data definition.

- data modeling.

The ________ is responsible for the database. - database master - data coordinator - database administrator - database manager

- database administrator

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

- every column in a row must be single valued.

Transaction cycles can be summarized on a high level as "give-get" transactions. An example of "give-get" in the revenue cycle would be - give cash, get labor. - give goods, get cash. - give cash, get cash. - give cash, get goods.

- give goods, get cash.

Which of the following is not usually a consideration when designing a coding system? - ease of reporting - government coding regulations - standardization - future expansion needs

- government coding regulations

When printed on paper, data output is referred to as - reports. - soft copy. - hard copy. - financials.

- hard copy.

Paid time-off policies, job descriptions, and procedures manuals are examples of information needed to support key decisions in what business process? - collect payment from customers - sell merchandise - acquire inventory - hire and train employees

- hire and train employees

What is the first step in the data processing cycle? - storage - purchasing - output - input

- input

A data flow diagram - is a graphical description of the sequence of logical operations that a computer performs as it executes a program. - is a graphical description of the flow of documents and information between departments or areas of responsibility. - is a graphical description of the source and destination of data that shows how data flow within an organization. - is a graphical description of the relationship among the input, processing, and output in an information system.

- is a graphical description of the source and destination of data that shows how data flow within an organization.

The value of information can best be determined by - the benefits associated with obtaining the information minus the cost of producing it. - its relevance to decision makers. - its usefulness to decision makers. - the extent to which it optimizes the value chain

- the benefits associated with obtaining the information minus the cost of producing it.

Data must be collected about three facets of each business activity. What are they? - the business activity, the resources it affects, the people who participate - who is involved, what was sold, how much was paid - the inputs, outputs and processes used - the business activity, the transactions it creates, the impact on the financial statements

- the business activity, the resources it affects, the people who participate

Issuing a purchase order is part of which transaction cycle? - the human resources cycle - the expenditure cycle - the production cycle - the revenue cycle

- the expenditure cycle

The ________ occurs when more than one occurrence of a specific data item in a database exists - insert anomaly - update anomaly - delete anomaly - inconsistency anomaly

- update anomaly

Data processing includes all of the following except - verifying subsidiary ledger balances. - changing customer addresses. - adding the name of a new vendor. - removing inventory items no longer offered.

- verifying subsidiary ledger balances.

What is a key decision that needs to be made with regards to acquiring inventory? - which credit cards to accept - which employees to hire - which vendors to use - how much capital to acquire

- which vendors to use

The essential features of relationship patterns in REA date model include: Each event is linked to at least two participating agents. Each event is linked to no more than one resource that is affects. Each event is linked to at least one other event. 1 and 3

1 and 3

The update anomaly in file-based systems or unnormalized database tables occurs because of __________. 1.data redundancy 2.data independence 3.addition of new fields or attribute 4.deletion of existing fields or records

1.data redundancy

File-oriented approaches create problems for organizations because of ______. 1.data integration 2.multiple users 3.multiple master files 4.a lack of sophisticated file maintenance software

3.multiple master files

Which of the following is NOT a step in the data processing cycle? 1.Data input 2.Data processing 3.Data storage 4.Decision making

4.Decision making

Which of the following is NOT an advantage of an ERP system? 1.Better access control 2.Standardization of procedures and reports 3.Improved monitoring capabilities 4.Simplicity and reduced costs

4.Simplicity and reduced costs

A _____ key is an attribute, or combination of attributes, that uniquely identifies a record, and a _____ key in one table, which is an attribute that is a _____ key in another table, is used to form a relationship. 1.first; second; primary 2.primary; main; foreign 3.main; second; main 4.primary; foreign; primary

4.primary; foreign; primary

Which is a true statement regarding a document flowchart? A document flowchart illustrates the sequence of logical operations performed by a computer. A document flowchart is particularly useful in analyzing the adequacy of internal control procedures. A document flowchart is more useful than a data flow diagram. A document flowchart is not normally used in evaluating internal control procedures

A document flowchart is particularly useful in analyzing the adequacy of internal control procedures.

Which of the following is not a function of an AIS? - Providing adequate controls to safeguard the assets and data - Transforming data into useful information - Collecting and storing transaction data - Automating all decision making

Automating all decision making

Which of the activities in a revenue cycle does not involve a Get or Give event? Bill customers Take customer orders Fill customer orders 1 and 2

Bill customers

Give cash and get raw materials is the basic exchanges in the _______ cycle whereas give labor and get finished goods is the basic exchanges in the _______ cycle Expenditure, revenue Financing, human resources Expenditure, production Revenue, production

Expenditure, production

Explain specifically what is meant by the following statement: "Accountants can and should participate in all stages of the database design process."

What is meant by this, is that accountants have a role in the process. They are already from the beginning when they are inputting the information that they need. This along with what they want the database to do is the result that they end up getting. It is a whole process of information that is being collected and shown the results that the accountant needs.

A(n) _____ is a characteristic of an entity; a(n) ____ is the physical space where the data value of a particular attribute; and a(n) _____ is the set of attributes stored for a particular instance of an entity. 1.attribute; field; record 2.field; attribute; record 3.file; field; attribute 4.field; record; file

attribute; field; record

An AIS provides value by - providing adequate controls to safeguard the assets and data. - providing timely and reliable information to decision makers. - creating new products. - both A and B

both A and B

When preparing a document flowchart, the names of organizational departments or job functions should appear in the column headings. right-hand margin. written narrative accompanying the flowchart. title of the flowchart.

column headings.

When two or more fields together serve as the primary key in a file, the key is called a a. foreign key b. concatenated key c. secondary key d. candidate key

concatenated key

Most processes on a DFD can be identified by data in-flows only. data out-flows only. data flows both into or out of a process. always being followed by a data store.

data flows both into or out of a process.

REA stands for: - relationship, event, and AIS - resource, event, and AIS - resource, element, and agent - resource, event, and agent

resource, event, and agent

In which transaction cycle would information for borrowing money be most likely to pass between internal and external accounting information systems? - the financing cycle - the human resources / payroll cycle - the revenue cycle - the expenditure cycle

the financing cycle