ACC 564 Quiz 4 – New

ACC 564 Quiz 4 – Strayer New

ACC 564 Week 9 Quiz 4 Chapters 4, 15, 16 and 17

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Chapter 4 Relational Databases

1) 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.
Answer:
Page Ref: 88
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic

2) In a well-structured relational database,
A) every table must be related to at least one other table.
B) every table must be related to all other tables.
C) one table must be related to at least one other table.
D) one table must be related to all other tables.
Answer:
Page Ref: 96-98
Objective: Learning Objective 4
Difficulty : Moderate
AACSB: Reflective Thinking

3) 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.
Answer:
Page Ref: 88
Objective: Learning Objective 1
Difficulty : Moderate
AACSB: Analytic

4) 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.
Answer:
Page Ref: 88
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic

5) The ________ acts as an interface between the database and the various application programs.
A) data warehouse
B) database administrator
C) database management system
D) database system
Answer:
Page Ref: 88
Objective: Learning Objective 3
Difficulty : Easy
AACSB: Analytic

6) 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 manager.
Answer:
Page Ref: 88
Objective: Learning Objective 3
Difficulty : Easy
AACSB: Analytic

7) The person responsible for the database is the
A) data coordinator.
B) database administrator.
C) database manager.
D) database master.
Answer:
Page Ref: 88
Objective: Learning Objective 3
Difficulty : Easy
AACSB: Analytic

8) 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
Answer:
Page Ref: 89
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic

9) 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.
Answer:
Page Ref: 90
Objective: Learning Objective 2
Difficulty : Moderate
AACSB: Analytic

10) The ________ handles the link between the way data are physically stored and each user’s logical view of that data.
A) data warehouse
B) data dictionary
C) database management (DBMS) software
D) schema
Answer:
Page Ref: 90
Objective: Learning Objective 3
Difficulty : Easy
AACSB: Analytic

11) The logical structure of a database is described by the
A) data dictionary.
B) schema.
C) database management system.
D) internal level.
Answer:
Page Ref: 90
Objective: Learning Objective 3
Difficulty : Easy
AACSB: Analytic

12) 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.
Answer:
Page Ref: 90
Objective: Learning Objective 3
Difficulty : Easy
AACSB: Analytic

13) 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.
Answer:
Page Ref: 90
Objective: Learning Objective 3
Difficulty : Easy
AACSB: Analytic

14) 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.
Answer:
Page Ref: 90
Objective: Learning Objective 3
Difficulty : Easy
AACSB: Analytic

15) Record layouts, definitions, addresses, and indexes will be stored at the ________ level schema.
A) external
B) conceptual
C) internal
D) meta
Answer:
Page Ref: 90
Objective: Learning Objective 3
Difficulty : Easy
AACSB: Analytic

16) The ________ contains information about the structure of the database.
A) data definition language
B) data dictionary
C) data warehouse
D) database management system
Answer:
Page Ref: 92
Objective: Learning Objective 3
Difficulty : Easy
AACSB: Analytic

17) 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
Answer:
Page Ref: 93
Objective: Learning Objective 3
Difficulty : Moderate
AACSB: Analytic

18) 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.
Answer:
Page Ref: 92
Objective: Learning Objective 3
Difficulty : Easy
AACSB: Analytic

19) 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.
Answer:
Page Ref: 92
Objective: Learning Objective 3
Difficulty : Moderate
AACSB: Analytic

20) 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.
Answer:
Page Ref: 92
Objective: Learning Objective 3
Difficulty : Difficult
AACSB: Analytic

21) 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
Answer:
Page Ref: 92
Objective: Learning Objective 3
Difficulty : Easy
AACSB: Analytic

22) 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
Answer:
Page Ref: 92
Objective: Learning Objective 3
Difficulty : Moderate
AACSB: Analytic

23) When the human resources manager wants to gather data about vacation and personal day usage by employees and by departments, the manager would use which language?
A) Data Query Language
B) Data Manipulation Language
C) Data Report Language
D) Data Definition Language
Answer:
Page Ref: 92
Objective: Learning Objective 3
Difficulty : Moderate
AACSB: Analytic

24) 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
Answer:
Page Ref: 92
Objective: Learning Objective 3
Difficulty : Moderate
AACSB: Analytic

25) The 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. is named the
A) report writer.
B) report generator.
C) report creator.
D) report printer.
Answer:
Page Ref: 92
Objective: Learning Objective 3
Difficulty : Easy
AACSB: Analytic

26) The abstract representation of the contents of a database is called the
A) logical data model.
B) data dictionary.
C) physical view.
D) schema.
Answer:
Page Ref: 90
Objective: Learning Objective 3
Difficulty : Easy
AACSB: Analytic

27) The problem of changes (or updates) to data values in a database being incorrectly recorded is known as
A) an update anomaly.
B) an insert anomaly.
C) a delete anomaly.
D) a memory anomaly.
Answer:
Page Ref: 94
Objective: Learning Objective 4
Difficulty : Easy
AACSB: Analytic

28) The potential inconsistency that could occur when there are multiple occurrences of a specific data item in a database is called the
A) update anomaly.
B) insert anomaly.
C) inconsistency anomaly.
D) delete anomaly.
Answer:
Page Ref: 94
Objective: Learning Objective 4
Difficulty : Easy
AACSB: Analytic

29) 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.
Answer:
Page Ref: 94
Objective: Learning Objective 4
Difficulty : Easy
AACSB: Analytic

30) 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.
Answer:
Page Ref: 94
Objective: Learning Objective 4
Difficulty : Moderate
AACSB: Reflective Thinking

31) 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
Answer:
Page Ref: 94
Objective: Learning Objective 4
Difficulty : Easy
AACSB: Analytic

32) The delete anomaly
A) may result in unintentional loss of important data.
B) is usually easily detected by users.
C) restricts the addition of new records.
D) prevents users from deleting outdated data from records or tables.
Answer:
Page Ref: 94
Objective: Learning Objective 4
Difficulty : Moderate
AACSB: Analytic

33) The update anomaly in file-based systems or unnormalized 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.
Answer:
Page Ref: 94
Objective: Learning Objective 4
Difficulty : Moderate
AACSB: Analytic

34) 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.
Answer:
Page Ref: 96
Objective: Learning Objective 5
Difficulty : Easy
AACSB: Analytic

35) 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) rule of keys.
D) foreign key rule.
Answer:
Page Ref: 96
Objective: Learning Objective 5
Difficulty : Easy
AACSB: Analytic

36) 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) logical view.
D) consistency integrity rule.
Answer:
Page Ref: 96
Objective: Learning Objective 5
Difficulty : Easy
AACSB: Analytic

37) Which statement below is false regarding the basic requirements of the relational data model?
A) Every column in a row must be single-valued.
B) All non-key attributes in a table should describe a characteristic about the object identified by the primary key.
C) Foreign keys, if not null, must have values that correspond to the value of a primary key in another table.
D) Primary keys can be null.
Answer:
Page Ref: 96
Objective: Learning Objective 5
Difficulty : Easy
AACSB: Analytic

38) 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.
Answer:
Page Ref: 96
Objective: Learning Objective 5
Difficulty : Easy
AACSB: Analytic

39) 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.
Answer:
Page Ref: 97
Objective: Learning Objective 5
Difficulty : Moderate
AACSB: Analytic
40) 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.
Answer:
Page Ref: 97
Objective: Learning Objective 5
Difficulty : Easy
AACSB: Analytic

41) 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.
Answer:
Page Ref: 97
Objective: Learning Objective 5
Difficulty : Moderate
AACSB: Analytic

42) What is 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.
Answer:
Page Ref: 104
Objective: Learning Objective 4
Difficulty : Moderate
AACSB: Reflective Thinking
43) 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
Answer:
Page Ref: 105
Objective: Learning Objective 1
Difficulty : Moderate
AACSB: Reflective Thinking

44) 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
Answer:
Page Ref: 96
Objective: Learning Objective 3
Difficulty : Moderate
AACSB: Reflective Thinking

45) Dana Halsey is chair of the Purebred Marmoset Society, which maintains a database of registered purebred marmosets and their breeding history. One table will store the name, birth date, and other characteristics of all of the marmosets that have been registered. Each marmoset is uniquely identified by a registration number. A second table will contain data that link each marmoset 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) a foreign key in the second table.
D) the primary key in the second table.
Answer:
Page Ref: 96
Objective: Learning Objective 5
Difficulty : Moderate
AACSB: Reflective Thinking
46) Dana Halsey is chair of the Purebred Marmoset Society, which maintains a database of registered purebred marmosets and their breeding history. One table will store the name, birth date, and other characteristics of all of the marmosets that have been registered. Each marmoset is uniquely identified by a registration number. A second table will contain data that link each marmoset 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) a combination of primary keys in the first table
D) the same as the primary key in the first table
Answer:
Page Ref: 96
Objective: Learning Objective 5
Difficulty : Difficult
AACSB: Reflective Thinking

47) Dana Halsey is chair of the Purebred Marmoset Society, which maintains a database of registered purebred marmosets and their breeding history. One table will store the name, birth date, and other characteristics of all of the marmosets that have been registered. Each marmoset is uniquely identified by a registration number. A second table will contain data that link each marmoset to its male and female parents by means of their registration numbers. The entities described by the second table are:
A) marmosets
B) parental relationships
C) registration numbers
D) names
Answer:
Page Ref: 96
Objective: Learning Objective 5
Difficulty : Moderate
AACSB: Reflective Thinking

48) Dana Halsey is chair of the Purebred Marmoset Society, which maintains a database of registered purebred marmosets and their breeding history. One table will store the name, birth date, and other characteristics of all of the marmosets that have been registered. Each marmoset is uniquely identified by a registration number. A second table will contain data that link each marmoset 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
Answer:
Page Ref: 96
Objective: Learning Objective 5
Difficulty : Moderate
AACSB: Reflective Thinking

49) Dana Halsey is chair of the Purebred Marmoset Society, which maintains a database of registered purebred marmosets and their breeding history. One table will store the name, birth date, and other characteristics of all of the marmosets that have been registered. Each marmoset is uniquely identified by a registration number. A second table will contain data that link each marmoset 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
Answer:
Page Ref: 96
Objective: Learning Objective 5
Difficulty : Moderate
AACSB: Reflective Thinking
50) Dana Halsey is chair of the Purebred Marmoset Society, which maintains a database of registered purebred marmosets and their breeding history. One table will store the name, birth date, and other characteristics of all of the marmosets that have been registered. Each marmoset is uniquely identified by a registration number. A second table will contain data that link each marmoset 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
Answer:
Page Ref: 96
Objective: Learning Objective 5
Difficulty : Moderate
AACSB: Reflective Thinking

51) Scuz Bootes has been doing custom choppers, piercings, and tattoos for over thirty years. His home and place of business is a garage in the harbor district of Seattle, Washington. He has meticulous records of every job he has ever done, carefully handwritten with the customer name and address, a description of the job, and an attached picture of the bike or body part before and after customization. His unique style has recently attracted the attention of national media after several celebrities sought him out and showcased his work. Business is booming. Consequently, Scuz has hired you to construct an accounting information system, beginning with the historical records. As you read through the records, you notice that some customer last names have different first names in different records. For example, R. Framington Farnsworth (custom chopper), Bob Farnsworth (tattoo), and Snake Farnsworth (tattoos and piercings) 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
Answer:
Page Ref: 94
Objective: Learning Objective 4
Difficulty : Moderate
AACSB: Reflective Thinking
52) Scuz Bootes has been doing custom choppers, piercings, and tattoos for over thirty years. His home and place of business is a garage in the harbor district of Seattle, Washington. He has meticulous records of every job he has ever done, carefully handwritten with the customer name and address, a description of the job, and an attached picture of the bike or body part before and after customization. His unique style has recently attracted the attention of national media after several celebrities sought him out and showcased his work. Business is booming. Consequently, Scuz has hired you to construct an accounting information system, beginning with the historical records. As you read through the records, you notice that some describe multiple services. For example, Sheila Yasgur (notation: won lottery) got a custom chopper, multiple tattoos, and piercings in undisclosed locations (no pictures.) 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
Answer:
Page Ref: 94
Objective: Learning Objective 4
Difficulty : Moderate
AACSB: Reflective Thinking

53) Scuz Bootes has been doing custom choppers, piercings, and tattoos for over thirty years. His home and place of business is a garage in the harbor district of Seattle, Washington. He has meticulous records of every job he has ever done, carefully handwritten with the customer name and address, a description of the job, and an attached picture of the bike or body part before and after customization. His unique style has recently attracted the attention of national media after several celebrities sought him out and showcased his work. Business is booming. Consequently, Scuz has hired you to construct an accounting information system, beginning with the historical records. As you read through the records, you notice that some customer last names have different first names in different records. For example, R. Framington Farnsworth (custom chopper), Bob Farnsworth (tattoo), and Snake Farnsworth (tattoos and piercings) all seem to be the same person. You explain to Scuz 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.
Answer:
Page Ref: 96
Objective: Learning Objective 4
Difficulty : Moderate
AACSB: Reflective Thinking
54) Scuz Bootes has been doing custom choppers, piercings, and tattoos for over thirty years. His home and place of business is a garage in the harbor district of Seattle, Washington. He has meticulous records of every job he has ever done, carefully handwritten with the customer name and address, a description of the job, and an attached picture of the bike or body part before and after customization. His unique style has recently attracted the attention of national media after several celebrities sought him out and showcased his work. Business is booming. Consequently, Scuz has hired you to construct an accounting information system, beginning with the historical 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.
Answer:
Page Ref: 97
Objective: Learning Objective 5
Difficulty : Easy
AACSB: Reflective Thinking

55) Chelsana Washington is a medical 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 the other sales reps, have access to view customer and product information. They have access that allows them to enter and cancel customer orders. The permissions for Chelsana define a(an) ________ in the company’s database management system.
A) conceptual-level schema
B) subschema
C) data dictionary
D) physical view
Answer:
Page Ref: 90
Objective: Learning Objective 3
Difficulty : Moderate
AACSB: Reflective Thinking
56) Chelsana Washington is a medical 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 the other sales reps, have access to view customer and product information. They have access that allows them to enter and cancel customer orders. The permissions for the sales reps define a(an) ________ in the company’s database management system.
A) conceptual-level schema
B) external-level schema
C) data dictionary
D) physical view
Answer:
Page Ref: 90
Objective: Learning Objective 3
Difficulty : Moderate
AACSB: Reflective Thinking

57) Shandra Bundawi is a new graduate who has been hired by an old-line, family-owned furniture manufacturing company in the northeast. 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.
Answer:
Page Ref: 89
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Reflective Thinking
58) Scuz Bootes has been doing custom choppers, piercings, and tattoos for over thirty years. His home and place of business is a garage in the harbor district of Seattle, Washington. He has meticulous records of every job he has ever done. These have been entered into a computerized accounting information system that his accountant refers to as a “data warehouse.” Scuz is considering an expansion of his business into scarification, and has asked his accountant to identify past customers who might be likely candidates for this service. Scuz wants his accountant to engage in
A) customer auditing.
B) customer resource management.
C) data mining.
D) enterprise resource planning.
Answer:
Page Ref: 89
Objective: Learning Objective 1
Difficulty : Moderate
AACSB: Reflective Thinking

59) Heidi Holloway is a headhunter with Career Funnel in Boca Raton, Florida. Heidi is proud of the company’s motto: We funnel workers into jobs. The foundation of CF’s success is its accounting information system. When a client is placed with an employer, a record is created that identifies the employment relationship. CF 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 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.
Answer:
Page Ref: 96
Objective: Learning Objective 5
Difficulty : Moderate
AACSB: Reflective Thinking

60) The data on this sales invoice would be generated from how many well-structured tables in a well-designed relational database?

A) 6
B) 5
C) 4
D) 7
Answer:
Page Ref: 96
Objective: Learning Objective 5
Difficulty : Difficult
AACSB: Reflective Thinking

61) Which of the following would not be one of the well-structured tables in a well-designed relational database used to generate this sales invoice?

A) Customer Order
B) Customer
C) Sales
D) Sales Order
Answer:
Page Ref: 96
Objective: Learning Objective 5
Difficulty : Difficult
AACSB: Reflective Thinking

62) Which of the following would not be true about the well-structured tables in a well-designed relational database used to generate this sales invoice?

A) Quantity would be generated from the Sales table.
B) 34567 would be a primary key in the Sales table.
C) Unit Price would be generated from the Inventory table.
D) Hardware City is an example of a non-key data value in the Customer table.
Answer:
Page Ref: 96
Objective: Learning Objective 5
Difficulty : Difficult
AACSB: Reflective Thinking

63) Which one of the following results corresponds to the query below?

A)

B)

C)

D)

Answer:
Page Ref: 97-104
Objective: Learning Objective 6
Difficulty : Easy
AACSB: Analytic

64) Which one of the following results corresponds to the query below?

A)

B)

C)

D)

Answer:
Page Ref: 97-104
Objective: Learning Objective 6
Difficulty : Moderate
AACSB: Reflective Thinking
65) Which one of the following results corresponds to the query below?

A)

B)

C)

D)

Answer:
Page Ref: 97-104
Objective: Learning Objective 6
Difficulty : Moderate
AACSB: Reflective Thinking
66) Describe a major advantage of database systems over file-oriented transaction processing systems.

67) What is the difference in logical view and physical view?

68) Describe the different schemas involved in a database structure. What is the role of accountants in development of schemas?

69) Describe a data dictionary.

70) Explain the types of attributes that tables possess in a relational database.

71) Explain the two advantages semantic data modeling has over normalization when designing a relational database.

72) Explain the difference between file-oriented transaction processing systems and relational database systems. Discuss the advantages and disadvantages of each system.

73) Discuss redundancy as it applies to database design.

74) Discuss the ways in which a well-designed DBMS will facilitate the three basic functions of creating, changing, and querying data.

75) List the four DBMS “languages” and describe who uses each and for what purpose.

76) Describe the information that is contained in the data dictionary.

77) Explain the relational database data model.

78) What are the basic requirements when logically designing a relational database model?

79) Describe what you think will be the main impact of database technology in your career.

80) Chagall Curtain Company is changing from a file-oriented system to a relational database system. Design at least three tables that would be needed to capture data for a sales transaction. Each table should include a primary key, three non-key attributes, and foreign keys as necessary. Make up data

Chapter 15 The Human Resources Management and Payroll Cycle

1) Which activity below is not performed by the HRM?
A) compensation
B) training
C) discharge
D) recruitment and hiring
Answer:
Page Ref: 435
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic

2) The sales department administrative assistant has been assigning phone order sales to her brother-in-law, a company sales person. Company policy is to pay commissions only on orders directly received by sales people, not on orders received over the phone. The resulting fraudulent commission payments might best have been prevented by requiring that
A) sales commission statements be supported by sales order forms signed by the customer and approved by the sales manager.
B) sales order forms be prenumbered and accounted for by the sales department manager.
C) sales orders and commission statements be approved by the accounting department.
D) disbursement vouchers for commission payments be reviewed by the internal audit department and compared to sales commission statements and sales orders.
Answer:
Page Ref: 443
Objective: Learning Objective 2
Difficulty : Moderate
AACSB: Analytic

3) Which department should have the sole ability to provide information to the AIS about hiring, terminations, and pay rate changes?
A) payroll
B) timekeeping
C) production
D) HRM
Answer:
Page Ref: 436
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic
4) Which of the following is not one of the major sources of input to the payroll system?
A) payroll rate changes
B) time and attendance data
C) checks to insurance and benefits providers
D) withholdings and deduction requests from employees
Answer:
Page Ref: 441
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic

5) In the payroll system, checks are issued to
A) employees and to banks participating in direct deposit.
B) a company payroll bank account.
C) government agencies.
D) All of the above are correct.
Answer:
Page Ref: 441
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic

6) Experts estimate that on average the costs associated with replacing an employee are about ________ that of the employee’s annual salary.
A) one-quarter
B) one-half
C) one and one-half
D) twice
Answer:
Page Ref: 438
Objective: Learning Objective 1
Difficulty : Moderate
AACSB: Analytic

7) For recording time spent on specific work projects, manufacturing companies usually use a
A) job time ticket.
B) time card.
C) time clock.
D) labor time card.
Answer:
Page Ref: 443
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic

8) Regarding the use of incentives, commissions and bonuses in payroll, which of the following statements is false?
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.
Answer:
Page Ref: 443
Objective: Learning Objective 1
Difficulty : Moderate
AACSB: Analytic

9) What is not a desired result of an employee bonus/incentive system?
A) Employees may recommend unnecessary services to customers in order to exceed set sales quotas and earn a bonus.
B) Employees may look for ways to improve service.
C) Employees may analyze their work environment and find ways to cut costs.
D) Employees may work harder and may be more motivated to exceed target goals to earn a bonus.
Answer:
Page Ref: 444
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic

10) These are used to transmit time and attendance data directly to the payroll processing system.
A) Badge readers
B) Electronic time clocks
C) Magnetic cards
D) none of the above
Answer:
Page Ref: 444
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic
11) Payroll deductions fall into the broad categories of ________ and ________.
A) payroll tax withholdings; voluntary deductions
B) unemployment; social security taxes
C) unemployment taxes; income taxes
D) voluntary deductions; income taxes
Answer:
Page Ref: 447
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic

12) Which of the following deductions is not classified as a voluntary deduction?
A) pension plan contributions
B) social security withholdings
C) insurance premiums
D) deductions for a charity organization
Answer:
Page Ref: 447
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic

13) Which type of payroll report contains information such as the employees’ gross pay, payroll deductions, and net pay in a multicolumn format?
A) payroll register
B) deduction register
C) employee earnings statement
D) federal W-4 form
Answer:
Page Ref: 447
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic

14) Which type of payroll report lists the voluntary deductions for each employee?
A) payroll register
B) deduction register
C) earnings statement
D) federal W-4 form
Answer:
Page Ref: 447
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic
15) Which type of payroll report includes the details of the current paycheck and deductions as well as year-to-date totals?
A) payroll register
B) deduction register
C) earnings statement
D) federal W-4 form
Answer:
Page Ref: 447
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic

16) Why is a separate payroll account used to clear payroll checks?
A) for internal control purposes to help limit any exposure to loss by the company
B) to make bank reconciliation easier
C) banks don’t like to commingle payroll and expense checks
D) All of the above are correct.
Answer:
Page Ref: 450
Objective: Learning Objective 2
Difficulty : Moderate
AACSB: Analytic

17) One good way to eliminate paper paychecks is to
A) pay in cash only.
B) pay with money orders.
C) use direct deposit.
D) use Electronic Funds Transfer.
Answer:
Page Ref: 449
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic

18) What step can be taken to reduce the distribution of fraudulent paychecks?
A) have internal audit investigate unclaimed paychecks
B) allow department managers to investigate unclaimed paychecks
C) immediately mark “void” across all unclaimed paychecks
D) match up all paychecks with time cards
Answer:
Page Ref: 450
Objective: Learning Objective 2
Difficulty : Moderate
AACSB: Analytic
19) Companies that specialize in processing payroll are known as
A) paycheck distribution companies.
B) payroll service bureaus.
C) professional employer organizations.
D) semi-governmental organizations.
Answer:
Page Ref: 451
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic

20) This organization provides payroll processing as well as other HRM services, such as employee benefit design and administration.
A) Cashier
B) Payroll service bureau
C) Professional employer organization
D) Paycheck distribution companies
Answer:
Page Ref: 451
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic

21) Which of the following is not a benefit of using a payroll service bureau or a professional employer organization?
A) Freeing up of computer resources
B) Increased internal control
C) Reduced costs
D) Wider range of benefits
Answer:
Page Ref: 452
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic
22) Many companies offer their employees a “cafeteria” approach to voluntary benefits in which employees can pick and choose the benefits they want. This plan is normally called a(n)
A) elective plan.
B) menu options benefit plan.
C) flexible benefit plan.
D) buffet plan.
Answer:
Page Ref: 451
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic

23) Pay rate information is stored in
A) employees’ personnel files.
B) employee subsidiary ledgers.
C) the payroll master file.
D) electronic time cards.
Answer:
Page Ref: 442
Objective: Learning Objective 1
Difficulty : Moderate
AACSB: Analytic

24) The payroll transaction file would contain
A) entries to add new hires.
B) time card data.
C) changes in tax rates.
D) All of the above are correct.
Answer:
Page Ref: 443
Objective: Learning Objective 1
Difficulty : Moderate
AACSB: Analytic

25) The document that lists each employee’s gross pay, payroll deductions, and net pay in a multicolumn format is called
A) an employee earnings statement.
B) the payroll register.
C) a deduction register.
D) an employee time sheet summary.
Answer:
Page Ref: 447
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic
26) As the payroll system processes each payroll transaction, the system should also perform which activity listed below?
A) allocate labor costs to appropriate general ledger accounts
B) use cumulative totals generated from a payroll to create a summary journal entry to be posted to the general ledger
C) both A and B above
D) The HRM system should not perform either activity A or B.
Answer:
Page Ref: 447
Objective: Learning Objective 1
Difficulty : Moderate
AACSB: Analytic

27) Direct deposit of employee paychecks is one way an organization can improve efficiency and reduce payroll-processing costs. Which statement regarding direct deposit is false?
A) The cashier does not authorize the transfer of funds from the organization’s checking account to a payroll checking account.
B) The cashier does not have to sign employee paychecks.
C) Employees who are part of a direct deposit program receive a copy of their paycheck indicating the amount deposited.
D) Employees who are part of a direct deposit program receive an earnings statement on payday rather than a paper check.
Answer:
Page Ref: 449
Objective: Learning Objective 1
Difficulty : Moderate
AACSB: Analytic

28) The employer pays a portion of some payroll taxes and employee benefits. Both the employee and employer pay which benefit or tax listed below?
A) social security taxes
B) federal income taxes
C) state income taxes
D) none of the above
Answer:
Page Ref: 450
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic
29) When using electronic documents, ________ increase the accuracy of data entry.
A) access controls
B) separation of duties
C) general controls
D) application controls
Answer:
Page Ref: 444
Objective: Learning Objective 2
Difficulty : Easy
AACSB: Analytic

30) The key to preventing unauthorized changes to the payroll master file is
A) hiring totally honest people to access and make changes to this file.
B) segregation of duties between the preparation of paychecks and their distribution.
C) segregation of duties between the authorization of changes and the physical handling of paychecks.
D) having the controller closely review and then approve any changes to the master file.
Answer:
Page Ref: 452
Objective: Learning Objective 2
Difficulty : Difficult
AACSB: Analytic

31) Which of the following is not a potential effect of inaccurate data on employee time cards?
A) increased labor expenses
B) erroneous labor expense reports
C) damaged employee morale
D) inaccurate calculation of overhead costs
Answer:
Page Ref: 444
Objective: Learning Objective 2
Difficulty : Moderate
AACSB: Analytic

32) Which control would be most appropriate to address the problem of inaccurate payroll processing?
A) encryption
B) direct deposit
C) cross-footing of the payroll register
D) an imprest payroll checking account
Answer:
Page Ref: 449
Objective: Learning Objective 2
Difficulty : Difficult
AACSB: Reflective Thinking
33) What is the purpose of a general ledger payroll clearing account?
A) to check the accuracy and completeness of payroll recording and its allocation to cost centers
B) to make the bank reconciliation easier
C) to make sure that all employees are paid correctly each week
D) to prevent the cashier from having complete control of the payroll cycle
Answer:
Page Ref: 449
Objective: Learning Objective 2
Difficulty : Moderate
AACSB: Analytic

34) A “zero balance check” refers to which of the following control procedures?
A) a type of batch total
B) cross-footing the payroll register
C) the payroll clearing account shows a zero balance once all entries are posted
D) trial balance showing that debits equal credits
Answer:
Page Ref: 449
Objective: Learning Objective 2
Difficulty : Moderate
AACSB: Analytic

35) All of the following are controls that should be implemented in a payroll process, except
A) supervisors distribute paychecks since they should know all employees in their department.
B) someone independent of the payroll process should reconcile the payroll bank account.
C) sequential numbering of paychecks and accounting for the numbers.
D) restrict access to blank payroll checks and documents.
Answer:
Page Ref: 450
Objective: Learning Objective 2
Difficulty : Moderate
AACSB: Analytic

36) What is the best control to reduce the risk of losing payroll data?
A) passwords
B) physical security controls
C) backup and disaster recovery procedures
D) encryption
Answer:
Page Ref: 441
Objective: Learning Objective 2
Difficulty : Easy
AACSB: Analytic
37) The threat of violation of employment laws relates directly to which activity?
A) payroll processing
B) collecting employee time data
C) hiring and recruiting
D) all of the above
Answer:
Page Ref: 441
Objective: Learning Objective 2
Difficulty : Moderate
AACSB: Analytic

38) What is a potential threat to the specific activity of payroll processing?
A) hiring unqualified employees
B) poor system performance
C) violations of employment laws
D) unauthorized changes to the payroll master file
Answer:
Page Ref: 443
Objective: Learning Objective 2
Difficulty : Moderate
AACSB: Analytic

39) The results of an internal audit finds that there is a problem with inaccurate time data being entered into the payroll system. What is an applicable control that can help prevent this event from occurring in the future?
A) proper segregation of duties
B) automation of data collection
C) sound hiring procedures
D) review of appropriate performance metrics
Answer:
Page Ref: 444
Objective: Learning Objective 2
Difficulty : Easy
AACSB: Analytic

40) Which of the following is a control that can be implemented to help prevent paychecks being issued to a “phantom” or “ghost” employee?
A) The cashier should sign all payroll checks.
B) Sequentially prenumber all payroll checks.
C) Use an imprest account to clear payroll checks.
D) Paychecks should be physically distributed by someone who does not authorize time data or record payroll.
Answer:
Page Ref: 450
Objective: Learning Objective 2
Difficulty : Moderate
AACSB: Analytic

41) The average annual middle-management salary at Folding Squid Technologies is $60,000. If the average turnover rate for middle management is ten employees per year, what is the approximate average annual cost of turnover?
A) $300,000
B) $600,000
C) $900,000
D) $1,200,000
Answer:
Page Ref: 438
Objective: Learning Objective 2
Difficulty : Moderate
AACSB: Analytic

42) Which of the following will contribute to the efficiency of a payroll system?
A) Segregation of check distribution from payroll duties
B) Prompt redeposit of unclaimed paychecks
C) A separate payroll bank account
D) Direct deposit of checks
Answer:
Page Ref: 449
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic
43) Which of the following will limit a firm’s potential loss exposure from paycheck forgery?
A) Segregation of check distribution from payroll duties
B) Prompt redeposit of unclaimed paychecks
C) A separate payroll bank account
D) Direct deposit of checks
Answer:
Page Ref: 450
Objective: Learning Objective 2
Difficulty : Easy
AACSB: Analytic

44) Which of the following is a control that addresses the threat of unauthorized changes to the payroll master file?
A) Field checks
B) Batch totals
C) Segregation of duties
D) Sound hiring procedures
Answer:
Page Ref: 443
Objective: Learning Objective 2
Difficulty : Easy
AACSB: Analytic

45) Which of the following documents would be likely to yield the greatest cost saving by converting from paper to electronic?
A) Payroll register
B) Earnings statement
C) Deduction register
D) Time card
Answer:
Page Ref: 444
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic
46) For the payroll register below, all the following data entry controls would be useful except

A) Validity check on Fed. Tax
B) Sequence check on Employee No.
C) Limit check on Hours
D) Field check on Pay Rate
Answer:
Page Ref: 449
Objective: Learning Objective 2
Difficulty : Easy
AACSB: Analytic

47) For the payroll register below, all the following processing controls would be useful except

A) Concurrent update control
B) Cross-footing balance test
C) Mathematical accuracy test
D) Hash total on Employee No.
Answer:
Page Ref: 449
Objective: Learning Objective 2
Difficulty : Easy
AACSB: Analytic
48) Describe the basic activities in an HRM/payroll cycle.

49) Identify the two types of payroll deductions and give two examples of each type.

50) Why are accurate cumulative earnings records important?

51) Explain the functions of the payroll register, deduction register, and earnings statement.

52) What is the difference between a payroll service bureau and a professional employer organization?

53) Discuss the various types and sources of input into the HRM/payroll cycle.

54) Describe benefits and threats of incentive and bonus programs.

55) Explain benefits to companies and to employees of using electronic direct deposit for payroll.

56) What factors should be considered in outsourcing payroll to a payroll service bureau? Discuss the advantages and disadvantages of using a payroll service bureau to process a payroll.

57) Discuss the threat of unauthorized changes to the payroll master file and its consequences.

58) What controls are available to address the threat of payroll errors?

Accounting Information Systems, 12e (Romney/Steinbart)
Chapter 16 General Ledger and Reporting System

1) The general ledger and reporting system consists of the ________ involved in ________ the general ledger and ________ reports.
A) business transactions; updating; processing
B) data processing; business transactions for; printing
C) information processing; updating; creating
D) business transactions; data processing; preparing
Answer:
Page Ref: 463
Objective: Learning Objective 1
Difficulty : Moderate
AACSB: Analytic

2) Which item below is not considered a major input to the general ledger and reporting system?
A) summary entries from the major subsystems
B) reports from managers
C) adjusting entries
D) financing and investing activities
Answer:
Page Ref: 463
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic

3) Who provides the adjusting entries for a well-designed general ledger and reporting system?
A) various user departments
B) the treasurer’s area
C) the other major AIS subsystems
D) the controller’s area
Answer:
Page Ref: 463
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic
4) The general ledger and reporting system is designed to provide information for which of the following user groups?
A) internal users
B) external users
C) inquiry processing by internal or external users
D) all of the above
Answer:
Page Ref: 465
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic

5) The general ledger system of an organization should be designed to serve the information requirements of both internal and external users. This means that the system should support
A) producing expansive regular periodic reports to cover all information needs.
B) the real-time inquiry needs of all users.
C) producing regular periodic reports and respond to real-time inquiry needs.
D) access by investors and creditors of the organization to general ledger balances.
Answer:
Page Ref: 465
Objective: Learning Objective 1
Difficulty : Moderate
AACSB: Analytic

6) How is general ledger updating accomplished by the various accounting subsystems?
A) Individual journal entries for each accounting subsystem transaction update the general ledger every 24 hours.
B) Summary journal entries that represent the results of all transactions for a certain time period are used to update the general ledger.
C) The controller or treasurer must approve accounting subsystem journal entries before any updating may occur.
D) Nonroutine transactions are entered into the system by the treasurer’s office.
Answer:
Page Ref: 467
Objective: Learning Objective 1
Difficulty : Difficult
AACSB: Analytic
7) When updating the general ledger, sales, purchases, and production are examples of ________ entries, and issuance or retirement of debt and the purchase or sale of investment securities are examples of ________ entries.
A) adjusting; controller originated
B) accounting subsystem; treasurer originated
C) adjusting; special journal
D) controller generated; special journal
Answer:
Page Ref: 467
Objective: Learning Objective 1
Difficulty : Moderate
AACSB: Analytic

8) Entries to update the general ledger are often documented by which of the following?
A) general journal
B) subsidiary journal
C) subsidiary ledgers
D) journal vouchers
Answer:
Page Ref: 467
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic

9) Adjusting entries that reflect events that have already occurred, but for which no cash flow has taken place are classified as
A) accruals.
B) deferrals.
C) revaluations.
D) corrections.
Answer:
Page Ref: 470
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic
10) Recording interest earned on an investment is an example of which type of adjusting journal entry?
A) accrual entry
B) deferral entry
C) revaluation entry
D) correcting entry
Answer:
Page Ref: 470
Objective: Learning Objective 1
Difficulty : Moderate
AACSB: Analytic

11) An adjusting entry made at the end of an accounting period that reflects the exchange of cash prior to performance of a related event is classified as a(n)
A) accrual entry.
B) deferral entry.
C) revaluation entry.
D) correcting entry.
Answer:
Page Ref: 471
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic

12) Depreciation expense and bad debt expense are examples of which type of adjusting journal entry?
A) deferrals
B) accruals
C) revaluations
D) estimates
Answer:
Page Ref: 471
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic

13) Adjusting entries that are made to reflect differences between the actual and recorded value of an asset or a change in accounting principle are called
A) reconciliations.
B) revaluations.
C) estimates.
D) accruals.
Answer:
Page Ref: 471
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic

14) Adjusting entries that are made to counteract the effects of errors found in the general ledger are called
A) accruals.
B) corrections.
C) deferrals.
D) estimates.
Answer:
Page Ref: 471
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic

15) Corrections are entries made to correct errors found in ________.
A) all journals
B) special journals
C) the general ledger
D) the financial statements
Answer:
Page Ref: 471
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic

16) Immediately after the adjusting entries are posted, the next step in the general ledger and reporting system is to prepare
A) an adjusted trial balance.
B) closing entries.
C) financial statements.
D) an unadjusted trial balance.
Answer:
Page Ref: 471
Objective: Learning Objective 1
Difficulty : Moderate
AACSB: Analytic

17) Financial statements are prepared in a certain sequence. Which statement is prepared last in the sequence?
A) the adjusted trial balance
B) the income statement
C) the balance sheet
D) the statement of cash flows
Answer:
Page Ref: 471
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic

18) A listing of journal vouchers by numerical sequence, account number, or date is an example of
A) a general ledger control report.
B) a budget report.
C) a batch to be processed.
D) responsibility accounting.
Answer:
Page Ref: 469
Objective: Learning Objective 1
Difficulty : Moderate
AACSB: Analytic

19) If you believe not all adjusting entries were posted in the general ledger, you should prepare a general ledger control report listing journal vouchers in
A) numerical sequence.
B) chronological order.
C) general ledger account number order.
D) any order, since you have to review them all anyway.
Answer:
Page Ref: 469
Objective: Learning Objective 2
Difficulty : Difficult
AACSB: Reflective Thinking
20) If you believe a general ledger account was not adjusted properly or at all, you should prepare a general ledger control report listing journal vouchers in
A) numerical sequence.
B) chronological order.
C) general ledger account number order.
D) any order, since you have to review them all anyway.
Answer:
Page Ref: 469
Objective: Learning Objective 2
Difficulty : Difficult
AACSB: Reflective Thinking

21) The managerial report that shows planned cash inflows and outflows for major investments or acquisitions is the
A) journal voucher list.
B) statement of cash flows.
C) operating budget.
D) capital expenditures budget.
Answer:
Page Ref: 477
Objective: Learning Objective 4
Difficulty : Easy
AACSB: Analytic

22) The operating budget
A) compares estimated cash flows from operations with planned expenditures.
B) shows cash inflows and outflows for each capital project.
C) depicts planned revenues and expenditures for each organizational unit.
D) is used to plan for the purchase and retirement of property, plant, and equipment.
Answer:
Page Ref: 477
Objective: Learning Objective 4
Difficulty : Easy
AACSB: Analytic

23) Budgets and performance reports should be developed on the basis of
A) responsibility accounting.
B) generally accepted accounting principles.
C) financial accounting standards.
D) managerial accounting standards.
Answer:
Page Ref: 477
Objective: Learning Objective 4
Difficulty : Easy
AACSB: Analytic
24) Performance reports for cost centers should compare actual versus budget ________ costs.
A) controllable
B) uncontrollable
C) fixed
D) variable
Answer:
Page Ref: 477
Objective: Learning Objective 4
Difficulty : Easy
AACSB: Analytic

25) Performance reports for sales deparments should compare actual versus budget
A) revenue.
B) cost.
C) return on investment.
D) profit.
Answer:
Page Ref: 477
Objective: Learning Objective 4
Difficulty : Easy
AACSB: Analytic

26) Departments that mostly provide services to other units and charge those units for services rendered should be evaluated as ________ centers.
A) cost
B) profit
C) investment
D) revenue
Answer:
Page Ref: 477
Objective: Learning Objective 4
Difficulty : Moderate
AACSB: Analytic

27) As responsibility reports are rolled up into reports for higher level executives, they
A) become less detailed.
B) become more detailed.
C) become narrower in scope.
D) look about the same.
Answer:
Page Ref: 477
Objective: Learning Objective 4
Difficulty : Moderate
AACSB: Reflective Thinking
28) Variances for variable costs will be misleading when the planned output differs from budgeted output. A solution to this problem would be
A) calling all costs fixed.
B) to use flexible budgeting.
C) better prediction of output.
D) to eliminate the budgeting process.
Answer:
Page Ref: 478
Objective: Learning Objective 4
Difficulty : Easy
AACSB: Analytic

29) Concerning XBRL, which of the following statements is not true?
A) XBRL is a variant of XML.
B) XBRL is specifically designed for use in communicating the content of financial data.
C) XBRL creates unique tags for each data item.
D) XBRL’s adoption will require accountants and systems professionals tag data for their clients.
Answer:
Page Ref: 472
Objective: Learning Objective 3
Difficulty : Moderate
AACSB: Analytic

30) The benefits of XBRL include:
A) organizations can publish financial information only once, using standard XBRL tags.
B) tagged data is readable and interpretable by computers, so users don’t need re-enter data into order to work with it.
C) Both are benefits of XBRL.
D) Neither are benefits of XBRL.
Answer:
Page Ref: 472
Objective: Learning Objective 3
Difficulty : Moderate
AACSB: Analytic
31) Communications technology and the Internet can be used to reduce the time and costs involved in disseminating financial statement information. Users of such financial information still struggle in that many recipients have different information delivery requirements and may have to manually reenter the information into their own decision analysis tools. The ideal solution to solve these problems and efficiently transmit financial information via the Internet is to use
A) HTML code.
B) XML.
C) pdf file.
D) XBRL.
Answer:
Page Ref: 472
Objective: Learning Objective 3
Difficulty : Easy
AACSB: Analytic

32) Which of the following statements is not true about an XBRL instance document?
A) An instance document includes instruction code as to how the document should be physically arranged and displayed.
B) An instance document contains facts about specific financial statement line items.
C) An instance document uses separate tags for each specific element.
D) An instance document can be used to tag financial and nonfinancial elements.
Answer:
Page Ref: 472
Objective: Learning Objective 3
Difficulty : Difficult
AACSB: Analytic

33) Which of the following are appropriate controls for the general ledger and reporting system?
A) using well-designed documents and records
B) online data entry with the use of appropriate edit checks
C) prenumbering documents and accounting for the sequence numbers
D) All of the above are appropriate.
Answer:
Page Ref: 468
Objective: Learning Objective 2
Difficulty : Easy
AACSB: Analytic
34) A type of data entry control that would ensure that adjusting entries are posted to existing general ledger accounts is called a(n) ________ check.
A) validity
B) existence
C) closed loop verification
D) reasonableness
Answer:
Page Ref: 468
Objective: Learning Objective 2
Difficulty : Easy
AACSB: Analytic

35) One way of ensuring that recurring adjusting journal entries are made each month would be to
A) make all the entries a month in advance.
B) rotate the responsibility among the accounting staff.
C) program the entries to be made automatically.
D) create a standard adjusting journal entry file.
Answer:
Page Ref: 471
Objective: Learning Objective 2
Difficulty : Easy
AACSB: Analytic

36) Which of the following tasks are facilitated by maintaining a strong and secure audit trail?
A) tracing a transaction from original source document to the general ledger to a report
B) tracing an item in a report back through the general ledger to the original source document
C) tracing changes in general ledger accounts from beginning to ending balances
D) All of the above are facilitated by the audit trail.
Answer:
Page Ref: 469-470
Objective: Learning Objective 2
Difficulty : Moderate
AACSB: Analytic

37) Which of the following balanced scorecard dimensions provides measures on how efficiently and effectively the organization is performing key business processes?
A) financial
B) internal operations
C) innovation and learning
D) customer
Answer:
Page Ref: 479
Objective: Learning Objective 4
Difficulty : Easy
AACSB: Analytic

38) Which of the following is not one of the principles of proper graph design for bar charts?
A) Include data values with each element.
B) Use 3-D rather than 2-D bars to make reading easier.
C) Use colors or shades instead of patterns to represent different variables.
D) Use titles that summarize the basic message.
Answer:
Page Ref: 481
Objective: Learning Objective 4
Difficulty : Easy
AACSB: Analytic

39) Information about financing and investing activities for use in making general ledger entries is typically provided by the
A) budget department.
B) controller.
C) treasurer.
D) chief executive officer.
Answer:
Page Ref: 463
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic

40) Adjusting entries that are made to recognize revenue that has been received but not yet earned are classified as
A) estimates.
B) deferrals.
C) accruals.
D) revaluations.
Answer:
Page Ref: 471
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic

41) Adjusting entries that reflect a change in accounting principle used to value inventories are classified as
A) corrections.
B) estimates.
C) deferrals.
D) revaluations.
Answer:
Page Ref: 471
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic

42) Cheryl Liao is an accountant at Folding Squid Technologies. While making an adjusting entry to the general ledger, she received the following error message, “The account number referenced in your journal entry does not exist. Do you want to create a new account?” This message was the result of a
A) validity check.
B) closed loop verification.
C) zero-balance check.
D) completeness test.
Answer:
Page Ref: 468
Objective: Learning Objective 2
Difficulty : Moderate
AACSB: Analytic

43) Cheryl Liao is an accountant at Folding Squid Technologies. While making an adjusting entry to the general ledger, she received the following error message, “Your journal entry must be a numeric value. Please reenter.” This message was the result of a
A) validity check.
B) field check.
C) zero-balance check.
D) completeness test.
Answer:
Page Ref: 468
Objective: Learning Objective 2
Difficulty : Easy
AACSB: Analytic
44) Cheryl Liao is an accountant at Folding Squid Technologies. While making an adjusting entry to the general ledger, she received the following error message when she tried to save her entry, “The amounts debited and credited are not equal. Please correct and try again.” This message was the result of a
A) validity check.
B) field check.
C) zero-balance check.
D) completeness test.
Answer:
Page Ref: 468
Objective: Learning Objective 2
Difficulty : Easy
AACSB: Analytic

45) Cheryl Liao is an accountant at Folding Squid Technologies. While making an adjusting entry to the general ledger, she received the following error message when she tried to save her entry, “The data you have entered does not include a source reference code. Please enter this data before saving.” This message was the result of a
A) validity check.
B) field check.
C) zero-balance check.
D) completeness test.
Answer:
Page Ref: 468
Objective: Learning Objective 2
Difficulty : Easy
AACSB: Analytic

46) IFRS is an acronym for what?
A) International Financial Reporting Standards
B) Internal Forensic Response System
C) Input and Financial Reporting Standards
D) Internal Fault Recovery System
Answer:
Page Ref: 471
Objective: Learning Objective 3
Difficulty : Easy
AACSB: Analytic
47) Which of the following is true about IFRS?
A) Financial statements likely must be prepared using IFRS beginning in 2015.
B) The switch to IFRS is required by the Sarbanes-Oxley Act.
C) IFRS is only slightly different than US GAAP.
D) The switch to IFRS is cosmetic onlythere isn’t any real impact on AIS.
Answer:
Page Ref: 471
Objective: Learning Objective 3
Difficulty : Moderate
AACSB: Analytic

48) Which of the following scenarios will not be allowed under IFRS?
A) A landscaping and garden retail store keeps piles of river rock, gravel, paving stones, and small decorative rocks in a fenced area on the side of the store. The store uses the most recent inventory costs when calculating cost of goods sold, since new inventory is piled on top of the older inventory.
B) A grocery store strictly enforces a shelf rotation policy, so that older inventory is always at the front and sold first. The store uses the oldest inventory costs to calculate cost of goods sold.
C) A farm chemical supplier maintains a large holding tank of chemicals, into which deliveries are periodically combined with the older chemicals. The supplier averages the cost of all inventory to calculate cost of goods sold.
D) All of the above are acceptable under IFRS.
Answer:
Page Ref: 472
Objective: Learning Objective 3
Difficulty : Difficult
AACSB: Reflective Thinking

49) Which of the following is true about accounting for fixed assets?
A) Depreciation expense under IFRS will likely be higher than under GAAP, because acquisitions of assets with multiple components must be separately depreciated under IFRS, whereas under GAAP assets could be bundled and depreciated over the longest of the useful life for any of the components.
B) IFRS doesn’t allow capitalization of any asset that separately accounts for less than 20% of total assets.
C) Depreciation expense under IFRS will likely be less than under GAAP, because standards for depreciable lives on asset classes are much longer than under GAAP.
D) IFRS and GAAP account for fixed assets in much the same way.
Answer:
Page Ref: 472
Objective: Learning Objective 3
Difficulty : Difficult
AACSB: Reflective Thinking

50) Which of the following statements is true about the chart below?

A) The x-axis is in reverse chronological order, which violates a principle of proper graph design.
B) The chart appears to conform to the principles of proper graph design.
C) The vertical axis doesn’t appear to start at the origin (zero).
D) The chart used 2-D bars instead of 3-D, which violates a principle of proper graph design.
Answer:
Page Ref: 481
Objective: Learning Objective 4
Difficulty : Moderate
AACSB: Analytic

51) Explain the purpose of a journal voucher file.

52) What is responsibility accounting?

53) How is a balanced scorecard used to assess organizational performance?

54) How is an audit trail used in the general ledger and reporting system?

55) Explain the benefits of XBRL.

56) Discuss the value and role of budgets as managerial reports.

57) Describe three threats in the general ledger and reporting system and identify corresponding controls for each threat.

Accounting Information Systems, 12e (Romney/Steinbart)
Chapter 17 The REA Data Model

1) Which of the following statements about REA modeling and REA diagrams is false?
A) REA is an acronym for Resources, Entities, and Agents.
B) REA data modeling does not include traditional accounting elements such as ledgers, chart of accounts, debits and credits.
C) REA data modeling could be referred to as an events-based model.
D) REA diagrams must include at least two activities, which together represent a give-get economic exchange.
Answer:
Page Ref: 496
Objective: Learning Objective 1
Difficulty : Moderate
AACSB: Analytic

2) What is the standard cardinality pattern for a relationship between an event and an agent?
A) 1:1
B) 0:1
C) 0:N
D) 1:N
Answer:
Page Ref: 506
Objective: Learning Objective 3
Difficulty : Difficult
AACSB: Reflective Thinking

3) The REA data model approach facilitates efficient operations by all the following except
A) standardizing source document format.
B) identifying non-value added activities.
C) storing financial and nonfinancial data in the same database.
D) organizing data to simplify data retrieval and analysis.
Answer:
Page Ref: 496
Objective: Learning Objective 1
Difficulty : Moderate
AACSB: Analytic
4) 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
A) data modeling.
B) data designing.
C) data development.
D) data definition.
Answer:
Page Ref: 494
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic

5) In which stage(s) of the database design process does data modeling occur?
A) only in the systems analysis stage
B) only in the design stage
C) in both the systems analysis and design stages
D) neither the systems analysis nor the design stages
Answer:
Page Ref: 494
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic

6) A(n) ________ diagram graphically depicts a database’s contents by showing entities and relationships.
A) data flow
B) flowchart
C) entity-relationship
D) REA
Answer:
Page Ref: 494
Objective: Learning Objective 1
Difficulty : Moderate
AACSB: Analytic

7) On an entity-relationship (E-R) diagram, anything about which an organization wants to collect and store information is called
A) a data model.
B) an entity.
C) a schema.
D) a tuple.
Answer:
Page Ref: 494
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic
8) An entity-relationship (E-R) diagram represents entities as ________ and the relationships between them as lines and ________.
A) circles; squares
B) squares; diamonds
C) rectangles; diamonds
D) rectangles; circles
Answer:
Page Ref: 495
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic

9) An entity-relationship (E-R) diagram
A) can represent the contents of any database.
B) are only used in conjunction with REA models.
C) can show a limited number of entities and relationships.
D) are used only to design new databases.
Answer:
Page Ref: 495
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic

10) The REA data model
A) is used in many areas of business and science.
B) was developed solely for use in designing accounting information systems.
C) classifies data into relationships, entities and accounts.
D) all of the above
Answer:
Page Ref: 496
Objective: Learning Objective 2
Difficulty : Moderate
AACSB: Analytic

11) Which of the following is not one of the rules in creating an REA data model?
A) Each event is linked to at least one resource that it affects.
B) Each event is linked to at least one other event.
C) Each event is linked to at least two participating agents.
D) All of the above are important rules.
Answer:
Page Ref: 497
Objective: Learning Objective 2
Difficulty : Easy
AACSB: Analytic
12) Which is a true statement about the REA data model?
A) The REA data model classifies entities into three distinct categories.
B) The term REA is an acronym that stands for resources, entities, and agents.
C) Using an REA data model is not helpful when creating an R-E diagram.
D) The “E” in the REA data model stands for things that have an economic value to the organization.
Answer:
Page Ref: 496
Objective: Learning Objective 2
Difficulty : Easy
AACSB: Analytic

13) An REA diagram must link every event to at least one ________ and two ________.
A) resource; agents
B) agent; resources
C) transaction; entities
D) resource; relationships
Answer:
Page Ref: 497
Objective: Learning Objective 3
Difficulty : Easy
AACSB: Analytic

14) Each event in an REA model will in most cases have at least one ________ agent and one ________ agent involved with the event.
A) internal; resource
B) external; entity
C) internal; employee
D) internal; external
Answer:
Page Ref: 501
Objective: Learning Objective 3
Difficulty : Easy
AACSB: Analytic

15) Relationships that affect the quantity of a resource are sometimes referred to as ________ relationships.
A) commitment
B) exchange
C) stockflow
D) duality
Answer:
Page Ref: 497
Objective: Learning Objective 2
Difficulty : Moderate
AACSB: Analytic
16) The “give” event represents an activity which
A) includes a promise to engage in future economic exchanges.
B) increases the organization’s stock of an economic resource.
C) reduces the organization’s stock of a resource that has economic value.
D) none of the above
Answer:
Page Ref: 497
Objective: Learning Objective 2
Difficulty : Easy
AACSB: Analytic

17) The “get” event represents an activity which
A) includes a promise to engage in future economic exchanges.
B) increases the organization’s stock of an economic resource.
C) reduces the organization’s stock of a resource that has economic value.
D) none of the above
Answer:
Page Ref: 497
Objective: Learning Objective 2
Difficulty : Easy
AACSB: Analytic

18) Which of the following statements is true about the development of an REA model?
A) Events that pertain to the entry of data are included in the REA model.
B) The objective is to model basic value-chain activities.
C) REA diagrams model individual transactions and data collections.
D) Information retrieval events are modeled as events in the REA model.
Answer:
Page Ref: 501
Objective: Learning Objective 3
Difficulty : Moderate
AACSB: Analytic

19) Developing an REA diagram for a specific transaction cycle begins by identifying
A) relevant events.
B) agents involved.
C) resources affected.
D) relationship cardinalities.
Answer:
Page Ref: 499
Objective: Learning Objective 3
Difficulty : Easy
AACSB: Analytic
20) Which of the following is false about cardinalities?
A) Cardinalities describe the nature of the relationship between two entities.
B) No universal standard exists for representing information about cardinalities in REA diagrams.
C) The minimum cardinality can be zero or one.
D) The maximum cardinality can be zero, one, or many.
Answer:
Page Ref: 502-503
Objective: Learning Objective 3
Difficulty : Moderate
AACSB: Analytic

21) The minimum cardinality of a relationship in an REA diagram can be either
A) 0 or 1.
B) 0 or N.
C) 1 or N.
D) none of the above
Answer:
Page Ref: 503
Objective: Learning Objective 3
Difficulty : Easy
AACSB: Analytic

22) The maximum cardinality of a relationship in an REA diagram can be either
A) zero or one.
B) one or many.
C) zero or many.
D) none of the above
Answer:
Page Ref: 503
Objective: Learning Objective 3
Difficulty : Easy
AACSB: Analytic

23) How many types of relationships are possible between entities?
A) one
B) two
C) three
D) an infinite number
Answer:
Page Ref: 504
Objective: Learning Objective 3
Difficulty : Easy
AACSB: Analytic
24) A relationship in which cardinalities have zero minimums and N maximums would most likely be an
A) agent-event relationship.
B) resource-event relationship.
C) event-event relationship.
D) All of the above are equally likely.
Answer:
Page Ref: 504
Objective: Learning Objective 3
Difficulty : Moderate
AACSB: Reflective Thinking

25) Concerning REA diagrams, which of the following is false?
A) Each organization will have its own unique REA diagram.
B) An REA diagram for a given organization will change over time.
C) Data modeling and REA diagram development involve complex and repetitive processes.
D) Redrawing an REA diagram several times during development is uncommon.
Answer:
Page Ref: 508
Objective: Learning Objective 3
Difficulty : Easy
AACSB: Analytic

26) Data modeling is an element of
A) systems analysis.
B) conceptual design.
C) both A and B
D) none of the above
Answer:
Page Ref: 494
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic
27) Which of the following graphical symbols represents a minimum cardinality of zero and a maximum cardinality of one?
A)

B)

C)

D)

Answer:
Page Ref: 502
Objective: Learning Objective 3
Difficulty : Moderate
AACSB: Analytic

28) Which of the following graphical symbols represents a minimum cardinality of zero and a maximum cardinality of many?
A)

B)

C)

D)

Answer:
Page Ref: 502
Objective: Learning Objective 3
Difficulty : Moderate
AACSB: Analytic
29) Which of the following graphical symbols represents a minimum cardinality of one and a maximum cardinality of one?
A)

B)

C)

D)

Answer:
Page Ref: 502
Objective: Learning Objective 3
Difficulty : Moderate
AACSB: Analytic

30) Which of the following graphical symbols represents a minimum cardinality of one and a maximum cardinality of many?
A)

B)

C)

D)

Answer:
Page Ref: 502
Objective: Learning Objective 3
Difficulty : Moderate
AACSB: Analytic

31) Which of the following transactions is represented by the diagram below?

A) An automobile salvage business holds weekly auctions at which it sells its entire inventory.
B) A grocery store sells products to consumers.
C) A hobbyist restores antique cars. When a car is finished, she sells it on eBay.
D) A firm sells movies to consumers through an online downloading service.
Answer:
Page Ref: 506-507
Objective: Learning Objective 4
Difficulty : Difficult
AACSB: Reflective Thinking
32) Which of the following transactions is represented by the diagram below?

A) An automobile salvage business holds weekly auctions at which it sells its entire inventory.
B) A grocery store sells products to consumers.
C) A hobbyist restores antique cars. When a car is finished, she sells it on eBay.
D) A firm sells movies to consumers through an online downloading service.
Answer:
Page Ref: 506-507
Objective: Learning Objective 4
Difficulty : Difficult
AACSB: Reflective Thinking

33) Which of the following transactions is represented by the diagram below?

A) An automobile salvage business holds weekly auctions at which it sells its entire inventory.
B) A grocery store sells products to consumers.
C) A hobbyist restores antique cars. When a car is finished, she sells it on eBay.
D) A firm sells movies to consumers through an online downloading service.
Answer:
Page Ref: 506-507
Objective: Learning Objective 4
Difficulty : Difficult
AACSB: Analytic

34) Which of the following transactions is represented by the diagram below?

A) An automobile salvage business holds weekly auctions at which it sells its entire inventory.
B) A grocery store sells products to consumers.
C) A hobbyist restores antique cars. When a car is finished, she sells it on eBay.
D) A firm sells movies to consumers through an online downloading service.
Answer:
Page Ref: 506-507
Objective: Learning Objective 4
Difficulty : Easy
AACSB: Reflective Thinking
35) Which of the following transactions is represented by the diagram below?

A) Cash and carry consumer retail sales
B) Consumer retail sales paid in installments to the seller
C) Business to business sales of nondurable goods
D) Business that allows customers to carry a balance and make installment payments
Answer:
Page Ref: 505
Objective: Learning Objective 4
Difficulty : Difficult
AACSB: Reflective Thinking

36) Which of the following transactions is represented by the diagram below?

A) Cash and carry consumer retail sales
B) Consumer retail sales paid in installments to the seller
C) Business to business sales of nondurable goods
D) Business that allows customers to carry a balance and make installment payments
Answer:
Page Ref: 505
Objective: Learning Objective 4
Difficulty : Difficult
AACSB: Reflective Thinking

37) Which of the following transactions is represented by the diagram below?

A) Cash and carry consumer retail sales
B) Consumer retail sales paid in installments to the seller
C) Business to business sales of nondurable goods
D) Business that allows customers to carry a balance and make installment payments
Answer:
Page Ref: 505
Objective: Learning Objective 4
Difficulty : Difficult
AACSB: Reflective Thinking
38) Which of the following transactions is represented by the diagram below?

A) Cash and carry consumer retail sales
B) Consumer retail sales paid in installments to the seller
C) Business to business sales of nondurable goods
D) Business that allows customers to carry a balance and make installment payments
Answer:
Page Ref: 505-506
Objective: Learning Objective 4
Difficulty : Difficult
AACSB: Reflective Thinking

39) Which of the following transactions is represented by the diagram below?

A) Vendors send a bill for each inventory item purchased which is payable on receipt.
B) A single purchase of inventory is paid for with multiple payments.
C) Inventory vendors send a monthly bill for merchandise delivered. The seller does not accept or allow installment payments.
D) Some inventory purchases are paid for with multiple payments and some payments may apply to multiple purchases.
Answer:
Page Ref: 505
Objective: Learning Objective 4
Difficulty : Difficult
AACSB: Reflective Thinking

40) Which of the following transactions is represented by the diagram below?

A) Vendors send a bill for each inventory item purchased which is payable on receipt.
B) A single purchase of inventory is paid for with multiple payments.
C) Inventory vendors send a monthly bill for merchandise delivered. The seller does not accept or allow installment payments.
D) Some inventory purchases are paid for with multiple payments and some payments may apply to multiple purchases.
Answer:
Page Ref: 505
Objective: Learning Objective 4
Difficulty : Difficult
AACSB: Reflective Thinking
41) Which of the following transactions is represented by the diagram below?

A) Vendors send a bill for each inventory item purchased which is payable on receipt.
B) A single purchase of inventory is paid for with multiple payments.
C) Inventory vendors send a monthly bill for merchandise delivered. The seller does not accept or allow installment payments.
D) Some inventory purchases are paid for with multiple payments and some payments may apply to multiple purchases.
Answer:
Page Ref: 505
Objective: Learning Objective 4
Difficulty : Difficult
AACSB: Reflective Thinking

42) Which of the following transactions is represented by the diagram below?

A) Each sale is associated with a single order and there is a time lag between the time an order is taken and delivery of the product.
B) Each sale can be comprised of multiple orders and each order can be associated with multiple sales or no sales.
C) Each sale can be comprised of multiple orders and each order can be associated with one or more multiple sales.
D) Each sale is associated with a single order and there is no time lag between the time an order is taken and delivery of the product.
Answer:
Page Ref: 505
Objective: Learning Objective 4
Difficulty : Difficult
AACSB: Reflective Thinking

43) Which of the following transactions is represented by the diagram below?

A) Each sale is associated with a single order and there is a time lag between the time an order is taken and delivery of the product.
B) Each sale can be comprised of multiple orders and each order can be associated with multiple sales or no sales.
C) Each sale can be comprised of multiple orders and each order can be associated with one or more sales.
D) Each sale is associated with a single order and there is no time lag between the time an order is taken and delivery of the product.
Answer:
Page Ref: 505
Objective: Learning Objective 4
Difficulty : Difficult
AACSB: Reflective Thinking

44) Which of the following transactions is represented by the diagram below?

A) Each sale is associated with a single order and there is a time lag between the time an order is taken and delivery of the product.
B) Each sale can be comprised of multiple orders and each order can be associated with multiple sales or no sales.
C) Each sale can be comprised of multiple orders and each order can be associated with one or more sales.
D) Each sale is associated with a single order and there is no time lag between the time an order is taken and delivery of the product.
Answer:
Page Ref: 505
Objective: Learning Objective 4
Difficulty : Difficult
AACSB: Reflective Thinking

45) Which of the following transactions is represented by the diagram below?

A) Each sale is associated with a single order and there is a time lag between the time an order is taken and delivery of the product.
B) Each sale can be comprised of multiple orders and each order can be associated with multiple sales or no sales.
C) Each sale can be comprised of multiple orders and each order can be associated with one or more sales.
D) Each sale is associated with a single order and there is no time lag between the time an order is taken and delivery of the product.
Answer:
Page Ref: 505
Objective: Learning Objective 4
Difficulty : Difficult
AACSB: Reflective Thinking

46) A relationship is diagrammed below using the [Min, Max] notation. Which of the diagrams below represents the same relationship using the “crow’s fee” notation?

A)

B)

C)

D)

Answer:
Page Ref: 502-503
Objective: Learning Objective 3
Difficulty : Difficult
AACSB: Analytic

47) Cosgrove Art & Antiques sells unique art and antiques exclusively at antique shows. Cosgrove purchases inventory from individuals and other dealers at garage sales, flea markets, antique malls, and estate sales. Each time Cosgrove makes a purchase, she records the person’s name, address, date, specific items purchased and price paid, and total amount spent. Later at home, Cosgrove cleans, researches and prices the inventory items. She assigns an inventory number to each item and records the “asking” price. Cosgrove buys price tags and display supplies from a company that sells at flea market and antique shows. All inventory and supplies purchases are paid immediately with cash, or with checks from a bank account in the business’ name, to which sales are also deposited. Several times a year Cosgrove rents a booth at an antique show. A deposit is always required, with the balance due at the start of the show. Cosgrove records the deposit and final payment, along with the show organizer’s name and address, in the same worksheet on which purchases of inventory and supplies are recorded.

A well-planned and correctly drawn REA diagram for Cosgrove Art & Antiques, related to purchasing inventory and supplies, renting booths, and paying for all items, would
A) include eight unique entities.
B) include nine unique entities.
C) include seven unique entities.
D) include ten unique entities.
Answer:
Page Ref: 499
Objective: Learning Objective 3
Difficulty : Difficult
AACSB: Reflective Thinking
48) Cosgrove Art & Antiques sells unique art and antiques exclusively at antique shows. Cosgrove purchases inventory from individuals and other dealers at garage sales, flea markets, antique malls, and estate sales. Each time Cosgrove makes a purchase, she records the person’s name, address, date, specific items purchased and price paid, and total amount spent. Later at home, Cosgrove cleans, researches and prices the inventory items. She assigns an inventory number to each item and records the “asking” price. Cosgrove buys price tags and display supplies from a company that sells at flea market and antique shows. All inventory and supplies purchases are paid immediately with cash, or with checks from a bank account in the business’ name, to which sales are also deposited. Several times a year Cosgrove rents a booth at an antique show. A deposit is always required, with the balance due at the start of the show. Cosgrove records the deposit and final payment, along with the show organizer’s name and address, in the same worksheet on which purchases of inventory and supplies are recorded.

A well-planned and correctly drawn REA diagram for Cosgrove Art & Antiques, related to purchasing inventory and supplies, renting booths, and paying for all items, would
A) reflect nine 1:N relationships.
B) reflect two M:N relationships.
C) reflect ten 1:N relationships.
D) include two 1:1 relationships.
Answer:
Page Ref: 502
Objective: Learning Objective 3
Difficulty : Difficult
AACSB: Reflective Thinking

49) Cosgrove Art & Antiques sells unique art and antiques exclusively at antique shows. Cosgrove purchases inventory from individuals and other dealers at garage sales, flea markets, antique malls, and estate sales. Each time Cosgrove makes a purchase, she records the person’s name, address, date, specific items purchased and price paid, and total amount spent. Later at home, Cosgrove cleans, researches and prices the inventory items. She assigns an inventory number to each item and records the “asking” price. Cosgrove buys price tags and display supplies from a company that sells at flea market and antique shows. All inventory and supplies purchases are paid immediately with cash, or with checks from a bank account in the business’ name, to which sales are also deposited. Several times a year Cosgrove rents a booth at an antique show. A deposit is always required, with the balance due at the start of the show. Cosgrove records the deposit and final payment, along with the show organizer’s name and address, in the same worksheet on which purchases of inventory and supplies are recorded.

A well-planned and correctly drawn REA diagram for Cosgrove Art & Antiques, related to purchasing inventory and supplies, renting booths, and paying for all items, would
A) reflect minimum cardinalities of 1 for the relationship between Vendor and Cash Disbursement entities.
B) reflect the same number of 0 and 1 minimum cardinalities.
C) reflect more maximum cardinalities of M than of 1.
D) reflect maximum cardinalities of M for the relationship between Inventory and Purchase entities.
Answer:
Page Ref: 502
Objective: Learning Objective 3
Difficulty : Difficult
AACSB: Reflective Thinking
50) Cosgrove Art & Antiques sells unique art and antiques exclusively at antique shows. Cosgrove purchases inventory from individuals and other dealers at garage sales, flea markets, antique malls, and estate sales. Each time Cosgrove makes a purchase, she records the person’s name, address, date, specific items purchased and price paid, and total amount spent. Later at home, Cosgrove cleans, researches and prices the inventory items. She assigns an inventory number to each item and records the “asking” price. Cosgrove buys price tags and display supplies from a company that sells at flea market and antique shows. All inventory and supplies purchases are paid immediately with cash, or with checks from a bank account in the business’ name, to which sales are also deposited. Several times a year Cosgrove rents a booth at an antique show. A deposit is always required, with the balance due at the start of the show. Cosgrove records the deposit and final payment, along with the show organizer’s name and address, in the same worksheet on which purchases of inventory and supplies are recorded.

A well-planned and correctly drawn REA diagram for Cosgrove Art & Antiques, related to purchasing inventory and supplies, renting booths, and paying for all items, what entities would reflect economic duality?
A) Purchases and Cash Disbursements
B) Booth Rental and Cash Disbursements
C) Inventory and Purchases
D) Cash and Cash Disbursements
Answer:
Page Ref: 498
Objective: Learning Objective 3
Difficulty : Difficult
AACSB: Reflective Thinking

51) Cosgrove Art & Antiques sells unique art and antiques exclusively at antique shows. Cosgrove purchases inventory from individuals and other dealers at garage sales, flea markets, antique malls, and estate sales. Each time Cosgrove makes a purchase, she records the person’s name, address, date, specific items purchased and price paid, and total amount spent. Later at home, Cosgrove cleans, researches and prices the inventory items. She assigns an inventory number to each item and records the “asking” price. Cosgrove buys price tags and display supplies from a company that sells at flea market and antique shows. All inventory and supplies purchases are paid immediately with cash, or with checks from a bank account in the business’ name, to which sales are also deposited. Several times a year Cosgrove rents a booth at an antique show. A deposit is always required, with the balance due at the start of the show. Cosgrove records the deposit and final payment, along with the show organizer’s name and address, in the same worksheet on which purchases of inventory and supplies are recorded.

Draw an REA diagram for Cosgrove Art & Antiques, related to purchasing inventory and supplies, renting booths, and paying for all items.

52) Describe data modeling.

53) Describe an REA data model.

54) Define cardinality.

55) Describe the three basic rules that apply to the REA model pattern.

56) Describe the steps in developing an REA diagram.

57) Explain how an AIS system can be viewed as a set of “give-to-get” exchanges.

58) Define minimum and maximum cardinalities.

59) Describe the possible relationships between entities, in terms of cardinalities.

60) Explain specifically what is meant by the following statement, “Accountants can and should participate in all stages of the database design process.”

61) A dental office employs three dentists and five dental hygienists. One of the dentists is a very recent dental school graduate and can’t yet see patients on her own until she passes boards and obtains a license. Dentists perform all procedures personally, except for regular cleaning and x-rays, which are performed exclusively by dental hygienists. Three of the five dental hygienists perform only regular cleaning and x-rays. The other two hygienists each assist a specific dentist during procedures, as well as performing regular cleaning and x-rays. One of the hygienists will be assigned to the new dentist when she begins seeing patients. Hygienists usually ‘shadow’ other hygienists and dentists for two weeks prior to seeing patients.

Patients schedule appointments directly with dentists and hygienists, depending on the type of dental service needed. Patients do not have to choose a dentist until they need service other than routine cleaning or x-rays. Patients are assigned to a specific dental hygienist when they schedule their first appointment. The customer master file has 549 records. Diagram the agents described, relationships between agents, and the cardinality pairs for each relationship.