Test Bank For Accounting Information Systems The Crossroads of Accounting And IT 2nd Edition by Donna

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Test Bank For Accounting Information Systems The Crossroads of Accounting And IT 2nd Edition by Donna

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WITH ANSWERS
Accounting Information Systems The Crossroads of Accounting And IT 2nd Edition by Donna  Test Bank 

 

Accounting Information Systems, 2e (Kay/Ovlia)

Chapter 2   Accounting Databases

 

Objective 1

 

1) One of the disadvantages of a relational database is that we can enter data once into the database, and then reuse that data in various locations where it is needed.

Answer:  FALSE

Diff: 1

Objective:  Q2.1 What role does the database play in an accounting system?

 

2) According to the Pareto Principle, if you spend 80% of the time designing a database, you will spend 20% of your time maintaining the database.

Answer:  TRUE

Diff: 1

Objective:  Q2.1 What role does the database play in an accounting system?

 

3) Database management system (DBMS) software transfers data from the accounting software to the database.

Answer:  TRUE

Diff: 1

Objective:  Q2.1 What role does the database play in an accounting system?

 

4) Dirty data occurs when errors are entered into a system.

Answer:  TRUE

Diff: 1

Objective:  Q2.1 What role does the database play in an accounting system?

 

5) Entering data ________ reduces the change of entering errors.

Answer:  once

Diff: 2

Objective:  Q2.1 What role does the database play in an accounting system?

 

6) Nearly all accounting information today is stored in ________.

Answer:  databases

Diff: 3

Objective:  Q2.1 What role does the database play in an accounting system?

 

7) The ________ inserts, updates, and deletes data in the database.

Answer:  DBMS

Diff: 2

Objective:  Q2.1 What role does the database play in an accounting system?

 

8) Nancy Smith comes in to EspressoCoffee to provide her new address and you make the appropriate updates. When preparing a sales receipt for her a week later you notice Nancys old address appears on receipt. What does this indicate about the database?

  1. A) The database is working correctly.
  2. B) Nancy Smiths order was entered incorrectly.
  3. C) The same customer was entered into the database multiple times.
  4. D) The address information was updated for the wrong Nancy Smith.

Answer:  C

Diff: 2

Objective:  Q2.1 What role does the database play in an accounting system?

 

9) While auditing the Accounts Payable records, the auditor discovers an entry for Coffee Emporium with an address of 809 Main St., St. Louis MO and another entry for Coffee Emporium with an address of 809 Main Street, St. Louis MO. Each entry has a different vendor number. Which of the following statements is false?

  1. A) Data was entered into the database incorrectly.
  2. B) The onscreen form for entering vendor information correctly performed data validation.
  3. C) The database views these as two separate accounts.
  4. D) The data needs scrubbing.

Answer:  B

Diff: 2

Objective:  Q2.1 What role does the database play in an accounting system?

 

10) Which of the following statements is NOT a benefit associated with entering data once into a database?

  1. A) Reentering the same data again and again increases the chances of entering erroneous data,

such as misspellings and transpositions.

  1. B) It increase the opportunity to enter data incorrectly.
  2. C) When you need to update the customers address, you only need to update it once. This

eliminates the possibility of updating some, but not all, of the other entries.

  1. D) It is more efficient. You do not spend non-value-added time reentering the same information

again and again.

Answer:  B

Diff: 1

Objective:  Q2.1 What role does the database play in an accounting system?

 

11) Which of the following is NOT a tier in the accounting system architecture?

  1. A) Report tier
  2. B) Database tier
  3. C) User tier
  4. D) Application tier

Answer:  A

Diff: 1

Objective:  Q2.1 What role does the database play in an accounting system?

 

12) Which tier in the accounting system architecture that consists of onscreen forms?

  1. A) User tier
  2. B) Application tier
  3. C) Database tier
  4. D) Accounting tier

Answer:  A

Diff: 1

Objective:  Q2.1 What role does the database play in an accounting system?

 

13) When using an accounting database system, such as QuickBooks, what happens when an existing customer name is entered on an onscreen invoice form?

  1. A) The DBMS retrieves tax information and inserts it into the invoice.
  2. B) The DBMS retrieves address and contact information and inserts it into the invoice.
  3. C) The DBMS prompts you to enter the address and contact information.
  4. D) The DBMS retrieves inventory information and inserts it into the form.

Answer:  B

Diff: 3

Objective:  Q2.1 What role does the database play in an accounting system?

 

14) What does the DBMS software do?

Answer:  The DBMS software does the following.

  1. creates database tables
  2. transfers data from the accounting software to the database
  3. updates data in the database
  4. deletes data from the database
  5. sorts database tables
  6. runs queries

Diff: 2

Objective:  Q2.1 What role does the database play in an accounting system?

 

15) What is the Pareto Principle? How does this principle apply to accounting database design?

Answer:  The Pareto Principle is also called the 80/20 rule. When designing an accounting database, if you spend 80 percent of time and energy planning and design stages then just 20 percent of time will be spent on maintaining and updating the database. If just 20 percent of time and energy is spent on the planning and design stages, then 80 percent of time will be spent on maintaining and updating the database.

Diff: 3

Objective:  Q2.1 What role does the database play in an accounting system?

 

16) You are an intern in a large company. The company would like to improve the communications between the accountants and IT. Because of your background in AIS, you are asked to train the accountants. Your assignment is to describe to your colleagues how data flows through the accounting system architecture when a new customer is entered in the accounting software.

Answer:  The answer should include the following information.

 

The customer address and contact information is entered into the system using the onscreen forms (user interface tier).

This data is passed to the accounting software (application tier).

The accounting software passes the data to the DBMS software.

The DBMS inserts the data into the appropriate table in the database. (The DBMS and database are part of the database tier).

Diff: 2

Objective:  Q2.1 What role does the database play in an accounting system?

 

17) You are an intern in a large company. The company would like to improve the communications between the accountants and IT. Because of your background in AIS, you are asked to train the accountants. Your assignment is to describe how data flows through the accounting system architecture when a report is run against the database. Start with requesting the report.

Answer:  The answer should include the following information.

 

The report type is entered into or selected from an onscreen form/accounting interface (user interface tier).

The report type is passed to the accounting software (application tier).

The accounting software passes the data to the DBMS software.

The DBMS software retrieves the appropriate data from the various database tables in the database (the DBMS and database are part of the database tier).

The DBMS passes the data to the accounting software.

The accounting software passes the data accounting interface.

The accounting interface presents the data in the appropriate report format.

Diff: 3

Objective:  Q2.1 What role does the database play in an accounting system?

 

Objective 2

 

1) Data stored in a data warehouse is used for routine business activities.

Answer:  FALSE

Diff: 2

Objective:  Q2.2 What is the role of the database in the enterprise?

 

2) The ________ is responsible for managing the enterprises databases.

Answer:  database administrator (DBA)

Diff: 1

Objective:  Q2.2 What is the role of the database in the enterprise?

3) Data stored in a ________ may be current data, historical data, or future estimates.

Answer:  data warehouse

Diff: 2

Objective:  Q2.2 What is the role of the database in the enterprise?

 

4) In a ________ database structure, a parent record can have many child records and each child record can have only one parent record.

Answer:  hierarchical

Diff: 2

Objective:  Q2.2 What is the role of the database in the enterprise?

 

5) In a ________ database structure, a parent record can have many child records and a child record can have many parent records.

Answer:  network

Diff: 2

Objective:  Q2.2 What is the role of the database in the enterprise?

 

Match the database type to the corresponding structure.

 

  1. A) Multiple Tables
  2. B) One Parent and Multiple Children
  3. C) Multiple Parents and Multiple Children

 

6) Hierarchical Database

Diff: 2

Objective:  Q2.2 What is the role of the database in the enterprise?

 

7) Network Database

Diff: 2

Objective:  Q2.2 What is the role of the database in the enterprise?

 

8) Relational Database

Diff: 2

Objective:  Q2.2 What is the role of the database in the enterprise?

 

Answers: 6) B 7) C 8) A

 

9) Who are the people responsible for establishing policies for database security?

  1. A) Internal auditors and security personnel
  2. B) Database administrators and security personnel
  3. C) Database administrators and system users
  4. D) Internal auditors and database administrators

Answer:  D

Diff: 1

Objective:  Q2.2 What is the role of the database in the enterprise?

 

10) When retrieving data from a relational database, which of the following is true?

  1. A) You need to know the record address of the data.
  2. B) You need to understand the database structure.
  3. C) You need to know how the tables are related.
  4. D) You need to understand the parent/child record relationship.

Answer:  C

Diff: 2

Objective:  Q2.2 What is the role of the database in the enterprise?

 

11) Which type of data is NOT stored in a data warehouse?

  1. A) Historical data
  2. B) Current data
  3. C) Future estimates
  4. D) Data that is used for routine business activities

Answer:  D

Diff: 2

Objective:  Q2.2 What is the role of the database in the enterprise?

 

12) What is an operational database and a data warehouse? How are they different?

Answer:  An operational database stores data related to operating a business. The data is collected from enterprise accounting transactions, such as vendor transactions, customer transactions, and employee payroll. It also includes data about people, for example customers, vendors, and employees. The data is stored with primary keys so specific data may be retrieved.

 

A data warehouse stores data from a variety of sources. The data may be current, historical, or future estimates.

 

The difference is the data in an operational database is used for routine business activities. The data in a data warehouse is used for business intelligence to improve management decision making.

Diff: 2

Objective:  Q2.2 What is the role of the database in the enterprise?

 

13) What are the structures of a relational database, hierarchical database, and a network database? How is data retrieved from each of these types of databases?

Answer:  A relational database is structured as tables. A record is a row in one of the tables. The tables are related to each other by including common fields in two or more tables. The common fields are called primary key and foreign key. Data is retrieved by using the relationships between the tables.

 

A hierarchical database is structured in a hierarchy. Records are categorized as parent or child records. In this type of database a parent record may have many child records but a child record can have only one parent record. Data is retrieved by using record addresses.

 

A network database is structured as a network, or multi-dimensional web. Records are categorized as parent or child records. In this type of database, a parent record may have many child records and a child record may have many parent records. Data is retrieved by using record addresses.

Diff: 3

Objective:  Q2.2 What is the role of the database in the enterprise?

 

14) What is the difference between a relational database and a network database?

Answer:  A relational database stores data in multiple database tables. These tables are related to each other using common fields in two different tables. These common fields are referred to as the primary key and the foreign key. Data is retrieved by using the relationship between tables.

 

A network database stores data in records that are not grouped into database tables. Records are categorized as parent or child records. In this type of database, a parent record may have many child records and a child record may have many parent records. Data is retrieved by using record addresses.

Diff: 2

Objective:  Q2.2 What is the role of the database in the enterprise?

 

15) What is the difference between a relational database and a hierarchial database?

Answer:  A relational database stores data in multiple database tables. These tables are related to each other using common fields in two different tables. These common fields are referred to as the primary key and the foreign key. Data is retrieved by using the relationship between tables.

 

Hierarchical databases stores data in records that are not grouped into database tables. Records are categorized as parent or child records. In this type of database a parent record may have many child records but a child record can have only one parent record. Data is retrieved by using record addresses.

Diff: 2

Objective:  Q2.2 What is the role of the database in the enterprise?

 

Objective 3

 

1) Database fields are pieces of information about event, people, and objects.

Answer:  TRUE

Diff: 1

Objective:  Q2.3 How do I build an accounting database?

 

2) To retrieve data stored in a relational database, each record must have one or more unique identifier.

Answer:  TRUE

Diff: 1

Objective:  Q2.3 How do I build an accounting database?

 

3) What IT professionals call people or things, accounting professionals call objects.

Answer:  FALSE

Diff: 1

Objective:  Q2.3 How do I build an accounting database?

 

4) A database table that stores data about items a business sells is used in the Sales cycle and the Purchasing cycle.

Answer:  TRUE

Diff: 1

Objective:  Q2.3 How do I build an accounting database?

 

5) In a relational database, the database tables should not have any connections to other tables in the database.

Answer:  FALSE

Diff: 1

Objective:  Q2.3 How do I build an accounting database?

 

6) An intersection table transforms a many-to-many relationship to two one-to-many relationships.

Answer:  TRUE

Diff: 1

Objective:  Q2.3 How do I build an accounting database?

 

7) In a one-to-one relationship, for each record in one database table there are many records in a related table.

Answer:  FALSE

Diff: 1

Objective:  Q2.3 How do I build an accounting database?

 

8) The intersection tables primary key is a composite primary key.

Answer:  TRUE

Diff: 1

Objective:  Q2.3 How do I build an accounting database?

9) In the design phase of SDLC, the design for a new accounting database model is created that satisfies user requirements.

Answer:  TRUE

Diff: 1

Objective:  Q2.3 How do I build an accounting database?

 

10) In the Database Builder Realm database programmers work with the database users to identify user requirements.

Answer:  FALSE

Diff: 1

Objective:  Q2.3 How do I build an accounting database?

 

 

Match the database table to the appropriate transaction cycle.

 

  1. A) Banking Cycle
  2. B) Sales Cycle
  3. C) Purchasing Cycle
  4. D) Financial Cycle
  5. E) Payroll Cycle

 

11) General Ledger

Diff: 1

Objective:  Q2.3 How do I build an accounting database?

 

12) Account Transactions

Diff: 1

Objective:  Q2.3 How do I build an accounting database?

 

13) Time Worked

Diff: 1

Objective:  Q2.3 How do I build an accounting database?

 

14) Employee

Diff: 1

Objective:  Q2.3 How do I build an accounting database?

 

15) Purchase Order

Diff: 1

Objective:  Q2.3 How do I build an accounting database?

 

16) Cash Receipts

Diff: 1

Objective:  Q2.3 How do I build an accounting database?

 

17) Customer

Diff: 1

Objective:  Q2.3 How do I build an accounting database?

 

Answers: 11) D 12) D 13) E 14) E 15) C 16) B 17) B

 

18) Database ________ store pieces of information about people, events, and objects.

Answer:  fields

Diff: 1

Objective:  Q2.3 How do I build an accounting database?

 

 

19) Database ________ are used to search the database and retrieve specific data from one or more database tables.

Answer:  queries

Diff: 2

Objective:  Q2.3 How do I build an accounting database?

 

20) ________ tables are placed between two tables with many-to-many relationship to create two one-to-many relationships.

Answer:  Intersection

Diff: 2

Objective:  Q2.3 How do I build an accounting database?

 

21) An intersection tables primary key is a(n) ________.

Answer:  composite key

Diff: 2

Objective:  Q2.3 How do I build an accounting database?

 

22) Generally, the relationship between a table that stores customer data and table that stores sales order data is ________.

Answer:  one-to-many

Diff: 2

Objective:  Q2.3 How do I build an accounting database?

 

23) Generally, the relationship between a table that stores sales order data and a table that stores inventory data is ________.

Answer:  many-to-many

Diff: 2

Objective:  Q2.3 How do I build an accounting database?

 

24) Database fields are

  1. A) A collection of related tables
  2. B) A collection of related records
  3. C) Pieces of information about people, events, and objects
  4. D) A way to input data into a database

Answer:  C

Diff: 1

Objective:  Q2.3 How do I build an accounting database?

25) Database forms are

  1. A) A way to input data into the database
  2. B) Tools for searching and extracting data from a database
  3. C) Output of database queries
  4. D) None of the above

Answer:  A

Diff: 2

Objective:  Q2.3 How do I build an accounting database?

 

26) To create a relational database based on the payroll cycle, which types of data should be recorded in the database?

  1. A) Number of hours worked and inventory information
  2. B) Number of hours worked and purchase orders
  3. C) Employee information and number of hours worked
  4. D) Employee information and sales invoices

Answer:  C

Diff: 2

Objective:  Q2.3 How do I build an accounting database?

 

27) To create a relational database based on the purchasing cycle, which types of data should be recorded in the database?

  1. A) Customers, purchase orders, invoices
  2. B) Vendors, inventory items, invoices
  3. C) Inventory items, purchase orders, invoices
  4. D) Vendors, inventory items, purchase orders

Answer:  D

Diff: 2

Objective:  Q2.3 How do I build an accounting database?

 

28) Which statement is true regarding a one-to-many relationship?

  1. A) One-to-many relationships are the most common type of relationships in a relational database.
  2. B) Many records in one table relate to many records in a related table.
  3. C) This type of relationship is problematic when building a database and must be eliminated using an intersection table.
  4. D) For each record type in one database table there one record in the related table.

Answer:  A

Diff: 1

Objective:  Q2.3 How do I build an accounting database?

 

Use the database tables below to answer the following questions.

 

 

29) Which field in the SALES ORDERS table is a foreign key?

  1. A) SO No
  2. B) SO Date
  3. C) Shipping
  4. D) Customer ID

Answer:  D

Diff: 2

Objective:  Q2.3 How do I build an accounting database?

 

30) Which tables primary key has a composite primary key?

  1. A) CUSTOMERS
  2. B) SALES ORDERS
  3. C) ITEMS
  4. D) SO LINE

Answer:  D

Diff: 1

Objective:  Q2.3 How do I build an accounting database?

 

31) Which of the relationships below is a many-to-many relationship?

  1. A) CUSTOMERS, SALES ORDERS
  2. B) SALES ORDERS, ITEMS
  3. C) ITEMS, SO LINE
  4. D) SO LINE, CUSTOMERS

Answer:  B

Diff: 1

Objective:  Q2.3 How do I build an accounting database?

 

 

32) The ________ table is an intersection table.

  1. A) CUSTOMERS
  2. B) SALES ORDERS
  3. C) ITEMS
  4. D) SO LINE

Answer:  D

Diff: 1

Objective:  Q2.3 How do I build an accounting database?

33) By using an intersection table, which field can be removed from the SALES ORDERS table?

  1. A) SO No
  2. B) SO Date
  3. C) Item No
  4. D) Shipping

Answer:  C

Diff: 1

Objective:  Q2.3 How do I build an accounting database?

 

Use the database tables below to answer the following questions.

 

 

34) Which field in the TimeSheet table is a foreign key?

  1. A) Time Sheet ID
  2. B) Total Hours
  3. C) Week Ending
  4. D) Employee ID

Answer:  D

Diff: 3

Objective:  Q2.3 How do I build an accounting database?

 

 

35) Which tables primary key has a composite primary key?

  1. A) Projects
  2. B) TimeSheet
  3. C) TS Line
  4. D) Employees

Answer:  C

Diff: 3

Objective:  Q2.3 How do I build an accounting database?

 

36) Which of the relationships below is a many-to-many relationship?

  1. A) Projects, TS Line
  2. B) TimeSheets, Projects
  3. C) Employee, Timesheets
  4. D) TimeSheets, TS Line

Answer:  B

Diff: 3

Objective:  Q2.3 How do I build an accounting database?

37) Which table is an intersection table?

  1. A) Projects
  2. B) TS Line
  3. C) Timesheets
  4. D) Employees

Answer:  B

Diff: 1

Objective:  Q2.3 How do I build an accounting database?

 

38) By using an intersection table, which field can be removed from the TimeSheet table?

  1. A) Total Hours
  2. B) Week Ending
  3. C) Project ID
  4. D) EmployeeID

Answer:  C

Diff: 1

Objective:  Q2.3 How do I build an accounting database?

 

39) All the following statements about intersection tables are true EXCEPT

  1. A) Only one field in an intersect table is needed to uniquely identify a record
  2. B) The primary key for the intersection table includes the foreign keys of the tables
  3. C) Intersection tables remove many-to-many relationships
  4. D) An intersection tables primary key is a composite key

Answer:  A

Diff: 2

Objective:  Q2.3 How do I build an accounting database?

 

 

40) In which phase of the SDLC is the database documented using entity relationship diagrams?

  1. A) Install phase
  2. B) Analysis phase
  3. C) Design phase
  4. D) Build/Buy phase

Answer:  C

Diff: 2

Objective:  Q2.3 How do I build an accounting database?

 

41) In which database realm is associated with the deploy phase of the SDLC?

  1. A) Database application realm
  2. B) Database user realm
  3. C) Database designer realm
  4. D) Database builder realm

Answer:  B

Diff: 1

Objective:  Q2.3 How do I build an accounting database?

42) When designing accounting database tables, how can we ensure the database will support the data needed by the enterprise? How can this information be collected?

Answer:  By using business transactions to identify accounting database tables, we ensure that the database will support data needed by the enterprise. You can collect information about a specific enterprises business transactions by reviewing source documents, interviewing users, and observing procedures and operations.

Diff: 1

Objective:  Q2.3 How do I build an accounting database?

 

43) What is the purpose of a foreign key? Provide an example.

Answer:  A foreign key is a primary key in one table that appears in a second table to connect or relate the two tables. For, example in Customer table the primary key is Customer ID. This field will also be in the Sales Order table. The primary key of the Sales Order table is Order Number. By including the primary key in of Customer table in the Sales Order table the two table are connected (related) and each sales order is associated with a customer.

Diff: 2

Objective:  Q2.3 How do I build an accounting database?

 

 

44) Describe the types of relationships possible between tables in a relational database. Indicate whether each relationship is desirable in a relational database.

Answer:  One-to-one: In this relationship, for each record in one table there is one record in the related table. This is a desirable relationship in a relational database.

 

One-to-many: In this relationship, for each record in one table there are multiple records in the related table. This is a desirable relationship in a relational database.

 

Many-to-many: In this relationship, multiple records in one table relate to multiple records in the related table. This is an undesirable relationship in a relational database.

Diff: 2

Objective:  Q2.3 How do I build an accounting database?

 

45) Why are calculated amounts NOT stored in a database?

Answer:  Calculated amounts would be redundant data. In general, calculated amounts are not stored in database fields to avoid overlooking updating the calculated field, which would result in inconsistent data. Instead, database queries perform the calculations.

Diff: 2

Objective:  Q2.3 How do I build an accounting database?

 

46) How are database tables connected? Please provide an example.

Answer:  First, identify a relationship between two tables, (for example, customer places an order). Second, build the relationship between the tables using one or more fields common to the two tables.

 

For example, a Customer table and Sales Order table may be related through a field that is common to both tables, the Customer No. field. (The student may provide a different example.)

Diff: 2

Objective:  Q2.3 How do I build an accounting database?

47) Describe the possible types of database issues or anomalies.

Answer:  Deletion problem: This occurs when deleting record, such as a customer, vendor, or inventory item, will result in the deletion of other records contain data vital to future activities or reports.

 

Update problem: This occurs when updating a record requires making the same changes to other records or when the database does not store important data.

 

Insertion problem: This occurs when a unique identifer but that piece of data has not been created. For example, requiring a invoice number to add a customer record, however, customer has not purchased anything yet.

Diff: 2

Objective:  Q2.3 How do I build an accounting database?

 

 

Objective 4

 

1) Database anomalies are limited to databases using a network structure.

Answer:  FALSE

Diff: 1

Objective:  Q2.4 What is database integrity?

 

2) Intersection tables do not remove duplicate records from tables that have a many-to-many relationships.

Answer:  FALSE

Diff: 1

Objective:  Q2.4 What is database integrity?

 

3) To maintain primary key integrity, a relational database designer will not allow a primary key to have a null (empty) value.

Answer:  TRUE

Diff: 1

Objective:  Q2.4 What is database integrity?

 

4) Referential integrity ensures data is consistent throughout the database.

Answer:  TRUE

Diff: 1

Objective:  Q2.4 What is database integrity?

 

5) Database anomalies can be removed by the process of ________.

Answer:  normalization

Diff: 1

Objective:  Q2.4 What is database integrity?

 

To answer the following questions, refer to the database below.

 

 

6) The following statements regarding the Vendor Orders table above are true EXCEPT

  1. A) The database requires entering the same vendor contact information multiple times
  2. B) The database does not break the referential integrity rule
  3. C) The database requires a PO number and and item number to add a vendor record
  4. D) Deleting a vendor will also delete inventory information

Answer:  B

Diff: 2

Objective:  Q2.4 What is database integrity?

 

7) To add a vendor to the Vendor Orders table, the following information is required EXCEPT

  1. A) PO Number
  2. B) Vendor ID
  3. C) Item Number
  4. D) Vendor name

Answer:  D

Diff: 1

Objective:  Q2.4 What is database integrity?

 

8) The Vendor Orders table contains the following database anomalies EXCEPT

  1. A) Normalization problem
  2. B) Update problem
  3. C) Deletion problem
  4. D) Insertion problem

Answer:  A

Diff: 1

Objective:  Q2.4 What is database integrity?

 

9) Separating the database into related tables instead of using just one large table helps to eliminate

  1. A) Deletion, update, and normalization problems
  2. B) Update, insertion, and creation problems
  3. C) Insertion, update, and authorization problems
  4. D) Deletion, update, and insertion problems

Answer:  D

Diff: 2

Objective:  Q2.4 What is database integrity?

 

10) Normalization is an optimization process that minimizes which of the following?

  1. A) Database integrity
  2. B) Unauthorized access
  3. C) Database access
  4. D) Redundancy

Answer:  D

Diff: 1

Objective:  Q2.4 What is database integrity?

 

11) When a database has been normalized, which of the following is true?

  1. A) The database has an increased chance of inconsistencies.
  2. B) The database requires the user to enter data twice.
  3. C) The database tables do not have a many-to-many relationship.
  4. D) The database has an increased chance of redundancies.

Answer:  C

Diff: 1

Objective:  Q2.4 What is database integrity?

 

12) Which database integrity rule ensures each record may be retrieved from the database using a unique identifier?

  1. A) Entity integrity
  2. B) Referential integrity
  3. C) Domain integrity
  4. D) Primary key integrity

Answer:  A

Diff: 2

Objective:  Q2.4 What is database integrity?

 

 

13) When requiring a user to select from a list to enter data, such as the state in an address, the database is conforming to which database integrity rule?

  1. A) Entity integrity
  2. B) Referential integrity
  3. C) Domain integrity
  4. D) Primary key integrity

Answer:  C

Diff: 2

Objective:  Q2.4 What is database integrity?

Use the database table below to answer the following questions.

 

 

14) You are an accountant at a small company and you are reviewing the vendor database table. Identify the database anomalies shown and explain how they impact this database.

Answer:  This database contains the deletion anomaly, update anomaly, and the insertion anomaly.

 

The deletion anomaly in this database prevents the deletion of a vendor. If a vendor was deleted, the information for a purchase order would also be deleted, deleting the purchase order information which is needed for various management and financial reports.

 

The update anomaly in this database means if the phone number for a vendor changes, additional records would need to be updated to reflect that change.

 

The insertion anomaly in this database means a new vendor cannot be added to the database until the company submits a purchase order to the vendor.

Diff: 3

Objective:  Q2.4 What is database integrity?

 

 

15) What suggestions would you give the database designer? How should the database be created to eliminate the database anomalies? (Be specific.)

Answer:  The single table should be divided into 4 tables. One table for vendor information, one table for item information, one table for purchase order information, and one intersect table. The graphic below provides field names and primary keys.

Diff: 3

Objective:  Q2.4 What is database integrity?

16) An audit of customer records in the accounting database reveals data in the state field was entered inconsistently. Some customers states were entered using the two letter abbreviation (MO, CA, or IA) and others were spelled out (Missouri, California, or Iowa). Which database integrity rule is NOT being followed? What type of controls can be implemented to prevent this in the future?

Answer:  The database integrity rule 3: domain integrity is not being followed.

 

To prevent this in the future, the state field in the onscreen entry form should be changed to a list of the states. The user selects the appropriate state for the customer.

Diff: 2

Objective:  Q2.4 What is database integrity?

 

17) What are the three types of database anomalies? Define each type.

Answer:  A deletion anomaly occurs when deleting a record, such as a customer record, will also delete additional records.

 

An update anomaly occurs when updating information, such as a customer address, must be updated multiple times or information, such as ZIP code, can not be stored.

 

An insertion anomaly occurs when adding a unique record requires data that does not exist, such as a sales order.

Diff: 1

Objective:  Q2.4 What is database integrity?

 

18) What is primary key integrity? What happens when a database does NOT have or enforce primary key integrity?

Answer:  Primary key integrity is the database integrity rule number 2. It states that the primary key value cannot be null (empty). Each record must have a value for the primary key field.

 

If a database does not enforce primary key integrity, the database may have insertion problems (data may be entered without a unique identifier). This results in data redundancy, and increases the risk of not being able to retrieve that data.

Diff: 1

Objective:  Q2.4 What is database integrity?

 

 

19) What is referential integrity? What happens when a database does NOT have or enforce referential integrity?

Answer:  Referential integrity is the database integrity rule number 4. It states that data referenced and stored in related tables must be consistent across the database. For example, a customer address should be the same in any table in which it is referenced. Referential integrity is improved when the customer address, for example, is stored in one location only, eliminating the possibility of the address differing from table to table.

 

If a database does not enforce referential integrity, the database may have deletion problems (not deleting all the data) and update problems (required to update multiple records).

Diff: 1

Objective:  Q2.4 What is database integrity?

Objective 5

 

1) The bookkeeper at the retail store Cycle Bikes enters adjusting entries using an onscreen journal. This indicates that Cycle Bikes has a manual accounting system.

Answer:  FALSE

Diff: 1

Objective:  Q2.5 What are the differences between a manual accounting system and a database accounting system?

 

2) In a database accounting system, the following is true EXCEPT

  1. A) Transactions are entered using onscreen database forms
  2. B) Adjustments are made using an onscreen journal
  3. C) Closing entries are made manually with debits and credits
  4. D) Account information is stored in database tables

Answer:  C

Diff: 1

Objective:  Q2.5 What are the differences between a manual accounting system and a database accounting system?

Accounting Information Systems, 2e (Kay/Ovlia)

Chapter 6   Integrated Enterprise Systems and Cloud Computing

 

Objective 1

 

1) Technological advances in the past 15 to 20 years make it very difficult to integrate the accounting system with other systems.

Answer:  FALSE

Diff: 1

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

 

2) Silo systems were usually built on platforms (hardware and operating systems) that best fit an individual department needs.

Answer:  TRUE

Diff: 1

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

 

3) The Internet permits remote sites to use a central database less efficiently.

Answer:  FALSE

Diff: 1

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

 

4) Each time data is rekeyed, it presents another opportunity for errors to enter the system.

Answer:  TRUE

Diff: 1

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

 

5) A computer system that does not connect or communicate with any other computer system is called a ________.

Answer:  stand-alone system or silo system

Diff: 2

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

 

6) ________ connect stand-along personal computers.

Answer:  local area networks (LANs)

Diff: 2

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

 

7) Custom programs that connected separate systems is sometimes called ________.

Answer:  spaghetti code

Diff: 2

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

 

 

8) Integrated enterprise systems provide an opportunity to use the shared data to create ________ and ________ to monitor enterprise performance.

Answer:  business intelligence, digital financial dashboards

Diff: 2

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

9) The first computer systems were

  1. A) Connected with other systems using spaghetti code
  2. B) Stand-alone silo systems
  3. C) Connected to other systems using local area networks
  4. D) Connected to other systems wirelessly

Answer:  B

Diff: 2

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

 

10) For optimal effectiveness, the accounting system needs to be

  1. A) Running in a stand-alone environment
  2. B) Integrated throughout the enterprise
  3. C) Inaccessible to accountants
  4. D) Unsecured so that anyone can access the data

Answer:  B

Diff: 2

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

 

11) In the 1960s and 1970s, stand-alone systems within a company were often connected using

  1. A) Spaghetti code
  2. B) Local area networks
  3. C) Wireless networks
  4. D) Flash drive networks

Answer:  A

Diff: 2

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

 

12) In the early 1980s, data was shared between personal computers using

  1. A) Flash drives
  2. B) Local area networks
  3. C) Floppy disks
  4. D) Wireless networks

Answer:  C

Diff: 2

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

 

 

13) An automated work flow automates

  1. A) Information flow among enterprise segments and other enterprises at remote sites
  2. B) The flow of documents among employees
  3. C) The flow of information among software modules and functional areas
  4. D) The flow of data to databases

Answer:  B

Diff: 2

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

14) Automated business processes automate

  1. A) Information flow among enterprise segments and other enterprises at remote sites
  2. B) The flow of documents amount employees
  3. C) The flow of information among software modules and functional areas
  4. D) The flow of data to databases

Answer:  A

Diff: 2

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

 

15) The integrated enterprise system offers a business process management system by combining all the following EXCEPT

  1. A) Change management
  2. B) Automated workflow
  3. C) Internet technologies
  4. D) Automated business processes

Answer:  A

Diff: 2

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

 

16) Why does an accounting system need to be integrated throughout an enterprise?

Answer:  The accounting system interacts with all aspects of an organization, capturing and providing information to virtually all areas within an enterprise. Sales, purchasing, human resources, shipping, receiving, operations, production, customer service, and others rely upon the accounting system to capture and retrieve data needed to meet their needs.

Diff: 2

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

 

17) What are the tiers in a silo computer system?

Answer:

Database tier

Application tier

User tier

Diff: 1

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

 

 

18) What is a stand-alone, or silo, computer system?

Answer:  A stand-alone, or silo, computer system is any computer system that does not connect with another computer system within the organization. Data in a stand-alone system is not shared with other computer systems within the organization.

Diff: 3

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

19) Trace the path from stand-alone systems to integrated enterprise systems.

Answer:

Stand-alone mainframe systems

spaghetti code to connect stand-alone mainframe systems

Stand-alone personal computers

Floppy disk to share data between stand-alone personal computers

Local area networks to connect stand-alone personal computers

Client server architecture to improve LANs

Integrated enterprise systems

Diff: 3

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

 

20) What is a client server?

Answer:  A computer that serves other computers on a network. A client server generally has more processing power and disk storage space.

Diff: 1

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

 

21) What is a local area network (LAN)?

Answer:  A local area network (LAN) connects a group of stand-alone computers within an organization. This permits the sharing of electronically between computers. This was the birth of computer networks.

Diff: 2

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

 

22) What is a client server architecture?

Answer:  Client server architecture is basically the addition of servers (computers that serve other computers on the network with more processing power and disk storage space) to a LAN. These servers improved the sharing of applications and data throughout the organization. The client in these systems is usually the computers setting on individual workers desks. The servers store and retrieve data that is requested by the client.

Diff: 2

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

 

 

23) Why did many companies install new integrated enterprise systems at the turn of the millennium?

Answer:  When database storage space was relatively costly, programmers would save storage space by saving only the required characters. In the case of the year, only the last two characters were usually stored. This solution worked well for years 1953, 1976, and 1981. However, with the advent of the new millennium, if only the last two digits were stored, the system would not know if 53 referred to 1953 or 2053. In this case, software application programs would not run properly, integrated processors in production equipment might not function, and database queries would not retrieve needed data. The new systems solved this issue.

Diff: 1

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

24) Provide an example of how the integrated enterprise system technology permits data to flow through functional areas as it passes through the value chain.

Answer:  Data entered for supply chain management (SCM) can be reused by the accounting system in the purchasing cycle. Time worked by shop floor employees, tracked by the operations/production system (OPS), is used in the accounting payroll cycle. Customer transaction information can be shared by customer relationship management (CRM) and the accounting system sales cycle.

Diff: 3

Objective:  Q6.1 What is an integrated enterprise system and how did we get here?

 

Objective 2

 

1) A well-designed integrated enterprise system offers live information that facilitates business agility.

Answer:  TRUE

Diff: 1

Objective:  Q6.2 What are the benefits and challenges of an integrated enterprise system?

 

2) Overestimating implementation costs is a leading cause of project failures.

Answer:  FALSE

Diff: 1

Objective:  Q6.2 What are the benefits and challenges of an integrated enterprise system?

 

3) Integrated systems can improve all the following EXCEPT

  1. A) Communication
  2. B) Coordination of activities
  3. C) Reduction of duplication
  4. D) Shifting to functional silos

Answer:  D

Diff: 2

Objective:  Q6.2 What are the benefits and challenges of an integrated enterprise system?

 

 

4) One of the benefits of an integrated enterprise system is

  1. A) Having to change how business operations are conducted
  2. B) The need to customize the integrated enterprise system to meet specific organizational needs
  3. C) The integration of best practices which facilitate compliance with regulatory and accounting requirements
  4. D) Managing the change that individuals within the organization experience as a result of the newly integrated system

Answer:  C

Diff: 2

Objective:  Q6.2 What are the benefits and challenges of an integrated enterprise system?

5) Business Process Management involves

  1. A) Customizing the accounting system to meet current business practices
  2. B) Writing code to connect multiple heterogeneous systems
  3. C) Managing the change that individuals within the organization experience as the result of moving to an new system
  4. D) Changing how business operations are conducted

Answer:  D

Diff: 2

Objective:  Q6.2 What are the benefits and challenges of an integrated enterprise system?

 

6) What are the benefits of an integrated enterprise system?

Answer:

Integrated systems can improve communication, coordinate activities, and reduce

duplication.

Integrated system providers, such as SAP and Oracle, incorporate best practices into their products. Best practices can facilitate compliance with regulatory and accounting requirements of the Securities and Exchange Commission (SEC), the Public Company Accounting Oversight Board (PCAOB), and the Sarbanes-Oxley Act.

Integrated systems may grant suppliers and customers access to track shipments and orders within the system. Sharing information with supply-chain partners can improve efficiency and coordination, thereby reducing costs.

Diff: 2

Objective:  Q6.2 What are the benefits and challenges of an integrated enterprise system?

 

7) What are the challenges of an integrated enterprise system?

Answer:  Two challenges some enterprises have faced when implementing integrated enterprise systems are shifting from functional silos to integrated system business processes and managing the change required by such a shift.

 

Yet another challenge to implementing an integrated enterprise system is whether to link current heterogeneous systems or to start anew.

 

One of the challenges of implementing an integrated enterprise system is staying on time and on budget.

Diff: 2

Objective:  Q6.2 What are the benefits and challenges of an integrated enterprise system?

 

Objective 3

 

1) In a three-tier architecture, the database tier and application tier are considered the front-end.

Answer:  FALSE

Diff: 2

Objective:  Q6.3 What IT architecture does an integrated enterprise system use?

 

2) The firewall program is like a communication policeman monitoring traffic to and from the servers, preventing unauthorized access.

Answer:  TRUE

Diff: 2

Objective:  Q6.3 What IT architecture does an integrated enterprise system use?

3) Typically, firewalls are not constructed between each tier of the three-tier architecture.

Answer:  FALSE

Diff: 2

Objective:  Q6.3 What IT architecture does an integrated enterprise system use?

 

4) In three-tier architecture, the database tier and application tier are considered the ________.

Answer:  back-end

Diff: 2

Objective:  Q6.3 What IT architecture does an integrated enterprise system use?

 

5) In a three-tier architecture, the user tier is called the ________.

Answer:  front-end

Diff: 2

Objective:  Q6.3 What IT architecture does an integrated enterprise system use?

 

6) The ________ executes commands to add, update, retrieve, and delete data from the database.

Answer:  Relational Database Management System (RDBMS)

Diff: 2

Objective:  Q6.3 What IT architecture does an integrated enterprise system use?

 

7) The user interface may be text-based or a ________.

Answer:  graphical user interface (GUI)

Diff: 1

Objective:  Q6.3 What IT architecture does an integrated enterprise system use?

 

8) A ________ is a program on the router, an electronic device that routes data being transferred on the network.

Answer:  firewall

Diff: 1

Objective:  Q6.3 What IT architecture does an integrated enterprise system use?

 

 

9) Which tier below is NOT considered part of the integrated enterprise system architecture?

  1. A) Firewall tier
  2. B) User tier
  3. C) Database tier
  4. D) Application tier

Answer:  A

Diff: 1

Objective:  Q6.3 What IT architecture does an integrated enterprise system use?

 

10) The most important function of a firewall is

  1. A) Connect the three tiers within the integrated enterprise system
  2. B) Prevent unauthorized access to data
  3. C) Monitor network traffic to and from the server
  4. D) Allow the data to flow free throughout the system

Answer:  B

Diff: 3

Objective:  Q6.3 What IT architecture does an integrated enterprise system use?

11) A firewall does all the following EXCEPT

  1. A) Monitor network traffic to and from the server
  2. B) Route data being transferred through the network
  3. C) Prevent unauthorized access to data
  4. D) Allow the data to flow freely through the system

Answer:  D

Diff: 2

Objective:  Q6.3 What IT architecture does an integrated enterprise system use?

 

12) What does the user tier consist of?

  1. A) Centralized database
  2. B) Front-end client computers
  3. C) Applications, such as Oracle Financial
  4. D) Firewall program

Answer:  B

Diff: 2

Objective:  Q6.3 What IT architecture does an integrated enterprise system use?

 

13) Which component in an integrated enterprise system is responsible for preventing unauthorized access?

  1. A) Graphical User Interface (GUI)
  2. B) RDBMS
  3. C) Firewall
  4. D) Client computer

Answer:  C

Diff: 2

Objective:  Q6.3 What IT architecture does an integrated enterprise system use?

 

14) Describe the IT architecture of an integrated enterprise system.

Answer:  The IT architecture of an integrated enterprise system is a three-tier architecture: database tier, application tier, and user tier.

 

The database tier is comprised of a large centralized relational database. As you know, the relational database uses software called relational database management system (RDBMS). The RDBMS executes commands to add, update, retrieve, and delete data from the database. The database and RDBMS are stored on database servers or specialized computers designed to maintain the database. Large-scale database applications, such as Oracle 11g database or IBM DB2, are examples of the types of databases used with large-scale integrated enterprise systems.

 

The application tier consists of application servers, specialized computers that store and run the applications, such as Oracle Financials or SAP. Applications are the software programs that interact with the RDBMS. The application tier contains the modules for accounting, operations, sales, supply chain, and human resources. For example, in an accounting software application, the accountant might enter adjusting entries to bring accounts up to date at year end. The accounting application software would interact with the RDBMS to update the appropriate account balances.

 

The user tier consists of front-end client computers. This would include the user interface that appears on the accountants computer screen. The user interface may be text-based or a graphical user interface (GUI). Accounting applications may use database forms that resemble the hard-copy paper forms in order to streamline data entry.

Diff: 2

Objective:  Q6.3 What IT architecture does an integrated enterprise system use?

 

15) Why are firewalls placed between each tier of the integrated enterprise system?

Answer:  Firewalls are placed between each tier to mitigate risk of unauthorized access and possible data theft or destruction, security and control measures are used to safeguard the information assets stored in the integrated enterprise system. Each tier of the three-tier architecture has unique security and control requirements.

Diff: 2

Objective:  Q6.3 What IT architecture does an integrated enterprise system use?

 

16) What is a firewall?

Answer:  A firewall is a program on the router, an electronic device that routes data being transferred on the network. The firewall program is like a communication policeman monitoring traffic to and from the servers, preventing unauthorized access.

Diff: 2

Objective:  Q6.3 What IT architecture does an integrated enterprise system use?

 

 

Objective 4

 

1) Integrated enterprise systems, such as SAP, are able to integrate with customer systems to share data with customers.

Answer:  TRUE

Diff: 2

Objective:  Q6.4 What do I need to know about SAP?

2) SAP software is used around the globe by large companies to integrate supply chain, operations, sales, human resources, and accounting functions.

Answer:  TRUE

Diff: 1

Objective:  Q6.4 What do I need to know about SAP?

 

3) SAP uses a navigation pane with tabs that correspond to the modules in the baseline accounting system.

Answer:  TRUE

Diff: 1

Objective:  Q6.4 What do I need to know about SAP?

 

4) The SAP A/R Invoice is used to bill items received from a vendor.

Answer:  FALSE

Diff: 1

Objective:  Q6.4 What do I need to know about SAP?

 

5) When a system allows the copying information from an existing document, such as a purchase order, it saves time and reduces the opportunity for error.

Answer:  TRUE

Diff: 1

Objective:  Q6.4 What do I need to know about SAP?

 

6) When items are received from a vendor, SAP Business All-in-One requires someone to manually compare the PO, the goods received, and the bill entered (A/P Invoice).

Answer:  FALSE

Diff: 1

Objective:  Q6.4 What do I need to know about SAP?

 

7) With SAP, it is not necessary to enter adjusting journal entries into the system. SAP calculates the values automatically at year end.

Answer:  FALSE

Diff: 2

Objective:  Q6.4 What do I need to know about SAP?

 

 

8) Some integrated enterprise system providers may also have additional modules to use in budgeting and cost accounting functions.

Answer:  TRUE

Diff: 1

Objective:  Q6.4 What do I need to know about SAP?

 

9) The integrated database management system offers the enterprise additional reporting capabilities that could not be offered before the era of integrated systems.

Answer:  TRUE

Diff: 2

Objective:  Q6.4 What do I need to know about SAP?

10) Access to the SAP system is determined by the ________ assigned to a specific employee.

Answer:  role

Diff: 2

Objective:  Q6.4 What do I need to know about SAP?

 

11) ________ is designed for midsize businesses wanting an integrated enterprise system.

Answer:  SAP Business All-in-One

Diff: 2

Objective:  Q6.4 What do I need to know about SAP?

 

12) ________ is designed for small and midsize businesses seeking an integrated solution that goes beyond accounting-only software.

Answer:  SAP Business One

Diff: 2

Objective:  Q6.4 What do I need to know about SAP?

 

13) SAP Business All-in-One for midsize companies uses a ________ with traffic light alerts to track the order status from order placement, picking, and delivery.

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