Accounting Information Systems, 13e (Romney/Steinbart)
Chapter 17 Database Design Using the REA Data Model
17.1 Discuss the steps for designing and implementing a database system.
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.
2) 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.
3) 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.
4) 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
5) A(n) ________ diagram graphically depicts a database’s contents by showing entities and
relationships.
A) data flow
B) flowchart
C) entity-relationship
D) REA
6) In creating an entity-relationship diagram, ________ is anything about which an organization
wants to collect and store information.
A) a data model
B) an entity
C) a schema
D) a tuple
7) An entity-relationship diagram represents entities as ________ and the relationships between
them as lines and ________.
A) circles; squares
B) squares; diamonds
C) rectangles; diamonds
D) rectangles; circles
8) An entity-relationship diagram
A) can represent the contents of any database.
B) is only used in conjunction with REA models.
C) can show a limited number of entities and relationships.
D) is used only to design new databases.
9) Data modeling is an element of
A) systems analysis.
B) conceptual design.
C) both A and B
D) neither A nor B
10) Describe data modeling.
11) Explain specifically what is meant by the following statement: “Accountants can and should
participate in all stages of the database design process.”
12) In which stage(s) of the database design process is the completed data model used?
A) only in the systems analysis stage
B) only in the conceptual design stage
C) in both the systems analysis and design stages
D) neither the systems analysis nor the design stages
13) In which stage(s) of the database design process should accountants participate?
A) the systems analysis stage
B) the conceptual design stage
C) the implementation and conversion stage
D) in all of the stages above
14) With regards to the database design process, accountants may provide the greatest value to
their organization by participating in
A) implementation and conversion.
B) data modeling.
C) database operation and maintenance.
D) system auditing.
15) True or False: Besides modeling entities as rectangles, there are no industry standards for
entity-relationship diagrams.
16) True or False: It is industry standard to model entities as rectangles on entity-relationship
diagrams.
17) It is industry standard to model relationships as ________ in entity-relationship diagrams.
A) rectangles
B) ovals
C) diamonds
D) there is no industry standard
18) It is industry standard to model attributes as ________ in entity-relationship diagrams.
A) rectangles
B) ovals
C) diamonds
D) There is no industry standard.
17.2 Use the REA data model to design an AIS database.
1) The REA data model
A) is used in many areas of business and science.
B) was developed specifically for use in designing accounting information systems.
C) classifies data into relationships, entities and accounts.
D) all of the above
2) 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.
3) 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.
4) Relationships that affect the quantity of a resource are sometimes referred to as ________
relationships.
A) commitment
B) exchange
C) stockflow
D) duality
5) 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
6) 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
7) Describe an REA data model.
8) REA models are usually depicted in which diagramming form?
A) entity-relationship diagrams
B) decision tree diagrams
C) if-then diagrams
D) stock-flow diagrams
9) Identify the item below that would be classified as a resource by the REA data model.
A) an IOU from a customer
B) the CFO
C) a customer sale
D) none of the above
10) Identify the item below that would be classified as an event by the REA data model.
A) an IOU from a customer
B) the CFO
C) a customer sale
D) none of the above
11) Identify the item below that would be classified as an agent by the REA data model.
A) an IOU from a customer
B) the CFO
C) a customer sale
D) none of the above
12) What is the minimum number of agents that must participate in each REA event?
A) 0
B) 2
C) 1
D) 3
13) What is the minimum number of external agents that must participate in each REA event?
A) 0
B) 2
C) 1
D) 3
14) Assume that you are looking at a REA diagram that depicts only one event. Which of the
following must be on the REA diagram?
A) an external agent
B) an internal agent
C) both A and B
D) neither A nor B
15) Identify the notation often used to represent cardinality information.
A) dotted lines
B) Greek characters
C) crow’s feet
D) color coding
16) Identify the notation below that is not used to represent cardinality information.
A) UML
B) (Min, Max)
C) DFD
D) Maximums only
17) Every citizen in the United States has one social security number, but no two citizens have
the same social security number. Thus, the cardinality that exists between social security
numbers and citizens is
A) one-to-one.
B) one-to-many.
C) many-to-many.
D) none of the above
18) Every person in the world has a birthdate, but no person has more than one birthdate. Thus,
the cardinality that exists between birthdate and people is
A) one-to-one.
B) one-to-many.
C) many-to-many.
D) none of the above
19) Every person in the world can have more than one friend, and each person in the world can
be a friend to more than one person. Thus, the cardinality that exists between friends and people
is
A) one-to-one.
B) one-to-many.
C) many-to-many.
D) none of the above
17.3 Draw an REA diagram of an AIS database.
1) 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
2) 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
3) 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
4) 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.
5) The first step in developing an REA diagram for a specific transaction cycle begins with
identifying
A) relevant events.
B) agents involved.
C) resources affected.
D) relationship cardinalities.
6) Identify the statement below that is false with respect to 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.
7) Identify the minimum cardinality of any REA diagram relationship.
A) 0 or 1
B) 0 or N
C) 1 or N
D) none of the above
8) The maximum cardinality of any REA diagram relationship is
A) zero or one.
B) one or many.
C) zero or many.
D) none of the above
9) How many types of relationships are possible between entities?
A) one
B) two
C) three
D) an infinite number
10) Identify the most likely relationship where cardinalities have zero minimums and N
maximums.
A) agent-event relationship
B) resource-event relationship
C) event-event relationship
D) All of the above are equally likely.
11) Which of the following statements is false regarding REA diagrams?
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.
12) Which of the following graphical symbols represents a minimum cardinality of zero and a
maximum cardinality of one?
A)
B)
C)
D)
13) Which of the following graphical symbols represents a minimum cardinality of zero and a
maximum cardinality of many?
A)
B)
C)
D)
14) Which of the following graphical symbols represents a minimum cardinality of one and a
maximum cardinality of one?
A)
B)
C)
D)
15) Which of the following graphical symbols represents a minimum cardinality of one and a
maximum cardinality of many?
A)
B)
C)
D)
16) A relationship is diagrammed below using the [Min, Max] notation. Which of the diagrams
below represents the same relationship using the “crow’s feet” notation?
A)
B)
C)
D)