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17) Helge Autoparts sells new and refurbished auto parts exclusively to auto dealers. Helge
purchases inventory from distributors at trade conventions. Each time Helge makes a purchase,
the company records the suppliers name, address, date, specific items purchased, price paid for
each, and the total amount spent. Helge later researches the inventory items to set the customer
price. The company assigns an inventory number to each item purchased and records the
customer price for each item. Helge buys price tags and display supplies from Alwin
Incorporated, a company that sells them at all trade conventions. All inventory and supplies
purchases are immediately paid for with cash or with checks from a bank account in Helge's
name. All cash received from sales are also deposited to the same bank account. Several times a
year Helge rents display space at dealer conventions. A deposit is always required, and the entire
fee is due the day the convention starts. Helge records the deposit and final payment, along with
the convention's name and address, in the same worksheet on which purchases of inventory and
supplies are recorded.
Consider Helge's processes regarding the purchasing inventory and supplies, renting display
space, and paying for purchased items. A well-designed REA diagram would
A) include eight unique entities.
B) include nine unique entities.
C) include seven unique entities.
D) include ten unique entities.
18) Helge Autoparts sells new and refurbished auto parts exclusively to auto dealers. Helge
purchases inventory from distributors at trade conventions. Each time Helge makes a purchase,
the company records the suppliers name, address, date, specific items purchased, price paid for
each, and the total amount spent. Helge later researches the inventory items to set the customer
price. The company assigns an inventory number to each item purchased and records the
customer price for each item. Helge buys price tags and display supplies from Alwin
Incorporated, a company that sells them at all trade conventions. All inventory and supplies
purchases are immediately paid for with cash or with checks from a bank account in Helge's
name. All cash received from sales are also deposited to the same bank account. Several times a
year Helge rents display space at dealer conventions. A deposit is always required, and the entire
fee is due the day the convention starts. Helge records the deposit and final payment, along with
the convention's name and address, in the same worksheet on which purchases of inventory and
supplies are recorded.
Consider Helge's processes regarding the purchasing inventory and supplies, renting display
space, and paying for purchased items. A well-designed REA diagram 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.
19) Helge Autoparts sells new and refurbished auto parts exclusively to auto dealers. Helge
purchases inventory from distributors at trade conventions. Each time Helge makes a purchase,
the company records the suppliers name, address, date, specific items purchased, price paid for
each, and the total amount spent. Helge later researches the inventory items to set the customer
price. The company assigns an inventory number to each item purchased and records the
customer price for each item. Helge buys price tags and display supplies from Alwin
Incorporated, a company that sells them at all trade conventions. All inventory and supplies
purchases are immediately paid for with cash or with checks from a bank account in Helge's
name. All cash received from sales are also deposited to the same bank account. Several times a
year Helge rents display space at dealer conventions. A deposit is always required, and the entire
fee is due the day the convention starts. Helge records the deposit and final payment, along with
the convention's name and address, in the same worksheet on which purchases of inventory and
supplies are recorded.
Consider Helge's processes regarding the purchasing inventory and supplies, renting display
space, and paying for purchased items. A well-designed REA diagram 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.
20) Helge Autoparts sells new and refurbished auto parts exclusively to auto dealers. Helge
purchases inventory from distributors at trade conventions. Each time Helge makes a purchase,
the company records the suppliers name, address, date, specific items purchased, price paid for
each, and the total amount spent. Helge later researches the inventory items to set the customer
price. The company assigns an inventory number to each item purchased and records the
customer price for each item. Helge buys price tags and display supplies from Alwin
Incorporated, a company that sells them at all trade conventions. All inventory and supplies
purchases are immediately paid for with cash or with checks from a bank account in Helge's
name. All cash received from sales are also deposited to the same bank account. Several times a
year Helge rents display space at dealer conventions. A deposit is always required, and the entire
fee is due the day the convention starts. Helge records the deposit and final payment, along with
the convention's name and address, in the same worksheet on which purchases of inventory and
supplies are recorded.
Consider Helge's processes regarding the purchasing inventory and supplies, renting display
space, and paying for purchased items. In a well-designed REA diagram, what entities would
reflect economic duality?
A) Purchases and Cash Disbursements
B) Display Space Rental and Cash Disbursements
C) Inventory and Purchases
D) Cash and Cash Disbursements
21) Prescott Dolls sells porcelain dolls exclusively at antique shows. Prescott Dolls purchases
inventory from individuals at garage sales, flea markets, antique malls, and estate sales. Each
time Dahlia Prescott (the owner) makes a purchase, she records the person's name, address, date,
specific items purchased and price paid, and total amount spent. Later at home, Dahlia cleans,
researches and prices the inventory for sale to customers. She assigns an inventory number to
each item and records the "asking" price. Dahlia buys price tags and display supplies from a
company that sells at flea market and antique shows. All inventory and supplies purchases are
immediately paid for using cash or with company checks from a bank account in Prescott Doll's
name. Cash received from customer sales are also deposited in this account. Three times a year,
Dahlia rents a booth at antique shows. A deposit is always required, with the balance due at the
start of the show. Dahlia 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 Prescott Dolls, related to purchasing inventory and supplies, renting
booths, and paying for all items.
22) Define cardinality.
23) Describe the three basic rules that apply to the REA model pattern.
24) Describe the steps in developing an REA diagram.
25) Explain how an AIS system can be viewed as a set of "give-to-get" exchanges.
26) Define minimum and maximum cardinalities.
27) Describe the possible relationships between entities, in terms of cardinalities.
28) 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.
17.4 Read an REA diagram and explain what it reveals about the business activities and policies
of the organization being modeled.
1) Which of the following transactions is represented by the diagram below?
A) A junkyard holds weekly sales where it sells its entire inventory.
B) A shoe store sells products to consumers.
C) A stay-at-home mom creates furniture for doll houses. When one piece is finished, she sells it
on Amazon.com.
D) Netflix sells movies to consumers through its online downloading service.
2) Which of the following transactions is represented by the diagram below?
A) A junkyard holds weekly sales where it sells its entire inventory.
B) A shoe store sells products to consumers.
C) A stay-at-home mom creates furniture for doll houses. When one piece is finished, she sells it
on Amazon.com.
D) Netflix sells movies to consumers through its online downloading service.
3) Which of the following transactions is represented by the diagram below?
A) A junkyard holds weekly sales where it sells its entire inventory.
B) A shoe store sells products to consumers.
C) A stay-at-home mom creates furniture for doll houses. When one piece is finished, she sells it
on Amazon.com.
D) Netflix sells movies to consumers through its online downloading service.
4) Which of the following transactions is represented by the diagram below?
A) A junkyard holds weekly sales where it sells its entire inventory.
B) A shoe store sells products to consumers.
C) A stay-at-home mom creates furniture for doll houses. When one piece is finished, she sells it
on Amazon.com.
D) Netflix sells movies to consumers through its online downloading service.
5) Which of the following transactions is represented by the diagram below?
A) a lumber yard where customers may pay with cash for all purchases
B) a buy-here-pay-here auto dealer where a car buyer sends monthly cash payments to the dealer
C) a consulting firm that offers a variety of consulting services to other businesses
D) a department store that allows customers to carry a balance and to make installment
payments, if they choose
6) Which of the following transactions is represented by the diagram below?
A) a lumber yard where customers may pay with cash for all purchases
B) a buy-here-pay-here auto dealer where a car buyer sends monthly cash payments to the dealer
C) a consulting firm that offers a variety of consulting services to other businesses
D) a department store that allows customers to carry a balance and to make installment
payments, if they choose
7) Which of the following transactions is represented by the diagram below?
A) a lumber yard where customers may pay with cash for all purchases
B) a buy-here-pay-here auto dealer where a car buyer sends monthly cash payments to the dealer
C) a consulting firm that offers a variety of consulting services to other businesses
D) a department store that allows customers to carry a balance and to make installment
payments, if they choose
8) Which of the following transactions is represented by the diagram below?
A) a lumber yard where customers may pay with cash for all purchases
B) a buy-here-pay-here auto dealer where a car buyer sends monthly cash payments to the dealer
C) a consulting firm that offers a variety of consulting services to other businesses
D) a department store that allows customers to carry a balance and to make installment
payments, if they choose
9) 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.
10) 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.
11) 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.
12) 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.
13) 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.
14) 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.
15) 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.
