26) Implementation of this REA diagram into a relational database would require how many
tables?
A) 12
B) 13
C) 8
D) 9
27) Which of the following would be true when implementing this REA diagram into a relational
database?
A) The primary key for Employee would be a foreign key for Cash Receipts.
B) The primary key for Cash Receipts would be a foreign key for Cash.
C) The primary key for Parts would be a foreign key for Service Request.
D) The primary key for Sales would be a foreign key for Service Request.
28) 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.
Which of the following would not be an attribute in the Purchases table?
A) address where purchase was made
B) person’s name or company name from whom the purchase was made
C) date of purchase
D) total amount of purchase
29) 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.
Which of the following would not be an attribute in the Inventory table?
A) Total amount of purchase
B) Price paid for inventory
C) Asking price
D) Inventory number
30) 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.
Which of the following would be an attribute in the table for Display Space Rental?
A) Convention name
B) Deposit paid
C) Balance paid
D) Convention address
31) Explain a completeness check.
32) Constructing a well-structured, well-developed REA diagram eliminates which anomaly
problem(s)?
A) update
B) insert
C) delete
D) all of the above
33) How many tables are needed to implement an REA data model that has four distinct entities,
three M:N relationships and one 1:N relationships in a relational database?
A) 5
B) 7
C) 8
D) 10
34) How many tables are needed to implement an REA data model that has three distinct entities,
two M:N relationships and two 1:N relationships in a relational database?
A) 5
B) 7
C) 8
D) 10
35) Identify the attribute below that would not make a good primary key.
A) birthdate
B) social security number
C) a unique number automatically generated by the system
D) cell phone number
36) From the choices below, identify the attribute below that would make the best primary key.
A) height (in inches)
B) date of first purchase
C) zip code
D) customer telephone number
37) Rebus Fashions provides haircuts to men and women. Rebus uses an REA database to record
information that is important to the firm. Rebus has a table named “Employee” where it keeps
information about its hair stylists. Identify the attribute below that most likely does not belong in
the Employee table.
A) Stylist phone number
B) Stylist hair cut specialties
C) Number of haircuts provided by a stylist on a given day
D) All of the above are appropriate attributes for the Employee table.
38) Rebus Fashions provides haircuts to men and women. Rebus uses an REA database to record
information that is important to the firm. Rebus has a table named “Customer” where it keeps
information about its customers. Identify the attribute below that most likely does not belong in
the Customer table.
A) Customer hair color
B) Customer hair style
C) Customer address
D) All of the above are appropriate attributes for the Customer table.
39) Rebus Fashions provides haircuts to men and women. Rebus uses an REA database to record
information that is important to the firm. Rebus has an M:N table named “Customer-Sale” where
it keeps information about customer sales. Identify the attribute below that most likely does not
belong in the Customer-Sale table.
A) Date of sale
B) Time hair cut was started
C) Name of customer
D) All of the above are appropriate attributes for the Customer table.
40) Rebus Fashions provides haircuts to men and women. Rebus charges $10 per haircut, no
matter what type of haircut the customer selects. Rebus uses an REA database to record
information that is important to the firm. Rebus has an M:N table named “Customer-Sale” where
it keeps information about customer sales. Identify the attribute below that most likely does not
belong in the Customer-Sale table.
A) Date of sale
B) Time hair cut was finished
C) Price of haircut
D) All of the above are appropriate attributes for the Customer table.
1) Nonfinancial information should be collected because
A) it may indicate events that may affect resources.
B) it can be used to plan other activities.
C) it can be used in transaction processing.
D) both A and B
2) When comparing REA diagrams used to design an AIS with a traditionally designed AIS,
A) traditional AIS information, such as journals and ledgers no longer exist.
B) similar information is present as in a traditional AIS, but stored in a different format.
C) queries are used to input data into the AIS.
D) an REA designed AIS cannot recreate a traditional journal.
3) Which of the following is/are true with regards to using REA diagrams to retrieve information
from a database?
A) Although neither journals nor ledgers appear explicitly in an REA diagram, each can be
created through appropriate queries.
B) The information normally found in a journal is contained in the tables used to record data
about events.
C) Much of the information about an organization’s assets that is traditionally recorded in ledgers
is stored in resource tables in an REA-based relational database.
D) All of the above
4) Much of the information about an organization’s assets that is traditionally recorded in ledgers
is stored in ________ tables in an REA-based relational database.
A) Account
B) Agent
C) Event
D) Resource
5) In an REA-based relational database, the information normally found in a ________ is
contained in the tables used to record data about ________.
A) journal; events
B) journal; resources
C) ledger; events
D) ledger; resources
6) Which of the following is false with regards to REA models?
A) Many financial statement accounts are represented as resources in the REA model.
B) Accounts such as Accounts Receivable show up as entities in the REA model.
C) Some accounts represent an imbalance between two related events in the REA model.
D) Much of the information about an organization’s assets that is traditionally recorded in ledgers
is stored in resource tables in an REA-based relational database.
7) Because information about temporal imbalances between two ________, such as accounts
receivable and accounts payable, is needed so frequently, such calculated values are sometimes
stored as ________ in the appropriate tables.
A) events; agents
B) events; attributes
C) resources; agents
D) resources; attributes
8) Which of the statements below is false with regards to generating financial statements from an
REA-based relational database?
A) It is possible to use a completed REA diagram to guide the writing of queries to produce the
information that would be included in financial statements.
B) Many financial statement items can be displayed by querying a single table.
C) It is unnecessary to understand the REA data model to know which tables need to be included
in each query to generate the correct answers to financial statement questions.
D) A major advantage of the REA data model is that it integrates non-financial and financial
data.
9) Which of the statements below is false when comparing the REA model to the traditional AIS
model?
A) Traditional AISs contain only data about the financial aspects of transactions.
B) A major advantage of the REA data model is that it integrates non-financial and financial data
in the AIS and makes both types of data easily accessible to management.
C) In the REA model, many financial statement items can be displayed by querying a single
table.
D) Accounts in the traditional AIS are analogous to resources in the REA-based relational
database.
10) The major benefits of using the REA model as the basis for designing an AIS include all of
the following except
A) the REA data model integrates non-financial and financial data in the AIS.
B) the REA data model makes both non-financial and financial data easily accessible to
management.
C) the REA data model provides the basis for building the kind of flexible AIS that is responsive
to management’s changing information needs.
D) the REA data model reduces the need for accountants to understand the underlying
accounting journals and ledgers.
11) Information traditionally found in journals is stored where in an REA database?
A) Event entity
B) Agent entity
C) Relationship
D) Resource entity
12) A query that extracts, for a given time period, the total amount of all sales events for which
there is no corresponding receive cash event will yield
A) a cash account ledger.
B) a credit sales journal.
C) an accounts receivable ledger.
D) an accounts payable journal.
13) A query that extracts, for a given time period, all sales events for which there is no
corresponding receive cash event on the date of the sales event will yield
A) a cash account ledger.
B) a credit sales journal.
C) an accounts receivable ledger.
D) an accounts payable journal.
14) A query that extracts, for a given time period, all purchases for which there is no
corresponding disburse cash event will yield
A) a cash account ledger.
B) a credit sales journal.
C) an accounts receivable ledger.
D) an accounts payable journal.
15) Explain where in the REA model you can find the information normally found in a ledger.
16) Explain where in the REA model you can find the information normally found in a journal.
17) What are the advantages of the REA data model over the traditional AIS model?
18) Which of the following elements found in a traditional AIS system are not represented as
entities in an REA relational database, but rather must be retrieved through the use of queries?
A) accounts receivable
B) the general ledger
C) accounts payable
D) all of the above
19) In a relational database designed according to the REA model, where is information about
transactions stored?
A) Resource entities
B) Agent entities
C) Event entities
D) all of the above
20) In a relational database designed according to the REA model, where is information about an
organization’s liabilities generally stored?
A) Resource entities
B) Agent entities
C) Event entities
D) All of the above
21) In a relational database designed according to the REA model, where is information about
accounts receivable stored?
A) Event entities
B) Agent entities
C) Both A and B
D) None of the above