Accounting Information Systems, 12e (Romney/Steinbart)
Chapter 19 Special Topics in REA Modeling
1) Explicitly identifying the different employees who participate in each event by their job functions is
helpful when verifying
A) internal controls.
B) job descriptions.
C) proper supervision.
D) segregation of duties.
2) Many companies sell software, music, or digital photographs over the Internet. They give up a digital
copy of those resources, but not the actual resource itself. How will this company’s REA model differ
from those selling traditional inventory?
A) These companies do not need an Inventory table.
B) The structure of Inventory table is completely different from that of mass-produced merchandise.
C) The Inventory table is only different in that it doesn’t need attributes such as quantity-on-hand,
quantity-available, reorder point, and standard reorder quantity.
D) The Inventory table need not include information about the standard list price of each item and its
description.
3) In an expanded revenue cycle REA diagram, sales order number is most likely to be a foreign key in
A) Call on Customer.
B) Fill Customer Order.
C) Ship Order.
D) Take Customer Order.
4) In an expanded revenue cycle REA diagram, sales order number is most likely to be a primary key in
A) Call on Customers.
B) Fill Customer Order.
C) Ship Order.
D) Take Customer Order.
5) In an expanded revenue cycle REA diagram, customer number is least likely to be a foreign key in
A) Call on Customers.
B) Customers.
C) Fill Customer Order.
D) Take Customer Order.
6) In an expanded revenue cycle REA diagram, picking ticket number is most likely to be a primary key
in
A) Call on Customers.
B) Fill Customer Order.
C) Ship Order.
D) Take Customer Order.
7) In an expanded revenue cycle REA diagram, picking ticket number is most likely to be a foreign key
in
A) Customers.
B) Fill Customer Order.
C) Ship Order.
D) Take Customer Order
8) In an REA model, rental transactions differ from sales transactions in that
A) each rental has a part number.
B) each rental has a unique serial number.
C) rental transactions require completely different REA models than sales transactions.
D) All of the above are ways in which rental transactions differ from sales transactions.
9) Concerning the relationship from the Rent Item to the Receive Cash events: The minimum cardinality
is ________ because customers typically pay first, prior to taking possession of the item. The maximum
cardinality is ________ because there may be additional charges imposed when the item is returned.
A) 0,1
B) 1,1
C) 1,N
D) N,M
10) The relationship between the Rent Item and Return Item events is most likely 1:1 for all except
which of the following reasons?
A) A return must be for a rented item.
B) A rented item can only be returned once.
C) Rented items are accounted for separately.
D) All rented items must be returned.
11) In an expenditure cycle diagram, which of the following is an example of an event that larger
organizations might want to include in their extended REA model?
A) Request
B) Order
C) Ship Order
D) Fill Order
12) Concerning cost data, which of the following is false?
A) Cost information is stored in several tables.
B) Standard cost is stored as an attribute of the Inventory table because it is the same for all units of a
given inventory item for a fiscal year.
C) In contrast, the actual cost of inventory is stored in a relationship table because prices can vary over
time.
D) Actual cost can be stored as an attribute of the Inventory table for organizations that value inventory
based on the most recent amount paid.
13) Which is the most likely primary key for the Inventory–Request_Goods table?
A) Product number
B) Product number – Purchase order number
C) Product number – Purchase requisition number
D) Purchase requisition number
14) Which is the most likely primary key for the Pay for Goods table?
A) Cash transaction number
B) Check number
C) Invoice number
D) Receiving report number, check number
15) For a service business, the minimum cardinalities between Sales event and Inventory entity are most
likely both 0 for all except which of the following reasons?
A) Service businesses don’t sell inventory, they only use inventory to perform services.
B) A sale doesn’t have to include any inventory.
C) Inventory can exist that hasn’t been part of a sale yet.
D) Some services only require labor.
16) The minimum cardinality from the Sales event to the Services entity is most likely 1 because
A) every sale includes performing a service.
B) a service is only recorded once a sale has occurred.
C) only 1 service is provided for each sale.
D) the minimum cardinality would not be 1; it would most likely be 0.
17) A dental office would likely model the relationships between the Sales event and both the Services
and Supplies Resource entities as
A) M:N
B) 1:1
C) 1:N
D) 0:1
18) In a relational database, details about activities such as Cleaning, X-Rays, Fillings, Root Canals,
Crowns, and Extractions would all be stored in which table?
A) Services
B) Sales
C) Inventory
D) Those activities would be stored as part of a relationship, not a table.
19) M:N agent-event relationships occur whenever an activity is performed by ________ employee and
management wants to retain the ability to monitor ________ performance.
A) more than one; group
B) more than one; individual
C) one; group
D) one; individual
20) The minimum cardinalities between a location, such as Warehouse, and a resource, like Inventory,
will likely be 0 for all except which of the following reasons?
A) One specific inventory item could be stored at several different warehouses.
B) A warehouse could be currently empty.
C) Not all kinds of inventory are stored at each warehouse.
D) Inventory could include products not yet available for sale.
21) Since the same inventory items may be stored in several different warehouses, the maximum
cardinality from Inventory to Warehouse is most likely ________.
A) 0
B) N
C) 1
D) determined by the number of warehouses compared to the number of inventory items
22) Relationships between resources and agents, such as Inventory and Supplier, reflect the best practice
of identifying preferred and alternative suppliers for specific inventory items. Similar relationships
between resources and employees can be used to model ________ and ________.
A) cost; revenue
B) performance; behavior
C) responsibility; accountability
D) segregation of duties; internal control
23) Warehouse number is most likely to be a foreign key in:
A) Order Inventory
B) Disburse Cash
C) Receive Inventory
D) Inventory
24) Supplier number is least likely to be a foreign key in:
A) Order Inventory
B) Disburse Cash
C) Receive Inventory
D) Warehouse
25) Financial Institution number is most likely to be a foreign key in:
A) Cash
B) Disburse Cash
C) Receive Inventory
D) Warehouse
26) The cardinality pair from the Financial Institution entity to the Cash resource has a ________
minimum and an ________ maximum because companies will probably only keep information about
financial institutions with which they have accounts but may have more than one account at the same
financial institution.
A) 0; N
B) 0; 1
C) 1; N
D) M; N
27) Supplier number is most likely to be a foreign key in:
A) Inventory–Request_Inventory
B) Receive Inventory
C) Supplier
D) Warehouse
28) In an REA diagram for HRM/payroll cycles, the ________ entity is linked to almost every other
entity in the diagram.
A) Employee
B) Job title
C) Payroll
D) Worker I.D.
29) In the human resources REA model, the relationship between Skills and Employees is typically
modeled as M:N because
A) one employee may possess many skills, and one skill may be possessed by more than one employee.
B) many employees possess skills, and many skills are possessed by employees.
C) employees can be trained to learn all skills, and all skills are possessed by at least one employee.
D) the relationship would be 1:N not M:N, because most employees are hired for a specific job that
requires a specific skill, even though a specific job could be done by many employees.
30) The ________ entity stores much of the data typically found in the employee (payroll) master file.
A) Time Worked
B) Employee
C) HR
D) Payroll
31) In an REA diagram for the HR/Payroll cycle, the relationship between Employees and Training is
typicallty M:N for all except which of the following reasons?
A) One employee may attend the same training event more than once.
B) Each employee may attend more than one training event.
C) Each training event may have more than one employee attend.
D) One training event may be offered more than once.
32) In an REA diagram for the HR/Payroll cycle, the ________ relationship between Skills and
Recruiting reflects the fact that one specific advertisement may list several specific skills and, over time,
there may be several advertisements for one specific skill.
A) 1:1
B) 1:N
C) M:N
D) 0:N
33) The Interview event stores detailed data about each job interview. Since hiring only happens once,
but there may have been several interviews, Interview is linked to the Hire Employees event in a(n)
________ relationship.
A) 1:N
B) 1:1
C) M:N
D) 0:N
34) When modeling the issuance of debt, the maximum cardinality from Disburse Cash to Issue Debt is
1 because
A) interest is usually only paid at the maturity date.
B) one check is written for the total interest due.
C) the Issue Debt event is not related to Disburse Cash event; cash is received, not given.
D) the minimum cardinality would be 1, but the maximum cardinality should be N.
35) The temporal difference between Request Inventory and Order Inventory is reflected by the
A) Request Inventory minimum cardinality of 1.
B) Request Inventory maximum of N.
C) Order Inventory maximum of N.
D) Order Inventory minimum of 0.
36) The relationship between the Disburse Cash and Issue Stock events is modeled as being M:N for all
except which of the following reasons?
A) One dividend check could be paid to shareholders that purchased stock at different times.
B) Shareholders could receive several dividend checks over time.
C) Checks must be written to each shareholder for dividend payments.
D) Stock can be issued more than once over a period of time.
37) The relationship between the Acquire Services and Disburse Cash events is modeled as ________ to
reflect the common situation in which the organization obtains the use of a specific service for a
particular period of time and makes a payment each month for the services it acquired and used that
month.
A) 1:1
B) 1:N
C) M:N
D) none of the above
38) It is not necessary to connect the Time Used entity to specific business events, however, doing so
facilitates
A) evaluating performance at a very detailed level.
B) general performance evaluation.
C) evaluating the quality of the services received.
D) determining productivity of employees, such as how many customer calls were made, or how many
sales were made.
39) An REA diagram for the production cycle models the relationships between the Perform Job
Operations event and the Job Operations List entity, as 1:N because
A) time standards change over time.
B) one specific activity has only one standard time for completion.
C) activities are only performed once on work in process jobs.
D) many activities are usually required for specific work in process jobs.
40) Data about actual raw materials used in production is stored in the ________ entity.
A) Finished goods
B) Raw materials
C) Raw materials issuance
D) Work-in-process
41) The ________ entity is used to collect and summarize data about the raw materials, labor, and
machine operations used during production of inventory.
A) Finished Goods Inventory
B) Raw Materials
C) Issue Raw Materials
D) Work-in-Process
42) In the table called Perform Machine Operations, which is the most likely primary key?
A) Equipment number
B) Job Operation number
C) Machine Operation Number
D) Machine Operations List Number
43) Employee number is most likely to be a foreign key in
A) Perform Job Operations.
B) Perform Machine Operations.
C) Machine Operations List.
D) Work in Process.
44) There are four main events of interest included in a typical production cycle REA diagram. Which of
the following is not one of them?
A) Issuance of raw materials
B) Order raw materials
C) Use of labor in production
D) Use of machinery and equipment in production
45) One of the benefits of an integrated enterprise-wide data model is that
A) auditors can use it to guide the development of queries to validate the completeness and accuracy of
transaction processing.
B) journals and ledgers will be more accurate than in a traditional AIS data model.
C) workers can understand information flows better.
D) all of the above are benefits of an integrated enterprise-wide data model.
46) Which of the following diagrams represents the cardinality pairs for a typical, hierarchical
organization?
A)
B)
C)
D)
47) Which of the following diagrams represents the cardinality pairs for a CPA firm where managers
drop off tax files in a ‘check out’ area, and any available employee can check out the file and complete
the return for the manager. Of course, employees are always working on more than one return at a time,
and all managers are dropping off files.
A)
B)
C)
D)
48) Which of the following diagrams represents the cardinality pairs in a situation where a specific skill
is taught at training sessions held periodically, but training is not offered for all skills?
A)
B)
C)
D)