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.
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.
3) Database management system (DBMS) software transfers data from the accounting software
to the database.
4) Dirty data occurs when errors are entered into a system.
5) Entering data ________ reduces the change of entering errors.
6) Nearly all accounting information today is stored in ________.
7) The ________ inserts, updates, and deletes data in the database.
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 Nancy’s old
address appears on receipt. What does this indicate about the database?
A) The database is working correctly.
B) Nancy Smith’s order was entered incorrectly.
C) The same customer was entered into the database multiple times.
D) The address information was updated for the wrong Nancy Smith.
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?
A) Data was entered into the database incorrectly.
B) The onscreen form for entering vendor information correctly performed data validation.
C) The database views these as two separate accounts.
D) The data needs scrubbing.
10) Which of the following statements is NOT a benefit associated with entering data once into a
database?
A) Reentering the same data again and again increases the chances of entering erroneous data,
such as misspellings and transpositions.
B) It increase the opportunity to enter data incorrectly.
C) When you need to update the customer’s address, you only need to update it once. This
eliminates the possibility of updating some, but not all, of the other entries.
D) It is more efficient. You do not spend non-value-added time reentering the same information
again and again.
11) Which of the following is NOT a tier in the accounting system architecture?
A) Report tier
B) Database tier
C) User tier
D) Application tier
12) Which tier in the accounting system architecture that consists of onscreen forms?
A) User tier
B) Application tier
C) Database tier
D) Accounting tier
13) When using an accounting database system, such as QuickBooks, what happens when an
existing customer name is entered on an onscreen invoice form?
A) The DBMS retrieves tax information and inserts it into the invoice.
B) The DBMS retrieves address and contact information and inserts it into the invoice.
C) The DBMS prompts you to enter the address and contact information.
D) The DBMS retrieves inventory information and inserts it into the form.
14) What does the DBMS software do?
15) What is the Pareto Principle? How does this principle apply to accounting database design?
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.
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.
1) Data stored in a data warehouse is used for routine business activities.
2) The ________ is responsible for managing the enterprise’s databases.
3) Data stored in a ________ may be current data, historical data, or future estimates.
4) In a ________ database structure, a parent record can have many child records and each child
record can have only one parent record.
5) In a ________ database structure, a parent record can have many child records and a child
record can have many parent records.
Match the database type to the corresponding structure.
A) Multiple Tables
B) One Parent and Multiple Children
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?
9) Who are the people responsible for establishing policies for database security?
A) Internal auditors and security personnel
B) Database administrators and security personnel
C) Database administrators and system users
D) Internal auditors and database administrators
10) When retrieving data from a relational database, which of the following is true?
A) You need to know the record address of the data.
B) You need to understand the database structure.
C) You need to know how the tables are related.
D) You need to understand the parent/child record relationship.
11) Which type of data is NOT stored in a data warehouse?
A) Historical data
B) Current data
C) Future estimates
D) Data that is used for routine business activities
12) What is an operational database and a data warehouse? How are they different?
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?
14) What is the difference between a relational database and a network database?
15) What is the difference between a relational database and a hierarchial database?
Objective 3
1) Database fields are pieces of information about event, people, and objects.
2) To retrieve data stored in a relational database, each record must have one or more unique
identifier.
3) What IT professionals call people or things, accounting professionals call objects.
4) A database table that stores data about items a business sells is used in the Sales cycle and the
Purchasing cycle.
5) In a relational database, the database tables should not have any connections to other tables in
the database.
6) An intersection table transforms a many-to-many relationship to two one-to-many
relationships.
7) In a one-to-one relationship, for each record in one database table there are many records in a
related table.
8) The intersection table’s primary key is a composite primary key.
9) In the design phase of SDLC, the design for a new accounting database model is created that
satisfies user requirements.
10) In the Database Builder Realm database programmers work with the database users to
identify user requirements.
Match the database table to the appropriate transaction cycle.
A) Banking Cycle
B) Sales Cycle
C) Purchasing Cycle
D) Financial Cycle
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?
18) Database ________ store pieces of information about people, events, and objects.
19) Database ________ are used to search the database and retrieve specific data from one or
more database tables.
20) ________ tables are placed between two tables with many-to-many relationship to create two
one-to-many relationships.
21) An intersection table’s primary key is a(n) ________.
22) Generally, the relationship between a table that stores customer data and table that stores
sales order data is ________.
23) Generally, the relationship between a table that stores sales order data and a table that stores
inventory data is ________.
24) Database fields are
A) A collection of related tables
B) A collection of related records
C) Pieces of information about people, events, and objects
D) A way to input data into a database
25) Database forms are
A) A way to input data into the database
B) Tools for searching and extracting data from a database
C) Output of database queries
D) None of the above
26) To create a relational database based on the payroll cycle, which types of data should be
recorded in the database?
A) Number of hours worked and inventory information
B) Number of hours worked and purchase orders
C) Employee information and number of hours worked
D) Employee information and sales invoices
27) To create a relational database based on the purchasing cycle, which types of data should be
recorded in the database?
A) Customers, purchase orders, invoices
B) Vendors, inventory items, invoices
C) Inventory items, purchase orders, invoices
D) Vendors, inventory items, purchase orders
28) Which statement is true regarding a one-to-many relationship?
A) One-to-many relationships are the most common type of relationships in a relational database.
B) Many records in one table relate to many records in a related table.
C) This type of relationship is problematic when building a database and must be eliminated
using an intersection table.
D) For each record type in one database table there one record in the related table.