Accounting Information Systems, 13e (Romney/Steinbart)
Chapter 4 Relational Databases
4.1 Explain the importance and advantages of databases, as well as the difference between
database systems and file-based legacy systems.
1) Using a file-oriented approach to data and information, data is maintained in
A) a centralized database.
B) many interconnected files.
C) many separate files.
D) a decentralized database.
2) File-oriented approaches create problems for organizations because of
A) multiple transaction files.
B) a lack of sophisticated file maintenance software.
C) multiple users.
D) multiple master files.
3) Which statement is true regarding file systems?
A) Transaction files are similar to ledgers in a manual AIS.
B) Multiple master files create problems with data consistency.
C) Transaction files are permanent.
D) Individual records are never deleted in a master file.
4) All of the following are benefits of the database approach except
A) data integration and sharing.
B) decentralized management of data.
C) minimal data redundancy.
D) cross-functional analysis and reporting.
5) Which is probably the most immediate and significant effect of database technology on
accounting?
A) replacement of the double entry-system
B) change in the nature of financial reporting
C) elimination of traditional records such as journals and ledgers
D) quicker access to and greater use of accounting information in decision-making
6) Shahnaz Vijaya is a new graduate who has been hired by a family-owned furniture
manufacturing company in the south. She has been asked to analyze the company’s accounting
information system and to recommend cost-effective improvements. After noting that the
production and sales departments use database systems that are entirely separated, she
recommends that they be combined. Implementation of her recommendation would benefit the
company by contributing to data
A) independence.
B) integration.
C) redundancy.
D) qualifications.
7) Merlin Frodo has been doing custom piercings and tattoos for over thirty years. His home and
place of business is a garage in the harbor district of Seattle, Washington. He keeps meticulous
records of every job he has ever completed. These have been entered into a computerized
accounting information system that his accountant refers to as a “data warehouse.” Merlin is
considering adding scarification to his service offerings and has asked his accountant to identify
past customers who might be likely candidates for this service. Merlin wants his accountant to
engage in
A) customer auditing.
B) customer resource management.
C) data mining.
D) enterprise resource planning.
8) Describe a major advantage of database systems over file-oriented transaction processing
systems.
9) Explain the difference between file-oriented transaction processing systems and relational
database systems. Discuss the advantages and disadvantages of each system.
10) Describe what you think will be the main impact of database technology in your career.
11) Databases were originally developed to address which problem?
A) to replace the double entry-system
B) to address the proliferation of master files
C) to increase the speed that an organization could process transactions
D) to decrease the costs associated with manual accounting systems
12) A data warehouse
A) is primarily used for analysis rather than transaction processing.
B) stores transaction processing records in hard copy.
C) replaces traditional transaction processing databases.
D) increases the speed of transaction processing.
13) The use of a data warehouse in strategic decision making is often referred to as
A) business intelligence.
B) managerial accounting.
C) data analysis.
D) analytical modeling.
4.2 Explain the difference between logical and physical views of a database.
1) The physical view of a database system refers to
A) how a user or programmer conceptually organizes and understands the data.
B) how the DBMS accesses data for a certain application program.
C) how and where the data are physically arranged and stored.
D) how master files store data values used by more than one application program.
2) What is the difference in logical view and physical view?
3) The logical view of a database system refers to
A) how a user or programmer conceptually organizes and understands the data.
B) how the DBMS accesses data for a certain application program.
C) how and where the data are physically arranged and stored.
D) how master files store data values used by more than one application program.
4.3 Explain fundamental concepts of a database system such as DBMS, schemas, the data
dictionary, and DBMS languages.
1) What acts as an interface between the database and the various application programs?
A) data warehouse
B) database administrator
C) database system
D) database management system
2) The combination of the database, the DBMS, and the application programs that access the
database through the DBMS is referred to as the
A) data warehouse.
B) database administrator.
C) database system.
D) database management system.
3) The ________ is responsible for the database.
A) database master
B) database manager
C) database administrator
D) data coordinator
4) The ________ handles the link between the way data are physically stored and each user’s
logical view of that data.
A) database management software (DBMS)
B) database manager
C) data warehouse
D) data dictionary
5) The logical structure of a database is described by the
A) data dictionary.
B) schema.
C) database management system.
D) context diagram.
6) The schema that provides an organization-wide view of the entire database is known as the
A) external-level schema.
B) internal-level schema.
C) conceptual-level schema.
D) logical view of the database.
7) A set of individual user views of the database is called the
A) conceptual-level schema.
B) internal-level schema.
C) external-level schema.
D) meta-schema.
8) A low-level view of the database that describes how the data are actually stored and accessed
is the
A) conceptual-level schema.
B) subschema.
C) internal-level schema.
D) external-level schema.
9) Record layouts, definitions, addresses, and indexes will be stored at the ________ level
schema.
A) external
B) conceptual
C) internal
D) meta
10) The ________ contains information about the structure of the database.
A) data definition language
B) data dictionary
C) data warehouse
D) database management system
11) Which of the following would not be found in a data dictionary entry for a data item?
A) records containing a specific data item
B) physical location of the data
C) source of the data item
D) field type
12) The data dictionary usually is maintained
A) automatically by the DBMS.
B) by the database administrator.
C) by the database programmers.
D) by top management.
13) Reports produced using the data dictionary could include all of the following except a list of
A) programs where a data item is used.
B) synonyms for the data items in a particular file.
C) outputs where a data element is used.
D) the schemas included in a database.
14) Which statement below concerning the database management system (DBMS) is false?
A) The DBMS automatically creates application software for users, based on data dictionary
parameters.
B) The DBMS automatically maintains the data dictionary.
C) Users’ requests for information are transmitted to the DBMS through application software.
D) The DBMS uses special languages to perform specific functions.
15) Which would not generally be considered a data dictionary output report?
A) a list of cash balances in the organization’s bank accounts
B) a list of all programs in which a data element is used
C) a list of all synonyms for the data elements in a particular file
D) a list of all data elements used by a particular user
16) Creating an empty table in a relational database requires use of the ________, and populating
that table requires the use of ________.
A) DDL; DML
B) DQL; SQL
C) DDL; DQL
D) DML; DDA
17) When the human resources manager wants to gather data about salary and start date by
employees and by departments, the manager would use which language?
A) Data Manipulation Language
B) Data Query Language
C) Data Report Language
D) Data Definition Language
18) If a national sales tax were implemented, which language would be used to add a new field
in the sales table to track the sales tax due?
A) Data Definition Language
B) Data Manipulation Language
C) Data Query Language
D) Data Update Language
19) ________ is a feature in many database systems that simplifies the creation of reports by
allowing users to specify the data elements desired and the format of the output.
A) Report printer
B) Report creator
C) Report generator
D) Report writer
20) A ________ is an abstract representation of a database’s contents.
A) schema
B) logical data model
C) physical view
D) data dictionary
21) In a well-designed and normalized database, which of the following attributes would be a
foreign key in a cash receipts table?
A) customer number
B) cash receipt date
C) remittance advice number
D) customer check number
22) Cornelia Cassidy is a telecom equipment sales representative. Her company has provided her
with a laptop computer that uses wireless connectivity to access the accounting information
system from virtually anywhere in the country. She, and other sales reps, have access to view
customer and product information. All sales reps also have access that allows them to enter and
cancel customer orders. The permissions for Cornelia define a ________ in the company’s
database management system.
A) conceptual-level schema
B) subschema
C) data dictionary
D) physical view
23) Cornelia Cassidy is a telecom equipment sales representative. Her company has provided her
with a laptop computer that uses wireless connectivity to access the accounting information
system from virtually anywhere in the country. She has access to view customer and product
information. She also has access that allows her to enter and cancel customer orders. The
permissions for Cornelia (and other sales reps) define a ________ in the company’s database
management system.
A) conceptual-level schema
B) data dictionary
C) external-level schema
D) physical view
24) Describe the different schemas involved in a database structure. What is the role of
accountants in development of schemas?
25) Describe a data dictionary.
26) Discuss the ways in which a well-designed DBMS will facilitate the three basic functions of
creating, changing, and querying data.
27) List the four DBMS “languages” and describe who uses each and for what purpose.
28) Describe the information that is contained in the data dictionary.
29) The REA is an example of a database that uses a ________ data modeling approach to
database design.
A) schema
B) logical
C) semantic
D) normalization
4.4 Describe what a relational database is and how it organizes data.
1) ________ in a well-structured relational database.
A) Every table must be related to all other tables
B) One table must be related to at least one other table
C) Every table must be related to at least one other table
D) One table must be related to all other tables
2) The problem of changes being incorrectly recorded in a database is known as
A) an update anomaly.
B) an insert anomaly.
C) a delete anomaly.
D) a memory anomaly.
3) The ________ occurs when more than one occurrence of a specific data item in a database
exists.
A) inconsistency anomaly
B) insert anomaly
C) delete anomaly
D) update anomaly
4) Inability to add new data to a database without violating the basic integrity of the database is
referred to as the
A) update anomaly.
B) insert anomaly.
C) integrity anomaly.
D) delete anomaly.
5) A relational database in which customer data is not maintained independently of sales invoice
data will most likely result in
A) an update anomaly.
B) an insert anomaly.
C) a delete anomaly.
D) an integrity anomaly.
6) The problem of losing desired information from a database when an unwanted record is
purged from the database is referred to as the ________ anomaly.
A) purge
B) erase
C) delete
D) integrity
7) Identify one potential outcome of the delete anomaly.
A) inconsistent data
B) inability to add new data
C) unintentional loss of data
D) none of the above
8) The update anomaly in non-normalized database tables
A) occurs because of data redundancy.
B) restricts addition of new fields or attributes.
C) results in records that cannot be updated.
D) is usually easily detected by users.
9) Identify one potential drawback in the design and implementation of database systems for
accounting.
A) Double-entry accounting relies on redundancy as part of the accounting process, but well-
designed database systems reduce and attempt to eliminate redundancy.
B) Relational DBMS query languages will allow financial reports to be prepared to cover
whatever time periods managers want to examine.
C) Relational DBMS provide the capability of integrating financial and operational data.
D) Relational DBMS can accommodate multiple views of the same underlying data; therefore,
tables storing information about assets can include data about both historical and replacement
costs.
10) Kai Keoni has created custom statues made out of scrap metal for over ten years. He lives
above his shop in Martha’s Vineyard, Maryland. Kai is an accounting fanatic and has kept
detailed records of every statue he has ever created. For every sale, he obtains the customer’s
name and address, a description of the statue, and a picture of the statue sold to the customer. His
unique style has recently attracted the attention of several celebrities. Ready to take his business
to the next level, Kai has hired you to construct an accounting information system, which he
wants modeled after his paper records. As you look over his records, you realize that sometimes
the same customer is recorded by a slightly different name. For example, Mike Mulligan bought
a horse statue, M. Mulligan bought a pig statue, and Mike M. all seem to be the same person.
This is an example of what type of problem in the existing records?
A) entity integrity
B) referential integrity
C) update anomaly
D) insert anomaly
11) Kai Keoni has created custom statues made out of scrap metal for over ten years. He lives
above his shop in Martha’s Vineyard, Maryland. Kai is an accounting fanatic and has kept
detailed records of every statue he has ever created. For every sale, he obtains the customer’s
name and address, a description of the statue, and a picture of the statue sold to the customer. His
unique style has recently attracted the attention of several celebrities. Ready to take his business
to the next level, Kai has hired you to construct an accounting information system, which he
wants modeled after his paper records. As you look over his records, you realize that some
customers bought multiple statues at the same time. For example, Yasmeen Ghuari bought a Tin
Man Status, a flying horseman statue, and a terrier statue. You realize that in these cases, a single
written record will have to be translated into multiple sales records. This is an example of what
type of problem in the existing records?
A) entity integrity
B) referential integrity
C) update anomaly
D) insert anomaly
12) Kai Keoni has created custom statues made out of scrap metal for over ten years. He lives
above his shop in Martha’s Vineyard, Maryland. Kai is an accounting fanatic and has kept
detailed records of every statue he has ever created. For every sale, he obtains the customer’s
name and address, a description of the statue, and a picture of the statue sold to the customer. His
unique style has recently attracted the attention of several celebrities. Ready to take his business
to the next level, Kai has hired you to construct an accounting information system, which he
wants modeled after his paper records. As you look over his records, you notice that some
customer last names have different first names in different records. For example, R. Framington
Farnsworth, Bob Farnsworth, and Snake Farnsworth all seem to be the same person. You explain
to Kai that every customer must be identified by a unique customer number in the AIS. You are
referring to the
A) entity integrity rule.
B) referential integrity rule.
C) update anomaly.
D) insert anomaly.
13) Explain the types of attributes that tables possess in a relational database.
14) Explain the two advantages semantic data modeling has over normalization when designing
a relational database.
15) Discuss redundancy as it applies to database design.
16) Explain the relational database data model.
17) What are the basic requirements when logically designing a relational database model?
18) How do users retrieve data stored in a database?
A) by viewing the appropriate data tables
B) by executing a query
C) by performing a search
D) by specifying the primary keys
19) In a well-structured relational database,
A) foreign keys cannot be null.
B) there must be at least two foreign keys.
C) every column in a row must be single valued.
D) one table must be related to all other tables.