CHAPTER 10
THE REA APPROACH TO DATABASE MODELING
REVIEW QUESTIONS
2. It is framework for designing accounting information systems that
3. It is a unique version of an ER diagram consisting of three entity types
6. Support events include control, planning, and management activities that are
7. Economic agents are individuals and departments that participate in an
9. View modeling is a process in which the database designer identifies and
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11. REA modeling focuses on value chain activities: those that use cash to obtain
resources such as equipment, materials, and labor and those that employ these
16.The steps involved in view integration.
17. Typically one of the tables in a 1:1 association has a minimum cardinality of
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19.Tables in an M:M association cannot accept an embedded foreign key from the
DISCUSSION QUESTIONS
1. An economic exchange is a pair of mirrored economic events: the give event
2. The upper cardinalities for each of the two related entities define the overall
3. The database designer should select a primary key that logically and uniquely
defines the non-key attributes in the table. In some cases this is
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4. Each event must be linked to at least one resource and a least two agents.
5. The convention in an REA diagram is to treat such transactions as if they are
sales. The clerk giving up control and reducing the resource (raw materials) is
6. Journals, ledgers, and double-entry bookkeeping are the traditional
mechanisms for formatting and transmitting accounting data, but they are not
7. Economic events are phenomena that affect changes (increase or decrease) in
resources. Examples include sales of products to customers, receipt of cash from
customers, and purchases of raw material from vendors. Support events include
control, planning, and management activities that are related to economic events,
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8. An REA model must, at a minimum, include the two economic events that
constitute the give and receive activities that reduce and increase economic
9. REA modeling focuses on value chain activities: those that use cash to
obtain resources such as equipment, materials, and labor and those that
10.The inclusion of link tables in a REA diagram creates a conflict with the rule that
an event entity should be connected to at least one resource and at least two
agent entities. Although link tables are a technical requirement for implementing
11. Unlike tangible economic resources such as cash and inventory, time does
not have a stock flow element and cannot be stored. It is increased and
12.Normalization is the process of systematically identifying and removing
repeating groups, partial dependencies, and transitive dependencies from the
table(s) under review. Tables in 3NF will be free of anomalies and will meet
two conditions:
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MULTIPLE-CHOICE QUESTIONS
1. e
2. d
3. c