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Turner/Accounting Information Systems, 2e
Solutions Manual
Chapter 13
Concept Check
1. b
2. a
3. c
4. b
5. d
6. a
Discussion Questions
14. (SO 1) How does data differ from information? Data is the basic facts
15. (SO 1) Why is it important for companies to store transaction data? There are
16. (SO 2) Which type of data storage media is most appropriate when a single
record of data must be accessed frequently and quickly? Random access
17. (SO 3) Identify one type of business that would likely use real-time data
processing rather than batch processing. Describe the advantages of real-
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time processing to this type of business. A business that sells items on a web
site, such as Amazon, would be likely to use real-time data processing. This
18. (SO 4) Differentiate between data redundancy and concurrency. Data
redundancy occurs when the same data are stored in more than one file.
19. (SO 4) What is the term for the software program(s) that monitors and
organizes the database and controls access and use of data? Describe how
20. (SO 4) Describe the trade-offs of using the hierarchical model of database
storage. A hierarchical model database is very efficient for processing large
21. (SO 4) Describe the organization of a flat file database. Flat file records are
two dimensional tables with rows and columns. The records are stored in text
format in sequential order, and all processing must occur sequentially. No
relationships are defined between records. These systems must use batch
processing only and batches must be processed in sequence. The system
makes the processing of large volumes of similar transactions very efficient.
22. (SO 4) What four conditions are required for all types of databases? 1) Items
23. (SO 4) Within a hierarchical database, what is the name for the built-in
linkages in data tables? Which data relationships can be contained in a
hierarchical database? Record pointers are used to link a record to the next
record having the same attribute. Using a record pointer system, one-to-one
Chapter 13 Solutions
and one-to-many relationships can be represented in a hierarchical database.
24. (SO 4) Which database models are built on the inverted tree structure? What
are the disadvantages of using the inverted tree structure for a database?
25. (SO 4) Which database model is used most frequently in the modern
business world? Why do you believe it is frequently used? The relational
26. (SO 5) How is the primary key used in a relational database? The primary
key is the unique identifier for each record in the table and it is used to sort,
index, and access records from that table.
27. (SO 5) What language is used to access data from a relational database?
Why is the language advantageous when accessing data? Structured Query
28. (SO 5) Which type of database model has the most flexibility for querying?
How does this flexibility assist management? The relational database model
is the most flexible database model for querying. It provides important
assistance to managers through its flexibility in answering an unlimited
number of queries about customers, products, vendors, or any other
information in the database.
29. (SO 5) What are the first three rules of normalization? What is meant by the
statement that the rules of normalization are additive? 1) Eliminate repeating
30. (SO 6) Differentiate between a data warehouse and an operational database.
An operational database is the database in which data is continually updated
as transactions are processed. The operational database includes data for
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keeping for the transaction processing systems. The data warehouse is an
integrated collection of enterprise-wide data that includes five to 10 years of
31. (SO 7) How is data mining different than data warehousing? Data mining is
32. (SO 7) How has Anheuser-Busch used data warehousing and data mining
successfully? Anheuser-Busch has used a data warehouse and data mining
33. (SO 7) Identify and describe the analytical tools in OLAP. The analytical
tools that are usually part of OLAP are: drill-down, consolidation, pivoting,
time-series analysis, exception reports, and what-if simulations. Drill down is
34. (SO 8) Differentiate between centralized data processing and distributed data
processing. In centralized data processing, data processing and databases
35. (SO 8) Why would a small company with 400 employees find it advantageous
to use a cloud database (DaaS)? A cloud database (Database as a Service)
is a database that is hosted by a third party. That third party takes
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responsibility for the hardware, software, and security measures necessary to
store, use, and access the data. For a small company, this would be a more
cost effective way to maintain a database since it would not have to purchase
the hardware and software necessary to maintain the database. In addition, it
would not need a large IT staff to manage the data, hardware, and software
36. (SO 10) Why is control over unauthorized access so important in a database
environment? Data are valuable resources that must be protected with good
37. (SO 10) What are some internal control measures that could prevent a hacker
from altering data in your company’s database? Measures that prevent
38. (SO 10) Why are data considered a valuable resource that is worthy of
extensive protection? The database of an organization is a critically important
component of the organization. Data are a valuable resource that must be
protected with good internal controls. Missing or incorrect data can have a
negative impact on the ability to conduct the necessary business processes.
Brief Exercises
39. (SO 2) Arrange the following data storage concepts in order from smallest to
largest, in terms of their size: File, Record, Database, Character, and Field.
The hierarchy of terms is character, field, record, file, and database.
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40. (SO 2) Think of a database that would be needed at a professional service
firm to maintain the contact list of clients or patients at the office of a CPA,
attorney or medical doctor. Identify the fields likely to be used in this
database. If you were constructing this database, how many spaces would
you allow for each field? The fields and suggested sizes that usually be
needed are: last name (24), first name (24), middle initial or name (24),
address line 1 (50), address line 2 (50), apartment number (12), city (24),
41. (SO 3) Suppose that a large company uses batch processing for recording its
inventory purchases. Other than its slow response time, what would be the
most significant problem with using a batch processing system for recording
inventory purchases? A company would not know its true inventory balance
42. (SO 4) Arrange the following database models in order from earliest
development to most recent: Network Databases, Hierarchical Databases,
Flat File Databases, and Relational Databases. The historical order is flat file,
hierarchical, network, and relational databases.
43. (SO 4) Categorize each of the following as one-to-one, one-to-many, or
many-to-many relationships.
• Subsidiary ledgers and general ledgers. This is best categorized as a
one– to-many relationship. A general ledger account, such as accounts
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44. (SO 6) How might a company use both an operational database and a data
warehouse in the preparation of its annual report? A company would use the
operational database for the current fiscal year reports, but may need past
information from the data warehouse to prepare comparative financial
statements from previous years. The company might also use the data
warehouse to examine and report important trends in financial information.
45. (SO 7) Using Anheuser-Busch’s BudNet example presented in this chapter,
think about the list queries that might be valuable if a company like Gap Inc.
Problems
46. (SO 3) Differentiate between batch processing and real-time processing.
What are the advantages and disadvantages of each form of data
processing? Which form is more likely to be used by a doctor’s office in
preparing the monthly patient bills?
Batch processing occurs when similar transactions are grouped into a batch
and that batch is processed as a group. The alternative to batch processing
is real time processing. Real-time processing occurs when transactions are
processed as soon as they are entered. Real-time processing is interactive
because the transaction is processed immediately.
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47. (SO 4) Abylli Company does not use a database system; rather, it maintains
separate data files in each of its departments. Accordingly, when a sale
occurs, the transaction is initially recorded in the sales department. Next,
documentation is forwarded from the sales department to the accounting
department so that the transaction can be recorded there. Finally, the
customer service group is notified so its records can be updated. Describe
the data redundancy and concurrency issues that are likely to arise under this
scenario at Abylli.
identical fields in their data, but maintained in separate files.
It may take hours our days for the sale documentation to move from one
department to the next. Therefore not all departments have the same
information stored in their files at the same time. After a sale is recorded in
48. (SO 6) List and describe the steps involved in building a data warehouse.
The steps are: identify the important data to be stored in the data warehouse;
standardize that data across the enterprise; scrub or cleanse the data; and
upload that data to the data warehouse.
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49. (SO 8) Describe the advantages and disadvantages of using a distributed
database and distributed data processing. Do you think the advantages are
worthwhile? Explain your answer.
The advantages are: 1) Reduced hardware cost. Distributed systems use
networks of smaller computers rather than a single mainframe computer.
This configuration is much less costly to purchase and maintain. 2) Improved
Responsiveness. Access is faster since data can be located at the site of the
greatest demand for that data. Processing speed is improved since the
The disadvantages are: 1) Increased difficulty of managing, controlling, and
maintaining integrity of the data. 2) Increased likelihood of concurrency
problems.
Yes, I think it is worthwhile to have distributed, local control of the data and
automated, integrated backup of a distributed system. However, greater
attention must be paid to controls that ensure the security and concurrency of
the data in a distributed system.
50. (SO 6) Read an online article from
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analyzing huge amounts of complicated data and finding trends in the data.”
51. (SO 11) Describe the ethical obligations of companies to their online
customers.
A company must put processes and safeguards into place to protect the
Most of the article is devoted to an IBM client named Newly Weds Foods.
This company is a world leader in food ingredient technology in more than 68
countries. SmartCloud allows the chefs doing research and development on
recipes to collaborate and share ideas online. The company reduced travel
costs by 10 percent using this online collaboration. SmartCloud provides,
management.
53. (SO 8) Oracle is the world’s largest enterprise software company. Its
business is based on information: helping people use it, share it, manage it,
and protect it. Using an Internet search engine, search using the terms
“Google” and “distributed database”. Describe how and why Google uses a
distributed database. What problems is Google encountering related to its
distributed database? Google uses distributed databases in a few ways.
One way is to store user settings and user ID information for the many
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54. (SO 10) List and describe the ten privacy practices recommended by the
AICPA Trust Services Principles’ Privacy Framework. If you have ever made
a purchase online, you have likely seen these practices in use. Provide any
examples from your own personal experience.
Management. An organization should properly manage privacy. This means
that a person or persons must be assigned responsibility to oversee privacy
practices. This person should insure that privacy practices are documented
and followed.
Notice. Notice implies that companies provide their privacy policy to
customers. In many cases, the privacy policy is posted on the website. The
Collection. The company should limit collection of customer data to that data
for which they have received consent.
Use and retention. The company should only use customer data as
disclosed in its privacy policy and should retain such data only as long as
necessary.
Access. The company should provide access that would allow the customer
Examples that students provide will differ from student to student. Examples
would be things such as viewing the privacy policies on the web site, granting
consent for data collected, etc.
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Cases
55. The following relationships appear in the screen capture.
a. Suppliers table is related to Products table. It is a one–to-many
relationship. The linked field is SupplierID.
b. Categories table is related to Products table. It is a one–to-many
relationship. The linked field is CategoryID.
c. Products table is related to Order Details table. It is a one-to-many
56. Shuttle-Eze operates airport shuttle vans in twelve large cities. Those cities
are Los Angeles, San Diego, San Francisco, Phoenix, Las Vegas, Houston,
Dallas, Chicago, New York City, Washington D.C., Miami, and Orlando.
Shuttle-Eze operates passenger vans to shuttle travelers to and from the
airports for a $25 fee per person.
Required:
a. Design the tables that the company would need in its database to operate
these shuttles. Remember that they must collect, record, and track
information about customers, payments, flights, gates, vans, drivers, pick
There is no single correct answer to this question. Also, student
responses are not likely to be comprehensive enough to represent the
entire set of data needed. The question will, however, generate thought
and discussion about which data to keep and how to store it in tables. It
also illustrates how complex a database can be with the full scope of data
required and the interrelationships between data. A sample answer
follows.
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Part a: The tables proposed are:
Customer table, including fields for Customer ID; first name; last name;
Reservation table, including fields for Reservation ID; Customer ID; Arrival
date; arrival time; arrival flight airline; arrival flight number; arrival gate;
departure date; departure time; departure flight airline; departure flight
number; departure gate; deliver to address; deliver to city; deliver to city;
deliver to state; deliver to phone; pick up address; pick up city; pick up
state; pick up zip; pick up; phone number
Part b: A centralized database could be advantageous for several
reasons. First, it avoids the need to keep several distributed databases
concurrent. If each location maintains a separate database, it would be
more difficult to share customer information between locations. A single
57. Kroger, a large, nation-wide grocery company, maintains a customer reward
system titled the “Kroger Plus Shopper’s Card”. Customers who enroll in this
system are entitled to discounts on products at Kroger stores and Kroger
gasoline. To earn discounts and other rewards, the shopper must use the
“Kroger Plus” card at the time of checkout. The card has a bar code that
identifies the customer. For Kroger, the system allows the opportunity to
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determine customer buying patterns and to use this data for data mining.
Required:
Using a Web search engine, search for “data mining’ and grocery. Describe
what type of information grocery stores collect that they can use for data
mining purposes. Also, describe how grocery chains use data mining to
improve performance.
Many grocers hire a firm named Catalina to assist in the data mining. One
article says the following: “Catalina collects loyalty and bulk sales data from
more than 20,000 stores, then uses it to create pictures of shoppers over
time, says CEO L. Dick Buell. The picture gets clearer the more data stores
collect. For example, Catalina can help retailers determine that someone lives