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Questions and Answers of
Accounting
Harold Jones, the financial aid officer at a small university, manages all aspects of the financial aid program. Jones receives requests for aid from students, determines whether the students meet
The kickback is a form of fraud often associated with purchasing. Most organizations expect their purchasing agents to select the vendor that provides the best provide at the lowest price. To
Gaurav Mirchandaniis is the warehouse manager for a large office supply wholesaler. Mirchandaniis receives two copies of the customer sales from the sales department. He picks the goods from the
Man Demko is the loading dock supervisor for a dry cement packaging. His work crew is composed of unskilled workers who load transport trucks with bags of cement, gravel, and sand. The work is hard,
Bern Fly Rod Company is a small manufacturer of high- quality graphite fly-fishing rods. It sells its products to fly-fishing shops throughout the United States and Canada. Bern began as a small
Breezy Company of Bethlehem, Pennsylvania, is a small wholesale distributor of heating and cooling fans. The company deals with retailing firms that buy small to medium quantities of fans. The
The following fact relate to an actual embezzlement ease. Someone stole more than $40,000 from a small company in less than two months. Your job is to study the following facts, try to figure out who
What are the four primary elements of the database environment?
How are the network and hierarchical models different?
What flat-file data management problems are solved as a result of using the database concept?
Explain the relationship between the three levels of the data definition language. As a user, which level would you be most interested in?
What is a foreign key?
What is a data dictionary, and what purpose does it serve?
Give an application for a partitioned database.
What is an entity? Discuss.
Give an application for a replicated database.
Discuss and give an example of the following types of associations: (1:0, 1), (1:1), (1: M), and (M: M).
Distinguish between association and cardinality.
What are the four characteristics of properly designed relational database tables?
What do the relational features restrict, project, and join mean?
What are the conditions for third normal form (3NF)?
Explain how the SELECT and WHERE commands help a user to view the necessary data from multiple database files (tables).
What is a data model?
How can a poorly designed database result unintentional loss of critical records?
What is a user view?
Does a user view always require multiple to support it? Explain.
What two conditions must valid entities meet?
Can two different entities have the same defining attributes? Explain.
In the flat-file data management environment, users are said to own their data files. What is meant by the ownership concept?
Discuss the potential aggravations you might face as a student as a result of your university using a flat-file data management environment, that is, different files for the registrar, library,
Discuss why control procedures over access to the data resource become more crucial under the database approach than in the flat-file environment. What role does the DBMS play in helping to control
Explain how linkages between relational tables are accomplished.
Explain the purpose of an ER diagram in database design.
SQL has been said to place power in the hands of the user. What does this statement mean?
Discuss the importance of the role of the database administrator. In the flat-file environment, why is such a role not necessary? What tasks does the DBA perform?
As users determine new computer application needs, requests must be sent to both the system programmers and the DBA. Why is it important that these two groups perform separate functions, and what are
Why is a separate link table required when an M: M association exits between related tables?
As an accountant, why would you need to be familiar with data normalization techniques?
How does a database lockout contribute to financial data integrity?
How does concurrency control contribute to financial data integrity?
In a relational database environment, certain accounting records (for example, journals, subsidiary, ledgers, and event general ledger accounts) may not exist. How is this possible?
Explain how to link tables in a 1: 1 association. Why may this be different in a 1:0, 1 association?
Discuss the accounting implications of the update, insertion, and deletion anomalies associated with improperly normalized tables.
Give three examples that illustrate how cardinality reflects an organization’s underlying business rules.
Discuss the key factors to consider in determining how to partition a corporate database.
Distinguish between a database lockout and a deadlock.
Replicated databases create considerable data redundancy, which is in conflict with the database concept. Explain the justification of this approach.
Multiple-Choice Questions1. The data attributes that a particular user has permission to access are defined by thea. Operating system view.b. Systems design view.c. Database schema.d. User view.e.
Multiply Choice1. Partitioned databases are most effective when a. Users in the system need to share common data.b. Primary users of the data are clearly identifiable.c. Read-only access is needed at
Werner Manufacturing Corporation has a flat-file processing system. The information-processing facility is very large. Different applications, such as order processing, production planning, inventory
For each of the following file processing operations, indicate whether a sequential file, indexed random file, indexed sequential access method (ISAM), hashing, or pointer structure works the best.
Design a relational database for a video rental store. The store, which rents only DVDs and has no sales other than DVD rentals, has approximately 5,000 customers and approximately 1200 DVD titles.
Sears Roebuck, the most well-known and oldest mail-order retailer in the country, discontinued its mail-order operations in 1993. Other mail-order marketers are using information systems to mm
How is a lockout different from a deadlock? Give an accounting example to illustrate why a database lockout is necessary and how a deadlock can occur. Provide meaningful table names in your example.
The XYZ Company is a geographically distributed organization with several sites around the country. Users at these sites need rapid access to common data for read-only purposes. Which distributed
The ABC Company is a geographically distributed organization with several sites around the country. Users at these sites need rapid access to data for transaction processing purposes. The sites are
A table of data for a library is shown in the table for Problem. Normalize these data into the third normal form, preparing it for use in a relational database environment. The library’s
A college bookstore maintains all of its records on index cards. This has proven to be a very tedious chore, and the manager has asked you to design a database that will simplify this task. The index
Prepare the base tables, in third normal form, needed to produce the user view in the table forProblem.
Prepare the base tables, in third normal form, needed to produce the user view in the table forProblem.
Prepare the 3NF base tables needed to produce the sales report view shown in the diagram forProblem.
Acme Plywood Company uses the purchase order shown in the diagram for Problem 14.Acme business roles:1. Each vendor may supply many items; an item is supplied by only one vendor.2. A purchase order
Solve this problem per the text in the diagram forProblem.
Employees at the Sagerod Manufacturing Company record their hours worked on paper time cards that are inserted into a time clock machine at the beginning and end of each shift. On Fridays, the
The business rules that constitute the purchases system for the Safe Buy Grocery Stores chain are similar at all the store locations. The purchase manager at each location is responsible for
The business rules that constitute the fixed asset procedures for the Safe Buy Grocery Stores chain are similar at all the store locations. The store manager at each location is responsible for
Customer to the Lotus Tea Importer Company places an order with a sales representative by phone or fax. The sales department employee then transcribes the customer order into a standard sales order
Given the following business rules, construct an ER diagram so each rule is captured for the database. Presume each rule is to be treated individually. Construct an ER diagram for each rule.a. A
D&F is a distributor of CDs and cassettes that offers benefits such as discount prices and an introductory offer often CDs or cassettes for a penny (not including the shipping and handling
What is an REA diagram?
What are support events?
What are economic agents?
What is view modeling?
Why are journals and ledgers not modeled in an REA diagram?
Name the four basic forms of cardinality.
List the steps involved in view integration.
What is the rule for assigning foreign keys in a 1:1 association?
What is the rule for assigning foreign keys in an M: M association?
From the perspective of an organization, explain duality as it relates to the give and receive events of an economic exchange.
Explain the relationship between cardinality and association.
Discuss the rules for assigning primary keys to database tables.
Discuss the rules for linking events to resources and agents in an REA diagram.
How are external and internal agents modeled in REA diagrams for transactions that involve purely internal exchanges, such as raw material moving into production?
Explain how REA databases are able to support financial statement reporting when they do not employ journals and ledgers.
Distinguish between economic events and support events and provide examples of each.
Describe the minimum number and types of events that an REA diagram must include.
Why are traditional accounting events such as recording a transaction in a journal or posting to ledgers not modeled in REA diagrams?
ER diagrams usually include the link tables in the model to resolve M: M associations. REA diagrams typically do not show link tables. Explain.
Employee time is a resource that is always used but is not always modeled in an REA diagram. Explain and give examples.
When are data in 3NF?
Multiply Choice1. The concept of duality means that an REA diagram must consist ofa. Two events—one of them economic and the other support.b. Two agents—one of them internal and the other
Describe three differences between REA diagrams and ER diagrams.
Based on the data in Problem 2, which of the following relationships in the diagram for Problem 3 properly models the entity associations for Bentley Restorations? Explain youranswer.
Prepare an REA model depicting the issuance of raw materials into the manufacturing process. Identify the resource, event, and agent entities. Show the cardinalities in the associations between
Horizon Books is a bookstore in downtown Philadelphia. It carries an inventory of approximately 5,000 books. Customers come in and browse the shelves, select their books, and take them to the
Feinman Computers sells desktop computer systems that it manufactures from parts and software that third- party vendors provide. Customers are both private con- sinners and small businesses.
K Cannon, Inc., is a manufacturer of portable CD players The company purchases raw materials such as plastics and computer chips for its conversion cycle. The following describes K Cannon’s
Every 2 reeks, employees for a manufacturing firm submit their time cards to the supervisor, who reviews and approves them. They are the submitted to the payroll department. At that time, the human
Asset acquisition begins when the department manager recognizes the need to obtain or replace an existing fixed asset. The manager prepares two copies of a purchase requisition; one is filed in the
Define ERP.
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