The Airport Authority of Utopia maintains a spreadsheet to store information about airlines, pilots and planes.There is only one airport but several airlines use it.The airport employs you as consultant to develop a simple database system.You are required to normalise the foll

200534 Accounting Information Systems - Formative Test One 1) Which of the following statements below shows the contrast between data and information? A) Data is the output of an AIS. B) Information is the primary output of an AIS. C) Data is more useful in decision making than information. D) Data and information are the same. 2) Information is best described as A) raw facts about transactions. B) data that has been organized and processed so that it is meaningful to the user. C) facts that are useful when processed in a timely manner. D) the same thing as data. 3) The value of information can best be determined by A) its usefulness to decision makers. B) its relevance to decision makers. C) the benefits associated with obtaining the information minus the cost of producing it. D) the extent to which it optimizes the value chain. 4) An accounting information system (AIS) processes ________ to provide users with ________. A) data; information B) data; transactions C) information; data D) data; benefits 5) ________ information reduces uncertainty, improves decision makers' ability to make predictions, or confirms expectations. A) Timely B) Reliable C) Relevant D) Complete 6) Which of the following commonly initiates the data input process? A) a business activity B) automatic batch processing C) an accounting department source document D) a trial balance query 7) A typical source document could be A) some type of paper document. B) a computer data entry screen. C) the company's financial statements. D) both A and B 8) Which step below is not considered to be part of the data processing cycle? A) data input B) feedback from external sources C) data storage D) data processing 9) John Pablo works in the accounting department of a multinational manufacturing company. His job includes updating accounts receivable based on sales orders and remittance advices. His responsibilities are part of the company's A) revenue cycle. B) expenditure cycle. C) financing cycle. D) production cycle. 10) John Pablo works in the accounting department of a multinational manufacturing company. His job includes updating accounts payable based on purchase orders and checks. His responsibilities are part of the company's A) revenue cycle. B) expenditure cycle. C) financing cycle. D) production cycle. 11) 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. 12) 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. 13) 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. 14) 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. 15) 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 16) Which of the following statements about REA modeling and REA diagrams is false? A) REA is an acronym for Resources, Entities, and Agents. B) REA data modeling does not include traditional accounting elements such as ledgers, chart of accounts, debits and credits. C) REA data modeling could be referred to as an events-based model. D) REA diagrams must include at least two activities, which together represent a give-get economic exchange. 17) The REA data model approach facilitates efficient operations by all the following except A) standardizing source document format. B) identifying non-value added activities. C) storing financial and nonfinancial data in the same database. D) organizing data to simplify data retrieval and analysis. 18) The process of defining a database so that it faithfully represents all aspects of the organization including its interactions with the external environment is called A) data modeling. B) data designing. C) data development. D) data definition. 19) In which stage(s) of the database design process does data modeling occur? A) only in the systems analysis stage B) only in the design stage C) in both the systems analysis and design stages D) neither the systems analysis nor the design stages 20) A(n) ________ diagram graphically depicts a database's contents by showing entities and relationships. A) data flow B) flowchart C) entity-relationship D) REA 21) Integrating separate REA diagrams developed for individual transaction cycles into a single, comprehensive enterprise-wide data model A) is possible. B) requires understanding what the cardinalities in each separate diagram reveal about the organization's business policies and activities. C) provides a single comprehensive enterprise-wide model of the organization. D) All of the above are true. 22) An integrated REA diagram merges multiple copies of ________ and ________ entities but retains multiple copies of ________ entities. A) resource; event; agent B) event; agent; resource C) resource; agent; event D) None of the above. An integrated REA diagram merges multiple copies of all entities. 23) An integrated REA diagram could contain multiple copies of A) customers. B) sales. C) inventory. D) sales-inventory. 24) An integrated REA diagram merges multiple copies of some entities in order to A) minimize the repetition of agent entities. B) maximize the legibility of the diagram by avoiding the need to have relationship lines cross one another. C) Both A and B are true. D) Both A and B are false. 25) Combining REA diagrams for individual transaction cycles into a single, enterprise-wide model adds two more rules to the three basic principles for drawing REA diagrams. Which of the following is not one of those two new rules? A) Every resource must be linked to at least one event that increments that resource and to at least one event that decrements that resource. B) If a specific event can be linked to more than one other type of event, but cannot be linked simultaneously to all of those other events, then the minimum cardinality between that event and every other event with which it may be associated must be 0. C) If a specific event can be linked to more than one other type of event, but cannot be linked simultaneously to all of those other events, then the maximum cardinality between that event and every other event with which it may be associated must be 0. D) All of the above are new rules for drawing integrated REA diagrams