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Student: ___________________________________________________________________________
A. View-driven
B. Event-driven
C. Either view-driven or event-driven
D. Neither view-driven nor event-driven
10. View-driven accounting information systems often foster the idea of stovepiping in organizations. Which
of the following is an example of stovepiping?
A. All department heads meet to discuss company strategy.
B. A sales representative quotes a price that is less than cost.
C Both all department heads meet to discuss company strategy and a sales representative quotes a price
. that is less than cost are examples of stovepiping.
D Neither all department heads meet to discuss company strategy nor a sales representative quotes a price
. that is less than cost is an example of stovepiping.
11. An accounting information system captures data that are eventually grouped by account, and then used to
prepare general purpose financial statements. The system could be described as:
A. A view-driven AIS.
B. An event-driven AIS.
C. Either a view-driven AIS or an event-driven AIS.
D. Neither a view-driven AIS nor an event-driven AIS.
12. Information technology controls, such as a password rotation policy, can be used in:
A. View-driven AIS.
B. Event-driven AIS.
C. Both view-driven AIS and event-driven AIS.
D. Neither view-driven AIS nor event-driven AIS.
13. Which of the following statements about view- and event-driven AIS is most true?
A. The two are differentiated by the presence or absence of information technology.
B. The two are differentiated by the use of paper or electronic documents.
C Both the two are differentiated by the presence or absence of information technology and the two are
. differentiated by the use of paper or electronic documents are true.
D Neither the two are differentiated by the presence or absence of information technology nor the two are
. differentiated by the use of paper or electronic documents is true.
14. View-driven AIS have been criticized because their data are often outdated. Which of the following
journal entries for the purchase of inventory best illustrates that criticism?
A. Debit purchases, credit cash
B. Debit inventory, credit cash
C. Debit purchases, credit inventory
D. Debit inventory, credit purchases
15. A journal entry in a view-driven AIS debits equipment for $10,000, credits cash for $2,000 and credits
notes payable for $8,000. Which of the following pieces of data would you expect to see in an event-
driven AIS but not in the view-driven AIS?
A. The transaction date
B. The expected life of the equipment
C. Both the transaction date and the expected life of the equipment
D. Neither the transaction date nor the expected life of the equipment
16. The accounting cycle comprises ten steps. In which step would you expect to find a difference between
view-driven and event-driven AIS?
A. Analyze transactions.
B. Record adjusting entries.
C. Both analyze transactions and record adjusting entries.
D. Neither analyze transactions nor record adjusting entries.
17. Consider the following REA diagram as you respond to the question:
Which of the following statements about the REA model is least true?
A. A purchase of supplies can occur with no purchasing agent involvement.
B. A purchasing agent may be involved in no purchases of supplies.
C. Exactly one purchasing agent must be involved in each purchase of supplies.
D. Purchasing agents and vendors have no relationship outside the context of a "purchase supplies"
transaction.
25. Consider the following short case as you respond to the next nine questions:
ABC Consulting's employees include management, consultants and office staff. The company accepts
engagements related to internal control design and evaluation, as well as enterprise risk management
plans. A customer can purchase the two services independently of one another. The office staff bills
clients on a monthly basis with terms of 2/10, n/30. All consulting clients must sign a contract, which is
also signed by an ABC manager. One member of ABC's management team assigns at least one consultant
to work with the customer until the engagement is complete. Consultants can be assigned to multiple
engagements simultaneously, but every consultant must always be working on at least one engagement.
Each client may have only one contract with ABC at a time.
In a REA model of the case, how many boxes would you expect to see in the second column?
A. One
B. Two
C. Three or four
D. More than four
26. Consider the following short case as you respond to the next nine questions:
ABC Consulting's employees include management, consultants and office staff. The company accepts
engagements related to internal control design and evaluation, as well as enterprise risk management
plans. A customer can purchase the two services independently of one another. The office staff bills
clients on a monthly basis with terms of 2/10, n/30. All consulting clients must sign a contract, which is
also signed by an ABC manager. One member of ABC's management team assigns at least one consultant
to work with the customer until the engagement is complete. Consultants can be assigned to multiple
engagements simultaneously, but every consultant must always be working on at least one engagement.
Each client may have only one contract with ABC at a time.
In a REA model of the case, events would include:
A. Sign contract
B. Assign employees
C. Bill customer
D. All of these
27. Consider the following short case as you respond to the next nine questions:
ABC Consulting's employees include management, consultants and office staff. The company accepts
engagements related to internal control design and evaluation, as well as enterprise risk management
plans. A customer can purchase the two services independently of one another. The office staff bills
clients on a monthly basis with terms of 2/10, n/30. All consulting clients must sign a contract, which is
also signed by an ABC manager. One member of ABC's management team assigns at least one consultant
to work with the customer until the engagement is complete. Consultants can be assigned to multiple
engagements simultaneously, but every consultant must always be working on at least one engagement.
Each client may have only one contract with ABC at a time.
How many agents would be depicted in the rightmost column of a REA model of the case?
A. One
B. Two
C. Three
D. None. Agents do not appear in the rightmost column of a REA model.
28. Consider the following short case as you respond to the next nine questions:
ABC Consulting's employees include management, consultants and office staff. The company accepts
engagements related to internal control design and evaluation, as well as enterprise risk management
plans. A customer can purchase the two services independently of one another. The office staff bills
clients on a monthly basis with terms of 2/10, n/30. All consulting clients must sign a contract, which is
also signed by an ABC manager. One member of ABC's management team assigns at least one consultant
to work with the customer until the engagement is complete. Consultants can be assigned to multiple
engagements simultaneously, but every consultant must always be working on at least one engagement.
Each client may have only one contract with ABC at a time.
A REA model of the case would include ___ resources.
A. Zero
B. One or two
C. Three or four
D. More than four
29. Consider the following short case as you respond to the next nine questions:
ABC Consulting's employees include management, consultants and office staff. The company accepts
engagements related to internal control design and evaluation, as well as enterprise risk management
plans. A customer can purchase the two services independently of one another. The office staff bills
clients on a monthly basis with terms of 2/10, n/30. All consulting clients must sign a contract, which is
also signed by an ABC manager. One member of ABC's management team assigns at least one consultant
to work with the customer until the engagement is complete. Consultants can be assigned to multiple
engagements simultaneously, but every consultant must always be working on at least one engagement.
Each client may have only one contract with ABC at a time.
The smallest possible number of internal agents in the third column of a REA model of the case is:
A. One
B. Two
C. Three
D. None. Internal agents do not appear in the third column of a REA model.
30. Consider the following short case as you respond to the next nine questions:
ABC Consulting's employees include management, consultants and office staff. The company accepts
engagements related to internal control design and evaluation, as well as enterprise risk management
plans. A customer can purchase the two services independently of one another. The office staff bills
clients on a monthly basis with terms of 2/10, n/30. All consulting clients must sign a contract, which is
also signed by an ABC manager. One member of ABC's management team assigns at least one consultant
to work with the customer until the engagement is complete. Consultants can be assigned to multiple
engagements simultaneously, but every consultant must always be working on at least one engagement.
Each client may have only one contract with ABC at a time.
How many external agents would be depicted in the first column of a REA model of the case?
A. Zero
B. One
C. Two
D. Three
31. Consider the following short case as you respond to the next nine questions:
ABC Consulting's employees include management, consultants and office staff. The company accepts
engagements related to internal control design and evaluation, as well as enterprise risk management
plans. A customer can purchase the two services independently of one another. The office staff bills
clients on a monthly basis with terms of 2/10, n/30. All consulting clients must sign a contract, which is
also signed by an ABC manager. One member of ABC's management team assigns at least one consultant
to work with the customer until the engagement is complete. Consultants can be assigned to multiple
engagements simultaneously, but every consultant must always be working on at least one engagement.
Each client may have only one contract with ABC at a time.
In a REA model of the case, the cardinalities between the "assign employees" event and the
agent "employees" would be:
A. Assign employees (0,*) --- (1,1) Employees
B. Assign employees (0,*) --- (1,*) Employees
C. Assign employees (1,*) --- (1,*) Employees
D. None of these
32. To answer the question, consider the following partial REA model in the context of the case:
ABC Consulting's employees include management, consultants and office staff. The company accepts
engagements related to internal control design and evaluation, as well as enterprise risk management
plans. A customer can purchase the two services independently of one another. The office staff bills
clients on a monthly basis with terms of 2/10, n/30. All consulting clients must sign a contract, which is
also signed by an ABC manager. One member of ABC's management team assigns at least one consultant
to work with the customer until the engagement is complete. Consultants can be assigned to multiple
engagements simultaneously, but every consultant must always be working on at least one engagement.
Each client may have only one contract with ABC at a time.
How many database tables will be required by the preceding REA model?
A. Four
B. Five
C. Six
D. Some other number
43. Consider the following REA model as you answer the question:
How many junction tables will be required by the preceding REA model?
A. Two
B. Three
C. Four
D. Some other number
44. Consider the following REA model as you answer the question:
Which of the following would be foreign keys in the "purchase inventory" table?
A. Supplier ID
B. Employee ID
C. Both supplier ID and employee ID
D. Neither supplier ID nor employee ID
45. Consider the following REA model as you answer the question?
Based on the preceding REA model, which of the following statements is most true?
A. The inventory table will not have a foreign key.
B. The primary key from the "purchase inventory" table will appear in the supplier table.
C. The primary key from the "purchase inventory" table will appear in the employee table.
D. All of these statements are true.
47. Consider the following REA model as you answer the question:
A field labeled "transaction ID" is likely to appear in which of the following tables based on the REA
model above?
A. Purchase inventory table
B. Inventory/purchase inventory table
C. Both purchase inventory table and inventory/purchase inventory table
D. Neither purchase inventory table nor inventory/purchase inventory table
48. Consider the following REA model as you answer the question:
A field labeled "inventory ID" is likely to appear in which of the following tables? (i) inventory table, (ii)
purchase inventory table, (iii) inventory/purchase inventory table.
A. I and II only
B. I and III only
C. II and III only
D. I, II and III
49. Consider the following REA model as you answer the question:
The "employee" table is likely to include which of the following fields? (i) department, (ii) gender.
A. I only
B. II only
C. Both I and II
D. Neither I nor II
50. Consider the following REA model as you answer the question:
The "employee" table is likely to include all of the following fields except:
A. Department
B. Gender
C. Last name
D. Age
51. Consider the following diagram as you answer the questions:
Every "Event B" is completed by exactly one employee, but an individual employee may complete
no "Event B" transactions. If employees who do complete "Event B" transactions may do so without
limit, which of the following is the most appropriate for "C?"
A. (0,1)
B. (1,1)
C. (0,*)
D. (1,*)
54. Consider the following diagram as you answer the questions:
Jon and Sam are current employees. Jon has never hired a new employee, but Sam has hired many.
Which of the following is most appropriate for "E?"
A. (0,1)
B. (1,1)
C. (0,*)
D. (1,*)
56. Consider the following diagram as you answer the questions:
Which of the following junction tables would be included in a relational database of the model?
A. employee/interview finalists
B. employee/hire applicant
C. Both employee/interview finalists and employee/hire applicant
D. Neither employee/interview finalists nor employee/hire applicant
57. Consider the following diagram as you answer the questions:
Jon and Sam are current employees. Jon has never hired a new employee, but Sam has hired many.
Which of the following statements is most true?
A. A new agent should be added to the model.
B. A new event should be added to the model.
C. The primary key from the "hire applicant" table should be included in the "employee" table.
D. The primary key from the "employee" table should be included in the "hire applicant" table.
58. Consider the following diagram as you answer the questions:
Frodo and Gandalf are current employees. Frodo has participated in no instances of Event B, while
Gandalf has participated in at least five. Which of the following statements is most true?
A. The primary key from the "employee" table will be the primary key of the "Event B" table.
B. The primary key from the "Event B" table will be the primary key of the "employee" table.
C. The primary key from the "Event B" table will be a foreign key in the "employee" table.
D. The primary key from the "employee" table will be a foreign key in the "Event B" table.
60. Consider the following diagram as you answer the questions:
All of the following will be fields in the "interview finalists" table except:
A. Employee ID
B. Applicant ID
C. Interview date
D. Interview time
61. Which of the following statements are true based on the REA model provided?
63. Fill in the blanks below based on the principles of REA modeling.
a. ___ events focus on activities involved with providing goods and services to customers.
b. ___ events deal with recording and maintaining data.
c. ___ events are concerned with human decision making.
d. The leftmost column in a REA model presents ___.
e. The middle column in a REA model presents ___.
f. The rightmost column in a REA model presents ___.
g. ___ tell an accounting professional about the relationships between elements of a REA model.
64. Most AIS designers and auditors find it best to start a REA model by identifying events, which come in
three broad categories: operating, information and decision/management. Which category best describes
each item below?
a. Buying supplies
b. Deciding how to document an AIS
c. Designing internal controls
d. Developing a risk management plan
e. Issuing capital stock
f. Motivating employees
g. Posting transactions to the ledger
h. Purchasing advertising
i. Recording transactions in a journal
j. Selling equipment
65. Determine whether each of the following items applies to: (a) view-driven systems only, (b) event-driven
systems only, (c) both view- and event-driven systems or (d) neither view- nor event-driven systems.
1) Capable of generating a balance sheet
2) Captures a more comprehensive data set
3) Comprises five basic parts
4) Converts information into decisions
5) Incorporates data that may not be presented in the general purpose financial statements
6) Must use information technology
7) Records transactions using the principles of debit and credit
8) Should be designed with the FASB Conceptual Framework in mind
9) Transforms data into information
10) Typically incorporates journals and ledgers
66. Create cardinalities for each of the following independent situations. Format the cardinalities as they
would appear in a REA model.
a. A customer may purchase inventory multiple times; every inventory purchase is tied to a single
customer.
b. A "purchase inventory" transaction may involve multiple inventory items; an individual inventory item
may be sold many times or not at all.
c. Each inventory purchase is authorized by a single purchasing agent; the number of authorizations for
each purchasing agent can be as few as one, but has no upper limit.
d. A bank deposit is processed by a single teller; a teller can process an unlimited number of deposits, but
must process at least one each day.
e. An individual "process bank deposit" transaction may involve multiple checks; an individual check can
be deposited only one time.
List all the tables indicated by the model. In each table, specify the primary key.
68. Based on a REA model, an accountant created an inventory table, a purchase inventory table and
a purchases/inventory table. Several field names that might appear in those tables are listed below.
Organize them into the appropriate tables based on the principles of database normalization. Specify
primary keys with underlines and foreign keys with brackets. Some of the field names may be used in
more than one table; others may not be used at all.
"As of" date for beginning inventory
Beginning quantity on hand
Cost per unit of beginning inventory
Inventory description
Inventory item number
Number of units purchased
Price per unit purchased
Purchasing agent ID
Total cost of inventory on hand
Total cost of inventory purchases
Transaction date
Transaction number
Vendor ID
69. The Association of Certified Fraud Examiners offers one- and two-day seminars to its members
throughout the year; members find out about the seminars via the association's web site or a catalog
mailed on a quarterly basis. Each seminar must have at least ten registrants, but can have no more than
thirty registrants. The ACFE maintains registrant records independently of each seminar since a registrant
may be involved in multiple seminars over time. Association staff process seminar registrations, which
may come in through the mail, over the phone or via the web site. Payment must be made in advance in
one or more installments; the association does not refund registration fees for "no-shows." Each seminar
has a single speaker who is paid a fixed fee regardless of the number of attendees; the speaker's fee is
paid at the end of the seminar. A speaker may present the same seminar multiple times during the year,
but each speaker is focused on a single seminar topic. At the end of each seminar, attendees receive a
signed certificate of completion after they respond to a short quiz based on the seminar's content. Create a
REA model for the registration and collection process.
70. The Association of Certified Fraud Examiners offers one- and two-day seminars to its members
throughout the year; members find out about the seminars via the association's web site or a catalog
mailed on a quarterly basis. Each seminar must have at least ten registrants, but can have no more than
thirty registrants. Association staff process seminar registrations, which may come in through the mail,
over the phone or via the web site. Payment must be made in advance; the association does not refund
registration fees for "no-shows." Each seminar has a single speaker who is paid a fixed fee regardless of
the number of attendees; the speaker's fee is paid at the end of the seminar. A speaker may present the
same seminar multiple times during the year, but each speaker is focused on a single seminar topic. At the
end of each seminar, attendees receive a signed certificate of completion after they respond to a short quiz
based on the seminar's content.
Create database specifications (table and field names) for the registration and collection process. Indicate
primary keys by underlining and foreign keys with brackets.
71. List five weaknesses associated with view-driven accounting information systems.
72. In your own words, explain the steps used to create a REA model.
73. Prepare a narrative description of the business process illustrated in the REA model below.
74. Analyze the REA model below. Identify and describe (in narrative form) the tables you would create
based on the model; do not describe the tables by listing the field names.
75. REA models often are created using the six-step process described in the text; after they are created, they
are often used to create database tables. List and discuss three internal controls you would recommend
implementing in the six-step process and/or the database creation process.
8 Key
1. View-driven accounting information systems have been criticized because they:
A. Focus on a very small, well-defined group of important business events.
B. Often process data in batches.
C. Both focus on a very small, well-defined group of important business events and often process data
in batches
D. Neither focus on a very small, well-defined group of important business events nor often process
data in batches
AACSB: Analytical Thinking
AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Hurt - Chapter 08 #1
Learning Objective: 08-01 Compare and contrast view-driven and event-driven accounting information systems.
Topic: Types of accounting information systems
2. Data in a view-driven accounting information system are:
A. Highly aggregated.
B. Stored in a single place.
C. Both highly aggregated and stored in a single place
D. Neither highly aggregated nor stored in a single place
AACSB: Analytical Thinking
AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Hurt - Chapter 08 #2
Learning Objective: 08-01 Compare and contrast view-driven and event-driven accounting information systems.
Topic: Types of accounting information systems
3. In view-driven accounting information systems, internal controls are often:
A. Protective.
B. Expensive.
C. Both protective and expensive.
D. Neither protective nor expensive.
AACSB: Analytical Thinking
AICPA: FN Risk Analysis
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Hurt - Chapter 08 #3
Learning Objective: 08-01 Compare and contrast view-driven and event-driven accounting information systems.
Topic: Types of accounting information systems
4. In contrast with view-driven AIS, event-driven accounting information systems focus on:
A. Business processes.
B. Journal entries.
C. Ledger accounts.
D. All of these.
AACSB: Analytical Thinking
AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Hurt - Chapter 08 #4
Learning Objective: 08-01 Compare and contrast view-driven and event-driven accounting information systems.
Topic: Types of accounting information systems
5. Data in a view-driven AIS are often stored in multiple places, such as:
A. Journals.
B. Ledgers.
C. Both journals and ledgers.
D. Neither journals nor ledgers.
AACSB: Analytical Thinking
AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Hurt - Chapter 08 #5
Learning Objective: 08-01 Compare and contrast view-driven and event-driven accounting information systems.
Topic: Types of accounting information systems
6. In a view-driven AIS, where you would expect to see stored data about product quality?
A. In the journal
B. In the ledger
C. Both in the journal and in the ledger
D. Neither in the journal nor in the ledger
AACSB: Analytical Thinking
AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Hurt - Chapter 08 #6
Learning Objective: 08-01 Compare and contrast view-driven and event-driven accounting information systems.
Topic: Types of accounting information systems
7. Which of the following pieces of data would you expect to find in an event-driven AIS, but not in a
view-driven AIS?
A. Accounts to debit
B. Accounts to credit
C. Details about customer preferences for product color
D. All of these
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AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Hurt - Chapter 08 #7
Learning Objective: 08-01 Compare and contrast view-driven and event-driven accounting information systems.
Topic: Types of accounting information systems
8. View-driven AIS are designed to support a particular way of looking at the data they contain. Which
of the following is not a view commonly supported by a view-driven AIS?
A. Balance sheet
B. Income statement
C. Statement of shareholders' equity
D. Budget variance report
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AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Hurt - Chapter 08 #8
Learning Objective: 08-01 Compare and contrast view-driven and event-driven accounting information systems.
Topic: Types of accounting information systems
9. A company wants to prepare a schedule of assets that separates current and long-term assets, as
well as reports relevant dollar amounts. Which type of AIS could the company use to prepare such a
schedule?
A. View-driven
B. Event-driven
C. Either view-driven or event-driven
D. Neither view-driven nor event-driven
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AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Hurt - Chapter 08 #9
Learning Objective: 08-01 Compare and contrast view-driven and event-driven accounting information systems.
Topic: Types of accounting information systems
10. View-driven accounting information systems often foster the idea of stovepiping in organizations.
Which of the following is an example of stovepiping?
A. All department heads meet to discuss company strategy.
B. A sales representative quotes a price that is less than cost.
C Both all department heads meet to discuss company strategy and a sales representative quotes a
. price that is less than cost are examples of stovepiping.
D Neither all department heads meet to discuss company strategy nor a sales representative quotes a
. price that is less than cost is an example of stovepiping.
AACSB: Analytical Thinking
AICPA: BB Critical Thinking
Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 3 Hard
Hurt - Chapter 08 #10
Learning Objective: 08-01 Compare and contrast view-driven and event-driven accounting information systems.
Topic: Types of accounting information systems
11. An accounting information system captures data that are eventually grouped by account, and then used
to prepare general purpose financial statements. The system could be described as:
A. A view-driven AIS.
B. An event-driven AIS.
C. Either a view-driven AIS or an event-driven AIS.
D. Neither a view-driven AIS nor an event-driven AIS.
AACSB: Analytical Thinking
AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 3 Hard
Hurt - Chapter 08 #11
Learning Objective: 08-01 Compare and contrast view-driven and event-driven accounting information systems.
Topic: Types of accounting information systems
12. Information technology controls, such as a password rotation policy, can be used in:
A. View-driven AIS.
B. Event-driven AIS.
C. Both view-driven AIS and event-driven AIS.
D. Neither view-driven AIS nor event-driven AIS.
AACSB: Analytical Thinking
AICPA: FN Risk Analysis
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Hurt - Chapter 08 #12
Learning Objective: 08-01 Compare and contrast view-driven and event-driven accounting information systems.
Topic: Types of accounting information systems
13. Which of the following statements about view- and event-driven AIS is most true?
A. The two are differentiated by the presence or absence of information technology.
B. The two are differentiated by the use of paper or electronic documents.
C Both the two are differentiated by the presence or absence of information technology and the two
. are differentiated by the use of paper or electronic documents are true.
D Neither the two are differentiated by the presence or absence of information technology nor the two
. are differentiated by the use of paper or electronic documents is true.
AACSB: Analytical Thinking
AICPA: BB Critical Thinking
Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 3 Hard
Hurt - Chapter 08 #13
Learning Objective: 08-01 Compare and contrast view-driven and event-driven accounting information systems.
Topic: Types of accounting information systems
14. View-driven AIS have been criticized because their data are often outdated. Which of the following
journal entries for the purchase of inventory best illustrates that criticism?
A. Debit purchases, credit cash
B. Debit inventory, credit cash
C. Debit purchases, credit inventory
D. Debit inventory, credit purchases
AACSB: Analytical Thinking
AICPA: BB Critical Thinking
Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 3 Hard
Hurt - Chapter 08 #14
Learning Objective: 08-01 Compare and contrast view-driven and event-driven accounting information systems.
Topic: Types of accounting information systems
15. A journal entry in a view-driven AIS debits equipment for $10,000, credits cash for $2,000 and credits
notes payable for $8,000. Which of the following pieces of data would you expect to see in an event-
driven AIS but not in the view-driven AIS?
A. The transaction date
B. The expected life of the equipment
C. Both the transaction date and the expected life of the equipment
D. Neither the transaction date nor the expected life of the equipment
AACSB: Analytical Thinking
AICPA: BB Critical Thinking
Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 3 Hard
Hurt - Chapter 08 #15
Learning Objective: 08-01 Compare and contrast view-driven and event-driven accounting information systems.
Topic: Types of accounting information systems
16. The accounting cycle comprises ten steps. In which step would you expect to find a difference
between view-driven and event-driven AIS?
A. Analyze transactions.
B. Record adjusting entries.
C. Both analyze transactions and record adjusting entries.
D. Neither analyze transactions nor record adjusting entries.
AACSB: Analytical Thinking
AICPA: BB Critical Thinking
Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 3 Hard
Hurt - Chapter 08 #16
Learning Objective: 08-01 Compare and contrast view-driven and event-driven accounting information systems.
Topic: Types of accounting information systems
17. Consider the following REA diagram as you respond to the question:
Which of the following statements about the REA model is least true?
A. A purchase of supplies can occur with no purchasing agent involvement.
B. A purchasing agent may be involved in no purchases of supplies.
C. Exactly one purchasing agent must be involved in each purchase of supplies.
D. Purchasing agents and vendors have no relationship outside the context of a "purchase supplies"
transaction.
AACSB: Analytical Thinking
AICPA: BB Critical Thinking
Blooms: Understand
Difficulty: 2 Medium
Hurt - Chapter 08 #24
Learning Objective: 08-02 Use REA modeling to represent an event-driven AIS.
Topic: REA modeling
25. Consider the following short case as you respond to the next nine questions:
ABC Consulting's employees include management, consultants and office staff. The company accepts
engagements related to internal control design and evaluation, as well as enterprise risk management
plans. A customer can purchase the two services independently of one another. The office staff bills
clients on a monthly basis with terms of 2/10, n/30. All consulting clients must sign a contract, which
is also signed by an ABC manager. One member of ABC's management team assigns at least one
consultant to work with the customer until the engagement is complete. Consultants can be assigned
to multiple engagements simultaneously, but every consultant must always be working on at least one
engagement. Each client may have only one contract with ABC at a time.
In a REA model of the case, how many boxes would you expect to see in the second column?
A. One
B. Two
C. Three or four
D. More than four
The agents are "employees" and "customer." Although ABC has three types of employees, separating
them would lead to four agents, which is not one of the choices.
The contract is definitely a resource. Cash may also be a resource if the REA model includes
collecting payment from the clients.
The smallest number is "one," which would mean all employees are grouped together in the REA
model.
How many database tables will be required by the preceding REA model?
A. Four
B. Five
C. Six
D. Some other number
The model requires one table for each box PLUS an inventory/purchase inventory junction table.
How many junction tables will be required by the preceding REA model?
A. Two
B. Three
C. Four
D. Some other number
Which of the following would be foreign keys in the "purchase inventory" table?
A. Supplier ID
B. Employee ID
C. Both supplier ID and employee ID
D. Neither supplier ID nor employee ID
AACSB: Analytical Thinking
AICPA: BB Critical Thinking
Blooms: Apply
Difficulty: 3 Hard
Hurt - Chapter 08 #44
Learning Objective: 08-03 Use a REA model to design a relational database for an event-driven AIS.
Topic: Database creation from a REA model
45. Consider the following REA model as you answer the question?
Based on the preceding REA model, which of the following statements is most true?
A. The inventory table will not have a foreign key.
B. The primary key from the "purchase inventory" table will appear in the supplier table.
C. The primary key from the "purchase inventory" table will appear in the employee table.
D. All of these statements are true.
AACSB: Analytical Thinking
AICPA: BB Critical Thinking
Blooms: Apply
Difficulty: 3 Hard
Hurt - Chapter 08 #46
Learning Objective: 08-03 Use a REA model to design a relational database for an event-driven AIS.
Topic: Database creation from a REA model
47. Consider the following REA model as you answer the question:
A field labeled "transaction ID" is likely to appear in which of the following tables based on the REA
model above?
A. Purchase inventory table
B. Inventory/purchase inventory table
C. Both purchase inventory table and inventory/purchase inventory table
D. Neither purchase inventory table nor inventory/purchase inventory table
AACSB: Analytical Thinking
AICPA: BB Critical Thinking
Blooms: Apply
Difficulty: 3 Hard
Hurt - Chapter 08 #47
Learning Objective: 08-03 Use a REA model to design a relational database for an event-driven AIS.
Topic: Database creation from a REA model
48. Consider the following REA model as you answer the question:
A field labeled "inventory ID" is likely to appear in which of the following tables? (i) inventory table,
(ii) purchase inventory table, (iii) inventory/purchase inventory table.
A. I and II only
B. I and III only
C. II and III only
D. I, II and III
AACSB: Analytical Thinking
AICPA: BB Critical Thinking
Blooms: Apply
Difficulty: 3 Hard
Hurt - Chapter 08 #48
Learning Objective: 08-03 Use a REA model to design a relational database for an event-driven AIS.
Topic: Database creation from a REA model
49. Consider the following REA model as you answer the question:
The "employee" table is likely to include which of the following fields? (i) department, (ii)
gender.
A. I only
B. II only
C. Both I and II
D. Neither I nor II
AACSB: Analytical Thinking
AICPA: BB Critical Thinking
Blooms: Apply
Difficulty: 3 Hard
Hurt - Chapter 08 #49
Learning Objective: 08-03 Use a REA model to design a relational database for an event-driven AIS.
Topic: Database creation from a REA model
50. Consider the following REA model as you answer the question:
The "employee" table is likely to include all of the following fields except:
A. Department
B. Gender
C. Last name
D. Age
Every "Event B" is completed by exactly one employee, but an individual employee may complete
no "Event B" transactions. If employees who do complete "Event B" transactions may do so without
limit, which of the following is the most appropriate for "C?"
A. (0,1)
B. (1,1)
C. (0,*)
D. (1,*)
AACSB: Analytical Thinking
AICPA: BB Critical Thinking
Blooms: Analyze
Difficulty: 3 Hard
Hurt - Chapter 08 #53
Learning Objective: 08-02 Use REA modeling to represent an event-driven AIS.
Topic: REA modeling
54. Consider the following diagram as you answer the questions:
Jon and Sam are current employees. Jon has never hired a new employee, but Sam has hired many.
Which of the following is most appropriate for "E?"
A. (0,1)
B. (1,1)
C. (0,*)
D. (1,*)
AACSB: Analytical Thinking
AICPA: BB Critical Thinking
Blooms: Apply
Difficulty: 3 Hard
Hurt - Chapter 08 #55
Learning Objective: 08-02 Use REA modeling to represent an event-driven AIS.
Topic: REA modeling
56. Consider the following diagram as you answer the questions:
Which of the following junction tables would be included in a relational database of the model?
A. employee/interview finalists
B. employee/hire applicant
C. Both employee/interview finalists and employee/hire applicant
D. Neither employee/interview finalists nor employee/hire applicant
AACSB: Analytical Thinking
AICPA: BB Critical Thinking
Blooms: Understand
Difficulty: 2 Medium
Hurt - Chapter 08 #56
Learning Objective: 08-03 Use a REA model to design a relational database for an event-driven AIS.
Topic: Database creation from a REA model
57. Consider the following diagram as you answer the questions:
Jon and Sam are current employees. Jon has never hired a new employee, but Sam has hired many.
Which of the following statements is most true?
A. A new agent should be added to the model.
B. A new event should be added to the model.
C. The primary key from the "hire applicant" table should be included in the "employee" table.
D. The primary key from the "employee" table should be included in the "hire applicant" table.
AACSB: Analytical Thinking
AICPA: BB Critical Thinking
Blooms: Analyze
Difficulty: 3 Hard
Hurt - Chapter 08 #57
Learning Objective: 08-03 Use a REA model to design a relational database for an event-driven AIS.
Topic: Database creation from a REA model
58. Consider the following diagram as you answer the questions:
Frodo and Gandalf are current employees. Frodo has participated in no instances of Event B, while
Gandalf has participated in at least five. Which of the following statements is most true?
A. The primary key from the "employee" table will be the primary key of the "Event B" table.
B. The primary key from the "Event B" table will be the primary key of the "employee" table.
C. The primary key from the "Event B" table will be a foreign key in the "employee" table.
D. The primary key from the "employee" table will be a foreign key in the "Event B" table.
AACSB: Analytical Thinking
AICPA: BB Critical Thinking
Blooms: Analyze
Difficulty: 3 Hard
Hurt - Chapter 08 #59
Learning Objective: 08-03 Use a REA model to design a relational database for an event-driven AIS.
Topic: Database creation from a REA model
60. Consider the following diagram as you answer the questions:
All of the following will be fields in the "interview finalists" table except:
A. Employee ID
B. Applicant ID
C. Interview date
D. Interview time
AACSB: Analytical Thinking
AICPA: BB Critical Thinking
Blooms: Understand
Difficulty: 2 Medium
Hurt - Chapter 08 #60
Learning Objective: 08-03 Use a REA model to design a relational database for an event-driven AIS.
Topic: Database creation from a REA model
61. Which of the following statements are true based on the REA model provided?
a. business events
b. batches; end of the month
c. outdated
d. dates; accounts; amounts
e. aggregated; multiple places
f. internal control
a. operating
b. information
c. decision/management
d. resources
e. events
f. agents
g. cardinalities
Operating: a, e, h, j
Information: g, i
Decision/management: b, c, d, f
1) c
2) b
3) c
4) d
5) b
6) d
7) a
8) c
9) c
10) a
List all the tables indicated by the model. In each table, specify the primary key.
Inventory: Inventory ID
Purchase inventory: Transaction ID
Inventory/purchase inventory: Inventory ID & Transaction ID
Supplier: Supplier ID
Employee: Employee ID
Inventory table: Inventory item number, inventory description, beginning quantity on hand, cost per
unit of beginning inventory, "as of" date for beginning inventory
Purchase inventory table: Transaction number, transaction date, Purchasing agent ID, Vendor ID
Purchases/inventory table: [Transaction number], [Inventory item number], Number of units
purchased, Price per unit purchased