Chapter 13, The Financing Business Process Chapter 13, The Financing Business Process

True/False Questions 8. In most enterprise systems, cash is represented as a type-level entity because it is normally
not possible or practical to specifically identify each coin and piece of currency stored by
1. The financing business process provides the capital resources an enterprise needs to fund the company at any given time.
all aspects of its operations.
Ans: True
Ans: True
9. The only attribute that typically needs to be captured regarding a cash requisition event is
2. The only mechanism by which enterprises acquire cash is debt financing. the dollar amount of cash identified as needed.

Ans: False Ans: False

Response: Enterprises may also acquire cash by equity financing. Response: The date and time of the requisition are also important attributes to capture

3. With debt financing, an enterprise borrows cash from one or more external business 10. New data entered as a result of a cash requisition event are typically entered into the cash
partners for a specified time period and with the agreement that the enterprise will pay a requisition table and in the table that implements the proposition relationship between the
specified interest rate in addition to the principal balance. cash requisition event and the cash resource.

Ans: True Ans: True

4. At the value system level, the financing process is the point of contact between an 11. In equity financing, the mutual commitment event is typically called a loan agreement and
enterprise and its employees. is represented by a promissory note or bond certificate.

Ans: False Ans: False

Response: At the value system level the financing process is the point of contact between
an enterprise and its investors and creditors.
5. At the value chain level, cash is typically made available by the financing process to the
revenue process.
Response: Loan agreements are part of debt financing; the mutual commitment event in
equity financing is a stock issuance commitment event and is represented by shares of
stock.
12. Shares of stock are guarantees of future cash flows to the shareholders that own them.

Ans: False Ans: False

Response: The revenue process typically makes cash available to the financing process; Response: Shares of stock do not guarantee future cash flows; although they represent
the financing process typically makes cash available to the acquisition/payment and commitments for future cash flows, there is no guarantee.
payroll processes
13. Once dividends are declared, the enterprise is required by law to actually pay the
6. Sufficient cash availability enables enterprises to purchase in quantity to obtain more dividends
favorable prices and to take advantage of cash discounts.
Ans: True
Ans: True
14. A stock certificate is used to represent one type of commitment event in the financing
7. Cash is both the resource acquired and the resource given in the financing process. cycle.

Ans: True Ans: True

252 Dunn/Cherrington/Hollander, Enterprise Information Systems: A Pattern Based Approach, 3e Dunn/Cherrington/Hollander, Enterprise Information Systems: A Pattern Based Approach, 3e 253

Chapter 13, The Financing Business Process Chapter 13, The Financing Business Process
15. The primary economic increment event in the financing process is the stock issuance Multiple Choice Questions
event.
21. From which other business process(es) is cash typically made available to the financing
Ans: False business process?
Response: The primary economic increment event in the financing process is the cash A) Acquisition/Payment
receipt event. The stock issuance event is a commitment event. B) Payroll
C) Manufacturing
16. Cash disbursements are economic decrement events that decrease the enterprise's cash D) Sales/Collection
balance. E) Cash is usually not made available to the financing process by any other business
process.
Ans: True
Ans: D
17. The financing process is in essence a special case of the acquisition/payment cycle.
22. Examine the following diagram. What are the most appropriate labels to put on the arrows
Ans: True labeled A, B, and C?

18. The outstanding principal balance of a loan on a specified date is an example of a

Stockflow relationship query in the financing process.

Ans: False
Response: The outstanding principal balance of a loan on a specified date is a duality
relationship query

19. To answer the question “Into which cash account was a cash receipt deposited?” one A)
should examine the Duality relationship in the financing process. A B C
Cash Cash Cash
Ans: False B)
Response: One would want to examine the stockflow relationship A B C
Cash Inventory Labor
C)
20. Cash disbursements made via electronic funds transfer are typically stored as part of a A B C
different entity set than are cash disbursements made via paper checks. Labor Inventory Operating Assets
D)
Ans: False A B C
Response: The same information is typically tracked regarding electronic funds transfers Labor Cash Cash
and paper checks, therefore disbursements of both types are typically considered members E)
of the same entity set called cash disbursements. A B C
Inventory Labor Equipment

Ans: A

254 Dunn/Cherrington/Hollander, Enterprise Information Systems: A Pattern Based Approach, 3e Dunn/Cherrington/Hollander, Enterprise Information Systems: A Pattern Based Approach, 3e 255
Chapter 13, The Financing Business Process Chapter 13, The Financing Business Process
23. Examine the following diagram. What type of event must be included inside the Financing 26. At the value system level, the financing process is the point of contact between the
Process circle to correspond to the resource represented by arrow A? enterprise and its
A) Customers
B) Suppliers
C) Employees
D) Investors/Creditors
E) Own manufacturing process

Ans: D
A) A Cash Receipt event 27. In which type of event in the financing process is a proposal made?
B) A Dividend Declaration event A) Instigation
C) A Loan event B) Mutual Commitment
D) A Cash Disbursement event C) Economic Increment
E) A Stock Issuance event D) Economic Decrement
E) Economic Reversal
Ans: D
Ans: A
24. By what financing mechanisms may cash be received?
A) Loan agreements as evidenced by promissory notes 28. In the financing process, which type of event indicates the enterprise and an external
B) Bond financing as evidenced by bond certificates partner have reached an agreement?
C) Equity financing as evidenced by stock certificates A) Instigation
D) Debt financing as evidenced by promissory notes or bond certificates B) Mutual Commitment
E) All of the above C) Economic Increment
D) Economic Decrement
Ans: E E) Economic Reversal
25. Selling shares of an enterprise's common stock, borrowing money from a bank, and Ans: B
declaring and paying dividends are examples of some of the more general activities in
which business cycle? 29. Which attribute of a cash resource entity is usually a volatile derivable attribute?
A) Sales/Collection A) Cash account identifier
B) Acquisition/Payment B) Cash account name
C) Conversion C) Cash account type
D) Financing D) Cash account location
E) None of the above E) Cash account balance
Ans: D Ans: E

256 Dunn/Cherrington/Hollander, Enterprise Information Systems: A Pattern Based Approach, 3e Dunn/Cherrington/Hollander, Enterprise Information Systems: A Pattern Based Approach, 3e 257

Chapter 13, The Financing Business Process Chapter 13, The Financing Business Process
30. In the financing process, the identification of need for cash is usually labeled as 34. Examine the entity pairs presented. Which pair is most likely to be linked together in a
A) Cash requisition financing cycle duality relationship?
B) Cash commitment A) Sale and Cash receipt
C) Cash receipt B) Cash requisition and Loan agreement
D) Cash disbursement C) Loan agreement and Cash receipt
E) Cash monitoring D) Dividend declaration and Stock issuance
E) Cash receipt and Cash disbursement
Ans: A
Ans: E
31. Which of the following most likely represents a mutual commitment event in a debt
financing process? 35. Examine the entity pairs presented. Which pair is most likely to be linked together in a
A) Stock issuance financing cycle stockflow relationship?
B) Dividend declaration A) Stock issuance and Cash receipt
C) Loan contract B) Cash and Cash disbursement
D) Cash receipt C) Acquisition and Inventory
E) Cash requisition D) Cash requisition and Cash
E) Dividend declaration and Cash
Ans: C
Ans: B
32. Which of the following types of data should typically be captured for a stock issuance?
A) Interest rate 36. A financial officer of KayGee Corporation approves the sale of one million shares of $2
B) Maturity date par value stock to obtain cash for the purchase of property on which to build a new
C) Par value manufacturing facility. Over the course of a week, all one million shares of stock were
D) Repayment schedule issued to stockholders for $27.50 per share. A cashier processed the cash received from
E) Unpaid principal each stockholder. Which of the following best summarizes the internal and external agents
associated with the events as described?
Ans: C
A)
33. Examine the entity pairs presented. Which pair is most likely to be linked together in a
financing cycle proposition relationship?
A) Cash and Cash receipt B)
B) Cash and Dividend declaration
C) Cash and Loan agreement
D) Cash and Cash requisition C)
E) Cash and Cashier

Ans: D D)

E)

Ans: C

258 Dunn/Cherrington/Hollander, Enterprise Information Systems: A Pattern Based Approach, 3e Dunn/Cherrington/Hollander, Enterprise Information Systems: A Pattern Based Approach, 3e 259
Chapter 13, The Financing Business Process Chapter 13, The Financing Business Process

38. Which financing cycle scenario is a reasonable description of the following conceptual
37. Which financing cycle scenario is a reasonable description of the following conceptual model?
model? (0,N) (1,N)
Commitment Reciprocal
Commitment
Commitment Event2 Event2
Event
(0,1) (0,N)

(0,1) (0,N) Fulfill- Fulfill-

ment1 ment2
Fulfill- Fulfill-
ment1 ment2 (0,1) (0,1)

(0,1) (0,1)
Economic Economic
Increment Event Decrement Event
A) A short-term line of credit at a local bank is established so that each time the
enterprise's checking account balance is less than $100, cash of $1,000 is
automatically deposited into the account. Repayment of each $1,000 transfer is due
within 30 days, with an interest rate of 8%. The line of credit is a commitment event,
the cash deposit is an economic increment event. Repayment of the line of credit is an
economic decrement event.
B) An enterprise offers installment sales whereby the customer pays for merchandise over
the course of six months. The sale contract is a commitment event, the cash receipts
from the customer are economic increment events and the sale of the merchandise is
an economic decrement event.
C) An enterprise borrows $20,000 cash and uses it to purchase land. The promissory note
terms require the principal and interest to be repaid monthly according to an
amortization schedule that reflects 8% interest. The loan is a commitment event, the
receipt of the $20,000 cash is an economic increment event, and the monthly payments
of principal and interest are economic decrement events.
D) An enterprise sells shares of its own common stock for $350,000. The sale agreement
is a commitment event, the cash receipt is an economic increment event, and the stock
issuance is an economic decrement event.
E) An enterprise accepts merchandise from individuals on consignment and displays that
merchandise in its storefront. When the merchandise is sold, the enterprise keeps 20%
of the selling price and remits 80% of the proceeds to the merchandise owner. The
consignment agreement is a commitment event, the sale and cash receipt are economic
increment events and the cash disbursement is an economic decrement event.
Ans: C
Economic Economic
Increment Event Decrement Event
A) A short-term line of credit at a local bank is established so that each time the
enterprise's checking account balance is less than $100, cash of $1,000 is
automatically deposited into the account. Repayment of each $1,000 transfer is due
within 30 days, with an interest rate of 8%. The line of credit is a commitment event,
the cash deposit is both an economic increment event and a commitment event.
Repayment of the line of credit is an economic decrement event.
B) An enterprise offers installment sales whereby the customer pays for merchandise over
the course of six months. The sale contract is a commitment event, the customer
statements sent each month are commitment events, the cash receipts from the
customer are economic increment events and the sale of the merchandise is an
economic decrement event.
C) An enterprise borrows $20,000 cash and uses it to purchase land. The promissory note
terms require the principal and interest to be repaid monthly according to an
amortization schedule that reflects 8% interest. The loan is a commitment event, the
receipt of the $20,000 cash is an economic increment event, the monthly payment of
interest is a commitment event, and the monthly payment of principal is an economic
decrement event.
D) An enterprise sells 10,000 shares of its own common stock for $350,000. A year later,
the enterprise declares dividends of $2 per share for a total of $20,000. The stock
issuance is a commitment event, the cash receipt is an economic increment event, the
dividend declaration is a commitment event, and the dividend payment is an economic
decrement event.
E) An enterprise accepts merchandise from individuals on consignment and displays that
merchandise in its storefront. When the merchandise is sold, the enterprise keeps 20%
of the selling price and remits 80% of the proceeds to the merchandise owner. The
consignment agreement is a commitment event, the sale is a commitment event, the
cash receipt is an economic increment event and the cash disbursement is an economic
decrement event.

Ans: D

260 Dunn/Cherrington/Hollander, Enterprise Information Systems: A Pattern Based Approach, 3e Dunn/Cherrington/Hollander, Enterprise Information Systems: A Pattern Based Approach, 3e 261

Chapter 13, The Financing Business Process Chapter 13, The Financing Business Process

40. Given the following tables, what was the total dollar amount of Dividends Payable as of
39. Given the following tables, calculate the outstanding principal balance of all loans as of May 1, 2011?
June 30, 2010.

A) $1,000,000
A) $ 725,000 B) $500,000
B) $ 800,000 C) $100,000
C) $1,725,000 D) $50,000
D) $1,800,000 E) $.50
E) $ 75,000
Ans: D
Ans: A

262 Dunn/Cherrington/Hollander, Enterprise Information Systems: A Pattern Based Approach, 3e Dunn/Cherrington/Hollander, Enterprise Information Systems: A Pattern Based Approach, 3e 263
Chapter 13, The Financing Business Process Chapter 13, The Financing Business Process

Short Answer Questions 45. At the value system level, the financing process is the point of contact between the
enterprise and which type(s) of external business partners?
41. Using the following table, which of the cash disbursements (please list the voucher and
check numbers) appear most likely to be payments of dividends? How did you determine Ans: Investors and creditors
this?
46. What document is often prepared after a cash flow budget reveals a forecasted cash
Cash Disbursement
shortfall?
Voucher CheckNo. Cash Amount AP Clerk Vendor Stockholder
No. Account No. Number Number Number
1 1 89591020 $1,900 33 40207 Ans: Either a cash requisition form or a memorandum summarizing the need for
2 1 78782040 $3,000 33 40208 additional cash and the mechanism by which the enterprise proposes to obtain the cash
3 2 89591020 $32,000 33 40205 (e.g. debt or equity).
4 2 78782040 $400,000 33 40200
5 3 89591020 $940,000 33 40201 47. List at least four attributes of debt financing agreement events that typically should be
6 3 78782040 $10,000 33 40206 captured in enterprise databases.
7 4 78782040 $120,000 33 40202
8 5 78782040 $30,000 33 40203
9 6 78782040 $132,000 33 40202 Ans: The agreement date, the total dollar amount to which the agreement commits, the
10 4 89591020 $72,600 33 40209 interest rate that applies to the agreement, and the maturity date of the agreement.
11 5 89591020 $252,000 33 40200
12 7 78782040 $13,000 33 40204 48. List at least four attributes of equity financing agreement events that typically should be
13 6 89591020 $356,000 33 40200 captured in enterprise databases.
14 7 78782040 $200,000 33 40201
15 8 78782040 $30,000 33 40203 Ans: The date stock was issued, par value of the stock issued, the number of shares of
16 8 89591020 $60,000 33 40
stock issued, and the dollar amount for which the stock was issued.
17 9 89591020 $20,000 33 41
18 10 89591020 $40,000 33 42
19 11 89591020 $72,600 33 40209 49. On the date on which an enterprise receives loan proceeds, into which database table(s)
should data be added?
Ans: Vouchers 16-18 (checks 8-10 from account 89591020) because they are paid to
stockholders whereas all the other cash disbursements are paid to vendors. Ans: Data should be added to the Cash Receipt table and into a table that represents the
fulfillment relationship between the cash receipt and loan events (i.e., if the cardinalities
42. A substantial portion of most enterprises' cash is used to fund which two business of that relationship warranted creation of a separate relationship table) or into the loan
processes? table (i.e., if the fulfillment relationship was implemented with the primary key of the cash
receipt table posted into the loan table as a foreign key).
Ans: Acquisition/payment and Human resources (Payroll)

43. What need triggers activities in the financing process?

Ans: An enterprise's need to obtain cash from an external source

44. Describe the details involved in debt financing as a mechanism for acquiring cash.

Ans: The enterprise borrows cash from one or more external business partners for a
specified period of time and with the agreement that the enterprise will pay a specified
interest rate as well as repayment of the principal balance.

264 Dunn/Cherrington/Hollander, Enterprise Information Systems: A Pattern Based Approach, 3e Dunn/Cherrington/Hollander, Enterprise Information Systems: A Pattern Based Approach, 3e 265

Chapter 13, The Financing Business Process Chapter 13, The Financing Business Process
50. Given the following relational database tables, calculate the outstanding principal balance Essay Questions
of Loan L1 as of May 1, 2010.
51. Describe two different types of commitment events that lead to both cash receipts and
cash disbursements in the financing business process. Which type of commitment event is
more certainly associated with future cash disbursements, and why?

Ans: Debt financing includes a loan commitment that leads to a cash receipt for the
principal borrowed and to cash disbursements for the interest payments and principal
repayments. Equity financing includes a stock issuance commitment event that leads to a
cash receipt for the stock sale proceeds and to cash disbursements for dividend payments
and possibly stock re-purchases. Because dividends are never guaranteed, and because
creditors have priority for liquidated assets over many other parties in case of bankruptcy,
loans are more certainly associated with future cash disbursements as compared to stock
issuance events.

52. Create a “generic” REA business process level model (without cardinalities) in either
grammar or diagram format to represent the financing business process for a privately
held company whose only method of financing is via debt. Your model should encompass
the entire payroll process, from the identification of need for cash to the repayment of
debt.

Ans: Diagram should include the following entities and relationships (may vary slightly)
Cash Requisition to Cash (proposition)
Cash Requisition to Suggested Creditor (optional) (participation)
Cash Requisition to Financing Officer (participation)
Cash Requisition to Debt Financing Agreement (fulfillment)
Debt Financing Agreement to Cash (reservation)
Ans: $450,000 (Original principal of Cash Receipt that fulfilled L1 = $450,000; cash Debt Financing Agreement to Financing Officer (participation)
disbursements that represented principal repayments that fulfilled L1 = $0; $450,000 - $0 Debt Financing Agreement to Creditor (participation)
= $450,000.) Debt Financing Agreement to Cash Receipt (fulfillment)
Debt Financing Agreement to Cash Disbursement (fulfillment)
Cash Receipt to Cash (stockflow)
Cash Receipt to Cashier (participation)
Cash Receipt to Creditor (participation)
Cash Receipt to Cash Disbursement (duality)
Cash Disbursement to Cash (stockflow)
Cash Disbursement to Payables Clerk (participation)
Cash Disbursement to Creditor (participation)

266 Dunn/Cherrington/Hollander, Enterprise Information Systems: A Pattern Based Approach, 3e Dunn/Cherrington/Hollander, Enterprise Information Systems: A Pattern Based Approach, 3e 267
Chapter 13, The Financing Business Process
53. Create a “generic” REA business process level model (without cardinalities) in either
grammar or diagram format to represent the financing business process for a publicly held
company whose only method of financing is via equity. Your model should encompass
the entire payroll process, from the identification of need for cash to the payment of
dividends.
Ans: Diagram should include the following entities and relationships (may vary slightly)
Cash Requisition to Cash (proposition)
Cash Requisition to Suggested Investors (optional) (participation)
Cash Requisition to Financing Officer (participation)
Cash Requisition to Stock Issuance Event (fulfillment)
Stock Issuance Event to Cash (reservation)
Stock Issuance Event to Financing Officer (participation)
Stock Issuance Event to Stockholder (participation)
Stock Issuance Event to Cash Receipt (fulfillment)
Stock Issuance Event to Dividend Declaration Event (reciprocal)
Dividend Declaration Event to Cash (reservation)
Dividend Declaration Event to Cash Disbursement Event (fulfillment)
Dividend Declaration Event to Financing Officer (participation)
Dividend Declaration Event to Stockholder (participation)
Cash Receipt to Cash (stockflow)
Cash Receipt to Cashier (participation)
Cash Receipt to Stockholder (participation)
Cash Receipt to Cash Disbursement (duality)
Cash Disbursement to Cash (stockflow)
Cash Disbursement to Payables Clerk (participation)
Cash Disbursement to Stockholder (participation)
Chapter 13, The Financing Business Process
When loan proceeds are received, OP deposits them into the account established for the
related property, where they remain until used for the property purchase. If the purchase
falls through, which occasionally happens, the loan principal is repaid immediately from
the cash account established for that property; any accrued interest is paid from OP's
headquarters cash account. If the purchase proceeds as scheduled, a check for the purchase
price is issued from the property cash account to the property owner. As rental revenue is
generated from the property, resulting in cash deposits to the property cash account, the
loan's principal and interest are gradually repaid.
OP tracks its cash disbursements by voucher number, and its cash receipts by remittance
advice number. Less than 30% of the payments OP issues are for loan payments; other
checks are written to vendors and employees. Payables clerks process cash disbursements
to lenders and vendors; whereas payroll clerks process payments to employees. Cashiers
process all types of cash receipts.
Required:
a. Prepare an REA business process level model for OP in ER diagram or grammar format
including all relevant entities, relationships, attributes, and participation cardinalities.
The following attributes are of interest to OP and should be included in your solution.
Do not add or subtract any attributes.

54. Optimum Properties (OP) is a privately held real estate investment company that
purchases properties, constructs buildings such as shopping centers, movie theaters, and
churches, and leases those facilities to retailers, entertainment companies, and church
congregations. Often new properties become available at times when OP has insufficient
cash on hand and to take advantage of the opportunity OP must borrow money. The chief
financial officer (CFO) works closely with the chief executive officer (CEO) to determine
whether a potential property investment warrants debt financing. If the CEO determines
the property has sufficient potential, the CFO determines the dollar amount of cash
needed, obtains preliminary information as to likely financing terms such as interest rate
and maturity date, and enters a cash requisition in the enterprise system. The CFO then
executes a financing agreement with a lender, thereby committing OP to receive cash and b. Convert your REA business process level model into a set of minimal relational table
to later repay the cash plus specified interest. OP establishes a separate cash account for structures.
each property to aid in tracking cash inflows and outflows associated with each property.
However, OP assesses the need for cash on an overall basis, rather than by account, there
is no need to track a specific cash account with respect to a cash requisition or a loan
agreement.

268 Dunn/Cherrington/Hollander, Enterprise Information Systems: A Pattern Based Approach, 3e Dunn/Cherrington/Hollander, Enterprise Information Systems: A Pattern Based Approach, 3e 269

Chapter 13, The Financing Business Process Chapter 13, The Financing Business Process
Ans: Optimum Properties – Financing Cycle b.) OP Minimal Relational Tables
Cash
Cash
Account No. Type Location Balance
Requisition
(1,1) Cash Requisition
(0,N)
Requisition ID Date Amount CFOIDFK
partici-
fulfill- pation1
ment1 Cash Receipt
(0,N)
(1,1) Remittance Advice No. CR Date CR Amount CashierIDFK Cash Acct No.FK
Loan (1,1) partici- (0,N) Chief
Cash Disbursement
Agreement pation2 Financial
Voucher No. Check No. Date Amount CashAccountNo. FK
Officer
(0,1) (1,1) Loan Agreement
fulfill- (0,N) Lender
partici- Loan ID. Date Amount Maturity Date Interest Rate RequisitionID FK CFOIDFK LenderIDFK
ment2 pation3

(0,1) Chief Financial Officer

stock- (1,1) CFO ID CFO Name CFO Telephone
(0,N) Cashier
Cash Account flow1 Cash Receipt partici-
pation4
(0,N) (1,1)
Lender
(0,1) Lender ID Lender Name Lender Address
(0,N) (0,N) partici- (0,N)
stock- pation5
flow2 duality
Cashier
(1,1) Cashier ID Cashier Name Cashier Address
(0,N)
(0,N) partici- Payables
pation6 Clerk Payables Clerk
Cash (0,1)
(0,N) Fulfill- (0,N) Clerk ID Clerk Name Clerk Address
ment3
Disbursement
partici-
pation7
(0,1) (0,N)
Duality: Cash Receipt – Cash Disbursement
Remittance Advice No. Voucher No.

Fulfillment2
LoanID Remittance Advice No.
Attribute Assignment (primary keys are underlined):
Cash Requisition (RequisitionID, Date, Amount) Fulfillment3
LoanID Voucher No. Principal Paid Interest Paid
Chief Financial Officer (CFO ID, CFO Name, CFO Telephone)
Loan Agreement (Loan ID, Loan Date, Loan Amount, Maturity Date, Interest Rate) Participation5: Cash Receipt – Lender
Cash Receipt (Remittance Advice No., CR Date, CR Amount) Remittance Advice No. Lender ID
Cash Disbursement (Voucher No., Check No., CD Date, CD Amount)
Cash Account (Account No., Account Type, Account Location, Account Balance) Participation6: Cash Disbursement – Payables Clerk
Lender (Lender ID, Lender Name, Lender Address) Voucher No. Clerk ID
Cashier (Cashier ID, Cashier Name, Cashier Address)
Participation7: Cash Disbursement – Lender
Payables Clerk (Clerk ID, Clerk Name, Clerk Address)
Voucher No. Lender ID
Fulfillment3 (Principal Paid, Interest Paid)
Note: Participation 5 may instead be represented as Sender ID posted into the Cash
Receipt table (for non-loan cash receipts, a different external agent would serve as the
sender); Participation6 may instead be represented as Processing Employee ID posted into
the Cash Disbursement table (for non-loan payments a different employee type would

270 Dunn/Cherrington/Hollander, Enterprise Information Systems: A Pattern Based Approach, 3e Dunn/Cherrington/Hollander, Enterprise Information Systems: A Pattern Based Approach, 3e 271
Chapter 13, The Financing Business Process Chapter 13, The Financing Business Process
serve as the processing employee id). Participation7 may instead be represented as k)_____________________________________________________
PayeeID posted into the Cash Disbursement table (for non-loan payments a different CashDisbForDividend
external agent would serve as payee). These alternative representations are examples of CashDisbVoucherNo DividendDeclarationID
the combined entity key posting implementation compromise discussed in chapter 10. l)_____________________________________________________
CashDisbForLoan
55. Examine the following financing cycle table structures selected from an enterprise's CashDisbVoucherNo LoanID Principal Paid Interest Paid
database. On the line above each table, write the official REA object type represented by
m)_____________________________________________________
the table (e.g. Economic Increment Event, Commitment Event, Internal Agent, Resource,
Cash Receipt FromLoan
Duality Relationship, etc.) Note that this is not intended to be a complete database, so CashReceiptNumber LoanID
some REA objects may be missing.
n)_____________________________________________________
a)_____________________________________________________ DividendDeclaration-CapitalStock
Cash DividendDeclarationID StockCertificateNumber
Account No. Type Location Balance
o)_____________________________________________________
b)_____________________________________________________ DividendDeclaration-Stockholder
Capital Stock DividendDeclarationID StockholderID
Stock Certificate Date Stock Number Par Total Issue Stockholder CFO
Number Issued Type Shares Value Amount IDFK IDFK p)_____________________________________________________
Cash Receipt FromStockIssuance
c)_____________________________________________________
CashReceiptNumber StockCertificateNumber
Cash Receipt
CashReceiptID Date DollarAmount CashierIDFK SourceIDFK Cash Acct No.FK q)_____________________________________________________
Dividend Declaration
d)_____________________________________________________
DividendDeclarationID Date DollarAmount PerShare PaymentDate FinOfficerIDFK
Cash Disbursement
Voucher No. Date DollarAmount CheckNumber CashAccountNo. FK ClerkIDFK PayeeIDFK
Ans:
e)_____________________________________________________ a) Resource
Loan Contract b) Commitment Event
Loan ID. Date Amount Maturity Date Interest Rate RequisitionID FK CFOIDFK LenderIDFK c) Economic Increment Event
f)_____________________________________________________ d) Economic Decrement Event
Financial Officer e) Commitment Event
FinOfficerID Fin Officer Name Fin Officer Telephone f) Internal Agent
g)_____________________________________________________
g) External Agent
Lender h) External Agent
Lender ID Lender Name Lender Address i) Internal Agent
j) Duality Relationship
h)_____________________________________________________ k) Fulfillment Relationship
Stockholder
l) Fulfillment Relationship
StockholderID Stockholder Name Stockholder Address
m) Fulfillment Relationship
i)_____________________________________________________ n) Reciprocal Relationship
Financing Clerk o) Participation Relationship
Clerk ID Clerk Name Clerk Address p) Fulfillment Relationship
j)_____________________________________________________ q) Commitment Event
Cash Receipt - Cash Disbursement
CashReceiptNumber. CashDisbVoucher No.

272 Dunn/Cherrington/Hollander, Enterprise Information Systems: A Pattern Based Approach, 3e Dunn/Cherrington/Hollander, Enterprise Information Systems: A Pattern Based Approach, 3e 273