Accounting Information Systems The Crossroads of Accounting and IT 2nd Edition Kay Test Bank

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Accounting Information Systems The Crossroads of Accounting and IT 2nd Edition Kay Test Bank

 

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Copyright © 2014 Pearson Education, Inc.
Accounting Information Systems, 2e (Kay/Ovlia)
Chapter 2 Accounting Databases
Objective 1
1) One of the disadvantages of a relational database is that we can enter data once into the
database, and then reuse that data in various locations where it is needed.
Answer: FALSE
Diff: 1
Objective: Q2.1 What role does the database play in an accounting system?
2) According to the Pareto Principle, if you spend 80% of the time designing a database, you will
spend 20% of your time maintaining the database.
Answer: TRUE
Diff: 1
Objective: Q2.1 What role does the database play in an accounting system?
3) Database management system (DBMS) software transfers data from the accounting software
to the database.
Answer: TRUE
Diff: 1
Objective: Q2.1 What role does the database play in an accounting system?
4) Dirty data occurs when errors are entered into a system.
Answer: TRUE
Diff: 1
Objective: Q2.1 What role does the database play in an accounting system?
5) Entering data ________ reduces the change of entering errors.
Answer: once
Diff: 2
Objective: Q2.1 What role does the database play in an accounting system?
6) Nearly all accounting information today is stored in ________.
Answer: databases
Diff: 3
Objective: Q2.1 What role does the database play in an accounting system?
7) The ________ inserts, updates, and deletes data in the database.
Answer: DBMS
Diff: 2
Objective: Q2.1 What role does the database play in an accounting system?
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8) Nancy Smith comes in to EspressoCoffee to provide her new address and you make the
appropriate updates. When preparing a sales receipt for her a week later you notice Nancy’s old
address appears on receipt. What does this indicate about the database?
A) The database is working correctly.
B) Nancy Smith’s order was entered incorrectly.
C) The same customer was entered into the database multiple times.
D) The address information was updated for the wrong Nancy Smith.
Answer: C
Diff: 2
Objective: Q2.1 What role does the database play in an accounting system?
9) While auditing the Accounts Payable records, the auditor discovers an entry for Coffee
Emporium with an address of 809 Main St., St. Louis MO and another entry for Coffee
Emporium with an address of 809 Main Street, St. Louis MO. Each entry has a different vendor
number. Which of the following statements is false?
A) Data was entered into the database incorrectly.
B) The onscreen form for entering vendor information correctly performed data validation.
C) The database views these as two separate accounts.
D) The data needs scrubbing.
Answer: B
Diff: 2
Objective: Q2.1 What role does the database play in an accounting system?
10) Which of the following statements is NOT a benefit associated with entering data once into a
database?
A) Reentering the same data again and again increases the chances of entering erroneous data,
such as misspellings and transpositions.
B) It increase the opportunity to enter data incorrectly.
C) When you need to update the customer’s address, you only need to update it once. This
eliminates the possibility of updating some, but not all, of the other entries.
D) It is more efficient. You do not spend non-value-added time reentering the same information
again and again.
Answer: B
Diff: 1
Objective: Q2.1 What role does the database play in an accounting system?
11) Which of the following is NOT a tier in the accounting system architecture?
A) Report tier
B) Database tier
C) User tier
D) Application tier
Answer: A
Diff: 1
Objective: Q2.1 What role does the database play in an accounting system?
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12) Which tier in the accounting system architecture that consists of onscreen forms?
A) User tier
B) Application tier
C) Database tier
D) Accounting tier
Answer: A
Diff: 1
Objective: Q2.1 What role does the database play in an accounting system?
13) When using an accounting database system, such as QuickBooks, what happens when an
existing customer name is entered on an onscreen invoice form?
A) The DBMS retrieves tax information and inserts it into the invoice.
B) The DBMS retrieves address and contact information and inserts it into the invoice.
C) The DBMS prompts you to enter the address and contact information.
D) The DBMS retrieves inventory information and inserts it into the form.
Answer: B
Diff: 3
Objective: Q2.1 What role does the database play in an accounting system?
14) What does the DBMS software do?
Answer: The DBMS software does the following.
1. creates database tables
2. transfers data from the accounting software to the database
3. updates data in the database
4. deletes data from the database
5. sorts database tables
6. runs queries
Diff: 2
Objective: Q2.1 What role does the database play in an accounting system?
15) What is the Pareto Principle? How does this principle apply to accounting database design?
Answer: The Pareto Principle is also called the 80/20 rule. When designing an accounting
database, if you spend 80 percent of time and energy planning and design stages then just 20
percent of time will be spent on maintaining and updating the database. If just 20 percent of time
and energy is spent on the planning and design stages, then 80 percent of time will be spent on
maintaining and updating the database.
Diff: 3
Objective: Q2.1 What role does the database play in an accounting system?
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16) You are an intern in a large company. The company would like to improve the
communications between the accountants and IT. Because of your background in AIS, you are
asked to train the accountants. Your assignment is to describe to your colleagues how data flows
through the accounting system architecture when a new customer is entered in the accounting
software.
Answer: The answer should include the following information.
The customer address and contact information is entered into the system using the onscreen
forms (user interface tier).
This data is passed to the accounting software (application tier).
The accounting software passes the data to the DBMS software.
The DBMS inserts the data into the appropriate table in the database. (The DBMS and database
are part of the database tier).
Diff: 2
Objective: Q2.1 What role does the database play in an accounting system?
17) You are an intern in a large company. The company would like to improve the
communications between the accountants and IT. Because of your background in AIS, you are
asked to train the accountants. Your assignment is to describe how data flows through the
accounting system architecture when a report is run against the database. Start with requesting
the report.
Answer: The answer should include the following information.
The report type is entered into or selected from an onscreen form/accounting interface (user
interface tier).
The report type is passed to the accounting software (application tier).
The accounting software passes the data to the DBMS software.
The DBMS software retrieves the appropriate data from the various database tables in the
database (the DBMS and database are part of the database tier).
The DBMS passes the data to the accounting software.
The accounting software passes the data accounting interface.
The accounting interface presents the data in the appropriate report format.
Diff: 3
Objective: Q2.1 What role does the database play in an accounting system?
Objective 2
1) Data stored in a data warehouse is used for routine business activities.
Answer: FALSE
Diff: 2
Objective: Q2.2 What is the role of the database in the enterprise?
2) The ________ is responsible for managing the enterprise’s databases.
Answer: database administrator (DBA)
Diff: 1
Objective: Q2.2 What is the role of the database in the enterprise?
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3) Data stored in a ________ may be current data, historical data, or future estimates.
Answer: data warehouse
Diff: 2
Objective: Q2.2 What is the role of the database in the enterprise?
4) In a ________ database structure, a parent record can have many child records and each child
record can have only one parent record.
Answer: hierarchical
Diff: 2
Objective: Q2.2 What is the role of the database in the enterprise?
5) In a ________ database structure, a parent record can have many child records and a child
record can have many parent records.
Answer: network
Diff: 2
Objective: Q2.2 What is the role of the database in the enterprise?
Match the database type to the corresponding structure.
A) Multiple Tables
B) One Parent and Multiple Children
C) Multiple Parents and Multiple Children
6) Hierarchical Database
Diff: 2
Objective: Q2.2 What is the role of the database in the enterprise?
7) Network Database
Diff: 2
Objective: Q2.2 What is the role of the database in the enterprise?
8) Relational Database
Diff: 2
Objective: Q2.2 What is the role of the database in the enterprise?
Answers: 6) B 7) C 8) A
9) Who are the people responsible for establishing policies for database security?
A) Internal auditors and security personnel
B) Database administrators and security personnel
C) Database administrators and system users
D) Internal auditors and database administrators
Answer: D
Diff: 1
Objective: Q2.2 What is the role of the database in the enterprise?
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10) When retrieving data from a relational database, which of the following is true?
A) You need to know the record address of the data.
B) You need to understand the database structure.
C) You need to know how the tables are related.
D) You need to understand the parent/child record relationship.
Answer: C
Diff: 2
Objective: Q2.2 What is the role of the database in the enterprise?
11) Which type of data is NOT stored in a data warehouse?
A) Historical data
B) Current data
C) Future estimates
D) Data that is used for routine business activities
Answer: D
Diff: 2