Active Review - Active Review 2.1 Refer to the chapter opener, ...

1 © 2014 Pearson Education. All rights reserved.Active Review 2.1 Refer to the chapter opener, Meet Ingenix. In your opinion, what could have been done to prevent the faulty database from costing consumers billions of dollars? How would you clean up the Ingenix database?

Students’ responses may differ. However, their response should include: data inconsistency and duplication as well as dirty data are the major causes of faulty data. To remove data inconsistency and duplication a database must be normalized. Database cleansing is a technique used to remove dirty data. Refer to the chapter text for normalization and database cleansing.

2.2 Discuss the differences between an operational database and a data warehouse. Is the accounting database considered an operational database or a data warehouse?

The difference between the operational database and the data warehouse is that the data warehouse is not used for routine business activities. Instead, the data warehouse is often used for business intelligence purposes to improve management decision making. The accounting database is an operational database.

2.3 What is a DBMS? Discuss its role in the accounting system.

The database management software (DBMS) is a computer program. It is used to insert, update, and delete data in the database. A database engine includes a DBMS.

2.4 Discuss the importance of primary keys to the accounting database.

A primary key is used to select a specific record among a table of records. It is also used to connect/relate to related database tables. For example, the Customer table is related to the Order table. To implement this relationship, the Customer table primary key field is copied into the Order table.

2.5 Discuss the role of the accounting database in the accounting system. Which components are behind the screen?

An accounting system consists of three tiers: the accounting database, the DBMS, and front-end accounting software. Accounting data is stored in the accounting database. The DBMS and the accounting database are behind the screen.

2.6 Discuss the roles of accounting professionals in designing and building accounting databases. Why it is important for accounting professionals to know about enterprise databases?

Accounting professionals can assist IT professionals when designing an accounting application or an accounting database. For example, an accounting professional can help a database designer decide on the number and the types of fields required for a Sales Order table.

2.7 Discuss how modern database systems support the growth of large enterprises, such as Wal-Mart.

Modern enterprise databases consist of operational and data warehouses. These databases store data in different structures. These structures are supporting many different business needs. Relational databases are used to store daily business operations. Data warehouse structures support complex business decision making processes. Modern databases are shared by the enterprise integrated systems. A centralized and shared database helps faster and more efficient communication within various business functions. It reduces data duplication and inconsistency, which are caused by various databases in a non-integrated system. Integrated centralized databases provide accurate and up-to-date intelligence for efficient decision Accounting Information Systems The Crossroads of Accounting and IT 2nd Edition Kay Solutions Manual Visit TestBankDeal.com to get complete for all chapters

2 © 2014 Pearson Education. All rights reserved.making and monitoring overall business performance.

2.8 What is an intersection table? Why is it created?

To remove a many- to-many relationship between two tables a special type of table called an intersection table is placed at the intersection or junction of the two tables with a many-to-many relationship. The many-to-many relationship between the original tables becomes a one-to-many relationship between each of the original tables and the new intersection table.

2.9 What is a foreign key? Discuss its importance to a relational database.

In relational databases, tables are related to each other using common fields in two different tables. These common fields are referred to as the primary key and the foreign key. That means, the primary key of a table is copied into a related table. The copied field is called a foreign key.

2.10 Discuss the advantages of a database accounting system versus a manual accounting system.

The advantages of a database accounting system versus a manual accounting system include:

• Large amount of data can be stored and maintained much easier.
• Data is stored much more accurately.
• Much less space is needed
• Information is retrieved much faster--seconds versus days, weeks, or even months.
• Data is better secured and controlled.

Key Terms Check

2.11 Match the following terms and definitions.

2.12 Match the following terms and definitions.

• database fields
• database records
• database tables
• database
• database forms
• database queries
• database reports

e 1. Onscreen interface used for entering and updating data g 2. Used to view output of the accounting system c 3. A collection of related records with a unique name a 4. Pieces of information about events, people, or objects f 5. Used to search the database and retrieve data from one or more database tables.b 6. A collection of related fields d 7. A collection of related tables

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2.13 Which of the following statements are true?

T 1. Accounting transactions are stored in the operational database.F 2. A database administrator is responsible for designing the database.T 3. The result of a query could be a report.T 4. Deletion, insertion, and update problems are solved by normalization.F 5. A data warehouse stores only future data.F 6. An intersection table refers to the intersection of queries and reports.T 7. A composite primary key consists of more than one field.

Practice Test

2.14 Enter data once means:

• Data is entered into the database only one time and it is reused from various locations when it is

needed (Correct Answer)

• Data is entered only one time and it cannot be entered again
• Data is used only one time and it can not be reused
• Data is entered into the database from various locations at the same time.

2.15 ________transfers data from the accounting software to the database.

• CRM.
• DBMS (Correct Answer)
• User Interface
• Relational database

2.16 Internal databases consist of:

• DBMS
• Operational database
• The database stored in the employee computer
• Operational and data warehouse (Correct Answer)

2.17 While auditing the Account Receivable records, the auditor discovers an entry for Cambiz Coffee shop with an address of 721 Sweet Water Pond, St. Peters MO and another entry for Cambiz Coffee shop with an address of 721 Sweet Water Pond, Saint Peters MO. Each entry has a different customer number. Which of the following statements is false?

• operational database
• data warehouse
• database administrator
• intersection table
• composite primary key
• normalization
• database integrity

c 1. Responsible for managing the enterprise’s databases g 2. Ensures that the database contains accurate, valid data.b 3. Stores data from a variety of sources and is used for business intelligence a 4. Databases used to store data related to business operations and transactions f 5. A process for removing database anomalies or problems e 6. Used when more than one field is required to uniquely identify a record d 7. Placed at the junction of two tables to eliminate a many- to-many relationship

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• The DBMS views these as two separate accounts.
• Data is entered into the computer incorrectly (Correct Answer)
• Customer has two shops
• The data needs scrubbing

2.18 ______is a collection of related records.

• Database engine
• Database table (Correct Answer)
• Database field
• Object Oriented database

2.19 Which tier in the accounting system architecture consists of accounting software?

• Accountant tier
• Database tier
• User tier
• Application tier (Correct Answer)

2.20 An item table’s record has 5 fields: Item code, Item name, description, location ID, and warehouse ID.Which of these fields is a good candidate for the primary key?

• Location ID
• Item Code (Correct Answer)
• Warehouse ID
• Item name

2.21 An item may appear on many orders. An order contains many items. The relationship between Item

table and Order table is:

• Many-to-one
• Many-to-many (Correct Answer)
• One-to-many
• One-to-one

2.22 Sandy, an accountant, wants to search for a specific customer address. She should search using:

• Customer name
• Customer address
• Customer ID (Correct Answer)
• a and b

2.23 Which of the following is NOT a database essential?

• Form
• Table
• Query
• DBMS (Correct Answer)

Exercises

Short Exercises