Question 1

Why are journals and ledgers not modeled in an REA diagram?

Accepted Answer

Accounting activities such as recording a sale in the journal and setting up an account receivable are not value chain activities and need not be modeled.Capturing transaction data in sufficient detail adequately serves traditional accounting requirements

Question 2

Discuss the limitations of transaction based systems

Accepted Answer

Transaction based systems intend to capture information related to economic events such as sales to customers and purchases from suppliers.They are designed,however,to capture only financially oriented data.Non financial data are not captured.Furthermore,non-economic events are ignored by this system.An example of a non-economic event is a customer that enters a place of business,browses,inquires about products,but does not buy.Information about such customer behavior may be very important to an organization.This type of event would not,however,be captured by transaction-based.REA is an event-based system that is responsive to both economic and non-economic phenomena.Event-orientation permits the creation of a much richer database that can support the information needs of all users within the organization.

Question 3

When assigning foreign keys in a 1:1 association:

Accepted Answer

A)  The primary key of each table should be embedded as a foreign key in the related table 
B)  The primary key on the (0,1)side of the relation should be embedded as the foreign key on the (1,1)side. 
C)  The primary key on the (1,1)side of the relation should be embedded as the foreign key on the (0,1)side. 
D)  None of the above is true 
A)  The primary key of each table should be embedded as a foreign key in the related table 
B)  The primary key on the (0,1)side of the relation should be embedded as the foreign key on the (1,1)side. 
C)  The primary key on the (1,1)side of the relation should be embedded as the foreign key on the (0,1)side. 
D)  None of the above is true C

Question 4

Modern managers need both financial and nonfinancial information that traditional GAAP-based accounting systems are incapable of providing.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following associations requires a separate link table?

Accepted Answer

A)  1:1 
B)  1:M 
C)  M:M 
D)  none of the above 
A)  1:1 
B)  1:M 
C)  M:M 
D)  none of the above

Question 6

Which of the following events would be least likely to be modeled in a REA diagram?

Accepted Answer

A)  customer inquires 
B)  posting accounts payable 
C)  receiving cash 
D)  sales to a customer 
A)  customer inquires 
B)  posting accounts payable 
C)  receiving cash 
D)  sales to a customer

Question 7

The duality association in an REA diagrams signifies that each economic transaction involves two agents.

Accepted Answer

A) True 
 B)False

Question 8

Discuss why adherence by the accounting profession to a single,GAAP-based view is inappropriate.

Accepted Answer

Modern managers need both financial and

Question 9

The events depicted on an REA diagram are transformed into computer processes while the resources and agents become relational database tables.

Accepted Answer

A) True 
 B)False

Question 10

When assigning foreign keys in a 1:M association

Accepted Answer

A)  The primary key of each table should be embedded as a foreign key in the related table 
B)  The primary key on the (0,M)side of the relation should be embedded as the foreign key on the (1,1)side. 
C)  The primary key on the (1,1)side of the relation should be embedded as the foreign key on the (0,M)side. 
D)  None of the above is true 
A)  The primary key of each table should be embedded as a foreign key in the related table 
B)  The primary key on the (0,M)side of the relation should be embedded as the foreign key on the (1,1)side. 
C)  The primary key on the (1,1)side of the relation should be embedded as the foreign key on the (0,M)side. 
D)  None of the above is true

Question 11

Most companies implementing an REA model also maintain a traditional general ledger system for financial reporting.

Accepted Answer

A) True 
 B)False

Question 12

Which types of entities are included in REA diagrams?

Accepted Answer

A)  support events 
B)  economic events 
C)  internal agents 
D)  all of the above 
A)  support events 
B)  economic events 
C)  internal agents 
D)  all of the above

Question 13

According to the REA philosophy,information systems should support only the needs of accounting professionals.

Accepted Answer

A) True 
 B)False

Question 14

A semantic data model captures the operational meaning of the user's data and provides a concise description of it.

Accepted Answer

A) True 
 B)False

Question 15

Modeling economic transactions under the REA approach always includes depicting both internal and external agents.

Accepted Answer

A) True 
 B)False

Question 16

The letters 'R,' 'E,' and 'A' in the term "REA model" stand for resources,events,and actions.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following tables would most likely have a composite key?

Accepted Answer

A)  Take Order. 
B)  Cash 
C)  Ship Product 
D)  Inventory Ship Link 
A)  Take Order. 
B)  Cash 
C)  Ship Product 
D)  Inventory Ship Link

Question 18

An example of an economic event is checking customer credit prior to processing a sale.

Accepted Answer

A) True 
 B)False

Question 19

Explain how a sales invoice table can be used to replace traditional accounting records.

Accepted Answer

The sales invoice table may be used to r

Question 20

The concept of duality means that a REA diagram must consist of:

Accepted Answer

A)  two events,one of them economic the other support 
B)  two agents,one of them internal and the other external 
C)  two resources,one increased and the other decreased by the same event 
D)  none of the above 
A)  two events,one of them economic the other support 
B)  two agents,one of them internal and the other external 
C)  two resources,one increased and the other decreased by the same event 
D)  none of the above

Why are journals and ledgers not modeled in an REA diagram?

Discuss the limitations of transaction based systems

When assigning foreign keys in a 1:1 association:

Modern managers need both financial and nonfinancial information that traditional GAAP-based accounting systems are incapable of providing.

Which of the following associations requires a separate link table?

Which of the following events would be least likely to be modeled in a REA diagram?

The duality association in an REA diagrams signifies that each economic transaction involves two agents.

Discuss why adherence by the accounting profession to a single,GAAP-based view is inappropriate.

The events depicted on an REA diagram are transformed into computer processes while the resources and agents become relational database tables.

When assigning foreign keys in a 1:M association

Most companies implementing an REA model also maintain a traditional general ledger system for financial reporting.

Which types of entities are included in REA diagrams?

According to the REA philosophy,information systems should support only the needs of accounting professionals.

A semantic data model captures the operational meaning of the user's data and provides a concise description of it.

Modeling economic transactions under the REA approach always includes depicting both internal and external agents.

The letters 'R,' 'E,' and 'A' in the term "REA model" stand for resources,events,and actions.

Which of the following tables would most likely have a composite key?

An example of an economic event is checking customer credit prior to processing a sale.

Explain how a sales invoice table can be used to replace traditional accounting records.

The concept of duality means that a REA diagram must consist of:

The Information System: an Accountants Perspective

Introduction to Transaction Processing

Ethics,fraud,and Internal Control

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Expenditure Cycle Part Ii: Payroll Processing and Fixed Asset Procedures

The Conversion Cycle

General Ledger,financial Reporting,and Management Reporting Systems

Database Management Systems

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Construct,deliver,and Maintain Systems Projects

IT Controls Part I: Sarbanes-Oxley and It Governance

IT Controls Part II: Security and Access

IT Controls Part III: Systems Development, program Changes, and Application Controls

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Exam 10: The Rea Approach to Business Process Modeling

Why are journals and ledgers not modeled in an REA diagram?

Discuss the limitations of transaction based systems

When assigning foreign keys in a 1:1 association:

Modern managers need both financial and nonfinancial information that traditional GAAP-based accounting systems are incapable of providing.

Which of the following associations requires a separate link table?

Which of the following events would be least likely to be modeled in a REA diagram?

The duality association in an REA diagrams signifies that each economic transaction involves two agents.

Discuss why adherence by the accounting profession to a single,GAAP-based view is inappropriate.

The events depicted on an REA diagram are transformed into computer processes while the resources and agents become relational database tables.

When assigning foreign keys in a 1:M association

Most companies implementing an REA model also maintain a traditional general ledger system for financial reporting.

Which types of entities are included in REA diagrams?

According to the REA philosophy,information systems should support only the needs of accounting professionals.

A semantic data model captures the operational meaning of the user's data and provides a concise description of it.

Modeling economic transactions under the REA approach always includes depicting both internal and external agents.

The letters 'R,' 'E,' and 'A' in the term "REA model" stand for resources,events,and actions.

Which of the following tables would most likely have a composite key?

An example of an economic event is checking customer credit prior to processing a sale.

Explain how a sales invoice table can be used to replace traditional accounting records.

The concept of duality means that a REA diagram must consist of:

The Information System: an Accountants Perspective

Introduction to Transaction Processing

Ethics,fraud,and Internal Control

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Expenditure Cycle Part Ii: Payroll Processing and Fixed Asset Procedures

The Conversion Cycle

General Ledger,financial Reporting,and Management Reporting Systems

Database Management Systems

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Construct,deliver,and Maintain Systems Projects

IT Controls Part I: Sarbanes-Oxley and It Governance

IT Controls Part II: Security and Access

IT Controls Part III: Systems Development, program Changes, and Application Controls

Filters