Chapter 17 The REA Data Model

Accounting Information Systems, 12e (Romney/Steinbart)
Chapter 17 The REA Data Model

1) Which of the following statements about REA modeling and REA diagrams is false?
A) REA is an acronym for Resources, Entities, and Agents.
B) REA data modeling does not include traditional accounting elements such as ledgers, chart of
accounts, debits and credits.
C) REA data modeling could be referred to as an events-based model.
D) REA diagrams must include at least two activities, which together represent a give-get economic
exchange.
Answer: A
Page Ref: 496
Objective: Learning Objective 1
Difficulty : Moderate
AACSB: Analytic

2) What is the standard cardinality pattern for a relationship between an event and an agent?
A) 1:1
B) 0:1
C) 0:N
D) 1:N
Answer: D
Page Ref: 506
Objective: Learning Objective 3
Difficulty : Difficult
AACSB: Reflective Thinking

3) The REA data model approach facilitates efficient operations by all the following except
A) standardizing source document format.
B) identifying non-value added activities.
C) storing financial and nonfinancial data in the same database.
D) organizing data to simplify data retrieval and analysis.
Answer: A
Page Ref: 496
Objective: Learning Objective 1
Difficulty : Moderate
AACSB: Analytic

4) The process of defining a database so that it faithfully represents all aspects of the organization
including its interactions with the external environment is called
A) data modeling.
B) data designing.
C) data development.
D) data definition.
Answer: A
Page Ref: 494
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic
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,5) In which stage(s) of the database design process does data modeling occur?
A) only in the systems analysis stage
B) only in the design stage
C) in both the systems analysis and design stages
D) neither the systems analysis nor the design stages
Answer: C
Page Ref: 494
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic

6) A(n) ________ diagram graphically depicts a database's contents by showing entities and
relationships.
A) data flow
B) flowchart
C) entity-relationship
D) REA
Answer: C
Page Ref: 494
Objective: Learning Objective 1
Difficulty : Moderate
AACSB: Analytic

7) On an entity-relationship (E-R) diagram, anything about which an organization wants to collect and
store information is called
A) a data model.
B) an entity.
C) a schema.
D) a tuple.
Answer: B
Page Ref: 494
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic

8) An entity-relationship (E-R) diagram represents entities as ________ and the relationships between
them as lines and ________.
A) circles; squares
B) squares; diamonds
C) rectangles; diamonds
D) rectangles; circles
Answer: C
Page Ref: 495
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic




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Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall

, 9) An entity-relationship (E-R) diagram
A) can represent the contents of any database.
B) are only used in conjunction with REA models.
C) can show a limited number of entities and relationships.
D) are used only to design new databases.
Answer: A
Page Ref: 495
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic

10) The REA data model
A) is used in many areas of business and science.
B) was developed solely for use in designing accounting information systems.
C) classifies data into relationships, entities and accounts.
D) all of the above
Answer: B
Page Ref: 496
Objective: Learning Objective 2
Difficulty : Moderate
AACSB: Analytic

11) Which of the following is not one of the rules in creating an REA data model?
A) Each event is linked to at least one resource that it affects.
B) Each event is linked to at least one other event.
C) Each event is linked to at least two participating agents.
D) All of the above are important rules.
Answer: D
Page Ref: 497
Objective: Learning Objective 2
Difficulty : Easy
AACSB: Analytic

12) Which is a true statement about the REA data model?
A) The REA data model classifies entities into three distinct categories.
B) The term REA is an acronym that stands for resources, entities, and agents.
C) Using an REA data model is not helpful when creating an R-E diagram.
D) The "E" in the REA data model stands for things that have an economic value to the organization.
Answer: A
Page Ref: 496
Objective: Learning Objective 2
Difficulty : Easy
AACSB: Analytic




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Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall