Description
Accounting Information Systems Vernon Richardson 2nd Edition – Test Bank
Sample Questions
Instant Download With Answers
Chapter 02
Accountants as Business Analysts
Answer Key
True / False Answers
- Accountants now face a challenge of helping businesses optimize processes.
Answer: True
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-01 Describe the roles of the accounting/finance function in business and why those roles require knowledge of technology and business processes
Source: Original
Topic: Changing Roles of Accountants in Business
- To be valuable business partners, accountants must understand how the business delivers value to its employees.
Answer: False
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-01 Describe the roles of the accounting/finance function in business and why those roles require knowledge of technology and business processes
Source: Original
Topic: Changing Roles of Accountants in Business
- A business process constrains business rules.
Answer: False
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-03 Recognize the value of business models
Source: Original
Topic: Value of Business Models
- A business model is typically a graphical depiction of the essential business process information.
Answer: True
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 02-03 Recognize the value of business models
Source: Original
Topic: Value of Business Models
- Documentation can be thought of as a tool for information transmission and communication.
Answer: True
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 02-02 Understand the importance of business process documentation
Source: Original
Topic: Business Process Documentation
- Documentation helps with training but won’t help with regulatory compliance issues.
Answer: False
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 02-02 Understand the importance of business process documentation
Source: Original
Topic: Business Process Documentation
- Models should be simpler than the processes and systems they depict.
Answer: True
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 02-03 Recognize the value of business models
Source: Original
Topic: Value of Business Models
- Because business models are simpler than the processes they depict, they are limited in their ability to integrate local views of a process.
Answer: False
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 02-03 Recognize the value of business models
Source: Original
Topic: Value of Business Models
- Activity models are a relatively new process modeling tool.
Answer: False
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-04 Articulate the characteristics of activity models
Source: Original
Topic: Characteristics of Activity Models
- In Business Process Modeling Notation (BPMN), activities are named with a short verb phrase placed within the rectangle.
Answer: True
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-04 Articulate the characteristics of activity models
Source: Original
Topic: Characteristics of Activity Models
- Business Process Modeling Notation (BPMN) activity models typically show the sequence of flow from right to left and top to bottom.
Answer: False
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-04 Articulate the characteristics of activity models
Source: Original
Topic: Characteristics of Activity Models
- Business Process Modeling Notation (BPMN) activity diagrams depict events as circles.
Answer: True
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-05 Understand and apply the building blocks for BPMN (activity) diagrams
Source: Original
Topic: Business Process Modeling Notation
- Business Process Modeling Notation (BPMN) activity diagrams depict activities as circles.
Answer: False
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-05 Understand and apply the building blocks for BPMN (activity) diagrams
Source: Original
Topic: Business Process Modeling Notation
- An activity can depict a single action or some logical combination of actions depending on the required level of detail to achieve the objectives of the business process analysis.
Answer: True
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 02-05 Understand and apply the building blocks for BPMN (activity) diagrams
Source: Original
Topic: Business Process Modeling Notation
- Gateways only show decisions and possible branching as a result of the decision.
Answer: False
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 02-05 Understand and apply the building blocks for BPMN (activity) diagrams
Source: Original
Topic: Business Process Modeling Notation
- Swimlanes (or lanes) identify participants, e.g., functions or departments, in a process.
Answer: True
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-05 Understand and apply the building blocks for BPMN (activity) diagrams
Source: Original
Topic: Business Process Modeling Notation
- Business Process Modeling Notation (BPMN) activity diagrams are conceptually similar to process maps.
Answer: True
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 02-05 Understand and apply the building blocks for BPMN (activity) diagrams
Source: Original
Topic: Business Process Modeling Notation
- Business Process Modeling Notation (BPMN) start events are shown using ovals and flowchart start events are shown using circles.
Answer: False
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-05 Understand and apply the building blocks for BPMN (activity) diagrams
Source: Original
Topic: Business Process Modeling Notation
- Opportunity flowcharts identify opportunities for process improvement by separating value-added from non-value-added activities.
Answer: True
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 02-04 Articulate the characteristics of activity models
Source: Original
Topic: Characteristics of Activity Models
- Data Flow Diagrams start with a circle indicating the start event.
Answer: False
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-04 Articulate the characteristics of activity models
Source: Original
Topic: Characteristics of Activity Models
Multiple Choice Answers
- Which of the following is not a Stewardship and Reporting role of the Accounting/Finance Function in Business?
- Human Resource management
- Regulatory compliance
- Tax returns
- Statutory reporting
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-01 Describe the roles of the accounting/finance function in business and why those roles require knowledge of technology and business processes
Source: Original
Topic: Changing Roles of Accountants in Business
- Which of the following is not a Business Management Support role of the Accounting/Finance Function in Business?
- Management information
- Planning, budgeting and forecasting
- Financial consolidation, reporting and analysis
- Investment appraisal
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-01 Describe the roles of the accounting/finance function in business and why those roles require knowledge of technology and business processes
Source: Original
Topic: Changing Roles of Accountants in Business
- Which of the following is not an Accounting/Finance Operations role of the Accounting/Finance Function in Business?
- Financial close – completing period end accounts
- Stakeholder assurance
- People management
- Financial consolidation, reporting and analysis
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-01 Describe the roles of the accounting/finance function in business and why those roles require knowledge of technology and business processes
Source: Original
Topic: Changing Roles of Accountants in Business
- Which of the following is not part of the business analysis process?
- Ascertaining information about current and future business processes.
- Using business process modeling tools.
- Using IT to make finance and accounting processes more efficient and effective.
- Documenting current and future business processes.
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 02-02 Understand the importance of business process documentation
Source: Original
Topic: Business Process Documentation
- Which of the following best describes a business model?
- A simple, abstract representation of a business process or processes.
- A sequence of business activities.
- An evaluation of potential business process improvements.
- None of the above.
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 02-03 Recognize the value of business models
Source: Original
Topic: Value of Business Models
- Process documentation does not include which of the following?
- Process models
- Business rules
- User manuals
- External audit workpapers
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 02-02 Understand the importance of business process documentation
Source: Original
Topic: Business Process Documentation
- Which of the following is not a purpose of documentation?
- Training
- Determining staffing
- Describing current processes
- Establishing accountability
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 02-02 Understand the importance of business process documentation
Source: Original
Topic: Business Process Documentation
- Business models provide value in all of the following areas except which one?
- Employee performance appraisal
- Managing complexity
- Specifying systems requirements
- Eliciting requirements for new systems
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 02-03 Recognize the value of business models
Source: Original
Topic: Value of Business Models
- Which of the following best describes the purpose of an activity model?
- An activity model describes the sequence of workflow in a business process.
- An activity model constrains and guides process operations.
- An activity model depicts data structures.
- None of the above.
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 02-04 Articulate the characteristics of activity models
Source: Original
Topic: Characteristics of Activity Models
- Which of the following is not a common element of activity models regardless of the specific modeling notation?
- Events to start and stop the workflow
- Sequence of flow between tasks
- Multiplicities
- Decision points that affect the process flow
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 02-04 Articulate the characteristics of activity models
Source: Original
Topic: Characteristics of Activity Models
- Which of the following is not a building block for Business Process Modeling Notation (BPMN) diagrams?
- Associations
- Events
- Gateways
- Sequence flows
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 02-05 Understand and apply the building blocks for BPMN (activity) diagrams
Source: Original
Topic: Business Process Modeling Notation
- Which of the following best describes the purpose of an event in a Business Process Modeling Notation (BPMN) activity diagram?
- Shows where the work takes place.
- Describes the sequence of workflow.
- Affects the flow of the business process.
- Controls branching and merging.
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 02-05 Understand and apply the building blocks for BPMN (activity) diagrams
Source: Original
Topic: Business Process Modeling Notation
- Which of the following best describes the purpose of a gateway in a Business Process Modeling Notation (BPMN) activity diagram?
- Shows where the work takes place.
- Describes the sequence of workflow.
- Affects the flow of the business process.
- Controls branching and merging.
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 02-05 Understand and apply the building blocks for BPMN (activity) diagrams
Source: Original
Topic: Business Process Modeling Notation
- Which of the following symbols depicts an intermediate event?
- An arrow
- A circle with a double line perimeter
- A rectangle
- A circle with a wide single line perimeter
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 02-05 Understand and apply the building blocks for BPMN (activity) diagrams
Source: Original
Topic: Business Process Modeling Notation
- Which of the following symbols depicts an activity?
- An arrow
- A circle with a double line perimeter
- A rectangle
- A circle with a wide single line perimeter
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 02-05 Understand and apply the building blocks for BPMN (activity) diagrams
Source: Original
Topic: Business Process Modeling Notation
- Which of the following symbols is used to depict different organizations in one Business Process Modeling Notation (BPMN) diagram?
- Gateway
- Message flow
- Pool
- Intermediate event
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 02-05 Understand and apply the building blocks for BPMN (activity) diagrams
Source: Original
Topic: Business Process Modeling Notation
- Which of the following best describes the purpose of swimlanes (or lanes)?
- Depict different organizations involved in a process.
- Depict different departments of the same organization in a process.
- Depict interactions between organizations in a process.
- Depict the sequence of tasks in a process.
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 02-05 Understand and apply the building blocks for BPMN (activity) diagrams
Source: Original
Topic: Business Process Modeling Notation
- Which of the following best describes a Business Process Modeling Notation (BPMN) message flow?
- Shows the sequence of activities in a process.
- Shows interactions between participants in a process.
- Affects the flow of a business process.
- Shows branching and merging in a business process.
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 02-05 Understand and apply the building blocks for BPMN (activity) diagrams
Source: Original
Topic: Business Process Modeling Notation
- Which of the following best describes the difference between a Business Process Modeling Notation (BPMN) gateway and a flowcharting decision diamond?
- Only the decision diamond shows branching of the sequence flow.
- The gateway ony represents branching and not the decision that results in branching.
- Only the gateway shows branching of the sequence flow.
- The decision diamond can depict more branching options.
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 02-05 Understand and apply the building blocks for BPMN (activity) diagrams
Source: Original
Topic: Business Process Modeling Notation
- Which of the following is a difference between Business Process Modeling Notation (BPMN) activity diagrams and flowcharts?
- BPMN symbols can show a variety of intermediate events that affect the sequence flow.
- Flowcharts have symbols to represent the start and end of a process.
- BPMN diagrams show the sequence flow of activities.
- Flowcharts can be annotated with text.
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 02-05 Understand and apply the building blocks for BPMN (activity) diagrams
Source: Original
Topic: Business Process Modeling Notation
- In order to perform their required roles and be valuable business partners, accountants must understand all of the following except:
- How the business identifies and designs its products and services
- How the business collects data, summarizes it, and communicates business information
- How the business delivers value, interacts with other businesses, and is a good corporate citizen
- What risks the business faces, and how internal controls can mitigate those risks
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-01 Describe the roles of the accounting/finance function in business and why those roles require knowledge of technology and business processes
Source: Original
Topic: Changing Roles of Accountants in Business
- Which of the following best describes why the Sarbanes-Oxley Act of 2002 (SOX) made documentation of business processes essential for businesses?
- SOX mandates that accountants create the business rules and documenation associated with a company’s business processes
- SOX requires managers to assess and attest to the company’s internal controls structures and procedures
- SOX explicitly states that business processes must be documented
- SOX allows thorough documentation of business processes to act as a substitute for a full review of internal control structures and procedures
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-02Understand the importance of business process documentation.
Source: Original
Topic: Business Process Documentation
- Which of the following best describes how business models help companies manage complexity?
- Because business models can’t exceed one page, managers can understand how the business works at a glance.
- Although business models are a simplification of the actual processes they represent, they incorporate the processes’ essential elements.
- Business models’ limitations force managers to simplify the company’s actual processes.
- Business models must display every detailed task and activity, which allows managers to visualize the complexity inherent in its business processes.
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-03Recognize the value of business models.
Source: Original
Topic: Value of Business Models
- Activity models are analagous to which of the following?
- The prototype for a new car model
- A blueprint
- The instructions in a recipe
- A car’s steering system
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-04Articulate the characteristics of activity models.
Source: Original
Topic: Characteristics of Activity Models
- When creating a BPMN activity model, which of the following is most accurate?
- Modeling is an artistic endeavor; therefore different modelers given the same set of facts about a business process will likely develop very different models of the process.
- The resulting BPMN activity model should closely match the structure of the subsequent database.
- All activity models should include gateways.
- Different modelers given the same set of facts about a busines process should develop similar models of the process.
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-05Understand and apply the building blocks for BPMN (activity) diagrams.
Source: Original
Topic: Business Process Modeling Notation
- A pool in a BPMN activity model represents:
- An entire organization/entity.
- A department or functional area.
- A specific individual.
- A logical activity.
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-06Use pools and lanes to identify process participants.
Source: Original
Topic: Identifying Participants in Business Process Diagrams
- Message flows in BPMN activity diagrams indicate an exchange between:
- Activities in the same swimlane
- Participants in different pools
- Gateways in different swimlanes
- Events in the same pool
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-07Apply message flows to show interactions between pools.
Source: Original
Topic: Messages in BPMN
- When connecting to an opaque external pool in a BPMN activity diagram, message flows connect to:
- The edge of the opaque pool.
- The edge of the swimlane.
- The nearest sequence flow.
- The appropriate data store.
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-07Apply message flows to show interactions between pools.
Source: Original
Topic: Messages in BPMN
- Which of the following is not a valid BPMN gateway type?
- Parallel gateway
- Serial gateway
- Inclusive gateway
- Exclusive gateway
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-08Understand and apply flow object types
Source: Original
Topic: Extended Building Blocks for BPMN Diagrams and Modeling Concepts
- Which of the following BPMN shapes represents a Parallel Gateway?
- Correct
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-08Understand and apply flow object types
Source: Original
Topic: Extended Building Blocks for BPMN Diagrams and Modeling Concepts
- Which of the following BPMN shapes represents an Error Event?
- Correct
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-08Understand and apply flow object types
Source: Original
Topic: Extended Building Blocks for BPMN Diagrams and Modeling Concepts
- A boundary event in a BPMN activity model:
- Takes place at the edge of a swimlane
- Occurs at the border of a pool.
- Is attached to the edge of an activity.
- Occurs as a message leaves a pool.
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-08Understand and apply flow object types
Source: Original
Topic: Extended Building Blocks for BPMN Diagrams and Modeling Concepts
- Which of the following BPMN shapes represents a parallel multi-instance task?
- Correct
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-09Recognize and model repeating activities.
Source: Original
Topic: Subprocesses and Repeating Activities
- Which of the following BPMN shapes represents a data object?
- Correct
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-10 Understand and apply data objects and stores to model data created, updated, transferred, and deleted in a process.
Source: Original
Topic: Data Objects, Data Stores, and Associations
- Which of the following BPMN shapes represents a data store?
- Correct
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-10 Understand and apply data objects and stores to model data created, updated, transferred, and deleted in a process.
Source: Original
Topic: Data Objects, Data Stores, and Associations
Essay Answers
- Use the following description to create a Business Process Modeling Notation (BPMN) activity diagram of Nora’sprocess.
Nora accesses the Amazon.com website to purchase a favorite musician’s latest album. She searches for the musician’s name. Amazon displays the results of the search, and she selects the correct entry. She samples the music and then decides whether to purchase the album. If she decides to purchase the album, then she must decide whether to purchase a physical CD or just download the MP3 files.
If she decides to purchase the CD, she clicks on the buy now button. Since she is an Amazon Prime member, she automatically receives free 2-day delivery and the item is charged to her credit card. She then waits 2 days for the delivery of the CD. When it arrives, she can enjoy the music.
If she decides to purchase the MP3, she selects that option and again clicks on the buy now button. She is charged for the item and taken to a page to download her music. She downloads the album, and then she can enjoy her music.
Answer: There could be several similar answers, but this is a basic solution:
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 02-05 Understand and apply the building blocks for BPMN (activity) diagrams
Source: Original
Topic: Business Process Modeling Notation
- Use the following description to create a Business Process Modeling Notation (BPMN) activity diagram of Jeremy’sprocess.
Jeremy is using his bank’s online banking site to pay for his new phone. He logs onto the bank’s website by entering his user name and password, confirming his SiteKey. After access to his account, he selects the Bill Pay tab. He searches to see of the phone company is already listed in the “Pay To Accounts.”
If the phone company is not listed, he clicks on the option to “Add a New Pay To Account.” He fills in the information for the phone company, including the name, address, account number, and phone number. After completing the entry, he is taken back to the list of “Pay To Accounts.”
If the phone company is listed (or if he just completed entering the new account), he enters the amount of the payment. Then, he selects the option to set up a recurring payment. He enters the number of payments. Then, he selects the date that the payment should be sent each month. He then logs out of the banks online banking site and closes his browser.
Answer:There could be several similar answers, but this is a basic solution:
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 02-05 Understand and apply the building blocks for BPMN (activity) diagrams
Source: Original
Topic: Business Process Modeling Notation
- Use the following description to create a Business Process Modeling Notation (BPMN) activity diagram of Caitlin’sprocess.
Caitlin is planning to run in the local July 4th 5K run. She wants to register online, but she forgot the websites URL. So, she navigates to Google and starts a search for the site. She selects the registration site from the search results. Once at the site, she selects the option to register for the 4th of July run. She fills in the registration form and provides her credit card information for payment.
After completing her own registration, she decides to register the other members of her team. One-by-one, she enters the registration information for the team member and pays for their entry. After completing all the registrations, she provides a user name and password so she can return to the site to see their results after the race. She logs out of the site and closes her browser.
Answer:There could be several similar answers, but this is a basic solution:
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 02-05Understand and apply the building blocks for BPMN (activity) diagrams
Source: Original
Topic: Business Process Modeling Notation
Chapter 4
Relational Databases and Enterprise System
Answer Key
True / False Answers
- Three types of data models used today are: the hierarchical model, the network model and the relational model.
Answer: True
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-01 Describe the advantages of relational databases
Source: Original
Topic: Advantages of Relational Databases
- In a hierarchical data model, data elements are related in many-to-many relationships.
Answer: False
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2Medium
Learning Objective: 04-01 Describe the advantages of relational databases
Source: Original
Topic: Advantages of Relational Databases
- Classes could be grouped into Resources (R), Entities(E), and Assets (A) in data modeling.
Answer: False
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-02 Explain basic relational database principles
Source: Original
Topic: Fundamentals and Princples of Relational Databases
- Queries in Access are utilized by users to enter data into tables and view existing records.
Answer: False
AACSB: Technology
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 04-02 Explain basic relational database principles
Source: Original
Topic: Fundamentals and Princples of Relational Databases
- The SQL command “Group by” can be used to order an amount in a descending order.
Answer: False
AACSB: Reflective Thinking
AICPA BB: Critical Thinking
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 04-03Describe how to query using Structured Query Language (SQL)
Source: Original
Topic: Structured Query Language (SQL)
- The asterisk (*) following the SELECT SQL statement is a wild card indicating all columns should be selected.
Answer: True
AACSB: Reflective Thinking
AICPA BB: Critical Thinking
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 04-03 Describe how to query using Structured Query Language (SQL)
Source: Original
Topic: Structured Query Language (SQL)
- The “Where” SQL clause can be used to link two tables.
Answer: True
AACSB: Reflective Thinking
AICPA BB: Critical Thinking
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 04-03 Describe how to query using Structured Query Language (SQL)
Source: Original
Topic: Structured Query Language (SQL)
- Access offers modules, which are defined by users to automate processes like opening a specific form.
Answer: False
AACSB: Technology
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-02 Explain basic relational database principles
Source: Original
Topic: Fundamentals and Princples of Relational Databases
- In Access, users can edit database information in reports.
Answer: False
AACSB: Technology
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 04-02 Explain basic relational database principles
Source: Original
Topic: Fundamentals and Princples of Relational Databases
- Cloud computing is an internet-based computing where shared resources, software, and information is provided to firms on demand.
Answer: True
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 04-05 Assess how cloud computing facilitates enterprise systems
Source: Original
Topic: Enterprise Systems Computing in a Cloud
- While hierarchical and network data models require relationships to be formed at the database creation, relational data models allow relationships to be created and updated as needed.
Answer: True
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 04-01 Describe the advantages of relational databases
Source: Original
Topic: Advantages of Relational Databases
- Each attribute in a table can have several names.
Answer: False
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 04-02 Explain basic relational database principles
Source: Original
Topic: Fundamentals and Princples of Relational Databases
- Access is a simple database management system that can be used to run databases for individuals and small firms.
Answer: True
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-02 Explain basic relational database principles
Source: Original
Topic: Fundamentals and Princples of Relational Databases
- SQL is based on relational algebra and allows a user to query and update the database.
Answer: True
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-03 Describe how to query using Structured Query Language (SQL)
Source: Original
Topic: Structured Query Language (SQL)
- In a database, while queries allow the user to access, read and report on desired data, the responsibility of actually making physical changes to the relational database belongs to the Database Management System (DBMS).
Answer: True
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 04-02 Explain basic relational database principles
Source: Original
Topic: Fundamentals and Princples of Relational Databases
Multiple-choice questions
- Which type of data models allows each record to have multiple parent and child records?
- The hierarchical mode
- The network model
- The relational model
- None of the above
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 04-01 Describe the advantages of relational databases
Source: Original
Topic: Advantages of Relational Databases
- Which of the following correctly describesthe Referential Integrity Rule?
- The primary key of a table must have data values (cannot be null)
- Each attribute in a table must have a unique name
- The data value for a foreign key could be null
- Values of a specific attribute must be of the same type
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 04-02 Explain basic relational database principles
Source: Original
Topic: Fundamentals and Princples of Relational Databases
- Which of the following tasks cannot be performed through queries in Access?
- Retrieve and display data
- Calculations of data
- Data sorting
- Create and update relationships
AACSB: Reflective Thinking
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-02 Explain basic relational database principles
Source: Original
Topic: Fundamentals and Princples of Relational Databases
- In Microsoft Access, we use tables in a database for:
- Data entry
- Data storage
- Data retrieval
- Two of the above are correct.
AACSB: Reflective Thinking
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-02 Explain basic relational database principles
Source: Original
Topic: Fundamentals and Princples of Relational Databases
- A company would like to implement a management information system that integrates all functional areas within an organization to allow information exchange and collaboration among all parties involved in business operations. Which of the following systems is most effective for this application?
- A decision support system.
- An executive support system.
- An office automation system.
- An enterprise resource planning system.
AACSB: analytic
AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Undersanding
Difficulty: 2Medium
Learning Objective: 04-04 Understand the purpose and basic framework for an enterprise system
Source: CPA examination 2012
Topic: Enterprise Systems
- An enterprise resource planning system has which of the following advantages over multiple independent functional systems?
- Modifications can be made to each module without affecting other modules.
- Increased responsiveness and flexibility while aiding in the decision-making process,
- Increased amount of data redundancy since more than one module contains the same information.
- Reduction in costs for implementation and training.
AACSB: analytic
AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Undersanding
Difficulty: 2 Medium
Learning Objective: 04-04 Understand the purpose and basic framework for an enterprise system
Source: CPA examination 2010
Topic: Enterprise Systems
- What kind data model is most commonly used as a basis for today’s enterprise systems?
- The hierarchical mode
- The network model
- The relational model
- None of the above
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1Easy
Learning Objective: 04-01 Describe the advantages of relational databases
Source: Original
Topic: Advantages of Relational Databases
- The property of the primary key in a table in Microsoft Access should be set to:
- The required field = “Yes”, the Indexed field = “Yes (No Duplicates)”
- The Required field = “NO” and the Indexed field = “Yes (No Duplicates)”
- The Required field = “Yes” and the Indexed field = “Yes (Duplicated)”
- The Required field = “NO” and the Indexed field = “Yes (No Duplicates)”
AACSB: Technology
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-02 Explain basic relational database principles
Source: Original
Topic: Fundamentals and Princples of Relational Databases
- Which of the following is considered a class in the relational database model?
- Customer
- Sale
- Cash
- All of the above are correct
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 04-02 Explain basic relational database principles
Source: Original
Topic: Fundamentals and Princples of Relational Databases
- Which SAP modules would a manufacturing company use to create a delivery order for a sales transaction?
- Materials Management
- Sales and Distribution
- Production Planning and Control
- Logistics Execution
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-04 Understand the purpose and basic framework for an enterprise system
Source: Original
Topic: Enterprise Systems
- Which of the following statements about the requirements of table design is incorrect?
- Each attribute in a table must have a unique name.
- Values of a specific attribute must be of the same type.
- Each attribute (column) of a record (row) must be single-valued.
- All other non-key attributes in a table must describe a characteristic of the class (table) identified by the foreign key.
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 04-02 Explain basic relational database principles
Source: Original
Topic: Fundamentals and Princples of Relational Databases
- To convert a conceptual model with a maximum multiplicities relationship of “many to many” into relationship database tables, one must
- Create a foreign key in one of the tables to link the two tables.
- Create a relation with no attributes of its own.
- Create a relationship table to handle the many-to-many relationship.
- Many-to-many relationship cannot be represented in Access.
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 04-02 Explain basic relational database principles
Source: Original
Topic: Fundamentals and Princples of Relational Databases
- Which set of multiplicities correctly shows the relationship between the Cash Collection table and the Sales table in modeling cash sales?
- Cash Collection (1..1) – Sale (1..N)
- Cash Collection (1..N) – Sale (1..1)
- Cash Collection (1..N) – Sale (1..1)
- Cash Collection (1..1) – Sale (1..1)
AACSB: Analytic
AICPA BB: Industry
AICPA FN: Leveraging Technology
Blooms: Apply
Difficulty: 3Hard
Learning Objective: 04-02 Explain basic relational database principles
Source: Original
Topic: Fundamentals and Princples of Relational Databases
- A Query in a program language can be used to
- Update data
- Report data
- Retrieve data
- All of the above
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-03 Describe how to query using Structured Query Language (SQL)
Source: Original
Topic: Structured Query Language (SQL)
- In Microsoft Access, we use “Forms” for
- Data entry
- Data storage
- Date retrieve
- Two of the above
AACSB: Technology
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-02 Explain basic relational database principles
Source: Original
Topic: Fundamentals and Princples of Relational Databases
- In Microsoft Access, we use “Tables” for:
- Data entry
- Data storage
- Date retrieve
- Two of the above
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Leveraging Technology
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 04-04 Understand the purpose and basic framework for an enterprise system
Source: Original
Topic: Enterprise Systems
- Which of the following is not a type of data model?
- Hierarchical data model
- Network data model
- Normalization data model
- Relational data model
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1Easy
Learning Objective: 04-01 Describe the advantages of relational databases
Source: Original
Topic: Advantages of Relational Databases
- What kind of data model is most commonly used in today’s business environment?
- Hierarchical data model
- Network data model
- Relational data model
- All of the above
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-01 Describe the advantages of relational databases
Source: Original
Topic: Advantages of Relational Databases
- Which of the following about cloud computing is incorrect?
- Cloud computing is Internet-based computing where shared resources, software, and information are provided to firms on demand.
- Cloud Computing can easily host enterprise system applications.
- Security is a major issue to consider when using cloud computing
- Clients using cloud computing do not need to periodically backup data
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 04-05 Assess how cloud computing facilitates enterprise systems
Source: Original
Topic: Enterprise Systems Computing in a Cloud
- What is the main purpose of using foreign keys in a relational database design?
- It provides useful financial data value in the table.
- It is required in all tables.
- It is used to link tables.
- None of the above is correct.
AACSB: Analytic
AICPA BB: Industry
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 04-02 Explain basic relational database principles
Source: Original
Topic: Fundamentals and Princples of Relational Databases
- Which of the following about SQL is incorrect?
- SQL is a language designed to query data in a relational database.
- SQL is based on relational algebra and allows a user to query and update the database.
- SQL is very user-friendly.
- SQL uses SELECT statement to tell the query which columns (or attributes) of a table should be included in the query.
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 04-03 Describe how to query using Structured Query Language (SQL)
Source: Original
Topic: Structured Query Language (SQL)
- Which of the following items can best be described as a “Resource” in the REA data model?
- Cashier
- Sales
- Cash
- Two of the above are correct.
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 04-02 Explain basic relational database principles
Source: Original
Topic: Fundamentals and Princples of Relational Databases
- Which of the following items can best be described as an “Event” in the REA data model?
- Cash.
- Cashier.
- Cash collection.
- None of the above is correct.
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 04-02 Explain basic relational database principles
Source: Original
Topic: Fundamentals and Princples of Relational Databases
- Which of the following items can best be described as an “Agent” in the REA data model?
- Purchases.
- Accounts payable clerk.
- Raw material inventory.
- None of the above is correct.
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 04-02 Explain basic relational database principles
Source: Original
Topic: Fundamentals and Princples of Relational DatabasesWhich of the following resources is usually not modeled as an entity (table) in an REA data model?
- Cash
- Inventory
- Accounts receivable
- Property, plant and equipment
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Leveraging Technology
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 04-02 Explain basic relational database principles
Source: Original
Topic: Fundamentals and Princples of Relational Databases
- Which of the following is not one of the advantages relational data models have over other data models?
- Exclusively uses parent/child relationships
- Increased flexibility and scalability
- Simplicity
- Reduced information redundancy
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-01 Describe the advantages of relational databases.
Source: Original
Topic: Advantages of Relational Databases
- Which of the following best describes a DBMS?
- The manager(s) in charge of a company’s databases
- Software that can create, modify and query databases
- A language used to retrieve data from databases
- A database created using Microsoft software
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-01 Describe the advantages of relational databases.
Source: Original
Topic: Advantages of Relational Databases
- Classes in a relational database model for AISs are typically grouped into all of the following categories except:
- Events
- Agents
- Resources
- Activities
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-02 Explain basic relational database principles.
Source: Original
Topic: Fundamentals and Princples of Relational Databases
- Which of the following items does not represent a UML class diagram object and its resulting database object?
- Classes à Tables
- Attributes à Fields
- Multiplicities à Records
- Associations à Relationships
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-02 Explain basic relational database principles.
Source: Original
Topic: Fundamentals and Princples of Relational Databases
- A foreign key in a database table is always:
- A unique identifier for a record in that table
- A numeric field
- The name of a UML class
- A primary key in a related table
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-02 Explain basic relational database principles.
Source: Original
Topic: Fundamentals and Princples of Relational Databases
- Which of the following statements best describes the entity integrity rule?
- A database entity must fit within the REA model
- A record’s foreign key value must be null
- A record’s primary key must have a data value
- All values of an attribute must be of the same data type
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-02 Explain basic relational database principles.
Source: Original
Topic: Fundamentals and Princples of Relational Databases
- Which of the following is not one of the objects used in Microsoft Access?
- Tables
- Sites
- Forms
- Macros
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-02 Explain basic relational database principles.
Source: Original
Topic: Fundamentals and Princples of Relational Databases
- Which of the following Microsoft Access objects is used to integrate data from one or more queries and/or tables in order to present information useful to decision makers?
- Tables
- Reports
- Forms
- Macros
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-02 Explain basic relational database principles.
Source: Original
Topic: Fundamentals and Princples of Relational Databases
- Which set of multiplicities correctly shows the relationship between the Cash Receipts table and the Sale table for an organization that allows customers to buy on credit and pay in multiple installments?
- Cash Receipts (1..1) – Sale (1..1)
- Cash Receipts (1..N) – Sale (0..N)
- Cash Receipts (1..1) – Sale (N..M)
- Cash Receipts (0..N) – Sale (1..1)
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-02 Explain basic relational database principles.
Source: Original
Topic: Fundamentals and Princples of Relational Databases
- Which of the following operators would be used in a SQL query designed to simply display database records?
- SELECT
- INSERT
- DISPLAY
- VIEW
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-03 Describe how to query using Structured Query Language (SQL).
Source: Original
Topic: Structured Query Language (SQL)
- Consider the following SQL query. Which item best describes the results of the query?
SELECT VendorID, Sum(POTotal)
FROM [Purchase Orders]
GROUP BY VendorID - Displays all purchase order lines for all vendors
- Adds new purchase order information to the purchase orders table
- Displays the vendor ID and all purchase order totals in the purchase orders table
- Displays the vendor ID and the sum of all purchase order totals for that vendor
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-03 Describe how to query using Structured Query Language (SQL).
Source: Original
Topic: Structured Query Language (SQL)
- Which of the following is considered one of the primary benefits of ERPs?
- ERPs allow an organization to integrate information related to multiple business functions (i.e., manufacturing, human resources, finance, etc.).
- ERPs all operate using cloud computing technology.
- ERPs create protected data silos for each function in the organization.
- ERPs use relational data models, which are required by the Sarbanes-Oxley Act of 2002
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-04 Understand the purpose and basic framework for an enterprise system.
Source: Original
Topic: Structured Query Language (SQL)
- ERPs are useful to auditors for which of the following reasons?
- ERPs use cloud computing technology, which allows auditors to review transactions from anywhere.
- ERPs track details regarding creation, modification, and use of transactions throughout the organization in a single system.
- ERPs are required by the Sarbanes-Oxley Act of 2002.
- ERPs are spread across multiple logical databases, allowing auditors to minimize disruption to
processing when reviewing ERP activity.
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-04 Understand the purpose and basic framework for an enterprise system.
Source: Original
Topic: Enterprise Systems
- Which of the following is not one of the typical challenges organizations face when implementing an ERP?
- Integrating with external business partners’ information systems
- Converting data from legacy systems to the ERP
- Installing the ERP software
- Successfully completing a large project in an organization
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-04 Understand the purpose and basic framework for an enterprise system.
Source: Original
Topic: Enterprise Systems
- Which of the following is not a potential disadvantage of using cloud computing to host an organization’s ERP?
- Uncertainty about the data security of sensitive information hosted offsite
- Reduced internal processing and storage needs for the organization
- Uncertainty about the adequacy of the host’s processing speed and availability
- Requires a reliable Internet connection
AICPA: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-05 Assess how cloud computing facilitates enterprise systems.
Source: Original
Topic: Enterprise Systems Computing in a Cloud
Objective Questions – Answer
- List the seven objects and their functions that are used to implement relational databases using Microsoft Access.
Answer:
- Tables are used to store data.
- Queries are a tool used to retrieve and display data derived from records stored within the database.
- Forms are utilized to enter data into tables and view existing records.
- Reports are used to integrate data from one or more queries and tables to provide useful information to decision makers.
- Pages allow data to be entered into the database in real time from outside of the database system.
- Macros are defined by users to automate business processes.
AACSB: Reflective Thinking
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-02 Explain basic relational database principles
Source: Original
Topic: Fundamentals and Princples of Relational Databases
Essay Questions – Answers
- What are the three main advantages of relational databases?
Answer:
- Flexibility and Scalability: relational data models are able to handle changes in business world quickly and easily.
- Simplicity: A relational data model is a relatively simple model that is easy to communicate to both database users and database developers.
- Reduced Information Redundancy: A relational data model requires each piece of data to be recorded only in one place eliminating the need for information to be stored in multiple places in the organization.
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-01 Describe the advantages of relational databases
Source: Original
Topic: Advantages of Relational Databases
- Discuss the challenges of enterprise system implementation?
Answer:
- Integrating various modules within the enterprise system,
- Integrating with external systems such as the information system of a supplier and/or customer,
- Integrating with the firm’s own existing legacy systems,
- Converting data from existing legacy systems to the enterprise system, and
- Getting any big project implemented at a firm.
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 04-04 Understand the purpose and basic framework for an enterprise system
Source: Original
Topic: Enterprise Systems
- Explain the three main types of classes in data modeling.
Answer:
- Resources (R), events (E), and agents (A)
- Resources are those things that have economic value to a firm, such as cash and products.
- Events are the various business activities conducted in a firm’s daily operations, such as sales and purchases.
- Agents are the people who participate in business events, such as customers and salespeople.
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 04-02 Explain basic relational database principles
Source: Original
Topic: Fundamentals and Princples of Relational Databases
- What are the benefits of implementing enterprise systems in companies?
Answer:
Managers (and auditors) can trace the creation of information throughout business processes, and also identify the participants in each process. Therefore, ES has a higher level of internal transparency compared to the typically isolated legacy systems.
Other benefits include:
- Availability of information across business functions
- Provides greater capability for analysis of business
- Improved management decision making
- Coordinates business process activities and information collection for those processes and activities across business functions
- Reduces data redundancy in the organization
- Others?
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-04 Understand the purpose and basic framework for an enterprise system
Source: Original
Topic: Enterprise Systems
- Search for a case in which acompany’s ERP implementation would be considered a failure (other than those presented in the text). Summarize the case and explain the primary reasons that the implementation was a failure.
Answer:Following is an example. Students’ answer may vary.
A case in which a company failed to implement the ERP systems is Nike’s supply chain disaster (http://www.cio.com/article/32334/Nike_Rebounds_How_and_Why_Nike_Recovered_from_Its_Supply_Chain_Disaster).
In this occurrence, Nike had a problem which is now referred to as ‘the i2 problem’ in which a software glitch cost Nike over $100 million in lost sales. Furthermore, Nike’s stock price was depressed by 20 percent and many class action lawsuits followed. In the year 2000, Nike implemented an i2 demand-planning engine which computed orders for thousands more Air Garnett sneakers than market demand and computed orders for thousands fewer Air Jordan’s than market demand.
One of the main reasons that caused the failure and why Nike could recover was that Nike had a business plan which was widely understood. The software problem, which was related to factory orders in Nike’s case, sends a ripple through the product delivery which results into a much larger effect that eventually crashes on the balance sheet. In the end, this effect was so large that Nike had to reveal its losses at analysts in order to prevent confusion from the end of SEC and its shareholders.
Nike ended up stopping the use of the i2 demand planner in favor of using the SAP ERP system, which relies on orders and invoices rather than what the i2 relied on, which was predictive algorithms. Nike had been attempting to integrate the i2 demand planning software as part of a wider strategy to implement ERP, supply chain planning, and CRM software onto a single platform shared by Nike operations in areas all over the world.
The reason that the i2 problem emerged was that Nike decided to install i2 while still using its legacy systems rather than adhering to their original plan which was to deploy i2 as part of its SAP ERP project. This caused some problems, such as the problem of heavy customization of i2 software with Nike’s legacy systems. This spilled over into factory orders, in which the i2 system duplicated some orders and ignored other orders.
Nike had felt a false sense of security when they decided to install i2 due to the fact that it was a much smaller project when compared to the SAP plan. They felt that they could use i2 without changing much of the other business software, but they were incorrect in regards to integration complications. Essentially, the installation of the i2 software was too rushed, and there was not enough training for the employees.
AACSB: Analytic
AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 04-04 Understand the purpose and basic framework for an enterprise system
Source: Original
Topic: Enterprise Systems
Problems
- Using the Cash Receipt Table below, show the output if the following SQL command is given:
Cash Receipt:
| Remittance
Advice# |
Amount |
Bank
Account# |
Date |
Customer
Number |
Cashier
Number |
| RA-1 | 1,666 | BA-6 | 25-JUL-2014 | C-2 | E-39 |
| RA-2 | 10,000 | BA-7 | 26-JUL-2014 | C-2 | E-39 |
| RA-3 | 72,000 | BA-7 | 15-AUG-2014 | C-1 | E-39 |
| RA-4 | 32,600 | BA-7 | 15-AUG-2014 | C-5 | E-39 |
| RA-5 | 1,669 | BA-6 | 25-AUG-2014 | C-2 | E-39 |
SELECT SUM (Amount)
FROM [cash receipt]
Where [Customer Number] =’C-2’
Answer: 13,335
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Leveraging Technology
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 04-03 Describe how to query using Structured Query Language (SQL)
Source: Original
Topic: Structured Query Language (SQL)
- Using the Cash Receipt Table in the previous question, show the SQL command which will return the result table below.
| Remittance
Advice# |
Amount |
Bank
Account# |
Date |
Customer
Number |
Cashier
Number |
| RA-3 | 72,000 | BA-7 | 15-AUG-2014 | C-1 | E-39 |
| RA-4 | 32,600 | BA-7 | 15-AUG-2014 | C-5 | E-39 |
Answer:
SELECT *
FROM [Cash Receipt]
WHERE Date = ‘15-AUG-2014’
Or,
SELECT *
FROM [Cash Receipt]
WHERE Amount > 32000 (or other valid expression for Amount)
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Leveraging Technology
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 04-03 Describe how to query using Structured Query Language (SQL)
Source: Original
Topic: Structured Query Language (SQL)
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