Chapter 17: Database Design Using the REA Data Model

Question 1

5 basic steps of database design

Answer 1

1. Systems Analysis
2. Conceptual Design
3. Physical Design
4. Implementation and Conversion
5. Operation and Maintenance

SCPIO

Question 2

System Design

Answer 2

Step 1 of database design:
consists of intial planning to determine the need for and feasibility of developing a new system. It includes preliminary judgements about the proposal’s technological and economic feasibility. ID user information needs, defining the scope of the propose

Question 3

Conceptual Design

Answer 3

Step 2 of database design:

includes developing the different schemas for the new system at the conceptual, external, and internal levels.

Question 4

Physical Design

Answer 4

Step 3 of database design:
consists of translating the internal level schema into the actual database structures that will be implemented in the new system. This is also when new applications are developed

Question 5

Implementation and Conversion

Answer 5

Step 4 of database design:
includes all the activities associated with transferring data from existing systems to the new database AIS, testing the new system, and training employees how to use it.

Question 6

Using and Maintaining the new system

Answer 6

Step 5 of database design:
: it includes carefully monitoring system performance and user satisfaction to determine the need for making system enhancements and modifications.

Question 7

Data Modeling

Answer 7

is the process of defining a database so that it faithfully represents all aspects of the organizations, including its interactions with the external environment. It occurs during both the systems analysis and conceptual design stages of database design.

Question 8

two important tools that accountants use to perform data modeling

Answer 8

Entity-Relationship Diagramming and the REA Data Model

Question 9

Entity-Relationship Diagram

Answer 9

a graphical technique for portraying a database schema (schema: the logical structure). It shows the various ENTITIES being modeled and the important relationships among them. (Only relationships between entities)

Question 10

Entity

Answer 10

anything about which the organization wants to collect and store information.

Question 11

Relationship

Answer 11

an association between two or more entities

Question 12

REA data model

Answer 12

developed specifically for use in designing AIS. It focuses on the business semantics underlying an organization’s value-chain activities. It provides guidance for database design by identifying what entitles should be included in the AIS database. REA data models are usually depicted in the form of E-R diagrams.

Question 13

3 basic types of entities

Answer 13

Resources the organization acquires and uses
Events in which the organization engages
Agents participating in these events

Question 14

Resources

Answer 14

are those things that have economic value to the organization.

Question 15

Events

Answer 15

are the various business activities about which management wants to collect information for planning or control purposes.

Question 16

Agents

Answer 16

are the people and the organizations that participate in events and about whom information is desired for planning, control, and evaluation purposes.

Question 17

3 General Rules

Answer 17

1. Each event is linked to at least one resource that it affects
2. Each event is linked to at least one other event
3. Each event is linked to at least TWO participating agents

Question 18

4 sequential activities in business

Answer 18

Take customer orders
Fill customer orders
Bill customers
Collect payment from customers.

Question 19

3 questions to identifying resources and agents

Answer 19

1. What economic resource is reduced by the “give” event?
2. What economic resource is acquired by the “get” event?
3. What economic resource is affected by a commitment event?

Question 20

Cardinalities

Answer 20

describe the nature of the relationship between two entities by indicating how many instances of one entity can be linked to each specific instance of another entity.

Question 21

Minimum Cardinality

Answer 21

either a zero or one, depending upon whether the relationship between the two entities is optional (the minimum cardinality is zero) or mandatory (the minimum cardinality is one).

Question 22

Maximum Cardinality

Answer 22

can be either one or many (the crow feet symbol) depending upon whether each instance of entity A can be linked to at most one instance or potentially many instances of entity B.

Question 23

3 basic types of relationships between entities:

Answer 23

1 to 1
1 to many
many to many

Question 24

One to One relationship

Answer 24

exists when the maximum cardinality for each entity in that relationship is one.

Question 25

One to many Relationship

Answer 25

exists when the maximum cardinality of one entity in the relationship is 1 and the maximum cardinality for the other entity in that relationship is many.

Question 26

Many to Many relationship

Answer 26

exists when the maximum cardinality for both entities in the relationship is many

Question 27

When does data modeling occur

Answer 27

both system analysis and conceptual design