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Group 10 (Questions)

The document discusses the REA (Resources, Events, Agents) approach to business process modeling and accounting information systems design. It provides true/false and multiple choice questions about REA concepts, with answers. Some key points covered include: REA models resources with nouns, events with verbs; it can be applied beyond accounting systems; and identifies primary activities and support activities in a value chain analysis.
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0% found this document useful (0 votes)
44 views

Group 10 (Questions)

The document discusses the REA (Resources, Events, Agents) approach to business process modeling and accounting information systems design. It provides true/false and multiple choice questions about REA concepts, with answers. Some key points covered include: REA models resources with nouns, events with verbs; it can be applied beyond accounting systems; and identifies primary activities and support activities in a value chain analysis.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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GROUP 10: The REA Approach to Business Process Modeling

TRUE OR FALSE.
1. Duplication of data occurs when the same data item or file is stored in multiple locations in a
computing system implementation. TRUE
2. The REA approach model is an alternative framework to the traditional debit/credit,
journal/ledger model for our AIS design. TRUE
3. Modern managers need both financial and nonfinancial information that traditional GAAP-
based accounting systems are capable of providing. FALSE (INCAPABLE)
4. Resources in an REA model are given reasonable names using verbs. FALSE (NOUNS)
5. The REA modeling concepts can be applied to the design of any information system, not just
an accounting information system. TRUE
6. There are four possible forms of cardinalities. TRUE
7. Verify Availability is a supporting event. FALSE (ECONOMIC)
8. Take Order and Ship product entity has one or one cardinality. FALSE (ZERO OR ONE)
9. Many-to-many association takes place between Verify Availability and Take Order entity.
FALSE (BETWEEN TAKE ORDER AND INVENTORY ENTITY)
10. Association represents the degree of relationship between entities while Cardinalities
represent the nature of relationship between them. FALSE (ASSOCIATION- NATURE OF
RELATIONSHIP; CARDINALITIES – DEGREE OF ASSOCIATION)

11. Disburse Cash is the receive half of the economic exchange. FALSE (GET TIME)
12. All non-key attributes will be dependent on or defined by other non-key attributes. FALSE
(NONE) 
13. Value Chain Analysis is a process that distinguish primary activities from support activities.
TRUE
14. Receive Product and Disburse Cash are the two economic events in payroll procedures.
FALSE (GET TIME & DISBURSE CASH)
15. Each attribute in an entity should appear directly or indirectly in one or more user views.
TRUE
MULTIPLE CHOICE QUESTIONS:

1. The following are types of internal agents, except:


a. Customer
b. Shipping clerk
c. Cash receipts clerk
d. Customer service clerk

2. The following are the possible forms of cardinalities, except:


a. One and only one
b. Zero or one
c. One or zero
d. One or many
e.
3. An economic event where the cash resource increases as a result of the exchange.
a. Verify Availability
b. Take Order
c. Ship Product
d. Receive Cash

4. An economic event where the inventory resource decreases as a result of the exchange.
a. Verify Availability
b. Take Order
c. Ship Product
d. Receive Cash

5. The following are the steps in creating a REA Diagram, except:


a. Identifying the event entities.
b. Identifying the real entities.
c. Identifying the agent entities.
d. Determining associations and cardinalities between entities.
6. A support event that does not directly increase the inventory.

a. Get Time
b. Order Product Entity
c. Disburse Cash
d. Receive Product

7. The following are the three event entities under Purchase and Cash Disbursement
Procedures, except:
a. Order Product Entity
b. Disburse Cash
c. Receive Product 
d. Get Time

8. Which of the following is a condition for normalizing tables?


a. Each attribute in an entity should appear directly or indirectly in one or more user
views. 
b. The analyst should select a primary key that logically defines non-key attributes. 
c. All non-key attributes will be wholly and uniquely dependent on the primary
key. 
d. The designer must clearly define the degree of association between tables in order to
have a proper foreign key. 

9. The following are the steps in the view integration process except:
a. Consolidate the individual models
b. Construct the physical database and produce user views
c. Define the primary keys, foreign keys, and attributes
d. Merge individual REA diagram

10. An economic event that causes change in economic resource. 


a. Get Time
b. Receive Product 
c. Order Product Entity
d. Disburse Cash
11. The external partners to whom cash is the primary resource typically given in a traditional
manufacturer’s value system level REA model include all of the following except
a. Employees
b. Customers
c. Suppliers
d. Investors

12. In the REA Model, Agents can be


a. Individuals
b. Departments
c. Organizations
d. All of the above

13. The causal relationship between a give event and a take event is a ___________,
and __________ is defined as the inflow or outflow of a resource.
a. Difference association; Process
b. Economic Duality; Stockflow
c. Conversion association; Timing
d. Value Chain association; Resource flow

14. Which of the following is NOT an example of a resource in the REA model?
a. Employee Labor
b. Finished Goods
c. Customers
d. Raw Materials

15. The REA model:


a. Prescribes structural relationships among entities in the database.
b. Was designed specifically to assist the design of AIS.
c. Identifies what entities should be in the AIS database.
d. All of the above.

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