Question 1

Data in a view-driven AIS are often stored in multiple places, such as:

Accepted Answer

In a view-driven AIS, data is often recorded in journals and then transferred to ledgers for final processing. Therefore, data is stored in multiple places, in both journals and ledgers.

Question 2

View-driven AIS are designed to support a particular way of looking at the data they contain. Which of the following is not a view commonly supported by a view-driven AIS?

Accepted Answer

Budget variance report is not a view commonly supported by a view-driven AIS. The other views listed - balance sheet, income statement, and statement of shareholders' equity - are all commonly supported by a view-driven AIS.

Question 3

Consider the following REA diagram as you respond to the next question:  The box in the second column represents a(n):

Accepted Answer

B

Question 4

Information technology controls, such as a password rotation policy, can be used in:

Accepted Answer

Information technology controls, such as password rotation policy, can be used in both view-driven AIS (which use a database to store and process data based on user requests for reports or information) and event-driven AIS (which respond to predefined events or triggers and initiate processes automatically). Therefore, the correct answer is C - both A and B.

Question 5

View-driven accounting information systems have been criticized because they:

Accepted Answer

View-driven accounting information systems are criticized because they focus only on a small, well-defined group of important business events and often process data in batches, which can lead to delays in processing and reporting of important information.

Question 6

View-driven accounting information systems often foster the idea of stovepiping in organizations. Which of the following is an example of stovepiping?

Accepted Answer

Stovepiping refers to a lack of communication and integration between departments, leading to isolated decision-making. A sales representative quoting a price less than cost without consulting other departments exemplifies this isolation.

Question 7

Which of the following pieces of data would you expect to find in an event-driven AIS, but not in a view-driven AIS?

Accepted Answer

An event-driven AIS focuses on capturing detailed data about business events, including customer preferences, which are not typically captured in a view-driven AIS that focuses more on financial transactions.

Question 8

Which of the following statements about view- and event-driven AIS is most true?

Accepted Answer

The differentiation between view- and event-driven AIS is not based on the presence or absence of information technology, nor on the use of paper or electronic documents. Instead, it is based on the way in which data is processed and presented. View-driven AIS focus on providing users with predefined sets of reports, while event-driven AIS respond to specific events or transactions by generating appropriate reports or alerts.

Question 9

Consider the following REA diagram as you respond to the next question:  The boxes in the third column represent a(n):

Accepted Answer

The answer of Consider the following REA diagram as you...

Question 10

The accounting cycle comprises ten steps. In which step would you expect to find a difference between view-driven and event-driven AIS?

Accepted Answer

View-driven and event-driven AIS differ in how they analyze transactions and record adjusting entries, as these steps involve interpreting and processing data differently based on the system's approach.

Question 11

In contrast with view-driven AIS, event-driven accounting information systems focus on:

Accepted Answer

Event-driven accounting information systems focus on the business processes and events that occur within the system, rather than on specific views or reports. Journal entries and ledger accounts are still important components of the system, but they are generated based on the events and processes that take place, rather than being the primary focus of the system.

Question 12

A company wants to prepare a schedule of assets that separates current and long-term assets, as well as reports relevant dollar amounts. Which type of AIS could the company use to prepare such a schedule?

Accepted Answer

An AIS that is either view-driven or event-driven could be used to prepare a schedule of assets that separates current and long-term assets, as well as reports relevant dollar amounts.

Question 13

An accounting information system captures data that are eventually grouped by account, and then used to prepare general purpose financial statements. The system could be described as:

Accepted Answer

An accounting information system (AIS) is a system that collects, stores, and processes financial data. The data is then used to prepare general purpose financial statements. An AIS can be either view-driven or event-driven. A view-driven AIS is one that is designed to provide a specific view of the data, such as a balance sheet or income statement. An event-driven AIS is one that is designed to capture and process data as it occurs.

Question 14

In a view-driven AIS, where you would expect to see stored data about product quality?

Accepted Answer

In a view-driven AIS, product quality data is typically stored in specialized databases or systems, not in journals or ledgers which are used for financial transactions.

Question 15

In view-driven accounting information systems, internal controls are often:

Accepted Answer

In view-driven accounting information systems, internal controls are often both protective and expensive. Protective controls are designed to prevent or detect errors and fraud, while expensive controls are those that require a significant investment of resources to implement and maintain.

Question 16

Data in a view-driven accounting information system are:

Accepted Answer

The answer of Data in a view-driven accounting information system...

Question 17

View-driven AIS have been criticized because their data are often outdated. Which of the following journal entries for the purchase of inventory best illustrates that criticism?

Accepted Answer

Debit purchases, credit cash only records the fact that a purchase was made and money was paid, but it does not specify what was purchased and at what price. This type of entry is common in view-driven AIS, which only update the accounting records periodically and may not reflect current inventory levels or purchase prices.

Question 18

A journal entry in a view-driven AIS debits equipment for $10,000, credits cash for $2,000 and credits notes payable for $8,000. Which of the following pieces of data would you expect to see in an event-driven AIS but not in the view-driven AIS?

Accepted Answer

An event-driven AIS would include additional details like the expected life of the equipment, which is relevant for future events like depreciation, whereas a view-driven AIS focuses on the immediate financial transaction.

Question 19

Consider the following REA diagram as you respond to the next question:  The numbers and symbols in parentheses in the model are called:

Accepted Answer

The numbers and symbols in parentheses in the REA diagram represent the cardinalities of the relationships between the different entities. Cardinalities describe the specific relationship between two entities and indicate how many instances of one entity are linked to instances of another entity. Therefore, option A (Cardinalities) is the correct answer.

Question 20

Consider the following REA diagram as you respond to the next question:  The box in the first column represents a(n):

Accepted Answer

The box in the first column represents a resource, which is a tangible or intangible asset that is controlled by an organization and used to produce goods or services. Examples of resources include cash, inventory, and equipment.

Quiz 8: Rea Modeling