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Database Design Using The Rea Data Model: Sales Receive Cash

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5 views3 pages

Database Design Using The Rea Data Model: Sales Receive Cash

Uploaded by

thunguyenhuong92
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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CHAPTER 19

DATABASE DESIGN USING THE REA DATA MODEL


SUGGESTED ANSWERS TO DISCUSSION QUESTIONS

19.7 Model the cardinalities of the following business policies:

a. The relationship between the Sale and Receive Cash events for installment sales.

Sales Receive Cash

b. The relationship between the Sale and Receive Cash events at a convenience
store.

Sales Receive Cash

c. The Take Customer Order–Sale relationship in a situation when occasionally


several shipments are required to fill an order because some items were out of
stock.

The solution presented here presumes that one sale (order fulfillment event) can be
linked to multiple orders, with occasional partial deliveries because items need to be
back ordered.

Take Customer
Sales
Order

Alternate solution, if each order is filled individually but sometimes requires multiple
deliveries:

Take Customer
Sales
Order
Ch. 19: Database Design using the REA Data Model

19.11 Answer the following multiple-choice questions


1. Which of the following steps in the revenue cycle would appear as event entities in
an REA diagram?
a. Sales Order Entry
b. Shipping
c. Billing
d. Cash Collections
Answer: a, b, and d would all be events in the revenue cycle REA diagram. Billing
would not be an event because it is just a data processing activity that does not add
any new information to the database.
2. Which of the following steps in the expenditure cycle would appear as event entities
in an REA diagram?
a. Ordering
b. Receiving
c. Approve Supplier Invoices
d. Cash Disbursements
Answer: a, b, and d would all be events in the revenue cycle REA diagram. Approve
Supplier Invoices would not be an event because it is just a data processing activity
that does not add any new information to the database.
3. Customers are sent monthly statements that list and total all sales transactions
during the preceding month. Customers must pay the entire balance owed in full
with one check. Given this set of facts, the relationship between the Sale and Receive
Cash events would be modeled as being
a. 1:1
b. 1:N
c. N:1
d. M:N
Answer: c. Each sale is paid with one check, but one check can pay for multiple sales.
4. ABC company has a checking account, savings account, and payroll account with the
XYZ bank. ABC company deposits all customer payments into its checking account.
The relationship between Cash and Receive Cash would be modeled as being
a. 1:1
b. 1:N
c. N:1
d. M:N
Answer: b. Each Cash account can be linked to multiple Receive Cash events, but
each Receive Cash event is deposited into one, and only one, Cash account.
5. The REA diagram for the revenue cycle of a pet store would represent the
relationship between Sales and Inventory as being ____.
a. 1:1
b. 1:N
c. N:1
d. M:N
Answer: d. Each sale can consist of many different inventory items (e.g., a 10 lb. bag
of Brand X dog food), and each inventory item can be part of many different sales
transactions.
6. An art museum only purchases and displays original pieces of art. It sometimes
purchases several works of art from the same artist at the same time. The REA
diagram for the art museum’s expenditure cycle would model the relationship
between Purchases and Inventory as being ____.
a. 1:1
b. 1:N
c. N:1
d. M:N
Answer: b. Each purchase may involve multiple pieces of art, but each piece of art is
only purchased once.
7. A company’s suppliers send it separate invoices for each purchase. It also sends the
company a monthly statement that summarizes all transactions during the
preceding calendar month. Sometimes a supplier offers a discount if a specific
invoice is paid in full within 15 days; in such cases, the company takes advantage of
the discount. Otherwise, the company pays the full amount listed on the monthly
statement within seven days of receiving the statement. Given this set of facts, the
relationship between the Disburse Cash and Purchase events in the company’s
expenditure cycle REA diagram would be modeled as being ____.
a. 1:1
b. 1:N
c. N:1
d. M:N
Answer: b. Each disburse cash (payment) event to a supplier can be linked to multiple
purchases, but each purchase is paid for in full in one disbursement (the company
does not make installment payments).
8. A grocery store sells to individuals and also to groups, such as the local fire
department and a college fraternity. Given this set of facts, the grocery store’s
revenue cycle REA diagram would model the relationship between Sales and
Customers as being ____.
a. 1:1
b. 1:N
c. N:1
d. M:N
Answer: c. Each sale is made to one, and only one, specific customer. Although the
fire department and the fraternity may be comprised of multiple individuals, each is
considered to be just one single entity with regard to business transactions. However,
each customer may participate in many sales events.
9. ABC company has a checking account, savings account, and payroll account with
the XYZ bank. The REA diagram for ABC’s expenditure cycle would model the
relationship between Disburse Cash and Cash as being ____.
a. 1:1
b. 1:N
c. N:1
d. M:N
Answer: c. Each Cash account can be linked to multiple Disburse Cash events, but
each Disburse Cash event is made from one, and only one, Cash account.

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