Accounting Information Systems (D217)

Correct Answer

A. Improved data integrity

Explanation

Relational data models improve data integrity by using structures such as primary keys, foreign keys, and constraints to ensure that data remains accurate and consistent. These rules prevent invalid data entries and maintain logical relationships between tables. The design promotes standardization and reduces redundancy, which further supports data accuracy across the system.

Why other options are wrong

B. Increased data duplication

This option is incorrect because one of the main goals of a relational data model is to reduce data duplication through normalization. By organizing data into related tables, relational databases avoid storing the same information multiple times, which promotes efficiency and accuracy.

C. Higher storage costs

This is incorrect because relational models typically result in optimized storage due to reduced redundancy. While there may be some overhead from indexes and metadata, the structure generally leads to more efficient use of storage rather than higher costs.

D. Limited data access

This option is incorrect because relational databases allow flexible and powerful querying through SQL, enabling complex data retrieval and reporting. Far from limiting access, they enhance users’ ability to interact with and retrieve data in meaningful ways, while still maintaining control through permissions and roles.

Correct Answer

A. its values must be unique

Explanation

A primary key is used to uniquely identify each record in a database table. Its values must be unique to ensure that each record can be distinguished from others. This is a fundamental rule of primary keys in relational databases.

Why other options are wrong

B. it must be defined as a text field

A primary key can be of any data type, not necessarily a text field. It could be numeric, date, or any other type, as long as its values are unique.

C. it must be first in a table

The primary key does not have to be the first column in a table. Its position in the table doesn't matter, as long as it is unique and identifies records uniquely.

D. it can never be changed

While primary keys are typically stable and unchanging, in some cases, they may be updated if necessary (e.g., when the underlying data changes). However, best practices generally suggest that primary keys remain constant once set.

Correct Answer

D. Transformate

Explanation

The IT strategic role that has the greatest impact on stock price is often considered to be "transformate," which refers to the ability of IT initiatives to fundamentally transform business processes, models, or industries. Transformative IT strategies can lead to significant improvements in business performance, which in turn can affect stock prices positively.

Why other options are wrong

A. Informate

This is incorrect because "informate" refers to using IT to enhance the flow of information within an organization. While valuable, it typically has a more moderate impact on stock prices compared to transformative IT strategies.

B. Digitize

This is incorrect because "digitize" involves converting physical or manual processes into digital formats. While this can improve efficiency, it generally does not have as profound an effect on stock prices as transformative initiatives do.

C. Automate

This is incorrect because "automate" refers to using IT to automate repetitive tasks or processes. While automation can improve operational efficiency and reduce costs, it is not as likely to have the same significant impact on stock prices as a broader transformation strategy.

Correct Answer

E. Enterprise software includes analytical tools to evaluate overall organizational performance

Explanation

While enterprise software plays a key role in managing day-to-day operations across an organization, it does not typically include advanced analytical tools designed specifically for evaluating organizational performance. Analytical tools are generally part of business intelligence (BI) or separate performance management systems, not necessarily part of the core enterprise systems.

Why other options are wrong

A. Enterprise system database have standardized definitions and formats that are accepted by the entire organization

This is true because enterprise systems are designed to integrate and standardize business processes across the organization, including data definitions and formats.

B. Enterprise systems help firms respond rapidly to customer requests for information or products

This is correct. Enterprise systems help streamline operations and improve response times by providing accurate, real-time information across departments.

C. Enterprise system is expressly built to allow companies to support their business practices

This is true. Enterprise systems are designed to support and optimize a company’s core business processes, such as accounting, procurement, and inventory management.

D. Enterprise systems provide firm-wide information to help managers make better decisions

This is accurate because enterprise systems centralize data from various departments, making it available for decision-making across the organization.

Correct Answer

C. Integrate information about each client's likes and dislikes to be able to tailor conversations with them.

Explanation

Customer relationship management (CRM) systems are designed to collect, analyze, and integrate data about customers, including their preferences, behaviors, and interactions with the business. By doing so, CRM systems allow businesses to customize their conversations and marketing efforts, thus improving customer satisfaction and loyalty. This tailored interaction helps businesses to better meet the needs and wants of their clients.

Why other options are wrong

A. Analyze common contract elements to streamline the contracting process.

This is incorrect because analyzing common contract elements is more relevant to contract management systems rather than CRM systems. CRM focuses on managing customer relationships, not the details of contract formation or streamlining the contracting process.

B. Allow customers to know which products are currently available by displaying them on a website.

This is incorrect because while CRM systems may interact with inventory data, the primary function of CRM is not to display product availability on websites. E-commerce systems or inventory management systems are more directly involved with providing real-time product information to customers.

Correct Answer

D. entity

Explanation

An entity represents a person, place, object, event, or concept in the database that an organization wants to track or model. For example, in a sales database, entities could be customers, products, or orders. Each entity typically has attributes that define its properties.

Why other options are wrong

A. relationship

A relationship is a connection or association between entities in a database, but it is not the entity itself. For example, a relationship could be "customer places order," but the customer and order are the entities.

B. attribute

An attribute is a characteristic or property of an entity. For example, a customer's "name" or "address" would be an attribute of the customer entity, not the entity itself.

C. object

An object may refer to something within object-oriented programming or object modeling, but in database modeling, the term "entity" is more appropriate to represent something the organization wishes to track.

Correct Answer

C. SAP

Explanation

SAP is a leading example of an Enterprise System, specifically an Enterprise Resource Planning (ERP) system. These systems integrate core business processes such as finance, HR, and supply chain management into a single system to streamline operations and improve information flow across the organization. SAP provides comprehensive modules that support large-scale enterprise functions, making it a classic enterprise-level software.

Why other options are wrong

A. Google

While Google offers a range of services and tools, it is not an enterprise system by itself. Google services like Gmail or Google Drive can be used within organizations, but they do not integrate core business processes the way enterprise systems like SAP do.

B. Microsoft Windows

Microsoft Windows is an operating system, not an enterprise system. It provides the basic environment for running applications and software but does not function as a tool for managing enterprise-level operations or processes.

D. Microsoft Excel

Microsoft Excel is a spreadsheet application, often used for data analysis and reporting. While useful for business tasks, it is not capable of managing end-to-end enterprise operations. It lacks the integration, scalability, and process automation features typical of enterprise systems like SAP.

Correct Answer

D. customers must provide a valid credit card number

Explanation

A valid credit card number is a mandatory requirement for processing payments in most online transactions. This is crucial for verifying the transaction and ensuring that funds can be processed securely. Without a valid credit card, the transaction cannot be completed, making it a business rule for completing online purchases.

Why other options are wrong

A. customers must create an account before checkout

While many e-commerce websites encourage customers to create accounts for easier checkout and order tracking, it is not always a mandatory business rule. Some sites allow guest checkout, where customers can purchase items without creating an account.

B. customers must provide a valid email address

Although an email address is useful for order confirmation and communication, it is not always a mandatory business rule. Some businesses might allow the purchase to proceed without requiring an email address, though this is rare.

C. customers must enter a billing address

While a billing address is important for verifying payment methods and preventing fraud, there are instances where a transaction can proceed without a billing address, particularly if a digital payment method like PayPal is used. It may not always be strictly mandatory.

Correct Answer

C. Timeliness

Explanation

Faithful representation in accounting focuses on ensuring that information accurately reflects the economic phenomena it purports to represent. Its key characteristics are completeness, neutrality, and being free from error. Timeliness, while an important quality of useful information, belongs under the broader category of relevance—not faithful representation.

Why other options are wrong

A. Completeness

Completeness means that all necessary information is included in the report, and nothing is omitted that would cause the information to be misleading. This is a key characteristic of faithful representation.

B. Neutrality

Neutrality refers to information that is free from bias. It is another essential element of faithful representation in financial reporting.

D. Free from error

Being free from material error enhances the reliability of financial information and is one of the core attributes of faithful representation.