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122 Cards in this Set

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They are the most popular type of database used for transaction processing.
Relational Data Bases
Binary digit or bit
The lowest level of information is a binary digit or bit. A bit can have a value of either 1 or 0.
Byte
Eight Bits create a byte. each byte can hold a single character.
The letter A in binary code
01000001
Attributes
information that is sorted in a datafield. Such as sutdent id number or birthdate.
record
a group of fields.
File
all related records form a file
Transaction file
Contains records for the individual business transactions that occur during a specific fiscal period.
Master file
Stores cumulative information about an organization's resources (e.g. inventory) and agents (customers, employees)
Updated to reflect the effect of specific transactions
Database
the higest level of interrelated centerally coordinated files.
Data heirarchy
BCFRFD
Bit
Character
Field
record
file
database
Relational Data Model
Everything in the database as being stored in the forms of tables, aka relations
Primary key
data field that is used to unquely identify each record.
Foreign key
used to join the tables

A foreign key is an attribute in one table that is a primary key in another table. Foreign keys are used to link tables together.
Entity integrity
the primary key field cannot be blank. It must be unique. You cannot have duplicate values for the primary key.
Referential integrity
regards foreign keys
A foreign key must match an existing value in the master table for the foreign key.
composite key
this is what a primary key is called when a combination of fields is needed to uniquely identify records in a file.
difference between a primary key and a composite key.
A primary key represents one column. when you need 2 columns you can use a composite key.

Example.

primary key is a student id linked to a student.

composite key is a course id linked to a course and section.
Non key attributes
fields or attributes, in a file that are not part of primary key.
Foreign keys
non key attributes, but they are used to link files.

they enable database records to reference one or more records in other files.

Information in 2 different tables can be combined to produce 2 tables.
Data integrity controls
designed by database developers and are customized for the application at hand.

Examples

Test for data completeness
conformance to data type specified
valid code tests (state codes such as CA, VA)
Resonableness (payroll hours cant go past 40 hours)
All the foreign key numbers in table 1 must have...
matching numbers in table 2
When a foreign key table has a value thats not in the primary key of table 2.
it violates referential integrity
data modeling
the process of creating a database that represents a real world business scenario.

Entities
Entity Relationship Diagram
show entities and relationships existing between entities
what is an entity
anything about which the organization wants to collect and store information.
If a business has a customer and supplier, it will probably have a _______ entity
Sales Transactions entity
Tables are for database system. But for a data model we use the term
Entity
How are entities depected as in E-R diagram?
Rectangles.
How do you show a relationship in a ER diagram
connecting lines
how are Attributes are shown for each entity?
using ovals connected to each rectangle.
What is a way to show attributes without using bubble symbols?
by creating a seperate table that lists the attributes for each entity. This table is a list of attributes thats part of the E-R diagram.
REA data model
The same as ER model, but used to describe three different types of entities. Resources Events and Agents
Resources
Resources that the organization acquires and uses. Resources are things that have economic value to the organization.
Events
Events in which the organization engages. These are the various business activities about which management wants to collect information for planning or control purposes.
Agents
Agents participating in these events. Includes people and organizations who participate in events and about whom information is desired for planning, control, and evaluation purposes
What is a way to show attributes without using bubble symbols?
by creating a seperate table that lists the attributes for each entity. This table is a list of attributes thats part of the E-R diagram.
REA data model
The same as ER model, but used to describe three different types of entities. Resources Events and Agents
Resources
Resources that the organization acquires and uses. Resources are things that have economic value to the organization.
Events
Events in which the organization engages. These are the various business activities about which management wants to collect information for planning or control purposes.
Agents
Agents participating in these events. Includes people and organizations who participate in events and about whom information is desired for planning, control, and evaluation purposes
What is a way to show attributes without using bubble symbols?
by creating a seperate table that lists the attributes for each entity. This table is a list of attributes thats part of the E-R diagram.
REA data model
The same as ER model, but used to describe three different types of entities. Resources Events and Agents
Resources
Resources that the organization acquires and uses. Resources are things that have economic value to the organization.
Events
Events in which the organization engages. These are the various business activities about which management wants to collect information for planning or control purposes.
Agents
Agents participating in these events. Includes people and organizations who participate in events and about whom information is desired for planning, control, and evaluation purposes
What are examples of resources entity
Inventory, materials. ANything that can provide benefits to future operations. usually a resource carries a connotation of an asset .An asset listed on a balance sheet can be a resource on a resource diagram.
Examples of an event entity
A sales order event. A sales transaction. purchase transaction. a shipment. Collect payment.
What is a sales order event
Each sales order has an ID. It also shows the date and dollar amount. This information is captured and can be used by management for planning or control purposes.
What are examples of agents.
Employees who input transaction. a person who particpate in events they are internal agents. .
Customers are external agents. Shipping companys are external agents.
In the sales process. what are the resource entities.
Inventory and Cash Accounts. are the 2 resources in the sales process.
What are the events in the sales process.
A sales event and a Receive Cash event. To collect and record transaction data.
What are the agents in the sales process?
Employee and Customers.
What is the layout used in the REA data model?
Resources are on the left
Events are in the middle
Agents are on the right.
they are connected by lines.
Every event should be linked to what?
At least one resource.
Get event
If they increase the quantity of a resource.
Example if you purcahse inventory for cash. The get event is that you receive inventory.
Give event.
When you decrease the quantity of a resource.

Example: when you purchase inventory for cash the give event is you pay cash.
Commitment event
When you take the customer order .

When a customer orders a good but the company has not shipped the goods as yet.

It doesnt affect any resources (inventory, cash) because we have not shipped the goods or collected cash.

A committment event will eventually result in a give or get event.
Every Event must be linked to at least one other
EVENT entity. You cannot have a standalone event.
Economic duality relationship
Reflects the basic principle that organizations engage in activities that use up resources in hopes of acquiring other resources in exchange. Give and get events reflect economic duality.
Shipment event.
you give up resources, (inventory) but you get other resources (you collect cash ).
Cause and effect relationships
Commitment event is the CAUSE of a give and get event which is THE EFFECT.
Every event entity must be linked to at least 2 _____.
2 participating Agents.
Internal agents employees. processes the purchase transaction

External Employees or Supplier.
Direct Relationships
The relationship between a resource and an event. or the event and agent.
Indirect relationships
The relationship between Resources and Agents.

For example the links between inventory and customers.
What is the first step in creating a database with REA.
Identify the events about which management wants to collect information.

At the minimum every REA must include 2 events to represent give to get economic exchange.
The first 2 steps in creating databases involve.
Identifying events resources and agents.
Revenue Cycle
Another Name for the Sales process
1. Take customer order
2. Fill customer order
3. Ship customer order
4.Collect Payment
Step 2 in the REA diagram
Identify R's and A's
Identifying resources involves determining
The resources reduced by a give event. and the resources increased by a committment event. Also the resources that are affected by a commitment event.
Identifying Agents
There will always be an internal and external agent.

The agents are diagramed on the right of the rea diagram
Why are the Employee and Customer Entities shown twice?
If we showed them only one time there will be many cross-lines. It is to avoid crosslines.
Cardinality
describes the nature of the relationship between 2 entities.

Indicates how many instances of one entity can be linked to a specific instance of another entity.
how do you define the nature of a relationship of a cardinaltiy between sales and customer
1. for each customer, how many sales are associated with that customer?

2. for each sale a company makes, how many customer can we associate with that sale.
what is the relationship between a sale and a customer
Sale 1,1; Customer 0,N
Interpretation of Sale 1, 1; Customer 0, N
each sale relates to a minimum of one customer and a maximum of one customer, and each customer has a minimum of zero sales and a maximum of many sales

Each sale is associated with a min imum of 1 customer. You cannot have a sales order directed to 0 customers. The maximum cardinality is 1 customer, because you cannot have a sales order with many customers. One order goes to one customer.

As a customer
The minimum is 0 because a customer doesnt have to buy anything to be a customer. The maximum is N (many) sales because it can buy as much as it wants.
minimum cardinality
0 or 1
Maximum cardinality
1 or many(N)
Inventory and Sale cardinality
(Inventory 0, N; Sale 1, N)

each inventory item relates to a minimum of zero sales and a maximum of many sales, and each sale involves a minimum of one inventory item and a maximum of many items.

Inventory can be sold many times, we mean that type of inventory can be sold many times.

Each sale is associated with 1 inventory item and a max of many items. Each sale is for at least 1. you cant have a min of zero inventory because without inventory you cant sell. The maximum is many because each sale can contain more than 1 inventory item.
Cardinality between sale and employee
Sale 1,1. Employee 0,N

Each sale is made by one and only one employee. you cant have 2 people on a cash register.

Each employee can have 0 sales (new hire) or many sales (old employee)
Cardinality between Sale and Shipment
Sale 0:N Shipment 1:N
2 event entities
Each sale relates to a minimum of Zero shipments and a maximum of many shipments. When you have a time lag, or the item is backordered you have a sale, but no shipment. but many because a customer can order 2 different items in one sale but it gets shipped at different times. Also it can apply to different items from different departmetns.
Cardinality between Shipment to sale.
1:N

You cannot ship anything if you diddnt have a sale. so the minimum is 1. You can ship out many items in one sale.
Cardinality between a sale and customer for a video rental store
(sale 1,1, Customer 0,N)

At a video rental store for every sale there is one and only one customer. but every customer has to submit information to become a member, they dont have to buy anything.
Cash, Recieve Cash
Cash 0,N Recieve Cash 1,1

A bank account can recieve 0 to many payments.it can be an account that just opened or an account that has alot of activity.

Each payment has to be associated with only one bank account.
Inventory, Ship goods
Inventory 0,N Ship goods 1,N

For every inventory you can have no goods shipped or many.
Every shipment has to come from at least 1 inventory or there is nothing to ship
Take order, Ship goods
Take order 0,N Ship Goods 1,N

For every order taken you dont have to ship goods, or you can ship many goods

For every shipped order there must be one order or many goods in one shipment (consolidated shipments)
Ship goods Recieve Cash
Ship Goods 0,N Receive Cash 1,N

You can ship a good out without recieving a cash payment

You do not Pay unless you have recieved
3 types of Maximum Cardinalities
1:1
1:N
N:N
1:1 one to one Max cardinality
When a maximum cardinality for reach relationship is one. You take the max cardinalities(1) on the relationship.

Sale and Collection
Sale 0,1 Collection 1,1

Max Cardinality
Sale 1,1 Collection
You take the maximum cardinalities (1:1)and flip them. (1:1)
1:N one to many Max cardinality
When the maximum Cardinality is one to many

Example
Vendor and Purchase
Vendor O:N Purchase 1,1)
Max Cardinality
Vendor N,1 Purchase

Then flip
Vendor 1,N Purchase
"Each vendor is associated withmany purchases"
N:N many to many Max Cardinality
many to many relationship exists when the maximum on both sides is many.

Example Inventory and sales
Inventory 0,N Sale 1,N

Max Cardinality
Inventory N:N Sale

Inventory is associated with many sales
3 Rules of converting REA relationships into tables
1. Create a table for every distinct entity
2. Seperate tables for many to many relationships
3. Use foreign keys to implement One-One and One-Many relationships
Implementing Many to many Relationships
Create 2 tables. one for each.
Example Inventory and customer order.
Primary Key for an inventory Table (inventory and customer order)
Item Number
Primary Key for a Sales order table (inventory and customer order)
Sales order
Creating a table for a one to one relationship.
It usually exists between 2 sequential events.
The primary key of the event that occurs first is usually the foreign key in the event that happens second

Example Customer order(first) and shipment(second)
The sales order # is the primary key in the customer order table and is the foreign key in the shipment table.
Creating a table to one to many.
The primary key of the entity on one side of the relationship is the foreign key to the entity on the many side of the relationship.

Example Salesperson to customer order

The primary key on the Salesperson table is Sales person#. SalesPerson# is the foreign key on the sales order table.
It cannt be the other way around or it will break ref. integ.
The relationship between sales and receive cash is 1:1 what is the primary and foreign keys?
Put the primary key of the event that occurs first (sales) as a foreign key in the event that occurs second (receive cash).
Journals provide a_________ listing of transactions
Chronological.

Journals are nothing but event tables in a database.
How do you retrieve journal and ledger data in a data base?
Run a Query.
Ledgers
Master files that contain cumilative information about specific acounts.
The difference between a journal and ledger.
A journal is used to record transaction as they occur. A ledger stores cumlative balances about a certain account.
Information about assets that is recorded in ledgers would be stored in _____ tables
Resource.
Where do we find infomation about about Accounts recievable
Data field in the customer

Represents claims against customers

Account balance in accounts recievable has to be calculated
Total sales from customer-amount collected from a customer.
Where do we find information about accounts payable
Data field in the vendor table.

represents claims vendors have on us.
To Calculate account balance for a customer, in order to run a queiry what tables do you need?
Customer table, Sales order table, sales inventory table, Payment table. Shipment table (no standalone tables)
Managerial reports
Ad Hoc reports to meet the the information needs of management.
Data dictionary
Very important
Contains information about data sturcture.
Used to provide a description of data elements.
A data dictionary can asist accountants in
1. developing and maintaining an AIS.
2. Establishing an Audit Trail
3. Documenting and testing internal control procedures.
Data type
its text.
Validation rules
used to control data input.
If you try to enter employee ID that has a letter, it will be automatically be rejected.
Source Document
Where we obtained the information.
Programs used to modified it
How to modify it.
Outputs
where we can use it. (social security is in paychecks and payrol reports. )
Individuals who can and cant access social security numbers
Only payroll personell.
Structured Query Language.
used to run quereys.

Example
SELECT (cust#, cname, address ) FROM Customer WHERE cname=“J. Roberts
Concurrency controls
Protects records from errors that occur when multiple users access the same file record simultaneously.
Data warehouse
Pools data from seperate applications into a large body of common information.

Not for daily transactions but for data analysis using historical data. OLAP and Data Mining.

Updated Periodically
Data mart
A seperate data warehouse for a particular function. like payroll, finance, human resources.
Subset of a larger data warehouse.
OLAP Online Analytical Processing.
Multidimentional Analysis.

Data by Geographical region
Total Sales by product line
Time periods of sales. dimention

All about running querys.
Drill down Feature
You can drill further down to obtain a decreasing about of detail.

Sales data broken down by geographical region.
Sales by each state
Sales by each city
Sales by towns.

Product lines
Product
product size
product color.
Data mining
Uses sophisticated statistical analysis including artificial intelligence techniques to discover "unknown" relationships patterns or trends in data.

Cross selling or product placement.

Beer and Pretzels
Beer and Diapers.