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Accounting Information Systems: Basic Concepts and Current Issues (4th edition)
Dr. Bob Hurt, C.F.E.
End-of-chapter solutions
Chapter 8: REA modeling
a. What are the similarities and differences between view-driven and event-driven
accounting information systems? Both types of systems can involve information
technology, although the specific technologies involved are different. In fact, most
event-driven systems require some form of relational databases due to their complexity.
In addition, both system types are capable of producing the general purpose financial
statements. Event-driven system are capable of producing many other types of reports
as well.
b. What does the acronym REA stand for? Give examples of each element. “R”
stands for Resources, such as inventory and equipment. “E” stands for Event, such as
“pay employees” or “purchase inventory.” “A” stands for Agent, such as a customer or
employee.
c. List the six steps for creating a REA model. 1. Understand the organization’s
environment and objectives. 2. Review the business process and identify the
strategically significant operating events. 3. Analyze each strategically significant
operating event to identify its resources and agents. 4. Identify the relevant behaviors,
characteristics and attributes of the REA model elements. 5. Identify and document the
direct relationships between elements of the REA model. 6. Validate the REA model
with business people.
e. How would you use a REA model to design a relational database? In general,
each box in a REA model requires at least one table. If the maximum relationships
between two elements of the model are one and many, the primary key of the “one side”
must be included as a foreign key on the “many” side. If the maximums are both many,
a junction table is required.
f. Prepare a response to the questions for this chapter’s “AIS in the Business
World.” As in previous editions, I’ve posted responses to each chapter’s AIS in the
Business World on my accounting information systems blog
(www.bobhurtais.blogspot.com). Look for the 4th edition’s responses in the 15
December 2014 post.
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Accounting Information Systems: Basic Concepts and Current Issues (4th edition)
Dr. Bob Hurt, C.F.E.
End-of-chapter solutions
Chapter 8: REA modeling
a. Which systems documentation technique would you use if your goal was to
construct the relational database that supports the narrative? Why? The best
documentation technique for database design is REA modeling. A properly constructed
REA model gives clear guidance when it comes to creating normalized database tables.
c. Based on your REA model, identify four tables you would need in the relational
database—one each for a resource, an event, an agent and a junction table. What
would be each table’s primary key?
• No resource table is required.
• Event table: Create Account. Primary key: Account number.
• Agent table: Customer. Primary key: Customer ID.
• Junction table: Customer / use miles. Primary key: Customer ID, Use miles
transaction number.
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Accounting Information Systems: Basic Concepts and Current Issues (4th edition)
Dr. Bob Hurt, C.F.E.
End-of-chapter solutions
Chapter 8: REA modeling
d. Based on the tables you created, suggest two queries the airline might create.
For each query, indicate its name, its purpose and the fields involved.
• Query 1: Customers that have not created an account. Fields: Customer ID,
Account number. (The latter would be ‘null’ in the query to select customers
without an account.)
• Query 2: To calculate a customer’s mileage balance. Fields: Customer ID,
miles earned, miles used. The query would need a calculated field to determine
the balance.
3. Multiple choice review questions. Answers to all of these questions appear at the
end of the textbook itself.
5. Field exercises
Answers to these exercises will vary significantly. Although I’m not providing solutions
to them, don’t hesitate to share your students’ work with me if they come up with an
especially strong response.
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Accounting Information Systems: Basic Concepts and Current Issues (4th edition)
Dr. Bob Hurt, C.F.E.
End-of-chapter solutions
Chapter 8: REA modeling
(1,1) (1,1)
(1,*)
(1,1)
(0,1)
(1,1) Customer
(1,1)
(1,*)
(1,*) Show trailers (1,1)
(1,*)
(1,*) (1,*)
(0,1)
(0,*)
Inventory (0,1) (1,1)
(1,1) (1,1)
Sell trailer
(1,*) (1,1)
(1,1) Salesperson
(1,1) (1,1)
(1,*)
(1,1)
(1,*) (0,1) Bank
(1,*) Receive
payment (1,*)
(1,1)
Cash
(1,1)
(1,1)
Delivery person
(1,1) (1,1) (1,*)
Deliver trailer
(1,*)
The database would include at least the following tables (primary keys are underlined,
foreign keys are in brackets):
Inventory table: Identification number, make, model, year, date acquired,
purchase price.
Cash table: Cash account number, beginning balance, beginning balance date,
bank.
Greet customer table: [Customer ID], [Salesperson ID], date
Show trailers table: Show transaction #, [Customer ID], date, [Salesperson ID]
Sales table: Sales transaction #, transaction date, [inventory identification
number], [salesperson ID], [customer ID], type of sale (cash or installment)
Receive payment table: Receipt #, [sales transaction #], date, amount received,
source (bank or customer), [salesperson ID], [customer ID], [cash account
number]
Delivery table: [Sales transaction #], [delivery person ID], delivery date
Show trailers / inventory table: [Show transaction #], [inventory ID number],
[salesperson ID], [customer ID]
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McGraw-Hill Education
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Accounting Information Systems: Basic Concepts and Current Issues (4th edition)
Dr. Bob Hurt, C.F.E.
End-of-chapter solutions
Chapter 8: REA modeling
Customer table: Customer ID, last name, first name, address, city, state, ZIP,
area code, phone, date of first visit, date of first purchase
Salesperson table: : Salesperson ID, last name, first name, address, city, state,
ZIP, area code, phone, emergency contact information, date employed
Fill (1,*)
(0,*) prescription
(1,1)
(1,*) (1,*) Pharmacist
(1,1) (1,1)
(1,1)
Drugs Receive (1,*) (1,1)
payment Customer
(1,*) (0,*)
(1,*)
(1,1) (1,1)
(0,*) (2,2)
(1,1) Reconcile Pharmacy
cash employees
(1,1)
Cash (1,1)
(1,*) (1,1)
(1,1) Deposit Deposits
cash Express
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McGraw-Hill Education
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Accounting Information Systems: Basic Concepts and Current Issues (4th edition)
Dr. Bob Hurt, C.F.E.
End-of-chapter solutions
Chapter 8: REA modeling
here. Since the narrative implies only one pharmacist, it seemed inefficient
to create a separate “pharmacist” table. Pharmacists are differentiated
from other employees via the “job title” field.)
Customer table: Customer ID, last name, first name, address, city, state, ZIP,
area code, phone, date of first visit, medication allergies, primary doctor,
insurance
Deposits Express table: contact name, address, phone
(1,1)
(0,*) Receive (0,*) (1,1)
customer (1,1)
order Employees
(1,*) (1,1)
(1,1) (1,1)
(1,1)
(0,*)
Check
credit
(1,*) (1,*)
(1,1)
(1,1) (1,1)
Inventory
(1,*) (0,1) Customer
(1,*) (1,1)
(0,*)
Fill order
(1,1) (1,*) (0,*) (1,1) (1,1)
(1,1)
(1,1)
(1,1) (1,*)
(0,*)
Price list Ship order (0,*)
(1,1)
(1,1)
(1,1) (1,*)
(1,*)
(1,1)
(1,*) (1,1) Bank
Receive
payment
notice
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Accounting Information Systems: Basic Concepts and Current Issues (4th edition)
Dr. Bob Hurt, C.F.E.
End-of-chapter solutions
Chapter 8: REA modeling
Receive order / inventory table: [Order ID], [Inventory ID], quantity ordered
Check credit table: [Order ID], [employee ID], credit decision (yes / no)
Fill order table: [Order ID], [employee ID], [customer ID], date
Fill order / inventory table: [Order ID], [Inventory ID], quantity filled
Ship order table: [Order ID], [customer ID], [employee ID], date shipped
Ship order / inventory table: [Order ID], [Inventory ID], quantity shipped
Invoice customer table: Invoice number, [Order ID], [customer ID], [employee ID],
invoice date, payment notice date
(1,*)
Submit
hours
(1,*) (1,1)
(1,1)
Auditors
(1,1) (1,1)
(1,*)
Compare
(1,1) actual & (1,*) (1,1)
budget
(1,1) Audit
Audit plan (1,1)
superviso
r
(1,1) (1,*)
(1,*) (1,1)
Prepare &
issue Payroll
checks staff
Submit hours table: Transaction number, date submitted, [auditor ID], task,
number of hours
Compare actual & budget table: [Transaction number], comparison date, audit
plan ID, [supervisor ID]
Audit plan table: Audit plan ID, client ID, audit task, budgeted task hours (Each
audit would involve multiple audit tasks. But, the # of tasks would be fixed;
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Accounting Information Systems: Basic Concepts and Current Issues (4th edition)
Dr. Bob Hurt, C.F.E.
End-of-chapter solutions
Chapter 8: REA modeling
therefore, a database designer would know how many “audit task” fields to
include in this table. If a particular task was not included in an audit, its
number of budgeted hours would be zero.)
Prepare & issue checks table: Check number, date prepared, [payroll staff ID],
[auditor ID]
Auditors table: Auditor ID, last name, first name, address, city, state, ZIP, area
code, phone, billing rate, withholding status, withholding allowances
Audit supervisors table: fields would be similar to the “auditors” table
Payroll staff table: fields would be similar to the “auditors” table
(1,*) (1,1)
(1,*) Collect
(1,*) Instructors
order data
(1,1)
(1,1)
(1,1)
(1,*) Bookstore
Receive (0,*) (1,1)
books staff
(1,*) (1,1)
(1,*)
(1,1)
(1,1) (1,1)
(1,1) (0,*)
Publisher
(1,*) (1,1)
Pay invoice
For the sake of simplicity, this solution assumes that the bookstore does
not receive partial shipments, nor does it pay for partial receipts.
Collect order data table: Order ID, [instructor ID], [secretary ID], date
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McGraw-Hill Education
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Accounting Information Systems: Basic Concepts and Current Issues (4th edition)
Dr. Bob Hurt, C.F.E.
End-of-chapter solutions
Chapter 8: REA modeling
Textbook / collect order data table: [Textbook ID], [Order ID], class, quantity
Prepare purchase order table: Purchase order #, [bookstore staff ID], [publisher
ID], date, [Order ID]
Prepare purchase order / textbook table: [Purchase order #], [textbook ID],
quantity ordered
Receive books table: Receiving transaction #, [bookstore staff ID], [publisher ID],
date
Receive books / textbook table: [Receiving transaction #], [Textbook ID], quantity
received
Pay invoice table: Transaction #, [publisher ID], [bookstore staff ID], date,
amount, [receiving transaction #]
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Accounting Information Systems: Basic Concepts and Current Issues (4th edition)
Dr. Bob Hurt, C.F.E.
End-of-chapter solutions
Chapter 8: REA modeling
Initiate new members table: Initiation event ID, Initiation date, Initiation place
Initiate new members / Chapter members table: [Initiation event ID], [Chapter
member ID]
Points table: Event type ID, points available
The other events would be similar to the “initiate new members” table. The
“chapter members” table would be similar to other agent tables presented
previously. And, the remaining junction table (host events / chapter members)
would be similar to the junction table presented above.
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McGraw-Hill Education
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Accounting Information Systems: Basic Concepts and Current Issues (4th edition)
Dr. Bob Hurt, C.F.E.
End-of-chapter solutions
Chapter 8: REA modeling
A pet owner calls the grooming salon to make an appointment for a pet; a grooming
salon employee assists the customer. A member of the grooming staff grooms the pet.
8. Terminology
1. J 6. A
2. E 7. F
3. I 8. C
4. D 9. G
5. H 10. B
b. Always true
c. Always true
e. Always true
f. Never true.
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Accounting Information Systems: Basic Concepts and Current Issues (4th edition)
Dr. Bob Hurt, C.F.E.
End-of-chapter solutions
Chapter 8: REA modeling
i. Always true
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Accounting Information Systems: Basic Concepts and Current Issues (4th edition)
Dr. Bob Hurt, C.F.E.
End-of-chapter solutions
Chapter 8: REA modeling
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8-13
Other documents randomly have
different content
appears at the various periods of man’s existence.
The first important moment is, of course, the moment of birth. The
father, friends, and relatives are filled with anxiety for the life of both
mother and child. Prayers are daily offered up for the safety and
recovery of the patient and the well-being of the child. The
Twentieth Psalm is sometimes written on a tablet placed in the room
where the confinement takes place, probably as a reminder or an
invitation for visitors to pray to the Almighty; in this sense the
custom is to be commended; but if the tablet is filled with
meaningless signs, letters, and words, and is used merely as a
charm, the custom should be discontinued, being a superstitious
practice. In some parts it has been the custom that during the week
preceding the Berith-milah friends visited the house to pray there for
the well-being of the child, and boys recited there Biblical passages
containing blessings, such as Gen. xlviii. 16. 156 The night before the
berith was spent in reading Bible and Talmud, so that the child might
from the beginning breathe, as it were, the atmosphere of torah. 157
[478]
On the eighth day the male child is initiated into the covenant of
Abraham (Lev. xii. 3). Circumcision is one of “those mitsvoth which
the Israelites in times of religious persecution carried out
notwithstanding imminent danger to life.” The performance of this
Divine precept is therefore made the occasion of much rejoicing. In
some congregations the operation, as a sacred act, takes place in
the Synagogue after the Morning Service; in others the privacy of
the home is preferred. In ancient days mothers circumcised their
sons, but now the operation is only entrusted to a person who has
been duly trained, and has received from competent judges a
certificate of his qualification for the functions of a mohel. 158
Although, according to the Law, any person, otherwise capable of
doing it, may do the mitsvah, preference is given, and ought to be
given, to a person of genuine piety and of true enthusiasm for our
holy Religion, who performs the act in gloriam Dei. Not only the
mohel, but all who assist in the act do a mitsvah, and the meal
which is prepared for the occasion is a סעודת מצוה(a meal
involving a religious act). 159 Immediately after the operation a name
is given to the child. 160 [479]
In the case of a female child the naming generally takes place in the
Synagogue on a Sabbath, when the father is called up to the Law. In
many congregations this takes place when the mother has
sufficiently recovered to attend again for the first time the Service in
the Synagogue on Sabbath. Those who live at a great distance from
the Synagogue pay the first visit to the place of worship on a week-
day. A special Service has been arranged for the occasion. 162
Great care is now taken by the parents for the physical well-being of
the child, without entirely ignoring its moral and intellectual
development. “At five years the child is fit to be taught Mikra, i.e.,
reading the Bible” (Aboth v. 21), so the Mishnah teaches. But long
before this the child is taught to pray, and to repeat short Biblical
passages or prayers in Hebrew. It must, of course, be borne in mind
that children are not all alike, and that each child must be taught
according to its own capacities and [480]strength. The knowledge
must be imparted in such a manner that the child should seek it as a
source of pleasure and happiness.
A special ceremony used to introduce the child into the study of the
Bible in the original. 163 Teacher and pupil went to the Synagogue,
took a sepher from the Hechal, and the pupil was made to read the
first lesson from the sepher. This and similar ceremonies were
intended as a means of impressing on the pupil the great
importance of studying the Word of God in the original language.
After having acquired a sound knowledge of the Bible, the study of
other branches of Hebrew literature, of Talmudical and Rabbinical
works, is approached.
As a rule, boys devote more time to Hebrew studies than girls, only
because girls are considered physically more delicate and not
capable of doing so much work as boys. Girls are by no means
excluded from acquiring a sound Hebrew knowledge; on the
contrary, every encouragement should be given to them, if they are
inclined to study Hebrew beyond the first elements. 164
The boy when thirteen years old is bar-mitsvah (lit., “a son of the
commandment”), bound to obey the Law, and responsible for his
deeds. On the Sabbath following [482]his thirteenth birthday the boy
is called up to the Law; he reads the whole of the Sidra or a section
of it, and declares in the blessings which precede and follow the
lesson his belief in the Divine origin of the Torah, and his gratitude
to God for having given us the Law. 165
“At the age of eighteen years one is fit for marriage” (Aboth, ibid.) is
an ancient dictum, but which [483]could never have been meant as
an absolute law. For there are other qualifications equally important,
and even more essential than age. Maimonides (Mishneh-torah, Hil.
Deoth v. 11) says: “Man should first secure a living, then prepare a
residence, and after that seek a wife. But fools act otherwise: they
marry first, then look out for a house, and at last think of the means
of obtaining a livelihood.” (Comp. Deut. xx. 5–7 and xxviii. 30.)
(2.) Bride and bridegroom enter upon a new life; the wedding-day is
to them a day of rejoicing, but also a day of great solemnity. It is
kept as a day of earnest reflections, of prayer and fasting, till after
[487]the ceremony, when the fast is broken and the rejoicing begins.
The bridegroom adds in the Minchah amidah the Confession (ודוי) of
the Day of Atonement.
(5.) In the time of the Bible and the Talmud the feasting lasted
seven days.—The first day after the wedding used to be
distinguished by a fish dinner (סעודת דגים), in allusion to Gen. xlviii.
16.
“To every thing there is a season, and a time to every purpose under
the heaven: a time to be born, and a time to die” (Eccles. iii. 1, 2).
Life is a precious gift the Creator has given us; while there is breath
in our nostrils we thank Him for it, we pray to Him for its
prolongation, do everything in our power to preserve it, and consider
its wilful destruction a criminal act. But notwithstanding all this
“there is a time to die.” Life and death are equally mysteries to us;
we trust in the mercy of Him who has ordained life and death, that
both are for our good. Death is, therefore, not to be regarded with
dread and horror; it is the transition to another state of life, the real
nature of which is unknown to us. But it is our belief that the future
life (העולם הבא) is infinitely superior to the present life (העולם
הזה); hence the saying in the Midrash that the words “exceedingly
good” (Gen. i. 31) applied to death. The only fear of death that can
reasonably be justified is the fear of departing from this life before
we have completed our task, before we have sufficiently
[490]strengthened “the breaches of the house” caused by our own
dereliction of duty. Our Sages advise, “Return one day before thy
death” (Aboth ii. 15); that is, every day, the day of death being
concealed from our knowledge. In this manner we constantly
prepare ourselves for death without curtailing our enjoyment of life.
“Rejoice, O young man, in thy youth; and let thy heart cheer thee in
the days of thy youth, and walk in the ways of thine heart, and in
the sight of thine eyes: but know thou, that for all these things God
will bring thee into judgment. Therefore remove sorrow from thy
heart, and put away evil from thy flesh: for childhood and youth are
vanity” (Eccles. xi. 9, 10). When passion overcomes us and evil
inclinations invite us to sin, we are told by our Sages to remember
the day of death, which may suddenly surprise us before we have
been able by repentance to purify ourselves from our transgressions
(Babyl. Talm., Berachoth 5a).
When life has come to an end friends and relatives give free
expression to their grief; 180 to check it by comforting words at this
moment is useless (Aboth iv. 18). The mourners, 181 father, mother,
son, daughter, brother, and sister, have now to direct all their
attention [492]to the deceased relative, in order that nothing be
neglected in the last honours shown to him; they are therefore free
from all other religious obligations till after the burial. In Palestine
and neighbouring countries, where, in consequence of the higher
temperature, decomposition of the body begins soon after death,
the burial takes place on the same day. 182 In colder climates two or
three days elapse between death and burial. The mourners abstain
during the interval from wine and meat.
Burying the dead is a very old custom, to which the Jews adhered
firmly at all ages. The custom of the Greeks, who burnt their dead,
found no advocates among the Jews. In the Written and the Oral
Law only the burying of the dead is mentioned. To leave a human
body unburied and unattended was considered by Jews, as by other
nations, an insult to the deceased person, and whoever found such a
body was bound to take charge of it and to effect its burial. 185
Our regard for the deceased (יקרא דשכבי) and our sympathies with
the mourners (יקרא דחיי) are expressed in different ways.
There are, besides, the following customs, the object [495]of which is
to express our regard for the memory of the deceased: (1.) A
tombstone (מצבה) is set up in front of or over the grave with the
name of the deceased, the date of his death, and such words of
praise as are dictated by the love and the esteem in which the
deceased was held by the mourners. (2.) A lamp is kept burning 188
during the week, or the month, or the year of mourning, and on the
anniversary of the day of death (Jahrzeit). (3.) By observing the
anniversary of the death as a day devoted to earnest reflection, and
to meditation on the merits and virtues of the deceased; we keep
away from amusements, and say Kaddish in the course of the
Services of the day. Some observe the anniversary as a fast-day. (4.)
By doing some mitsvah 189 in commemoration of the deceased. (5.)
By regarding with respect and piety the wishes of the departed
relative or friend, especially those uttered when death was
approaching. Our Sages teach: “It is our duty to fulfil the wishes of
the departed.” 190 The absence of this inner respect and piety makes
all the outward signs of mourning, however conscientiously
observed, valueless and illusory. [496]
[Contents]
Notes.
When life is extinct the eyes of the deceased are closed, and in
some cases also the mouth is kept shut. This is probably done out of
regard for the dead, that their face should not present a too ghastly
and repulsive appearance. The custom is mentioned in the Mishnah,
Shabbath xxiii. 5, and is also alluded to in the words, “And Joseph
shall put his hands upon thine eyes” (Gen. xlvi. 4).
From the house in which there was a dead person, and from the
houses in its immediate neighbourhood, the water was poured out.
According to Num. xix., everything in the house—and, under certain
conditions, also in the neighbouring houses—was unclean; the water
was poured out, from fear lest it be used in preparing holy food,
such as terumah (“heave-offering”). Furthermore, a kohen is not
allowed to enter such a house, and the pouring away of the water
served as an indication that a dead person was in the house.