Verified Test Bank Ch13 Data And Databases

ACCOUNTING INFORMATION SYSTEMS/3e

TURNER / WEICKGENANNT/COPELAND

Test Bank: CHAPTER 13: Data and Databases

NOTE: All new or adjusted questions are in red. New questions are identified by the letter A as part of the question number; adjusted questions are identified by the letter X as part of the question number.

END OF CHAPTER QUESTIONS

1. Which of the following best describes the relationship between data and information?
2. Data are interpreted information.
3. Information is interpreted data.
4. Data are more useful than information in decision making.
5. Data and information are not related.
6. A character is to a field as
7. Water is to a pool.
8. A pool is to a swimmer.
9. A pool is to water.
10. A glass is to water.
11. Magnetic tape is a form of
12. Direct access media.
13. Random access media.
14. Sequential access media.
15. Alphabetical access media.
16. Which of the following is not an advantage of using real-time data processing?
17. Quick response time to support timely record keeping and customer satisfaction
18. Efficiency for use with large volumes of data
19. Provides for random access of data
20. Improved accuracy due to the immediate recording of transactions
21. If a company stores data in separate files in its different departmental locations and is able to update all files simultaneously, it would not have problems with
22. Attributes.
23. Data redundancy.
24. Industrial espionage.
25. Concurrency.
26. When the data contained in a database are stored in large, two-dimensional tables, the database is referred to as a
27. Flat file database.
28. Hierarchical database.
29. Network database.
30. Relational database.
31. Database management systems are categorized by the data structures they support. In which type of database management system is the data arranged in a series of tables?
32. Network
33. Hierarchical
34. Relational
35. Sequential
36. A company’s database contains three types of records: vendors, parts, and purchasing. The vendor records include the vendor number, name, address, and terms. The parts records include part numbers, name, description, and warehouse location. Purchasing records include purchase numbers, vendor numbers (which reference the vendor record), part numbers (which reference the parts record), and quantity. What structure of database is being used?
37. Network
38. Hierarchical
39. Relational
40. Sequential
41. Which of the following statements is not with regard to a relational database?
42. It is flexible and useful for unplanned, ad hoc queries.
43. It stores data in tables.
44. It stores data in a tree formation.
45. It is maintained on direct access devices.
46. A collection of several years’ nonvolatile data used to support strategic decision-making is a (n)
47. Operational database.
48. Data warehouse.
49. Data mine.
50. What-if simulation.
51. Data mining would be useful in all of the following situations except
52. Identifying hidden patterns in customers’ buying habits.
53. Assessing customer reactions to new products.
54. Determining customers’ behavior patterns.
55. Accessing customers’ payment histories.
56. A set of small databases where data are collected, processed, and stored on multiple computers within a network is a:
57. Centralized database.
58. Distributed database.
59. Flat file database.
60. High-impact process.
61. Each of the following is an online privacy practice recommended by the AICPA Trust Services Principles Privacy Framework except:
62. Redundant data should be eliminated from the database.
63. Notification of privacy policies should be given to customers.
64. Private information should not be given to third parties without the customer’s consent.
65. All of the above.

TEST BANK – CHAPTER 13 – MULTIPLE CHOICE

1. Data is
2. The interpretation of facts that have been processed.
3. The set of facts collected from transactions.
4. The set of facts pertaining to accounts payable.
5. The set of facts pertaining to accounts receivable.
6. Information is the:
7. Interpretation of data that have been processed.
8. Set of facts collected from transactions.
9. Set of facts pertaining to accounts payable.
10. Set of facts pertaining to accounts receivable.
11. Data collected would be all but the:
12. Name of the customer.
13. Selling company’s name.
14. Address of the customer.
15. Credit card number of the customer.
16. Examples of data collection events are
17. Transactions that fill customer orders.
18. Transactions to replenish inventory.
19. Neither A nor B are examples of data collection.
20. Both A and B are examples of data collection.
21. The reason that detailed data must be collected and stored is:
22. The data must be stored for future transactions or follow-up.
23. The data must be incorporated into the accounting system so that regular financial statements can be prepared.
24. Management needs to examine and analyze data from transactions to operate the organization.
25. Only 1.
26. Only 1 and 2.
27. Only 1, 2, and 3.
28. Include 1, 2, and 3 among other reasons.
29. Structured data:
30. Includes data collected from transactions.
31. Easily fit into rows and columns
32. Include accounting data
33. All of the above are of structured data
34. Detailed information from a sale may be used by:
35. The sales department.
36. The accounts receivable section.
37. The inventory department.
38. General ledger accountants.
39. Customer service.
40. Only 1, 3, and 5.
41. Only by 1, 2, 3, and 5.
42. Only by 1, 2, and 3.
43. Only by 1, 2, 3, and 4.
44. Which of the following statements is of unstructured data?
45. Unstructured data does not easily fit into rows and columns of fixed length
46. An example of unstructured data is the free-form text of an online customer’s review of a product
47. Accounting data is unstructured data
48. An example of unstructured data would be a 10-digit phone number
49. Only 1.
50. Only 1 & 2.
51. Only 1, 2, & 3.
52. Only 1 & 4.
53. The reasons for storing data to complete a customer sales transactions include all of the following EXCEPT:
54. Taking the order.
55. Pulling the items from the warehouse.
56. Shipping the items to the customer.
57. Billing the customer.
58. Providing feedback to the customer on the order.
59. Updating the customer account for payment.
60. 1.
61. 1 and 5.
62. 2 and 3.
63. 5.
64. The reasons to store customer names, addresses, and other similar information include all but:
65. To follow up with the customer.
66. To create financial reports.
67. To expedite future orders.
68. To ease the customer’s follow-on ordering processes.
69. Storage media and methods of processing are:
70. Sequential and random access storage with random and batch data processing.
71. Sequential and real time access storage with batch and real time data processing.
72. Batch and random access storage with random and batch data processing.
73. Sequential and random access storage with batch and real time data processing.
74. Batch Processing correlates mostly to which of the following data storage techniques?
75. Sequential Access
76. Random Access
77. Database processing
78. None of the Above
79. Select the statement from the following.
80. A character is a single letter, number, or symbol.
81. A field is a set of characters.
82. A field can be thought of as a column of data.
83. A file is the entire set of fields
84. Select the statement from the following.
85. A character is a single letter only.
86. A character is a single number only.
87. A character is a single symbol only.
88. A character is a single letter, number, or symbol.
89. A field is a:
90. Row within a record.
91. Column within a record.
92. Series or collection of records.
93. Character is a single letter, number, or symbol.
94. A record is:
95. An entire set of fields for a specific entity.
96. A series of characters.
97. A collection of files.
98. Another name for a database.
99. Which of the following correctly orders the hierarchy of data from smallest to largest?
100. Field, character, record, file, database
101. Character, record, field, file, database
102. File, character, database, field, record
103. Character, field, record, file, database
104. Sequential access means:
105. All data items in the group must be read but the groups do not need to read in order.
106. Any data item can be directly accessed without reading in sequence
107. All data items must be read in the order in which they were placed into the system
108. All data items must be read in alphabetical/numerical order, but not necessarily the order in which they were placed into the system
109. A field is a (n):
110. Entire set of records within a file.
111. Row within a record.
112. Set of characters.
113. Set of files within a database.
114. A file is a:
115. Set of characters.
116. Column within a record.
117. Row within a record.
118. Collection of related records.
119. A database is a (n):
120. Set of characters.
121. Row within a file.
122. Collection of related records.
123. Entire set of files.
124. Magnetic tape storage medium allows:
125. Sequential access storage with random data processing.
126. Random access storage with random data processing.
127. Batch access storage with random data processing.
128. Sequential access storage with sequential data processing.
129. Random access means:
130. All data items in the group must be read but the groups do not need to read in order.
131. Any data item can be directly accessed without reading in sequence.
132. All data items must be read in the order placed into the system, not alphabetically.
133. All data items must be read in alphabetical order, not in the order they were placed in the system.
134. Direct access:
135. Means no passwords are required to access data items in a database.
136. Is the same as sequential access.
137. Is the same as random access.
138. Is the process used by magnetic tape storage medium.
139. (Magnetic) Disk storage is:
140. The same as magnetic tape storage.
141. Sequential access.
142. Random access.
143. Not direct access.
144. (Magnetic) Disk storage is:
145. Preferred over magnetic tape storage.
146. Sequential access.
147. Not random access.
148. Not direct access.
149. Batch processing:
150. Occurs when dissimilar transactions are grouped and processed as a group.
151. Occurs when similar transactions are grouped together and processed as a group.
152. Occurs when the transaction is processed as soon as it is entered.
153. Would not be used for payment to vendor type transactions since they are time sensitive.
154. Real-time processing:
155. Would not be used for payment to vendor type transactions since they are not time sensitive.
156. Occurs when similar transactions are grouped into a batch and processed as a group.
157. Would be utilized for processes such as payroll due to their time-sensitive nature.
158. Occurs when the transaction is processed immediately.
159. Select the statement from those provided.
160. Batch processing fails to attain the efficiency of real-time processing.
161. Real-time processing fails to attain the efficiency of batch processing.
162. Real-time processing is efficient for large groups of similar data.
163. Real-time processing has less complex audit trails.
164. Select the statement from those provided.
165. Batch processing attains a greater efficiency than real-time processing for large amounts of data items.
166. Batch processing has a faster response time than real-time processing due to the grouping of like data items.
167. Batch processing should be utilized for payroll type processes as it groups these similar data items.
168. Real-time data processing has more complex audit trails for data items than batch processing.
169. Select the statement from those provided.
170. Real-time processing is more complex because of the interactive nature of data processing.
171. Real-time processing must use sequential storage concepts.
172. The audit trail is as complex within both real-time and batch processing systems.
173. Control totals are difficult within real-time processing due to the lack of data item groupings.
174. Real-time data item processing is more complex because:
175. It must utilize sequential storage medium.
176. It must group data items together before processing.
177. The slower response times indicate more systems activity.
178. There is duplication of effort in processing transactions.
179. Select the correct statement from those provided below.
180. If batch processing is selected due to payroll and production type processing mandates, the entire system must be batch processing.
181. If real-time processing is selected due to sales and inventory type processing mandates, the entire system must be real-time processing.
182. If sales and inventory are real-time, payroll and production may be batch processing in a well-designed system.
183. Because sales are frequently shipped out of warehouses, sales, inventory, and payroll are all good candidates for batch processing concepts.
184. Data redundancy occurs:
185. When shared databases are utilized.
186. When inventory has the same data in its files as sales has in its files.
187. When customer addresses are needed by both shipping and billing.
188. In all properly designed database management systems.
189. Select the correct statement from the following.
190. Data redundancy and concurrency are features of well-designed database management systems.
191. Data redundancy, not concurrency, is a feature of a well-designed database management system.
192. Concurrency not, data redundancy, is a feature of a well-designed database management system.
193. Data redundancy and concurrency are not features of well-designed database management systems.
194. Database management systems, DBMS, is (are):
195. Software that manages a database and controls access and use of data
196. Printed policies about the use and access to data.
197. Systems which require each user to create his own master data file.
198. Systems that allow unlimited access to the data files by all users.
199. Which of the following terms is most closely related to data redundancy?
200. Relational database
201. Concurrency
202. Batch processing
203. One-to-many relationships
204. Data reveal relationships between records. These can be thought of as:
205. One-to-one relationships.
206. Many-to-many relationships.
207. One-to-many relationships.
208. All of the above are examples of relationships.
209. Database relationships may be:
210. One-to-one relationships.
211. One-to-one relationships only.
212. One-to-many relationships.
213. One-to-many relationships only.
214. Many-to-one relationships.
215. Many-to-one relationships only.
216. Many-to-many relationships.
217. Many-to-many relationships only.
218. 1, 3, 5, and 7 only.
219. 2 or 4 or 6 or 8 only, each is exclusive of the others.
220. 1 and 3 only.
221. 1 or 3 or 5 or 7 only, each is exclusive of the others.
222. An example of a one-to-one relationship would be:
223. One employee, three timecards for the pay period.
224. One customer, one billing address.
225. One customer, four shipping addresses.
226. Two employees, one skill set.
227. An example of a one-to-many relationship would be:
228. One employee, three timecards for the pay period.
229. One customer, one billing address.
230. One customer, one shipping invoice.
231. Two employees, one skill set.
232. An example of many-to-many relationship would be:
233. One customer for one billing date.
234. Multiple customers for one inventory item.
235. Multiple vendors for multiple items.
236. One employee, three timecards for the pay period.

1. A flat file database has:
2. The ability to call necessary information from linked databases.
3. Two dimensions, rows and depth.
4. Only columns.
5. Two dimensions, rows and columns.
6. Processing of a flat file table is:
7. Random.
8. Sequential.
9. Random or sequential, selectable by the user.
10. Direct.
11. Flat file records are:
12. Kept in random order.
13. Kept is sequential order.
14. Linked to other records by a common attribute.
15. Interactive and real-time processed.
16. Tables in a flat file database must:
17. Must contain at least two data items at the intersection of each row and column.
18. Contain similar data throughout the row.
19. Label all columns the same to maintain the relationships of the rows.
20. Contain similar data in the column.
21. Hierarchical databases are NOT:
22. Inverted tree structures.
23. One-to-one relationships.
24. One-to-many relationships.
25. Many-to-one relationships.
26. A record pointer is a:
27. Column value that relates to all other values in the row.
28. Column value that points to the next address with the linked attribute.
29. Row value that points to the next address with the linked attribute.
30. Link that is only required in one-to-many relationships.
31. Each table in a database must meet all of the following conditions EXCEPT:
32. Each row must be uniquely named
33. Items in a column must all be of the same type of data
34. Each cell at the intersection of a row and column must contain only one data item
35. Each row must be unique in at least one attribute
36. In database terminology, columns are also called:
37. Primary keys
38. Record pointers
39. Attributes
40. Flat files
41. Which type of database is the most widely used database structure today?
42. Hierarchical databases
43. Relational databases
44. Normalized databases
45. Network databases
46. Hierarchal databases:
47. Are effective in retrieving records without explicit linkages.
48. Are efficient in processing large volumes of transactions with explicit linkages.
49. Do not require built-in linkages, they can be created with queries.
50. Do not require record pointers.
51. Network databases:
52. Allow shared branches within the inverted tree structure.
53. Allow creation of records without complete information.
54. Are popular today because of LAN and WAN usage.
55. Are very flexible because of the network access.
56. Relational databases are:
57. Two-dimensional tables which can be joined in only one way.
58. Three-dimensional tables allowing increased data relationships.
59. Two-dimensional tables which can be joined in many ways.
60. Either two- or three-dimensional as defined by the user.
61. The primary key of a relational database:
62. Must be a common identifier for all of the data within the table.
63. Must never be the first field of the table.
64. Represents a value that is used to sort, index, and access records with.
65. Is the password which allows unlimited access to the database.
66. Structured query language (SQL):
67. Isolates data within tables.
68. Takes advantage of the primary record key to link tables.
69. Is a complex language used to extract data from a limited number of tables.
70. Does not allow conditions to be put on the query.
71. With structured query language (SQL):
72. One-to-one relationships can be determined.
73. One-to-many relationships can be determined.
74. Many-to-one relationships can be determined.
75. All of the possibilities, A, B, and C, are correct.
76. A “Where” condition within a structured query of a relational database:
77. Must be limited to a location such as “Warehouse #1.”
78. May establish a requirement where the results are equal to a specific value.
79. May establish a requirement where the results are not equal to a specific value.
80. Both B and C are correct.
81. The additive characteristic means:
82. The linked tables are synergetic within themselves – linked they are more powerful than alone.
83. The values in the preceding fields must total into a following field.
84. That if the preceding rules are met, the rule can be met.
85. That if the preceding rules are not met, the rule must be met.
86. Data normalization:
87. Requires repeated groups to be deleted from the same row.
88. Requires repeated groups to be deleted from the same column.
89. Allows repeated groups if contained within the column.
90. Allows repeated rows of information within two or more tables.
91. Select the correct statement from those provided.
92. The hierarchal and relational database models are both extremely flexible in their queries.
93. The hierarchal model is better suited to queries than the relational database model.
94. The relational database model is more flexible in its queries than the hierarchal mode.
95. The relational database model has better processing of large volumes of transactions.
96. In today’s IT environment:
97. Processing speed is compromised for query capability with relational databases.
98. Query capability is compromised for processing speed with relational databases.
99. Neither querying nor processing speed need be compromised with relational databases.
100. Both querying and processing speed are compromised with relational databases.
101. The loss of transaction processing efficiency:
102. Is substantial but a necessary trade-off with relational databases.
103. Is minimized because of the increased computing power available.
104. Is a primary reason why relational databases are not utilized.
105. Both B and C are correct.
106. Select the statement from those provided below.
107. Managers use much the same data as operational departments to manage the organization.
108. All users, managers, sales, production, utilize the features of a data warehouse equally.
109. Data warehouses are isolated to protect operational information from unauthorized access.
110. Managers require access to historical data this is generally not available to other individuals.
111. Select the statement from those provided below.
112. The data warehouse has five to ten years of data while the operational database has current year data.
113. The data warehouse has current year data while the operational database has five to ten years of data.
114. The data warehouse archives both current and long-term, five to ten years of data, within its storage.
115. The data warehouse contains only general ledger type information while the operational database has detail.
116. Which of the following is NOT one of the three rules of data normalization?
117. Eliminate repeating groups
118. Eliminate redundant data
119. Eliminate blank fields
120. Eliminate columns not dependent on the primary keys
121. Data within the data warehouse is:
122. Volatile – its release is restricted and potentially hazardous to the organization.
123. Volatile – it may be deleted by specific users.
124. Nonvolatile – it does not change rapidly.
125. Nonvolatile – is protected against deletion.
126. The data warehouse:
127. Contains five to ten years of historical data in detail for planning and analysis.
128. Contains the current fiscal year in detail for planning, analysis, and reporting.
129. Contains the historical information needed for planning and analysis.
130. Is not utilized for planning and analysis, this information is extracted from the operational database.
131. Which of the following statements is regarding an operational database?
132. An operational database is an integrated collection of enterprise-wide data that includes 5 to 10 years of nonvolatile data.
133. An operational database includes data for the current fiscal year and supports day-to-day operations and record keeping for the transaction processing system.
134. An operational database includes data from the past 5 to 10 years and supports day-to-day operations and record keeping for the transaction processing system.
135. None of the above statements are
136. High-impact processes (HIPs) are:
137. Critical to the short-term objectives of the organization.
138. Only associated with events such as sales and collections.
139. Identified and established by single-functional teams.
140. Critical to the long-term objectives of the organization.
141. High-impact processes (HIPs):
142. Determine the structure of the data in the data warehouse.
143. Address the short-term goals of the organization.
144. Must compromise user requirements for organizational needs.
145. Determine the structure of the data in the operational database.
146. Select the statement from the following.
147. High-impact processes (HIPs) are identified by single-functional teams.
148. High-impact processes (HIPs) and user’s needs determine the data in the data warehouse.
149. High-impact processes (HIPs) address both short-term and long-term objectives.
150. High-impact processes (HIPs) determine the long-term strategy of the organization.
151. Standardizing data:
152. Configures all of the data from one department into a single database for analysis.
153. Configures all of the data from numerous departments into a single data configuration.
154. Is not required within relational databases.
155. Requires sales to keep its own files and references apart from marketing (example).
156. Cleansed or scrubbed data:
157. Has had all viruses removed.
158. Has had all fields standardized.
159. Has had errors and problems fixed.
160. Is data that has been stored in the data warehouse.
161. Uploading data is putting:
162. Scrubbed files into the operational database.
163. Files from each HIP system into the operational database.
164. Standardized files onto local desktop systems for access.
165. Files from each HIP system into the data warehouse.
166. The purpose of the data warehouse does NOT include:
167. Giving managers rich sources of current trends and data.
168. Storing current fiscal data and activity records.
169. Providing sales with current customer information.
170. Giving managers rich sources of historical trends and data.
171. Data in the data warehouse:
172. Is analyzed by data mining.
173. Is analyzed by SQL.
174. Is analyzed by analytical processing.
175. Both A and C are correct.
176. Proper data analysis of data warehouse files:
177. Improves short-term planning.
178. Improves long-term planning.
179. Enhances the ability to meet customer needs.
180. Increase performance.
181. 1, 2, 3, and 4.
182. 2, 3, and 4.
183. 1, 3, and 4.
184. 1, 2, and 4.
185. The various types of online analytical processing (OLAP) does NOT include:
186. MOLAP – Multidimensional online analytical processing.
187. NOLAP – Notational online analytical processing.
188. ROLAP – Relational online analytical processing.
189. All of the above, A, B, and C are types of OLAP systems.
190. Data mining:
191. Searches for random patterns.
192. Searches for patterns in the operational database.
193. Results will not generally predict customer preferences.
194. Analyzes past patterns to predict future events.
195. OLAP tools include all of the following EXCEPT:
196. Drill down.
197. Drill up.
198. Pivoting.
199. Time series analysis.
200. OLAP tools include all of the following EXCEPT:
201. Consolidation.
202. Inclusion reports.
203. Exception reports.
204. What if simulations.
205. Drill down within OLAP is:
206. Identifying trends in the comparison of data in several databases.
207. The aggregation or collection of similar data from several databases.
208. The presentation of variances from the expected in dollar value.
209. Is the successive expansion of data as lower levels of data are exposed.
210. Potential variations in conditions that are used to understand interactions between different parts of the business is referred to as:
211. Exception reports.
212. Pivoting.
213. What-if simulations.
214. Time series analysis.
215. Data processing and storage:
216. Must be kept centralized for control and security.
217. Must be distributed for control and security.
218. Can be distributed to meet organizational requirements.
219. Must be kept centralized for efficient operations.
220. Select the correct statement from the following.
221. DDP and DDB require dependable and extensive processing power for large organizations.
222. Distributed databases can only be accessed by local queries.
223. Centralized data processing and databases require dependable and extensive processing power for large organizations.
224. The trend in data processing and databases is towards centralization due to reliable internet access and increased computer power.
225. ________ is the aggregation or collection of similar data. It is the opposite of drill down in that it takes detailed data and summarizes it into larger groups.
226. Pivoting
227. Consolidation
228. What-if simulations
229. Drill up
230. Advantages of distributed databases include all EXCEPT:
231. Reduced hardware costs.
232. Improved responsiveness.
233. Eased managerial obligations.
234. Easier incremental growth.
235. Advantages of distributed databases include all EXCEPT:
236. Easier incremental growth.
237. Multiple site access for processing.
238. Decreased user involvement.
239. Increased user control.
240. Automatic integrated backup means:
241. That each site must accomplish its own backup.
242. One site may backup sites it does not normally support.
243. If data is lost at one site it may be available from another site.
244. All of the above are correct.
245. Automatic integrated backup
246. May create problems because a single site’s data may be at multiple locations.
247. May create problems because backups at multiple sites may have hardware differences.
248. At remote sites may not all be the same configuration as the central configuration.
249. All of the above are correct.
250. Distributed data processing and databases:
251. May require management to enforce hardware and software configuration policies.
252. Make hardware and software configuration easier as local assets can be utilized.
253. Ease security concerns as remote systems are not required to maintain connectivity.
254. All of the above are correct.
255. Client systems usually rely on the network for all EXCEPT:
256. File sharing.
257. Printing.
258. Video presentation.
259. Network/Internet access.
260. Select the statement from the following:
261. Clients are usually workstations that contain data files.
262. Servers are usually less capable computing power since their function is routing requirements to resources.
263. Servers may contain shared files and resources.
264. Servers usually do not control assets such as printers and Internet portals.
265. The three major concerns related to database control and security do NOT include:
266. Unauthorized access.
267. Inadequate backup.
268. Data integrity.
269. Adequate backup.
270. In this type of distributed system, each computer or process on the network is either a Client or a server.
271. Distributed Data Processing
272. Client / Server System
273. Online Analytical Processing
274. Distributed Database System
275. The fastest growing area of IT is:
276. Cloud-based database services
277. Online analytical processing
278. Distributed data storage
279. Distributed database processing
280. When a company buys data storage from a cloud provider, the arrangement is referred to as:
281. Online analytical processing
282. Cloud services assessment
283. Distributed data storage
284. Database as a service
285. The advantages of cloud-based computing includes all of the following, EXCEPT:
286. Scalability - as the company grows, it can easily purchase additional capacity.
287. Expanded access - once the data are store in the cloud, it can be accessed by multiple devices form different locations.
288. Increased infrastructure - the company has more need for servers and data storage.
289. Cost savings - because of the advantages related to cloud-based computing, there are usually significant cost savings recognized.

100. Database security includes all EXCEPT:

1. Password protection.
2. Encryption
3. LAN structure.
4. Firewalls.

101. Ethical issues associated with data collection and storage include all of the following EXCEPT:

1. Collecting only the necessary information for the transaction.
2. Selling non-sensitive information only to trusted agents.
3. Correcting errors in data as quickly as possible.
4. Precluding unnecessary access of customer data by employees.

102. It is the ethical responsibility of employees:

1. To review customer records not associated with their division for errors.
2. Disclose customer data to related parties
3. To collect only necessary data from customers
4. To sell customer data to competitors.

103. A bank would consider which of the following as nonprivate information?

1. Customer name.
2. Customer address if the customer is a business.
3. Customer phone number if it is listed number.
4. All of the above, A, B, and C, are private and privileged types of information.

104. Appropriate information for a medical facility would NOT include:

1. Social Security number.
2. Health insurance company.
3. Next of kin notification information.
4. Personal spending habits.

105. Some of the AICPA trust services principles may include:

1. Management, notice, choice & consent, collection, use & retention, detention, and disclosure to third parties.
2. Management, choice & consent, collection, use & retention, backup, access, disclosure to third parties, and security for privacy.
3. Choice & consent, collection, use & retention, access, disclosure to third parties, redundancy for privacy, and quality.
4. Management, choice & consent, use & retention, access, disclosure to third parties, and monitoring & enforcement.

106. The prevention of industrial espionage is aided by all EXCEPT:

1. Password protection
2. Smart cards.
3. Federal and state laws.
4. Encryption of data.

107. While an employee may have access to privileged information, an example of unethical activities would be a

1. Nurse viewing the medications of the next patient.
2. Car salesman viewing the credit rating of a customer with a car in for warranty repairs.
3. Manager reviewing the hours worked of an assigned employee.
4. Warehouseman viewing the availability of materials needed for production.

108. Proper IT controls will NOT:

1. Prevent a hacker from penetrating the firewall.
2. Prevent an unauthorized user from using the computer systems.
3. Restrict employee access to any information.
4. Prevent an employee from sharing his password.

109. Ethical responsibilities are shared by:

1. Company employees only.
2. Company employees and management only.
3. Company employees, IT, and management only.
4. All concerned including employees, customers, and management.

TEST BANK – CHAPTER 13 – TRUE /

1. Data are the set of facts collected from transactions.
2. Information is the set of facts collected from transactions.
3. Information is the interpretation of data that have been processed.
4. Data must be collected to complete a transaction such as a sale.
5. Data does not need to be stored in most cases.
6. An example of unstructured data would be customer telephone numbers.
7. The requirements to frequently or infrequently access data are not relevant to the way that the data is stored due to computer access speed.
8. A character is a customer, client, or vendor.
9. A character is a single letter, number, or symbol.
10. A field is a set of characters that fill a space reserved for a particular kind of data.
11. A record is the entire set of fields for a specific entity.
12. An entire set of files is a database.
13. An entire record forms a “database.”
14. Magnetic tape is a storage medium that allows only a sequential access type of storage.
15. Sequential access means that data are stored in sequential or chronological order.
16. Random access means that any data item on the storage media can be directly accessed without reading in sequence.
17. Random access means that you are searching for specific data but do not know where it is within the database.
18. Batch processing occurs when similar transactions are grouped together, and that group is processed as a batch.
19. Real-time processing occurs when transactions are processed as soon as they are entered.
20. Batch processing occurs when transactions are processed as soon as they are entered.
21. Real-time processing occurs when similar transactions are grouped into a batch and that batch is processed as a group.
22. If real-time processing is to occur, database records must be stored on random access media.
23. Data redundancy occurs when the same customer has more than one database record.
24. Concurrency means that all of the multiple instances of the same data are exactly alike.

1. A record pointer identifies a specific record in a flat database.
2. A relational database stores data in two-dimensional tables that are joined in many ways to represent many different kinds of relationships in the data.
3. Within are relational database a record may have more than one primary key.
4. SQL stands for Sequential Query Language.
5. When using a SQL query language you are restricted to searching two tables for common values such as Vendor Name.
6. Data normalization allows repeating groups such as the same vendor name in multiple locations of the primary key field of the same table.
7. A data warehouse is a temperature controlled building where files and records are retained.
8. Data warehouse files are non-volatile, and not frequently updated while operational databases are updated with each transaction that affects them.
9. HIPs, or high-impact processes, are the critically important processes that must be executed correctly if the organization is to survive and thrive.
10. Tools commonly used in data mining are OLAP, ROLAP, and MOLAP.
11. Data mining is the process of searching an operational database for identifiable patterns in the data.
12. To “drill down” is the process of successive expansion of data into more detail, going from high-level data to successively lower levels of data.
13. Because of today’s computing power and Internet accessibility, there has been a substantial increase in the use of centralized databases and centralized processing.
14. In distributed data processing (DDP) and distributed databases (DDB), the processing and the databases are dispersed to different locations of the organization.
15. In centralized data processing the processing and the databases are stored and maintained in a central location.
16. When data and processing are distributed across several computers, as occurs in a system of distributed processing, the failure of one site will be harmful and bring down the entire system.
17. Since distributed databases are under the control of many individual sites rather than a single, centralized site, configuration, conformity, and security are less of an issue.
18. To database user, the question of how or where data is stored continues to be less important.
19. With a client/server system all processing is done on the server.
20. IT general controls assist in preventing unauthorized access while providing adequate backup, and are the responsibility of the user.
21. A cloud provider generally provides only the data storage space.
22. The customer company, who uses a cloud provides, must have some IT structure to access and use the data stored in a cloud.
23. The amount of IT structure maintained by a client would not change if the database is stored with a cloud provider rather than onsite.
24. Scalability is one of the advantages of cloud-based databases. What this means is that as the company grows, they can easily purchase new capacity from the cloud provider.
25. Ethical issues related to data utilization are not a consideration for data collection.
26. Since database management and information is the responsibility and asset of the database owner, customers should not have the privilege to restrict information contained within it.
27. The organization should institute procedures to insure that all customer data collected retains accuracy, is complete, is current, is relevant, and is reliable”.