Solution manual accounting information 11e by romney ch04

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CHAPTER 4
RELATIONAL DATABASES
SUGGESTED ANSWERS TO DISCUSSION QUESTIONS
4.1

The database approach is possible because of the database management system (DBMS). As shown
in Figure 4.2, the DBMS is a software program that sits between the actual data stored in the system
and the application programs that use the data. As shown in Figure 4.4, this allows users to separate
the way they view the data (called the logical view) from the way the data is actually stored (the
physical view). The DBMS interprets the users' requests and retrieves, manipulates, or stores the
data as needed. The two distinct views separate the applications from the physical information,
providing increased flexibility in applications, improved data security, and ease of use.
In a database system the manager will rarely, if ever, need to understand or be familiar with the
physical view of the data. In most instances, the internal auditor and the programmer will not need to
understand or be familiar with the physical view of the data. Most everything they do requires only an
understanding of the logical view of the data.
If accountants understand logical data structures and the logical view of the data they are better able
to draw the information they need from the database.

4.2

A major difference between spreadsheets and databases is that the former are designed primarily to
handle numeric data, whereas the latter can handle both text and numbers. Consequently, the query
and sorting capabilities of spreadsheets are much more limited than what can be accomplished with a
good query language and a DBMS. Accountants’ familiarity with spreadsheets might hinder their
ability to design and use relational DBMS because many links in spreadsheets are preprogrammed
and designed in, whereas a well-designed relational database is designed to facilitate ad-hoc queries.

4.3

There is no one correct answer to this question because the quality of an answer depends on the
justifications provided. Nevertheless, good answers should address the following:
Database technology does permit abandonment of double entry, but there will likely be great
resistance to such a radical change. Thus, students choosing this option need to present
reasons why they think such a radical change would succeed.
The use of a schema for accountants seems quite plausible. It does eliminate the redundancy of
double entry from the database system, yet it still provides the framework familiar and useful to
accountants and financial analysts.
There is a good possibility that double entry will remain, even in databases, due to inertia.
Indeed, most modern AIS, such as ERP systems, use databases but also retain the principles of
double entry.

4.4

On-line real-time processing is not necessary for every business transaction. For example, batch
processing is adequate for payroll: there is little need for the data to be current except on payday.
Real-time financial statements may be useful for planning and may provide management with better
ability to react to changes in the environment. Nevertheless, real-time financial statements may
present distorted pictures of reality if accruals have been ignored or not properly recognized.
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Ch. 4: Relational Databases

SUGGESTED ANSWERS TO THE PROBLEMS
4.1
a.

Note that the problem does not say what the date is (date ordered, date shipped, etc) so
different assumptions can be made about the need date data.
To fill out a sales order, the sales order entry clerk needs access to the following data stored
in the data base
item number
customer name
description
customer name
quantity-on-hand
shipping address
price
credit limit
To create and mail a bill (invoice), the billing clerk needs access to the following data
stored in the data base:
customer name
quantity sold
customer number
price
billing address
terms
item numbers
To manage inventory, the inventory control department needs access to the following data
stored in the data base:
item number
quantity on hand.
description,
To purchase inventory, the purchasing department needs access to the following data
stored in the data base:
item number

quantity on hand
description
cost.

b.

The set of necessary tables includes the following

Table Name
Inventory

Primary Key
Item Number

Foreign Keys

Sales

Invoice number

Customer number

Sales-Inventory

Item number
Invoice number
Customer number

Customer

4-2

Other Attributes
Cost (standard or list)
Description
Quantity on Hand
Price (standard or list)
Date of sale
Terms
Quantity sold
Price (actual sales price)
Customer name
Shipping address
Billing address
Credit Limit


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Accounting Information Systems

4.2

4.3

a.

DDL - this is the language used to define the database.

b

DQL - this is an example of a query.

c

DML - this is the language used to actually process transaction data and update the database.

d.

DQL - another example of a task that involves querying the database.

e.

DDL and DML - the former to alter the structure, the latter to make the change.

f.

DQL - such a listing can be produced by a query.

g.

DDL and DML - the former to add the field, the latter to enter data in it.

Below is a set of tables that answers parts a, b, and c.
There is no solution to parts d through f as students will select different software packages and come
up with different queries.

Table Name
Inventory

Primary Key
Item Number

Foreign Keys

Purchases

Purchase order number

Vendor number
Purchasing Agent
(employee number)

Purchases-Inventory

Item number
Purchase order number

Vendor

Vendor number

Employees

Employee number

Other Attributes
Description
Quantity on Hand
Date of purchase

Total amount of purchase
Quantity purchased
Unit cost (actual)
Extended amount
Vendor name
Vendor address
Employee name

Note: Extended amount and Total amount of purchase do not have to be stored in the data base as they can
be calculated from other values. Extended amount is Quantity purchased x Unit cost. Total amount of
purchase is the sum of all the extended amounts for all items on a particular purchase order,

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Ch. 4: Relational Databases

4.4
Answers depend upon the specific DBMS and query language used. Here are suggested answers in QBE
(Query By Example) prepared in Microsoft Access.
a.

Query

Query Result

4-4

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b.

Query

Query Result

4-5


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Ch. 4: Relational Databases

c.

Query

Query Result

4-6


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d.
This question requires the use of a total invoice calculation, thus, a total invoice table is prepared as a
Microsoft “Make Table Query” in Microsoft Office. A Make Table Query is prepared exactly the
same as a normal query except that the user selects the Make Table Query option under the Query
Design menu tab.
Make Table Query

Table Result

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Ch. 4: Relational Databases

Query

Query Result

4-8


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e.

Query

Query Result

4-9


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Ch. 4: Relational Databases

f.

Query

Query Result

4-10


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g.

Query

Query Result

4-11


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Ch. 4: Relational Databases

4.5
Answers depend upon the specific DBMS and query language used. Here are suggested answers in
QBE (Query By Example) prepared in Microsoft Access.
a. Query

Query Result

4-12


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b.

Query

Query Result

4-13

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Ch. 4: Relational Databases

c.

Query

Query Result

4-14


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d.

Query

Query Result

4-15


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Ch. 4: Relational Databases

e.

Query

Query Result

4-16


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f.

Query

Query Result

4-17


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Ch. 4: Relational Databases

g.
Questions g and i require the use of a total customer sales calculation, thus, a customer total
sales table is prepared as a Microsoft “Make Table Query” in Microsoft Office. A Make Table Query
is prepared exactly the same as a normal query except that the user selects the Make Table Query

option under the Query Design menu tab.

Make-Table Query

Table Result

4-18


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Query

Query Result

4-19


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Ch. 4: Relational Databases

h. Query

Query Result

4-20

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i.

Query

Query Result

4-21


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Ch. 4: Relational Databases

i.

Query

Query Result

4-22


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4.6

The necessary tables, with their attendant primary and foreign keys, are as follows:
Table Name
Employee

Primary Key
Employee Number

Skills
Employees-Skills

Skill number
Skill number
Employee number

Foreign Keys
Supervisor number
(another employee
number)

Other Attributes
Employee name
Pay rate
Date hired
Date of birth
Skill name
Date skill acquired

There is no solution to part c as students will select different software packages and enter different
data in the tables.

4.7

The following additional tables, with their attendant primary keys, are needed to store the other new
attributes. Note that customer name is already stored in the customer table

Table Name
Cash Receipts

Primary Key
Cash Receipt Number

Cash ReceiptsSales

Invoice payment applies
to (Invoice number)
Cash Receipt number

Foreign Keys
Customer number
Employee processing
payment (employee number)

Other Attributes
Date of receipt
Total amount received
Amount applied to a
specific invoice

There is no solution to part c as students will select different software packages and enter different
data in the tables.

4-23


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Ch. 4: Relational Databases

4.8

To avoid the update, insert, and delete anomalies in Table 4-17 (shown below), three separate
relational tables (Invoice Table, Invoice-Inventory Table, and Customer Table) are created.

TABLE 4-17
Invoice#

Date

OrderDate

CustomerID

CustomerName

Item#

Quantity

52
52
52
52
57
57
57

6-19-05
6-19-05
6-19-05
6-19-05
6-20-05
6-20-05
6-20-05

5-25-05
5-25-05
5-25-05
5-25-05
6-01-05
6-01-05
6-01-05

201
201
201
201
305

305
305

Johnson
Johnson
Johnson
Johnson
Henry
Henry
Henry

103
122
10
71
535
115
122

5
8
11
12
18
15
5

INVOICE TABLE
Invoice#

Date

OrderDate

CustomerID

52
57

6-19-05
6-20-05

5-25-05
6-01-05

201
305

INVOICE-INVENTORY TABLE
Invoice#
(PK/FK)
52
52
52
52
57
57
57

Item# (PK/FK)

Quantity

103
122
10
71
535
115
122

5
8
11
12
18
15
5

CUSTOMER TABLE
CustomerID

CustomerName

201
305

Johnson
Henry

Note: PK-Primary Key, FK – Foreign Key, PK/FK – Primary Key/Foreign Key

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4.9
TABLE 4-18
Purchase
Order #
2
2
2
3

Purchase
Order Date
3/9/05
3/9/05
3/9/05
4/5/05

Part #

Description

334

231
444
231

XYZ
PDQ
YYM
PDQ

Unit
Price
$30
$50
$80
$50

Quantity
Ordered
3
5
6
2

Vendor #
504
504
504
889

Vendor

Name
KL Supply
KL Supply
KL Supply
Oscan Inc

Vendor
Address
75 Stevens Dr.
75 Stevens Dr.
75 Stevens Dr.
55 Cougar Cir.

PART TABLE
Part #(PK)

Description

Unit Price

334
231
444

XYZ
PDQ
YYM

30
50

80

PURCHASE ORDER TABLE
Purchase Order # (PK)

Vendor #(FK)

Purchase Order Date

2
3

504
889

3/9/05
4/5/05

VENDOR TABLE
Vendor #(PK)

Vendor Name

Vendor Address

504
889

KL Supply
Oscan Inc.

75 Stevens Dr.
55 Cougar Cir.

PURCHASE-PART TABLE
Purchase Order #
(PK/FK)
2
2
2
3

Part # (PK/FK)

Quantity Ordered

334
231
444
231

3
5
6
2

Note: PK-Primary Key, FK – Foreign Key, PK/FK – Primary Key/Foreign Key
4.10

The queries and the answers to the queries for the questions about the comprehensive problem

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