Chapter 10—The REA Approach to Business Process Modeling

TRUE/FALSE

F 1. According to the REA philosophy, information systems should support only the needs of accounting professionals.
T 2. Many believe that the accounting profession should shift away from debits and credits toward providing information
that assists decision-making.
T 3. Modern managers need both financial and nonfinancial information that traditional GAAP-based accounting systems are
incapable of providing.
F 4. The REA model is an alternative accounting framework for modeling an organization’s critical resources, events, and
accounts.
F 5. In REA, resources are assets of the organization as shown on a traditional balance sheet.
T 6. In REA, events can be operating, information, or decision/management events.
T 7. REA agents are individuals and departments that participate in an economic event.
T 8. In a relational database environment, the focus is on transaction events, not the accounting artifacts.
F 9. Under the REA approach to database design, an entity relationship diagram is used to model the relationships between
an organization’s critical resources, events, and agents.
T 10. Operating events are activities that produce goods and services.
F 11. Decision/management events are activities associated with recording, maintaining, and reporting information.
F 12. Information events are activities that lead to decisions being made.
T 13. Entity relationship diagrams include operating, information, and decision events. Only operating events are included in
an REA model.
F 14. A data flow diagram is a data modeling tool that enables organizations to view each business process in detail.
T 15. The primary purpose of an ER diagram is to identify data attributes that represent the conceptual user views that must
be supported by the base tables.
F 16. The REA approach generates an information system with only one user view.
T 17. Organizations that use REA produce financial statements and reports directly from the event-driven data, not from
traditional ledgers and journals.
F 18. The REA model may enhance efficiency and competitive advantage though often productivity may decline.
F 19. User views are set by REA modeling.
T 20. REA focuses on business activities within business processes. It is event-oriented.

MULTIPLE CHOICE

1. Economic resources possess all of the following characteristics except

a. assets
b. measure expected future receipts
c. scarce
d. under the organization’s control

2. The REA approach leads to more efficient operations in all of the following ways except
a. identifying non-value-added activities
b. storage of both financial and nonfinancial data in the same database
c. storage of detailed data to support a wider range of management decisions
d. standardizing data forms for simplicity

3. Which type of events are included in an REA model?

a. operating
b. decision
c. management
d. information
 4. Decision/management events involve decisions relating to all of the following except
a. record keeping
b. planning
c. evaluation
d. control

5. Information events involve all of the following except

a. acts of recording
b. acts of updating
c. acts of evaluating
d. acts of maintaining

6. The ‘R’ in REA stands for

a. ratios
b. relationships
c. resources
d. reserves

7. The ‘E’ in REA stands for

a. events
b. estimates
c. economics
d. entities

8. The ‘A’ in REA stands for

a. assets
b. apportionment
c. allocation
d. agents

9. Which of the following is an example of a decision/management event?

a. preparing cost estimates for a new product
b. requesting a report
c. preparing sales invoices
d. preparing performance reports

10. All of the following are examples of operating events except

a. receiving raw materials from a supplier
b. preparing a cash disbursement voucher for payment to the supplier
c. paying for inventories received
d. shipping product to a customer
11. Which types of events are included in entity relationship diagrams?
a. operating events
b. information events
c. decision events
d. all of the above

12. Which of the following represents the order of the steps in the preparation of an REA model?
a. organize events in order, identify resources and agents, identify links, identify operating
events, assign cardinalities
b. identify operating events, identify resources and agents, identify links, assign
cardinalities, organize events in order
c. identify operating events, organize events in order, identify resources and agents,
identify links, assign cardinalities
d. identify resources and agents, identify operating events, organize events in order,
identify links, assign cardinalities

13. Which of the following statement is correct?

a. The REA model requires that phenomena be characterized in a manner consistent with
the development of a single user view.
b. The REA model requires that phenomena be characterized in a manner consistent with
the development of a selected user view.
c. The REA model requires that phenomena be characterized in a manner consistent with
the development of a unique user view.
d. The REA model requires that phenomena be characterized in a manner consistent with
the development of a multiple user view.

14. Which of the following is not an advantage of using the REA model?
a. greater efficiency
b. increased productivity
c. more relevant and timely information
d. simpler database creation

15. Which of the following is not correct?

a. Operating events trigger information events.
b. Information events trigger operating events.
c. Decision/management events trigger operating events.
d. Information events trigger decision/management events.

16. When developing an REA model, events need to be organized in sequence of

a. completion
b. length
c. ease of analysis
d. occurrence

17. In an REA model, events are described from the perspective of

a. the organization
b. the designer
c. the user
d. the customer
 18. Which of the following is not an example of an information event?
a. updating inventory records after a sale
b. requesting a report
c. preparing cost estimates for new products
d. preparing sales invoices

19. The concept of duality means that an REA diagram must consist of
a. two events—one of them economic and the other support.
b. two agents—one of them internal and the other external.
c. two resources—one increased and the other decreased by the same event.
d. all of the above.
e. none of the above.

20. Each economic event in an REA diagram is always

a. linked to at least two resource entities.
b. linked to two external agents.
c. linked to two internal agents.
d. linked to another economic event.
e. linked to a support event.

21. Which of the following are characteristics of economic agents?

a. They participate in economic events, but do not assume control of the resources.
b. They participate in economic events, but not in support events.
c. Internal agents are employees of the company whose system is being modeled.
d. External agents are not employees of the company whose system is being modeled.
e. All of the above describe agents.

22. Which of the following is true?

a. REA diagram entities are arranged in constellations by entity class.
b. ER diagrams present a static picture of the underlying business phenomena.
c. Entity names in ER diagrams are always in the noun form.
d. Events entity names in REA diagrams are in the verb form.
e. All of the above are true statements.

23. Which of the following events would be LEAST likely to be modeled in an REA diagram?
a. customer inquiries
b. sales to a customer
c. accounts payable
d. cash
e. all of these events would be modelled

24. Which of the following associations would most likely describe the relationship between an internal
agent and an economic event?
a. 1:M
b. 1:1
c. M:M
d. 0:M
e. none of the above
25. Which of the following tables would most likely have a composite key?
a. Take Order
b. Ship Goods
c. Inventory-Ship Link
d. Cash
e. none of the above

26. Which of the following associations requires a separate table in the database?
a. 1:1
b. 1:M
c. M:M
d. all of the above

27. When assigning foreign keys in a 1:1 association

a. the primary key of each table should be embedded as a foreign key in the related table.
b. the primary key on the 0,1 side of the relation should be embedded as the foreign key on the 1,1
c. the primary key on the 1,1 side of the relation should be embedded as the foreign key on the 0,1
side.
d. a link table must be created to accept the foreign keys of both tables.
e. none of the above is true.

28. When assigning foreign keys in a 1:M association

a. the primary key of each table should be embedded as a foreign key in the related table.
b. the primary key on the 0,M side of the relation should be embedded as the foreign key on the 1,1
side.
c. the primary key on the 1,1 side of the relation should be embedded as the foreign key on the 0,M
side.
d. a link table must be created to accept the foreign keys of both tables.
e. none of the above is true

29. Bentley Restoration Company restores and sells top-end classic and antique automobiles. Most of its customers are private
collectors, but some are investors who buy multiple cars and hold them for resale. Bentley extends no credit terms. All sales
are for cash. Which of the following best describes the association between Auto Inventory (resource) and Sell Auto (event)?
a. 1,1 : 1,M
b. 1,M : 0,1
c. 0,M : 1,1
d. 1,M : 1,1

30. Which of the following is not a difference between ER and REA diagrams?
a. entities in REA diagrams are organized by class
b. there are more entities in an REA diagram than an ER diagram
c. ER diagrams always use noun naming conventions, while events in REA diagrams use verb names
d. REA diagrams focus on sequence of events from top to bottom
e. all of these are differences between ER and REA diagrams

31. The concept of duality means that an REA diagram must consist of
a. two resources: one increase and the other decreased by the same event
b. two events: one economic and the other support
c. two agents: one internal and the other external
d. none of these
e. all of these
32. When assigning foreign keys in a 1:1 association
a. the primary key on the 0,1 side should be embedded as the foreign key on the 1,1 side
b. the primary key on the 1,1 side should be embedded as the foreign key on the 0,1 side
c. the primary key of each table should be embedded as a foreign key in the related table
d. none of these

33. Which statement is not true? REA resources are:

a. scarce
b. assets
c. under the control of agents
d. affected by support events

34. The concept of duality means that a REA diagram must consist of:
a. two events, one of them economic and the other support
b. two agents, one of them internal and the other external
c. two resources, one increased and the other decreased by the same event
d. none of the above

35. Which of the following are characteristics of internal agents?

a. They participate in economic events, but do not assume control of the resources.
b. They are employees of the company whose system is being modeled.
c. They participate in economic events, but not in support events.
d. All of the above.

36. Which of the following events would be least likely to be modeled in a REA diagram?
a. customer inquiries
b. posting accounts payable
c. receiving cash
d. sales to a customer

37. All of the following are examples of economic events except

a. receiving raw materials from a supplier
b. disbursing cash for inventories received
c. checking a customer's credit prior to processing a sales order
d. shipping product to a customer

38. REA diagrams include all of the following entities except

a. users
b. support events
c. economic events
d. internal agents

39. When developing an REA model:

a. accounting artifacts are represented as support events
b. events are organized in sequence of occurrence
c. the same resource is both increased and decreased by the duality association
d. link tables are explicitly depicted
Chapter 11—Enterprise Resource Planning Systems

TRUE/FALSE

F 1. The primary goal of installing an ERP system is reducing system maintenance costs.
T 2. The recommended data architecture for an ERP includes separate operational and data warehouse databases.
F 3. A closed database architecture shares data easily.
T 4. ERP systems support a smooth and seamless flow of information across organizations.
F 5. OLAP stands for on-line application processing.
T 6. The primary goal of installing an ERP system is achieving business process reengineering to improve customer service,
reduce production time, increase productivity, and improve decision-making.
T 7. Day-to-day transactions are stored in the operational database.
F 8. Data mining typically focuses on the operational databaseS
F 9. Companies are more likely to modify an ERP to accommodate the company than to modify company processes to
accommodate the ERP.
T 10. If a chosen ERP cannot handle a specific company process bolt-on software may be available.
F 11. Core applications are also called OLAP.
T 12. The client/server model is a form of network technology in which user computers, called clients, access ERP programs
and data via a host computer called a server.
T 13. A data warehouse is a relational or multi-dimensional database that may require hundreds of gigabytes of storage.
T 14. Drill-down capability is an OLAP feature of data mining tools.
T 15. Supply-chain management software is a type of program that supports efforts relative to moving goods from the raw
material stage to the customer.
F 16. In two-tier architecture, the database and application functions are separated.
F 17. Slicing and dicing permits the disaggregation of data to reveal underlying details.
F 18. Data entered into the data warehouse must be normalized.
T 19. OLAP includes decision support, modeling, information retrieval, and what-if analysis.
T 20. Efficient supply-chain management provides firms with a competitive advantage.
T 21. The big-bang approach involves converting from old legacy systems to the new ERP in one implementation step.
F 22. In a two-tier architecture approach is used primarily for wide area network (WAN) applications.
F 23. Data cleansing is a step performed by external auditors to identify and repairing invalid data prior to the audit.

MULTIPLE CHOICE

1. Goals of ERP include all of the following except

a. improved customer service
b. improvements of legacy systems
c. reduced production time
d. increased production

2. Core applications are

a. sales and distribution
b. business planning
c. shop floor control and logistics
d. all of the above

3. Data warehousing processes does not include

a. modeling data
b. condensing data
c. extracting data
d. transforming data

4. Which of the following is usually not part of an ERP’s core applications?

a. OLTP applications
b. sales and distribution applications
c. business planning applications
d. OLAP applications

5. Which of the following is usually not part of an ERP’s OLAP applications?

a. logistics
b. decision support systems
c. ad hoc analysis
d. what-if analysis

6. Which of the following statements is least likely to be true about a data warehouse?
a. It is constructed for quick searching and ad hoc queries.
b. It was an original part of all ERP systems.
c. It contains data that are normally extracted periodically from the operating databases.
d. It may be deployed by organizations that have not implemented an ERP.

7. Which of the following statements is not true?

a. In a typical two-tier client server system, the server handles both application and
database duties.
 b. Client computers are responsible for presenting data to the user and passing user input
back to the server.
c. In three-tier client server architecture, one tier is for user presentations, one is for
database and applications, and the third is for Internet access.
d. The database and application functions are separate in the three-tier model.

8. Which statements about data warehousing is not correct?

a. The data warehouse should be separate from the operational system.
b. Data cleansing is a process of transforming data into standard form.
c. Drill-down is a data-mining tool available to users of OLAP.
d. Normalization is an requirement of databases included in a data warehouse.

9. Which statement about ERP installation is least accurate?

a. For the ERP to be successful, process reengineering must occur.
b. ERP fails because some important business process is not supported.
c. When a business is diversified, little is gained from ERP installation.
d. The phased-in approach is more suited to diversified businesses.

10. Which statement is true?

a. ERPs are infinitely scalable.
b. Performance problems usually stem from technical problems, not business process
reengineering.
c. The better ERP can handle any problems an organization can have.
d. ERP systems can be modified using bolt-on software.

11. Auditors of ERP systems

a. need not worry about segregation of duties.
b. may feel that the data warehouse is too clean and free from errors.
c. find independent verification easy.
d. need not worry about system access since the ERP determines it.

12. Legacy systems are

a. old manual systems that are still in place.
b. flat file mainframe systems developed before client-server computing became
standard.
c. stable database systems after debugging.
d. advanced systems without a data warehouse.

13. A data mart is

a. another name for a data warehouse.
b. a database that provides data to an organization’s customers.
c. an enterprise resource planning system.
d. a data warehouse created for a single function or department.

14. Most ERPs are based on which network model?

a. peer to peer
b. client-server
c. ring topology
d. bus topology

15. On-line transaction processing programs

 a. are bolt-on programs used with commercially available ERSs.
b. are available in two models–two-tier and three-tier.
c. handle large numbers of relatively simple transactions.
d. allow users to analyze complex data relationships.

16. Supply chain management software

a. is typically under the control of external partners in the chain.
b. links all of the partners in the chain, including vendors, carriers, third-party firms, and
information systems providers.
c. cannot be integrated into an overall ERP.
d. none of the above

17. The setup of a data warehouse includes

a. modeling the data
b. extracting data from operational databases
c. cleansing the data
d. all of the above

18. Extracting data for a data warehouse

a. cannot be done from flat files.
b. should only involve active files.
c. requires that the files be out of service.
d. follows the cleansing of data.

19. Data cleansing involves all of the following except

a. filtering out or repairing invalid data
b. summarizing data for ease of extraction
c. transforming data into standard business terms
d. formatting data from legacy systems

20. Separating the data warehouse from the operations databases occurs for all of the following reasons except
a. to make the management of the databases more economical
b. to increase the efficiency of data mining processes
c. to integrate legacy system data into a form that permits entity-wide analysis
d. to permit the integration of data from diverse sources

21. Closed database architecture is

a. a control technique intended to prevent unauthorized access from trading partners.
b. a limitation inherent in traditional information systems that prevents data sharing.
c. a data warehouse control that prevents unclean data from entering the warehouse.
d. a technique used to restrict access to data marts.
e. a database structure that many of the leading ERPs use to support OLTP applications.

22. Each of the following is a necessary element for the successful warehousing of data EXCEPT
a. cleansing extracted data.
b. transforming data.
c. modeling data.
d. loading data.
e. all of the above are necessary.
23. Which of the following is typically NOT part of an ERP’s OLAP applications?
a. decision support systems
b. information retrieval
c. ad hoc reporting/analysis
d. logistics
e. what-if analysis

24. There are a number of risks that may be associated with ERP implementation. Which of the following was
NOT stated as a risk in the chapter?
a. A drop in firm performance after implementation because the firm looks and works differently than it did
while using a legacy system.
b. Implementing companies have found that staff members, employed by ERP consulting firms, do not have sufficient
experience in implementing new systems.
c. Implementing firms fail to select systems that properly support their business activities.
d. The selected system does not adequately meet the adopting firm’s economic growth.
e. ERPs are too large, complex, and generic for them to bewell integrated intomost company cultures.

25. Which statement is NOT true?

a. In a typical two-tier client-server architecture, the server handles both application and database duties.
b. Client computers are responsible for presenting data to the user and passing user input back
to the server.
c. Two-tier architecture is for local area network applications where the demand on the server is
restricted to a relatively small population of users.
d. The database and application functions are separated in the three-tier model.
e. In three-tier client-server architectures, one tier is for user presentation, one is for database and applications
access, and the third is for Internet access.

26. Which statement is NOT true?

a. Drill-down capability is an OLAP feature of data mining tools available to the user.
b. The data warehouse should be separate from operational systems.
c. Denormalization of data involves dividing the data into very small tables that support detailed
analysis.
d. Some decisions supported by a data warehouse are not fundamentally different from those that are supported by
traditional databases.
e. Data cleansing involves transforming data into standard business terms with standard data values.

27. Which statement is LEAST accurate?

a. Implementing an ERP system has more to do with changing the way an organization does business than it does with
technology.
b. The phased-in approach to ERP implementation is particularly suited to diversified organizations whose units do not
share common processes and data.
c. Because the primary reason for implementing an ERP is to standardize and integrate operations, diversified
organizations whose units do not share common processes and data do not benefit and tend not to implement
ERPs.
d. To take full advantage of the ERP process, reengineering will need to occur.
e. A common reason for ERP failure is that the ERP does not support one or more important business processes of the
organization.

28. SAP, one of the leading ERP producers, makes several modules available to adopters. Which of the following is not a SAP
module?
a. Business Process Support
b. Internet Development Support
c. Logistics
 d. E-Commerce Support
e. Human Resources

29. Auditors of ERP systems

a. need not be concerned about segregation of duties because these systems possess strong computer controls.
b. focus on output controls such as independent verification to reconcile batch totals.
c. are concerned that managers fail to exercise adequate care in assigning permissions.
d. do not see the data warehouse as an audit or control issue at all because financial records are not stored there.
e. need not review access levels granted to users because these are determined when the system is configured and
never change.

30. Which statement is most correct?

a. SAP is more suited to service industries than manufacturing clients.
b. J.D. Edwards’s ERP is designed to accept the best-practices modules of other vendors.
c. Oracle evolved from a human resources system.
d. PeopleSoft is the world’s leading supplier of software for information management.
e. SoftBrands provides enterprise software for the hospitality and manufacturing sectors

31. Online transaction processing programs

a. are available in two models: two-tier and three-tier.
b. are bolt-on programs used with commercially available ERPs.
c. handle large numbers of relatively simple transactions.
d. allow users to analyze complex data relationships.

32. Which of the following is not a risk associated with ERP implementation?
a. Implementing companies have found that staff members, employed by ERP consulting firms, do not have sufficient
experience in implementing new systems.
b. The selected system does not adequately meet the adopting firm's economic growth.
c. A drop in firm performance after implementation because the firm looks and works differently than it did while using a
legacy system.
d. Implementing firms fail to select systems that properly support their business activities.
e. All of the are risks associated with ERP implementation.

33. The big bang method

a. is more ambitious than the phased-in method
b. has been associated with many failures
c. both a. and b.
d. neither a. nor b.

34. Which of the following is not a risk associated with ERP implementation?
a. opposition to changes in the business culture
b. choosing the wrong ERP
c. choosing the wrong consultant
d. All of these are risks associated with ERP implementations.

35. Which statement is least accurate?

a. Implementing an ERP system has as much to do with changing the way an organization does business as it does with
technology.
b. A common reason for ERP failure is that the ERP does not support one or more important business processes of the
organization.
c. The big bang approach to ERP implementation is generally riskier than the phased-in approach.
d. To take full advantage of the ERP process, reengineering will need to occur.

36. Which of the following is a reason that data warehouses are created and maintained separately from operational
databases?
a. A separate centralized data warehouse is an effective means of collecting data from diverse sources.
b. Audit controls require that data for management analysis be kept separate from transaction data.
c. No ERP system incorporates data warehousing capability.
d. The data is used in different ways that requires it to be physically separate.
Chapter 12—Electronic Commerce Systems

TRUE/FALSE

T 1. Because of network protocols, users of networks built by different manufacturers are able to communicate and
share data.

F 2. Electronic commerce refers only to direct consumer marketing on the Internet.

F 3. Business to consumer is the largest segment of Internet commerce.

F 4. The phrase “.com” has become an Internet buzz word. It refers to a top-level domain name for communications or-
ganizations.

F 5. The standard format for an e-mail address is DOMAIN NAME@USER NAME.

T 6. The network paradox is that networks exist to provide user access to shared resources while one of its most im-
portant objectives is to control access.

T 7. Business risk is the possibility of loss or injury that can reduce or eliminate an organization’s ability toachieve its ob-
jectives.

T 8. IP spoofing is a form of masquerading to gain unauthorized access to a Web server.

T 9. The rules that make it possible for users of networks to communicate are called protocols.

T 10. A factor that contributes to computer crime is the reluctance of many organizations to prosecute criminals for fear
of negative publicity.

F 11. Cookies are files created by user computers and stored on Web servers.

F 12. Sniffing is the unauthorized transmitting of information across an Intranet.

F 13. The client-server model can only be applied to ring and star topologies.

T 14. The most popular topology for local area networks is the bus topology.

T 15. A network topology is the physical arrangement of the components of the network.

T 16. A bus topology is less costly to install than a ring topology.

T 17. In a hierarchical topology, network nodes communicate with each other via a central host computer.

T 18. Polling is one technique used to control data collisions.

F 19. The most frequent use of EDI is in making vendor payments.

T 20. EDI is the inter-company exchange of computer processible business information in standard format.

MULTIPLE CHOICE

1. The primary difference between a LAN and a WAN is

a. the geographical area covered by the network

b. the transmission technology used

c. the type of workstation used

d. the size of the company

2. To physically connect a workstation to a LAN requires a

a. file server

b. network interface card

c. multiplexer

d. bridge

3. One advantage of network technology is

a. bridges and gateways connect one workstation with another workstation

b. the network interface card permits different networks to share data

c. file servers permit software and data to be shared with other network users

d. a universal topology facilitates the transfer of data among networks

4. Which topology has a large central computer with direct connections to a periphery of smaller

computers? Also in this topology, the central computer manages and controls data communications

among the network nodes.

a. star topology

b. bus topology

c. ring topology

d. client/server topology

5. In a star topology, when the central site fails

a. individual workstations can communicate with each other

b. individual workstations can function locally but cannot communicate with other workstations

c. individual workstations cannot function locally and cannot communicate with other workstations
d. the functions of the central site are taken over by a designated workstation

6. Which of the following statements is correct? The client-server model

a. is best suited to the token-ring topology because the random-access method used by this model detects data colli-
sions.

b. distributes both data and processing tasks to the server’s node.

c. is most effective used with a bus topology.

d. is more efficient than the bus or ring topologies.

7. What do you call a system of computers that connects the internal users of an organization that is distributed over a
wide geographic area?

a. LAN

b. decentralized network

c. multidrop network

d. Intranet

8. Sniffer software is

a. software used by malicious Web sites to sniff data from cookies stored on the user’s hard drive

b. used by network administrators to analyze network traffic

c. used by bus topology Intranets to sniff for a carrier before transmitting a message to avoid data collisions

d. illegal programs downloaded from the Net to sniff passwords from the encrypted data of Internet customers

9. In a ring topology

a. all nodes are of equal status

b. nodes manage private programs and databases locally

c. shared resources are managed by a file server which is a node on the ring

d. all of the above

10. The client/server technology

a. increases the amount of data that is transmitted between the central file and the network node

b. eliminates the need for nodes to communicate with each other

c. reduces the number of records that must be locked by having the file server perform record searches

d. functions only with a ring and bus topology

11. A star topology is appropriate

a. for a wide area network with a mainframe for a central computer

b. for centralized databases only

c. for environments where network nodes routinely communicate with each other

d. when the central database does not have to be concurrent with the nodes

12. In a ring topology

a. the network consists of a central computer which manages all communications between nodes

b. has a host computer connected to several levels of subordinate computers

c. all nodes are of equal status; responsibility for managing communications is distributed among the nodes

d. information processing units rarely communicate with each other

13. Which method does not manage or control data collisions that might occur on a network?

a. multiplexing

b. polling

c. carrier sensing

d. token passing

14. Network protocols fulfill all of the following objectives except

a. facilitate physical connection between network devices

b. provide a basis for error checking and measuring network performance

c. promote compatibility among network devices

d. result in inflexible standards

15. All of the following are true about the Open System Interface (OSI) protocol except

a. within one node different layers communicate with other layers at that node

b. one protocol is developed and applied to all the OSI layers

c. specific layers are dedicated to hardware tasks and other layers are dedicated to software tasks

d. layers at each node communicate logically with their counterpart layers across nodes
16. Which of the following statements is correct? TCP/IP

a. is the basic protocol that permits communication between Internet sites.

b. controls Web browsers that access the WWW.

c. is the file format used to produce Web pages.

d. is a low-level encryption scheme used to secure transmissions in HTTP format.

17. XBRL

a. is the basic protocol that permits communication between Internet sites.

b. controls Web browsers that access the Web.

c. is the document format used to produce Web pages.

d. was designed to provide the financial community with a standardized method for preparing

e. is a low-level encryption scheme used to secure transmissions in higher-level (HTTP) format.

18. FTP

a. is the document format used to produce Web pages.

b. controls Web browsers that access the Web.

c. is used to connect to Usenet groups on the Internet

d. is used to transfer text files, programs, spreadsheets, and databases across the Internet.

e. is a low-level encryption scheme used to secure transmissions in higher-level () format.

19. HTML

a. is the document format used to produce Web pages.

b. controls Web browsers that access the Web.

c. is used to connect to Usenet groups on the Internet.

d. is used to transfer text files, programs, spreadsheets, and databases across the Internet.

e. is a low-level encryption scheme used to secure transmissions in higher-level () format.

20. Which one of the following statements is correct?

a. Cookies always contain encrypted data.

b. Cookies are text files and never contain encrypted data.

c. Cookies contain the URLs of sites visited by the user.

d. Web browsers cannot function without cookies.

21. A message that is made to look as though it is coming from a trusted source but is not is called

a. a denial of service attack

b. digital signature forging

c. Internet protocol spoofing

d. URL masquerading

22. A digital signature is

a. the encrypted mathematical value of the message sender’s name

b. derived from the digest of a document that has been encrypted with the sender’s private key

c. the computed digest of the sender’s digital certificate

d. allows digital messages to be sent over analog telephone lines

23. HTTP

a. is the document format used to produce Web pages.

b. controls Web browsers that access the Web.

c. is used to connect to Usenet groups on the Internet

d. is used to transfer text files, programs, spreadsheets, and databases across the Internet.

e. is a low-level encryption scheme used to secure transmissions in higher-level () format.

24. Which of the following statements is correct?

a. Packet switching combines the messages of multiple users into a “packet” for transmission. At the receiving end, the
packet is disassembled into the individual messages and distributed to the intended users.

b. The decision to partition a database assumes that no identifiable primary user exists in the organization.

c. Message switching is used to establish temporary connections between network devices for the duration of a com-
munication session.

d. A deadlock is a temporary phenomenon that disrupts transaction processing. It will resolve itself when the primary
computer completes processing its transaction and releases the data needed by other users.

25. NNTP

a. is the document format used to produce Web pages.

b. controls Web browsers that access the Web.

c. is used to connect to Usenet groups on the Internet

d. is used to transfer text files, programs, spreadsheets, and databases across the Internet.

e. is a low-level encryption scheme used to secure transmissions in higher-level (HTTP) format.

26. Which of the following statements is correct?

a. TCP/IP is the basic protocol that permits communication between Internet sites.

b. TCP/IP controls Web browsers that access the Web.

c. TCP/IP is the document format used to produce Web pages.

d. TCP/IP is used to transfer text files, programs, spread sheets, and databases across the Internet.

e. TCP/IP is a low-level encryption scheme used to secure transmissions in higher-level (HTTP) format.

27. Which of the following best describes a system of computers that connects the internal users of an organization dis-
tributed over a wide geographic area?

a. LAN

b. Internet

c. decentralized network

d. multidrop network

e. intranet

28. Sniffer software is

a. used by malicious Web sites to sniff data from cookies stored on the user’s hard drive.

b. used by network administrators to analyze network traffic.

c. used by bus topology intranets to sniff for carriers before transmitting a message to avoid data collisions.

d. an illegal program downloaded from the Web to sniff passwords from the encrypted data of Internet customers.

e. illegal software for decoding encrypted messages transmitted over a shared intranet channel.

29. Which of the following statements is true?

a. Cookies were originally intended to facilitate advertising on the Web.

b. Cookies always contain encrypted data.

c. Cookies are text files and never contain encrypted data.

d. Cookies contain the URLs of sites the user visits.

e. Web browsers cannot function without cookies.

30. A message that is contrived to appear to be coming from a trusted or authorized source is called

a. a denial of service attack.

b. digital signature forging.

c. Internet protocol spoofing.

d. URL masquerading.

e. a SYN-ACK packet.

31. A DDos attack

a. is more intensive than a Dos attack because it emanates from single source.

b. may take the form of either a SYN flood or smurf attack.

c. is so named because it affects many victims simultaneously, which are distributed across the Internet.

d. turns the target victim’s computers into zombies that are unable to access the Internet.

e. none of the above is correct.

32. A ping signal is used to initiate

a. URL masquerading.

b. digital signature forging.

c. Internet protocol spoofing.

d. a smurf attack

e. a SYN-ACK packet.

33. A digital signature

a. is the encrypted mathematical value of the message sender’s name.

b. is derived from the digest of a document that has been encrypted with the sender’s private key.

c. is derived from the digest of a document that has been encrypted with the sender’s public key.

d. is the computed digest of the sender’s digital certificate.

 e. allows digital messages to be sent over an analog telephone line.

34. Which of the following statements about the client-server model is correct?

a. It is best suited to the token ring topology because the random-access method this topology uses detects data colli-
sions.

b. It distributes both data and processing tasks to the server node. The client-server model can use the bus or ring to-
pology.

c. It is most effective when used as a bus topology because its deterministic access method avoids collisions and pre-
vents data loss during transmissions.

d. It is more efficient than the bus or ring topologies because it transmits an entire file of records to the requesting node
rather than only a single record.

e. It is not used in conjunction with either the bus or ring topologies.

35. Which of the following statements is correct?

a. A bridge is used to connect a LAN and a WAN.

b. Packet switching combines the messages of multiple users into a packet for transmission. At the receiving end, the
packet is disassembled into individual messages and distributed to the user.

c. The decision to partition a database assumes that no identifiable primary user exists in the organization.

d. Message switching is used to establish temporary connections between network devices for the duration of a com-
munications session.

e. A deadlock is a temporary phenomenon that disrupts transaction processing. It will resolve itself when the primary
computer completes processing its transaction and releases the data the other nodes need

36. Which of the following about cookies is true?

a. Cookies always contain encrypted data.
b. Cookies allow websites to off-load the storage of information about visitors.
c. Cookies were originally intended to facilitate advertising on the web.
d. All of these are true.

37. Packet switching

a. is a denial of service technique that disassembles various incoming messages to targeted users into small packages and
then reassembles them in random order to create a garbled message.
b. is a method for partitioning a database into packets for easy access where no identifiable primary user exists in the
organization.
c. is used to establish temporary connections between network devices for the duration of a communication session.
d. combines the messages of multiple users into one packet for transmission. At the receiving end, the packet is
disassembled into the individual messages and distributed to the intended users
38. A distributed denial of service (DDoS) attack
a. may take the form of either a SYN flood or smurf attack
b. is so named because it effects many victims simultaneously, which are distributed across the Internet
c. is more intensive that a DoS attack because it emanates from single source
d. turns the target victims' computers into zombies that are unable to access the Internet