Big Picture

Week 4-5: Unit Learning Outcomes (ULO): At the end of the unit, you are expected to

3. The importance and advantage of databases, as well as the difference between database
systems and file-based legacy systems.
4. Fundamental concepts of database systems such as DBMS, schemas, the data dictionary,
and DBMS languages.
5. What a relational database is and how it organizes data.

Big Picture in Focus:

ULO 3. The importance and advantage of databases, as well as the difference between
database systems and file-based legacy systems.

ULO 4. Fundamental concepts of database systems such as DBMS, schemas, the data
dictionary, and DBMS languages.

Metalanguage
This ULOs deals with the database approach to managing an organization's data resources.
Before the discussion, go over first the essential terms used in this learning unit.
1. Database - an organized collection of structured information, or data, typically stored
electronically in a computer system.
2. Physical Database – the physical location of the data. It can be a hard drive, optical disk,
or flash drive.
3. Logical View – It is how the user sees the data on the computer monitor.
4. Physical View – It refers to how data are physically stored in the Database.

Essential Knowledge
The database model is a particular philosophy whose objectives are supported by specific
strategies, techniques, hardware, and software that are very different from those associated with
flat-file environments.
FLAT-FILE VS. DATABASE SYSTEM

The majority of the old information systems are employing a flat-file approach in managing
the data. In this setting, the users have exclusive ownership of their data files. This setup may result
in the following problems:

1. It inhibits the entity-wide integration of data.

2. It requires data files to be structured to the unique needs of the primary user.

Thus, the same data, used in slightly different ways by different users, may need to be
restructured and reproduced in physically different files. Figure 1 illustrates this model.

Fig. 1 Flat-file System (Source: Hall, 2016)

Flat-file System Problems

In the above figure, the letters represent a single data attribute (field), a record, or an entire
file. Notice that data B is present in all user files. This setup will result in data redundancy. The
three types of data management problems caused by data redundancy are the following:
1. data storage,
2. data updating, and
3. the currency of information.
4. The fourth problem, which is the task data dependency, is not directly related to data
redundancy.
 Data Management Problems
1. Data Storage
2. Data Updating
3.Currency of Information
Data Storage 4. Task Depency

An efficient information system captures and stores data only once. These data must be
stored in central storage and must be available to all users who need it. However, this structure is
not possible in a flat-file environment. The flat-file system needs multiple storage o meet the
individual data needs of users. Multiple storages would mean high cost to the organizations.
Indeed, some commonly used data may be duplicated dozens, hundreds, or even thousands of
times, creating high storage costs.

Data Updating

When data is stored in multiple storage, a problem will arise if one user updates the data.
For example, the user 1 in figure 1 updates the data B, user 2 and 3 should also update the same
data in their own files. These multiple updates are an additional cost of data management.

Currency of information

Multiple storages also create another problem when one user failed to update the data. If
user 1 was unable to notify the users about the update he made to data B, the two users might not
record the change. The data of user 2 and 3 is not the current data and will make decisions based
on outdated data

Task dependency

Another problem with the flat-file approach is the user's inability to obtain additional
information as his or her needs change. This problem is called task-data dependency. The user's
information set is constrained by the data that he or she possesses and controls. For example, in
Figure 1, if the information needs of User 1 change to include Data L, User 1's program would not
have access to these data. Although Data L exists in the files of another user, keep in mind the
culture of this environment. Users do not interact as members of a user community. They act
independently. As such, User 1 may be unaware of the presence of Data L elsewhere in the
organization. In this environment, it is difficult to establish a mechanism for the formal sharing of
data. Therefore, Data L would need to be recreated from scratch. This will take time, inhibit User
1's performance, add to data redundancy, and drive data management costs even higher.
DATABASE APPROACH

Figure 2 Database System (Source: Hall, 2016)

Figure 2 shows the database approach of data management with the same users and
data requirements as in the flat-file method. The most apparent innovation from the flat-file
approach is the pooling of data into a common database that is shared by all the users.

Database Approach Advantages

The database technology is used by almost all mainframes and servers. The use of a
database of personal computers is also increasing. Most accountants use databases to enter data,
process data, querying, or auditing. Accountants' control expertise is also needed to ensure
database integrity. Romney (2015) enumerated the benefits of databases:

● Data integration. Unlike the flat-file approach, all data are combined into a single large storage.
The storage can be access by various application programs. An example is an employee database
that consolidates payroll, personnel, and job skills master files.

● Data sharing. Data can be easily shared in a database model. It became possible due to the
integration of data. Databases are easily browsed to research a problem or obtain detailed
information underlying a report. When user 1 updates data B, the update can be seen immediately
by the other users. only stored once since sa isang large storage siya
naka lagay, it can easily be accessed by all and
makita ng lahat ang mga updates and problems
● Minimal data redundancy and data inconsistencies. Data are usually stored only once, data so no need mag
balik balik store ng
redundancy and data inconsistencies are minimized. data

● Data independence. Because data and the programs that use them are independent of each other,
each can be changed without changing the other. This facilitates programming and simplifies data
management.
● Cross-functional analysis. In a database system, relationships, such as the association between
selling costs and promotional campaigns, can be explicitly defined and used in the preparation of
management reports.

DATABASE SYSTEMS

Figure 3 Element of Database Environment (Source: Hall, 2016)

The database environment can be broken down into four primary elements: users, the
DBMS, the database administrator, and the physical Database. In this section we examine each of
these elements.

Users 1. users
2. DBMS
3. database administrator
4. physcial database
 1. via user application programs
2. via direct query

The first element is the users, which can access the Database in two different ways. The
first way is accessing the Database via user application programs. This software can be an ERP,
spreadsheet, or and accounting application. These programs send data access requests (calls) to the
data management system (DBMS), which validates the requests and retrieves the data for
processing. The second method of database access is via direct query, which requires no formal
user programs. This method is only for those users who are knowledgeable in a query language
such as SQL.

Database Management System

The second element of the database approach is the database management system. The
DBMS provides a controlled environment to assist and prevent the user from accessing and
updating the data in the Database. It also helps users efficiently manage data resources. The DBMS
software links the way data are physically stored (physical Database) with each user's logical view
of the data. The DBMS allows users to access, query, or update the Database. Separating the
logical and physical views of data allows the users to change their logical view of data without
changing the way data are physically stored. Figure 4 shows how users change the logical view
without changing the structure of the Database. Likewise, the Database Administrator, who is
responsible for managing the Database, can change physical storage to improve system
performance without affecting users or application programs.

Figure 4 Function of DBMS (source: Romney, 2015)

The following are examples of DBMS:
1. MySQL
2. Microsoft Access
3. SQLite
4. Oracle

The Data Dictionary

A data dictionary is a collection of names, definitions, and attributes about data elements
that the Database used or captured. Each data element is stored in the Database, there is a record
in the dictionary describing it. It is the data of the data, or what we called metadata. For example,
the name of the customer should only contain alphabets and has a length of 20 characters. The data
dictionary describes what the data is. The DBMS maintains the data dictionary, whose inputs
include new or deleted data elements and changes in data element names, descriptions, or uses.

DBMS Languages

A DBMS has several languages.

1. Data definition language (DDL) is a programming language within the DBMS that builds
the data dictionary, creates the Database, describes logical views for each user. It specifies
record or field control. It merely describes the physical Database of the DBMS.

2. The data manipulation language (DML) is a programming language that manipulates

database content, including the data elements (name, price, etc.) creation, updates,
insertions, and deletions. In other words, DML is the one responsible for the daily operation
of the Database.

3. The data query language (DQL) is a high-level language that contains powerful, easy-to-
use commands that enable users to retrieve, sort, order, and display data. Report writers
use DQL to generate reports like financial statements or top customers.

Self-Help: You can also refer to the sources below to help you
further understand the lesson:
Romney, M. & Steinbart, P.J. (2015). Accounting Information System 13th Ed. England:
Pearson Education Limited
Hall, J. (2016). Accounting Information System 9th Ed. Australia : Cengage Learning

Let's Check
Activity 1. For the following statements, indicate whether TRUE or FALSE.
 1. MySQL and Microsoft Access are examples of a database.
2. DBMS is a set of interrelated, centrally coordinated data files that are stored with as little
data redundancy.
3. Most accountants are involved with databases through data entry, data processing,
querying, or auditing.
4. The database administrator (DBA) is responsible for coordinating, controlling, and
managing the Database.
5. Incorrect database data can lead to bad decisions, embarrassment, and angry users.
6. A DBMS is a set of integrated computer programs designed to simplify the tasks of
creating, accessing, and managing a database.
7. The physical database view is how the data appear to the user to be stored.
8. The physical database storage is how the data are actually physically stored on the storage
medium used in a database management system.
9. DDL is used when the user encodes the official receipts to the Database.
10. The number of characters allowed is an example of a data element.

Let's Analyze

Activity 1.
3. In the flat-file data management environment, users are said to own their data files. What
ismeant by the ownership concept?
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2. Discuss the potential aggravations you might face as a student as a result of your University
using a flat-file data management environment, that is, different files for the registrar, library,
parking, and so on
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3. Contrast the logical and the physical views of data, and discuss why separate views are
necessary in database applications. Describe which perspective is most useful for each of the
following employees: a programmer, a manager, and an internal auditor. How will understanding
logical data structures assist you when designing and using database systems?
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In a Nutshell
The concept of data management is an essential part of your journey to become future
accountants. In section, you are required to summarize what you have learned in this ULO.

1. Database approach enables business organizations to overcome data redundancy and the
associated problems that plague the flat-file approach to data management

Your Turn
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Q&A List
Do you have any questions for clarification?

Questions/Issues

Answers

Keywords Index
This section lists down the keywords that help you for recall the discussions.
Database
Database Management System
DDL
DML
DQL

Big Picture in Focus:

ULO 5. What a relational database is and how it organizes

data.

Metalanguage
The following terms will be used in this ULO.
1. Data Model - An abstract representation of database contents.
2. Relational Data Model – A two-dimensional table representation of data. Each row
represents a unique entity (a record), and each column is a field where record attributes are
stored.
3. Primary Key - Database attribute, or combination of attributes, that uniquely identifies each
row in a table.
4. Foreign key - An attribute in a table that is also a primary key in another table; used to link
the two tables.
5. Tuple – refer to a row in a table that contains data about a specific item in a database table.
Essential Knowledge
Previous ULOs' discussions are focused on the fundamental of a database system. In this
ULO, in this section, we will discuss the basic concepts, terminology, and techniques common to
relational database systems.

Relational Database is the most common database model used today. It is a database model
that organized data in tables, attributes, and records. In 1960, E. F. Codd proposed in his research
the relational model of database management principles. The formal model has its foundations in
relational algebra and sets theory, which provides the theoretical basis for most of the data
manipulation operations used. The relational data model is simple, store the data in two-
dimensional tables like the one shown in Figure 1.

Relational Database Table

Figure 1 shows a relational table called the customer table. Each table contains a field (e.g., J.
Smith), records (tuples), and attributes (e.g., name). The group of fields comprises records. For
example, the first row is the record of J. Smith. A group of records is called a table like a customer
table. There are two or more tables in a relational database management system (RDBMS). These
tables are connected with each other using unique attributes called primary key and foreign key

.
Figure 1 Relational Database Table (Source: Hall, 2016)
Relational Database Management System

Fig. 2 show the relational database table of the sales order. There are four tables involve in
the transactions. The tables are related to each other using their Primary attributes. Each table has
names such as Inventory, customer, ItemOrder, and CustOrder. A relational database is a two-
dimensional table, which contains columns and rows. Columns represent the attributes or the
fields, and the rows represent the records. For example, using Fig 2, the customer table has four
attributes, the CusNum, Name, Address, and Contact and contains five records. The customer table
is connected to the CustOrder table using CusNum. Tables are related to another table through the
primary key (PK) and foreign key (FK). CusNum is the PK of table Customer and FK of table
CustOrder.

Figure 2 Relational Database System

If you like to search Order Number 120, the system will give you the date of order using
CustOrder table, which is November 12, 2015. Because of the connection between CustOrder table
and Customer table, it can also give you the Name (Jan Pabellon), Address (Jups Street), and
contact no (99883336) of the customer. The attributes OrderNum and CustOrder are in connection
to ItemOrder, which list down what specific items the customer ordered.
Anomalies

If you want to ask, why don't you use one table instead of many? The answer is one
table database may contain anomalies. For example, table 1 shows a one-table database. This
type of database setup is problematic. For instance, if you found out that the customer Alice
was already got married. Her new family name now is Warren. To update the family name of
Alice, you have to update all rows that contain her record. What if Alice has thousands of
transaction with the company. You need to find all her records to execute the update. This
problem is called Update Anomaly.

Table 1 Singe Database Table

What happens if you have a new student to add, but he has not signed up for any courses
yet? Or what if there is a new class to add, but there are no students enrolled in it previously?
In either case, the record will be partially blank. This problem is referred to as an Insert
anomaly.

If Ned withdraws from all his classes and you eliminate all three of his rows from the table,
then you will no longer have a record of Ned. If Ned is planning to take classes next semester,
then you probably did not really want to delete all records of him. This problem is referred to
as a Delete anomaly.

To solve these problems, you need to conduct table normalization. Table normalization
will be discussed in this ULO.

Self-Help: You can also refer to the sources below to help you
further understand the lesson:
Romney, M. & Steinbart, P.J. (2015). Accounting Information System 13th Ed. England:
Pearson Education Limited
Hall, J. (2016). Accounting Information System 9th Ed. Australia: Cengage Learning

Let's Check
Activity 1. For the following statements, indicate whether TRUE or FALSE.

1. In a data hierarchy, a collection of related characters constitutes a field.

2. A secondary key uniquely identifies any row within a relational table.
3. The relational data model portrays data as being stored in table.
4. An attribute is equivalent to a field and may also be known as a row.
5. In a relational database model, data are logically organized into two-dimensional tables.
6. The normalization process involves various steps that transform an original database design
into an equivalent design that is free of problems.
7. There should be primary key and foreign key to connect the two tables.
8. Update anomaly occurs when you have to remove all records of a person.
9. Each column in a table, called a tuple, contains data about a specific item in a database
table
10. A primary key is the database attribute, or combination of attributes, that uniquely identifie
a specific row in a table

Let's Analyze
Activity 1.

1. The relational data model represents data as being stored in tables. Spreadsheets are another tool
that accountants use to employ a tabular representation of data. What are some similarities and
differences in the way these tools use tables? How might an accountant's familiarity with the
tabular representation of spreadsheets facilitate or hinder learning how to use a relational DBMS?

2. In a relational database environment, certain accounting records (for example, journals,

subsidiary ledgers, and event general ledger accounts) may not exist. How is this possible?
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3. Explain what is normalization of data?
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In a Nutshell
The concept of data management is an essential part of your journey to become future accountants.
In section, you are required to summarize what you have learned in this ULO.

1. Accountants must understand database systems so they can help design and use the AISs of the
future

Your Turn

2. __________________________________________________________________
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3. __________________________________________________________________
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4. __________________________________________________________________
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5. __________________________________________________________________
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Q&A List
Do you have any questions for clarification?
Questions/Issues

Answers

Keywords Index
This section lists down the keywords that help you for recall the discussions.
Data model
Relational data model
Columns
Foreign key
Primary key
Tuple
Update anomaly
Delete anomaly
Insert anomaly
Relational database
Normalization