Question: 1. Why is the storage of accounting data important to an accounting information system?

2. What is the hierarchy of data in databases? Provide an example relating to an accounting application.

3. Each DBMS has many databases holding data, and each database is usually entirely independent of every other database. What is the hierarchy of data in database model? Please provide an example for a particular accounting application. Also, please cite your references using APA style.

4. What is the process of normalization? What levels are there, and why do database developers seek to normalize data? Please provide references.

5. According to the IT - Finance Connection (2009 Issue), small businesses lose billions of dollars each year due to data loss from hardware or system failure, human error and software corruption. Natural disasters account for one percent of all data loss. Although the probability is small, the impact can be overwhelming. In fact, companies that aren't able to resume operations within ten days of a disaster are not likely to survive. Why is the storage of accounting data important to an accounting information system?