Definition
An online database is a digital repository of information that is accessible via the internet and can store a vast array of data that can be retrieved, displayed, or printed on demand. This information is typically transmitted through telecommunications methods such as telephone lines, microwaves, and satellites.
In specific fields like accounting, an online database may include:
- Tax laws and regulations
- Accounting practices and footnote references
- Industry-specific data
- Financial information on companies
- Investment information
- Economic and political statistics
Examples
- Bloomberg Terminal: A professional service offering real-time financial data, news, and analytics.
- EDGAR Database: The SEC’s database providing access to public company filings.
- LexisNexis: Provides legal, regulatory, and business information and analytics.
- PubMed: A free search engine accessing primarily the MEDLINE database of references and abstracts on life sciences and biomedical topics.
- JSTOR: Provides access to thousands of academic journals, books, and primary sources.
Frequently Asked Questions
What is an online database?
An online database is a collection of data or information stored digitally and accessible via the internet. It enables users to retrieve information efficiently in various formats, such as displayed on a monitor or printed.
How secure is an online database?
Security can vary widely depending on the database, but reputable databases often employ robust security measures, including encryption, user authentication, and frequent security audits to protect data.
Can online databases be accessed remotely?
Yes, the primary advantage of online databases is their accessibility from anywhere with an internet connection, enabling remote work and research.
What are the uses of online databases in accounting?
Online databases in accounting can provide resources such as updated tax laws, accounting methodologies, historical financial data, industry benchmarks, and compliance information, all of which assist in making informed financial decisions.
Related Terms with Definitions
- Data Warehouse: A centralized repository for storing large volumes of data from multiple sources, primarily used for analysis and reporting.
- Cloud Storage: Online storage provided by a service provider that permits data to be stored, managed, and accessed over the internet.
- Big Data: Extremely large data sets that may be analyzed computationally to reveal patterns, trends, and associations.
- Data Mining: The process of discovering patterns and knowledge from large amounts of data.
- Database Management System (DBMS): Software used to manage, retrieve, and query databases.
Online References
- Investopedia: Online Database Definition
- Wikipedia: Online Database
- EDGAR Database: EDGAR
- LexisNexis: LexisNexis
Suggested Books for Further Studies
- “Database System Concepts” by Abraham Silberschatz, Henry F. Korth, and S. Sudarshan: A comprehensive textbook on database concepts.
- “Principles of Database Management” by Wilfried Lemahieu, Seppe vanden Broucke, Bart Baesens: An extensive guide to modern database design and management.
- “Modern Database Management” by Jeffrey Hoffer, Ramesh Venkataraman, Heikki Topi: Another leading book in the database management field.
- “Database Systems: The Complete Book” by Hector Garcia-Molina, Jeffrey D. Ullman, Jennifer Widom: Covers fundamental topics and advanced issues in database systems.
- “The Data Warehouse Toolkit: The Definitive Guide to Dimensional Modeling” by Ralph Kimball and Margy Ross: This book provides insights into data warehousing and design.
Fundamentals of Online Database: Information Technology Basics Quiz
### What is an online database?
- [ ] A repository of physical books.
- [ ] A storage unit for paper files.
- [x] A digital repository accessible via the internet.
- [ ] A collection of floppy disks.
> **Explanation:** An online database is a digital repository that is accessible through the internet, allowing users to store and retrieve information remotely.
### Which of the following is typically included in an online database for accountants?
- [x] Tax laws and regulations
- [ ] Personal emails
- [ ] Music files
- [ ] Weather forecasts
> **Explanation:** An online database for accountants usually includes vital information relevant to their field, such as tax laws and regulations, accounting practices, and financial data.
### How is data transmitted to online databases?
- [ ] Physical mail
- [x] Telephone lines, microwaves, and electronics means
- [ ] Pigeon post
- [ ] Fax machines only
> **Explanation:** Data is transmitted to online databases through modern telecommunications methods like telephone lines, microwaves, and other electronic means.
### What is a commonly known online database in the financial sector?
- [x] Bloomberg Terminal
- [ ] Netflix
- [ ] Spotify
- [ ] Google Maps
> **Explanation:** The Bloomberg Terminal is a well-known online database that provides extensive financial data, news, and analytical tools.
### What feature makes online databases particularly valuable?
- [ ] High degree of physical security
- [ ] Use of old hardware
- [x] Remote accessibility
- [ ] Limited data range
> **Explanation:** The remote accessibility offered by online databases makes them particularly valuable as information can be accessed from anywhere with an internet connection.
### Why are security measures important for online databases?
- [x] To protect sensitive data
- [ ] To enhance the double-entry system
- [ ] To reduce physical office space
- [ ] To start cloud computing
> **Explanation:** Security measures are crucial for protecting sensitive information stored in online databases from unauthorized access, breaches, and other cyber threats.
### What is the role of a Database Management System (DBMS)?
- [ ] To create websites
- [ ] To play music
- [x] To manage, retrieve, and query databases
- [ ] To manage physical books
> **Explanation:** A Database Management System (DBMS) is software that facilitates the management, retrieval, and querying of databases.
### Can online databases assist with compliance tracking?
- [x] Yes, they can provide updated regulations and compliance information.
- [ ] No, they only store irrelevant data.
- [ ] Yes, but only in the health sector.
- [ ] No, compliance must be tracked manually.
> **Explanation:** Online databases can assist with compliance tracking by providing up-to-date regulations, industry standards, and other critical compliance information relevant to various fields.
### What does data mining involve?
- [ ] Storing documents in a mine
- [x] Discovering patterns and knowledge from large data sets
- [ ] Construction work
- [ ] Mining gold and minerals
> **Explanation:** Data mining involves discovering patterns and deriving valuable insights from large volumes of data stored in databases.
### Which of the following best describes a data warehouse?
- [ ] A storage unit for food supplies
- [ ] A repository for books
- [x] A centralized repository for storing large volumes of data from multiple sources
- [ ] A music streaming service
> **Explanation:** A data warehouse is a centralized repository for aggregating large volumes of data from diverse sources, primarily to support analysis and reporting.
Thank you for exploring the comprehensive study of online databases and participating in our foundational quiz module. Continue expanding your knowledge in this critical area of information technology!
