Consider the Following REA Model as You Answer the Next

question 56

Multiple Choice

Consider the following REA model as you answer the next question: A field labeled "transaction ID" is likely to appear in which of the following tables based on the REA model above?

• A)Purchase inventory table
• B)Inventory / purchase inventory table
• C)Both A and B
• D)Neither A nor B

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Definitions:

Revaluation

The process of adjusting the book value of a fixed asset or security to reflect its current market value.

Fair Value

The estimated price at which an asset or liability could be exchanged between knowledgeable, willing parties in an arm's length transaction.

Business Combination

A transaction or event through which a company acquires control over one or more businesses.