The Top-Down Approach to Data Modeling Derives the Business Rules

question 112

True/False

The top-down approach to data modeling derives the business rules for a data model from an intimate understanding of the nature of the business.

---

Definitions:

Accounting Equation

The foundational equation in accounting, represented as Assets = Liabilities + Owner's Equity, illustrating a company's financial position.

Liabilities

Financial obligations or debts a company owes, which are expected to be paid in the future.

Increase Assets

The act of adding value to a company's assets through acquisitions, improvements, or successful business operations, leading to growth in the company's overall resources.

Decrease Assets

A decrease in assets refers to a reduction in the value or quantity of the resources owned by an entity, which can result from sales, disposals, or consumption in operations.