Identify the Business Activity Below That Cannot Be Modeled Using

question 1

Multiple Choice

Identify the business activity below that cannot be modeled using an REA diagram.

• A)Purchase requisitions.
• B)Rental transactions.
• C)Intangible assets.
• D)All of the above can be modeled by an REA diagram.

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Definitions:

Accrued Interest

Interest that has been incurred but not yet paid, typically relating to bonds or loans, calculated from the last payment date up to the current date.

Note Payable

A liability in written form that promises to pay a specified amount of money at a future date.

Interest Expense

The cost incurred by an entity for borrowed funds; interest payments made on debts.

Account Balance

The amount of money in an account, calculated by adding all debits and subtracting all credits.