Which of the Below Statements Is False with Respect to REA

question 39

Multiple Choice

Which of the below statements is false with respect to REA diagrams for individual transaction cycles?

• A)They depict basic give-to-get economic duality relationships.
• B)They usually provide only a partial view of resources.
• C)They need to be combined in order to provide a comprehensive enterprise-wide data model.
• D)They show both how resources are acquired and how they are used.

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Definitions:

Adverse Selection Problem

The adverse selection problem occurs when there is asymmetrical information between buyer and seller, leading to transactions where the buyer or seller is at a disadvantage due to lack of crucial information.

Characteristics

The distinguishing features or qualities of an item, person, or phenomenon that can be used to identify it and differentiate it from others.

Above-Equilibrium Wages

Wages that are higher than the market equilibrium, often set to attract better employees, improve morale, or reduce turnover, but potentially leading to excess supply of labor.

Shirking

Shirking refers to the practice of avoiding or escaping work responsibilities, often by being deceitful or lazy, which can reduce overall productivity.