When Comparing REA Diagrams Used to Design an AIS with a Traditionally

question 82

Multiple Choice

When comparing REA diagrams used to design an AIS with a traditionally designed AIS,

• A)traditional AIS information,such as journals and ledgers no longer exist.
• B)similar information is present as in a traditional AIS,but stored in a different format.
• C)queries are used to input data into the AIS.
• D)an REA designed AIS cannot recreate a traditional journal.

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Definitions:

Plant and Equipment

Plant and Equipment are long-term assets used in the operation of a business, not intended for resale, including machinery, buildings, and vehicles.

Long-Term Liabilities

Obligations that are not due or payable for a long time, usually for more than a year.

Net Sales

The total revenue from sales reduced by returns, allowances, and discounts.

Gross Profit

The difference between sales revenue and the cost of goods sold, before deducting overhead, payroll, taxation, and interest payments.