Which of the Statements Below Is False When Comparing the REA

question 69

Multiple Choice

Which of the statements below is false when comparing the REA model to the traditional AIS model?

• A)Traditional AISs contain only data about the financial aspects of transactions.
• B)A major advantage of the REA data model is that it integrates non-financial and financial data in the AIS and makes both types of data easily accessible to management.
• C)In the REA model,many financial statement items can be displayed by querying a single table.
• D)Accounts in the traditional AIS are analogous to resources in the REA-based relational database.

---

Definitions:

New Software

A program or set of instructions that is designed to perform specific tasks, recently developed or released.

Network Externalities

Economic effects that occur when the value or utility of a product or service to a user depends on how many other users there are.

Buy a Unit

The action of purchasing a single item or measure of a product for a specified price.

Perceived Market Share

An estimate of the fraction of total market sales captured by a firm, based on the perception of consumers or the firm itself.