Combining REA Diagrams for Individual Transaction Cycles into a Single,enterprise-Wide

question 51

Multiple Choice

Combining REA diagrams for individual transaction cycles into a single,enterprise-wide model adds three more rules to the three basic principles for drawing REA diagrams.Which of the following is not one of those two new rules?

• A)Every resource must be linked to at least one event that increments that resource and to at least one event that decrements that resource.
• B)If a specific event can be linked to more than one other type of event,but cannot be linked simultaneously to all of those other events,then the minimum cardinality between that event and every other event with which it may be associated must be 0.
• C)If a specific event can be linked to more than one other type of event,but cannot be linked simultaneously to all of those other events,then the maximum cardinality between that event and every other event with which it may be associated must be 0.
• D)All of the above are new rules for drawing integrated REA diagrams.

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Definitions:

Production Cost Report

A detailed report that outlines the costs associated with producing goods, including materials, labor, and overhead expenses.

Costs Charged

Expenses allocated to a specific department, project, or product.

Beginning Work

The work-in-process inventory at the start of an accounting period, representing unfinished goods.

Total Physical Units

Total physical units refer to the total count of individual units of product produced by a company in a given period of time.