In a Complete REA Model of Any Organization,every Resource Must

question 53

Multiple Choice

In a complete REA model of any organization,every resource must be connected to at least one ________ that increases that resource and to at least one event that decreases it.

• A)resource
• B)event
• C)agent
• D)activity

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Definitions:

Sales Revenues

The total amount of money generated from the sale of goods or services before any costs or expenses are deducted.

Cash Operating Expenses

The expenses a company incurs during its day-to-day operational activities, paid in cash, such as rent, utilities, and salary payments.

Simple Rate

A basic or straightforward interest rate calculation without compounding, often used in financial transactions and loan agreements.

Annual Depreciation

The portion of the cost of a fixed asset that is expensed on the income statement annually over its useful life.