Which of the Following Is False with Regards to REA

question 89

Multiple Choice

Which of the following is false with regards to REA models?

• A)Many financial statement accounts are represented as resources in the REA model.
• B)Accounts such as Accounts Receivable show up as entities in the REA model.
• C)Some accounts represent an imbalance between two related events in the REA model.
• D)Much of the information about an organization's assets that is traditionally recorded in ledgers is stored in resource tables in an REA-based relational database.

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Definitions:

Liabilities

Financial obligations or debts that an entity owes to other parties, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Office Supplies Expense

This refers to the cost associated with consumable supplies used within an office setting, such as pens, paper, and toner.

Office Supplies

Materials and items used in an office for operational purposes, including pens, paper, staplers, and other stationery items.

Purchased

Purchased refers to items or services that have been bought or acquired by payment in various contexts, including inventory, assets, or services for a business.