Which of the Statements Below Is False with Regards to Generating

question 86

Multiple Choice

Which of the statements below is false with regards to generating financial statements from an REA-based relational database?

• A)It is possible to use a completed REA diagram to guide the writing of queries to produce the information that would be included in financial statements.
• B)Many financial statement items can be displayed by querying a single table.
• C)It is unnecessary to understand the REA data model to know which tables need to be included in each query to generate the correct answers to financial statement questions.
• D)A major advantage of the REA data model is that it integrates non-financial and financial data.

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Definitions:

Trading Securities

Financial instruments bought and held primarily for selling them in the near term with the aim of generating profit on short-term price differences.

Present Value

The current value of a future amount of money or stream of cash flows given a specified rate of return, used to assess the worth of future cash flows today.

Future Value

The estimated value of a current asset or an amount of money at a specified date in the future, based on an assumed rate of growth or interest.

Interest Component

The portion of a payment that is attributed to interest on borrowed capital.