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.

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Definitions:

Percentage of Completion

An accounting method used to recognize revenues and expenses of long-term projects proportionally to the work completed.

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, treating them as an equivalent number of fully completed units.

Physical Count

The process of manually counting the actual inventory on hand at a particular time to verify the quantities listed in accounting records.

Job Order Cost System

An accounting system that tracks costs individually for each job, rather than using a standard method for all jobs, suitable for companies producing unique or custom products.