Which of the Following Statements About the REA Model Is

question 28

Multiple Choice

Which of the following statements about the REA model is incorrect?

• A)The REA model emphasises the recording of debits and credits within a relational database environment
• B)The REA provides a structured approach for modelling business processes
• C)The REA model consists of resources,events,and agents.
• D)The REA model provides a template for a data model that can be applied in an accounting information system.

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Definitions:

Office Facilities

Spaces and related services necessary for a business to function, including buildings, equipment, and utilities.

Selling

The process of persuading someone to buy a product or service.

Administrative Expense

Costs related to the general operation of a company that are not directly tied to a specific business activity, such as salaries of executive personnel, office supplies, and utilities.

Direct Materials

Raw materials that are directly incorporated into a finished product and can be directly attributed to the product manufacturing process.