Why Might an REA Diagram Show Relationships Between Agents

question 95

Essay

Why might an REA diagram show relationships between agents?

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Definitions:

Capital Balances

This term indicates the amount of money in an entity’s capital account, reflecting initial investments and subsequent adjustments for profits, losses, and withdrawals.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from revenues.

Share

A unit of ownership interest in a corporation or financial asset, entitling the shareholder to a portion of the earnings and assets.

Salary

A fixed amount of money or compensation paid to an employee by an employer, typically on a regular basis, for performing their job.