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:

Noncash Investing

Investment activities that involve transactions not involving physical cash, such as acquiring assets through exchange or issuing stock for an asset.

Common Stock

A type of equity ownership in a corporation, with voting rights and potential dividends.

Financing Activities

Actions that result in changes in the size and composition of the equity capital or borrowings of the company, as reported in the cash flow statement.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments not included in cash equivalents.