Concerning REA Models,which of the Following Is False

question 59

Multiple Choice

Concerning REA models,which of the following is false?

• A) Many financial statement accounts are represented as resources in the REA model.
• B) Accounts such as Accounts Receivable show up as entities in the REA model.
• C) Some accounts represent an imbalance between two related events in the REA model.
• D) Much of the information about an organization's assets that is traditionally recorded in ledgers is stored in resource tables in an REA-based relational database.

---

Definitions:

Slope

The measure of the steepness or incline of a line on a graph, indicating the rate at which variables change relative to each other.

Production Possibility Frontier

A graphical representation showing the maximum quantity of different goods that can be produced with a given set of resources and technology.

Opportunity Costs

The cost of an alternative that must be forgone in order to pursue a certain action or decision.

Production Possibility

An economic model that shows the maximum combination of goods or services that can be produced with a given set of resources.