In Comparing the REA Model to the Traditional AIS,which of the Following

question 66

Multiple Choice

In comparing the REA model to the traditional AIS,which of the following is false?

• 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.

---

Definitions:

P

Typically refers to "Price" in economic models, representing the monetary value assigned to a good or service in the market.

V

Typically stands for Velocity in economic contexts, referring to the rate at which money circulates in the economy.

Monetary Policy

The process by which a central bank, like the Federal Reserve, controls the supply of money, often targeting an inflation rate or interest rate to ensure economic stability and growth.

Primary Growth

The initial stage of growth or expansion in an organism, market, or economic indicator, often characterized by rapid increases or significant changes.