Identify the Business Activity Below That Cannot Be Modeled Using

question 72

Multiple Choice

Identify the business activity below that cannot be modeled using an REA diagram.

• A) purchase requisitions
• B) rental transactions
• C) intangible assets
• D) All of the above can be modeled by an REA diagram.

---

Definitions:

Efficient Capital Market

Market in which security prices reflect available information.

Security Prices

The cost or price of financial instruments such as stocks, bonds, and derivatives, determined by market supply and demand.

Compound Return

The process by which an investment grows over time as earnings from both the principal and the accumulated earnings from preceding periods.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, used in statistics and finance to assess the volatility of an investment.