Which of the Statements Below Is False with Regards to Generating

question 86

Multiple Choice

Which of the statements below is false with regards to generating financial statements from an REA-based relational database?

• A)It is possible to use a completed REA diagram to guide the writing of queries to produce the information that would be included in financial statements.
• B)Many financial statement items can be displayed by querying a single table.
• C)It is unnecessary to understand the REA data model to know which tables need to be included in each query to generate the correct answers to financial statement questions.
• D)A major advantage of the REA data model is that it integrates non-financial and financial data.

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Definitions:

Income Statement

A financial statement that shows a company’s revenues and expenses over a specific period, culminating in the net income or loss for the period.

FIFO Inventory Method

An inventory valuation method where the cost of the items purchased first is the first to be recognized in determining cost of goods sold.

Earliest Inventory Purchase Costs

This refers to the cost associated with purchasing inventory items first in the order of acquisition, relevant in accounting methods like FIFO (First In, First Out).

Ending Inventory

The final value of goods available for sale at the end of an accounting period.