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:

Debit Entry

An accounting entry that results in either an increase in assets or expenses, or a decrease in liabilities or equity, on a company's balance sheet.

Account

A record in financial accounting that tracks the financial transactions related to a specific asset, liability, equity, revenue, or expense.

Credits

Accounting entries that increase liabilities or equity or decrease assets or expenses.

Account Balances

The amounts in financial accounts, representing the net value at a particular point in time after accounting for all debits and credits.