The Major Benefits of Using the REA Model as the Basis

question 48

Multiple Choice

The major benefits of using the REA model as the basis for designing an AIS include all of the following except

• A)the REA data model integrates non-financial and financial data in the AIS.
• B)the REA data model makes both non-financial and financial data easily accessible to management.
• C)the REA data model provides the basis for building the kind of flexible AIS that is responsive to management's changing information needs.
• D)the REA data model reduces the need for accountants to understand the underlying accounting journals and ledgers.

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Definitions:

Chi-Square Test Statistic

A value derived from the chi-square test, representing the sum of the squared differences between observed and expected frequencies divided by the expected frequencies.

Goodness-Of-Fit Test

A statistical test used to determine how well observed sample data fit a distribution from a population with a normal distribution.

Expected Frequency

The number of times an outcome is predicted to occur in an experiment or trial based on probability theory.

Normal Distribution

A distribution of probability that is even around the average, indicating that observations close to the mean are more common than those further away.