Which of the Following Statements Is True About the Development

question 8

Multiple Choice

Which of the following statements is true about the development of an REA model?

• A)Events that pertain to the entry of data are included in the REA model.
• B)The objective is to model basic value-chain activities.
• C)REA diagrams model individual transactions and data collections.
• D)Information retrieval events are modeled as events in the REA model.

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Definitions:

Sinking Fund

A fund established by an entity by setting aside revenue over time for the purpose of paying off debt or replacing a future expense.

Protective Covenants

Clauses in a contract or bond indenture that restrict the borrower from certain activities, aiming to protect creditors.

Real Rates

Interest rates or rates of return that have been adjusted for inflation, showing the real purchasing power of the amount.

Nominal Rates

Interest rates or rates of return on investment that have not been adjusted for inflation, representing the face value of financial instruments.