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:

Buyer/Lessee

An individual or entity that purchases or leases goods or property from another party under agreed-upon terms.

Common Law Rule

A principle or rule established in previous legal cases that is either binding on or persuasive for a court or other tribunal when deciding subsequent cases with similar issues or facts.

Perfect Tender Rule

A legal principle that requires the delivery of goods to be exactly as specified in the contract without any deviations or defects.

Conforming Goods

Products that meet the specifications and standards outlined in a purchase contract.