Consider the Following REA Model as You Answer the Question

question 47

Multiple Choice

Consider the following REA model as you answer the question? Which of the following tables is indicated by the preceding REA model:

• A)Supplier/employee table
• B)Supplier/purchase inventory table
• C)Employee/purchase inventory table
• D)Inventory/purchase inventory table

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Definitions:

Idle Cash

Cash that is not currently employed in any investment or operation, therefore not earning any return or interest.

Cash Equivalents

Short-term, highly liquid investments that are easily convertible to known amounts of cash with original maturities of three months or less.

Physical Controls

Measures and procedures implemented to safeguard assets, manage risk, and ensure the integrity of financial information, including locks, safes, and access control systems.

Natural Disasters

Natural disasters are severe and sudden events caused by environmental factors that cause damage to property, economies, and loss of life, such as earthquakes, floods, and hurricanes.