When the Maximum Cardinalities Between Two Elements of a REA

question 26

Multiple Choice

When the maximum cardinalities between two elements of a REA model are many and many:

• A)Create a junction table.
• B)Redesign the REA model to eliminate them.
• C)The REA model has errors.
• D)One of the elements must be a resource.

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Definitions:

Acid-Test Ratio

A financial metric comparing a company's most liquid assets (excluding inventory) to its current liabilities, used to assess short-term solvency.

Marketable Securities

These are liquid financial instruments that can easily be converted into cash at their current value in the financial markets.

Selling And Administrative Expenses

Expenses related to the selling of products and the management of the business, not directly tied to manufacturing.

Noncurrent Assets

Noncurrent assets are long-term assets not expected to be converted into cash or used up within one year, such as property, plant, and equipment.