Combining REA Diagrams for Individual Transaction Cycles into a Single,enterprise-Wide

question 9

Multiple Choice

Combining REA diagrams for individual transaction cycles into a single,enterprise-wide model adds two more rules to the three basic principles for drawing REA diagrams.Which of the following is not one of those two new rules?

• A)Every resource must be linked to at least one event that increments that resource and to at least one event that decrements that resource.
• B)If a specific event can be linked to more than one other type of event,but cannot be linked simultaneously to all of those other events,then the minimum cardinality between that event and every other event with which it may be associated must be 0.
• C)If a specific event can be linked to more than one other type of event,but cannot be linked simultaneously to all of those other events,then the maximum cardinality between that event and every other event with which it may be associated must be 0.
• D)None of the above

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Definitions:

Trade Policies

Measures and agreements set by governments to control exports and imports with the aim to protect domestic industries, manage the balance of payments, and promote economic growth.

Standard Of Living

The level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or a certain geographic area.

Loanable Funds

The money available for borrowing in the financial markets, determined by savings and demands for investment.

Public Saving

The tax revenue that the government has left after paying for its spending.