When Comparing REA Diagrams Used to Design an AIS with a Traditionally

question 76

Multiple Choice

When comparing REA diagrams used to design an AIS with a traditionally designed AIS,

• A)Traditional AIS information,such as journals and ledgers no longer exist.
• B)Similar information is present as in a traditional AIS but stored in a different format.
• C)Queries are used to input data into the AIS.
• D)An REA designed AIS cannot recreate a traditional journal.

---

Definitions:

Costs Of Goods Sold

An accounting term that denotes the direct costs attributable to the production of the goods sold by a company.

Break-even Point

The point at which total costs and total revenue are equal, meaning no net loss or gain, and a key financial analysis metric for businesses.

Per Month Salary

The amount of monetary compensation provided to an employee by an employer, calculated and paid on a monthly basis.

Gross Profit

The financial profit a company makes after subtracting the costs of producing and selling its products from the revenue generated from sales.