Developing an REA Diagram for a Specific Transaction Cycle Consists

question 13

Multiple Choice

Developing an REA diagram for a specific transaction cycle consists of how many steps?

• A)one
• B)two
• C)three
• D)four

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Definitions:

Suretyship Provision

A contractual agreement in which a party assumes responsibility for the debt obligation of a borrower if that borrower defaults.

Statute of Frauds

A legal principle requiring certain types of contracts to be written and signed to be enforceable.

Collateral Promise

A secondary promise made by a third party to assume responsibility for a debt obligation if the principal obligor fails to perform or pay.

Electronic Record

Information stored in a digital format that can be retrieved electronically.