Use the Following Scenario for the Next Questions

question 1

Multiple Choice

Use the following scenario for the next questions.Suppose that you are developing a relational database for an accounting system using the REA framework approach. The organization makes over-the-counter sales where the customer walks in, an employee (sales rep) sells products to the customer and turns over the products to the customer, and the customer walks out. All sales are on credit, and employees are paid commissions on their sales.
-In the REA framework, which of the following entities are involved in the business process described in the scenario?

• A) Inventory, employee, customer, sale
• B) Inventory, product number, invoice number, customer
• C) Employee, product number, customer, sale
• D) Invoice number, product number, customer, sale

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Definitions:

Operating

Refers to the day-to-day activities involved in running a business that are essential for generating revenue.

Financing

The process of providing funds for business activities, making purchases, or investing, including obtaining loans or issuing stocks.

Investing

Assigning financial resources with the aim of realizing a return or gaining profits.

Purchase of Stock

The act of buying shares in a company, either through a stock exchange or directly from the company.