Question 1

Why are journals and ledgers not modeled in an REA diagram?

Accepted Answer

Accounting activities such as recording

Question 2

According to the REA philosophy,information systems should support only the needs of accounting professionals.

Accepted Answer

A) True 
 B)False

Question 3

Define resources,economic events,and agents.

Accepted Answer

Resources are those things of economic v

Question 4

Since REA databases do not employ journals and ledgers,how can they support financial statement reporting?

Accepted Answer

Journals,ledgers,and double-entry bookke

Question 5

Under the REA approach support events may directly affect a change in resources.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following events would be least likely to be modeled in a REA diagram?

Accepted Answer

A)  customer inquires 
B)  posting accounts payable 
C)  receiving cash 
D)  sales to a customer 
A)  customer inquires 
B)  posting accounts payable 
C)  receiving cash 
D)  sales to a customer

Question 7

Modern managers need both financial and nonfinancial information that traditional GAAP-based accounting systems are incapable of providing.

Accepted Answer

A) True 
 B)False

Question 8

Which types of entities are included in REA diagrams?

Accepted Answer

A)  support events 
B)  economic events 
C)  internal agents 
D)  all of the above 
A)  support events 
B)  economic events 
C)  internal agents 
D)  all of the above

Question 9

Define association.

Accepted Answer

Association is the nature of t

Question 10

What is a semantic data model?

Accepted Answer

It is a framework for designin

Question 11

The REA model is an alternative accounting framework for modeling an organization's critical resources,events,and accounts.

Accepted Answer

A) True 
 B)False

Question 12

A semantic data model captures the operational meaning of the user's data and provides a concise description of it.

Accepted Answer

A) True 
 B)False

Question 13

What is a user view?

Accepted Answer

A user view is the set of data that a pa

Question 14

All of the following are examples of economic events except

Accepted Answer

A)  receiving raw materials from a supplier 
B)  checking a customer's credit prior to processing a sales order 
C)  disbursing cash for inventories received 
D)  shipping product to a customer 
A)  receiving raw materials from a supplier 
B)  checking a customer's credit prior to processing a sales order 
C)  disbursing cash for inventories received 
D)  shipping product to a customer

Question 15

How does the REA model categorize events?

Accepted Answer

Economic e

Question 16

In a REA diagram each economic event is always

Accepted Answer

A)  linked to at least two resource entities 
B)  linked to two external agents 
C)  linked to another economic event 
D)  linked to two internal agents 
A)  linked to at least two resource entities 
B)  linked to two external agents 
C)  linked to another economic event 
D)  linked to two internal agents

Why are journals and ledgers not modeled in an REA diagram?

According to the REA philosophy,information systems should support only the needs of accounting professionals.

Define resources,economic events,and agents.

Since REA databases do not employ journals and ledgers,how can they support financial statement reporting?

Under the REA approach support events may directly affect a change in resources.

Which of the following events would be least likely to be modeled in a REA diagram?

Modern managers need both financial and nonfinancial information that traditional GAAP-based accounting systems are incapable of providing.

Which types of entities are included in REA diagrams?

Define association.

What is a semantic data model?

The REA model is an alternative accounting framework for modeling an organization's critical resources,events,and accounts.

A semantic data model captures the operational meaning of the user's data and provides a concise description of it.

What is a user view?

All of the following are examples of economic events except

How does the REA model categorize events?

In a REA diagram each economic event is always

The Information System: An Accountant’s Perspective

Introduction to Transaction Processing

Ethics, Fraud, and Internal Control

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures

The Conversion Cycle

General Ledger, Financial Reporting, and Management Reporting Systems

Database Management Systems

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Construct, Deliver, and Maintain Systems Projects

IT Controls : Sarbanes-Oxley and IT Governance

IT Controls : Security and Access

IT Controls : Systems Development Program Changes and Application Controls

Filters

Exam 10: The REA Approach to Business Process Modeling

Why are journals and ledgers not modeled in an REA diagram?

According to the REA philosophy,information systems should support only the needs of accounting professionals.

Define resources,economic events,and agents.

Since REA databases do not employ journals and ledgers,how can they support financial statement reporting?

Under the REA approach support events may directly affect a change in resources.

Which of the following events would be least likely to be modeled in a REA diagram?

Modern managers need both financial and nonfinancial information that traditional GAAP-based accounting systems are incapable of providing.

Which types of entities are included in REA diagrams?

Define association.

What is a semantic data model?

The REA model is an alternative accounting framework for modeling an organization's critical resources,events,and accounts.

A semantic data model captures the operational meaning of the user's data and provides a concise description of it.

What is a user view?

All of the following are examples of economic events except

How does the REA model categorize events?

In a REA diagram each economic event is always

The Information System: An Accountant’s Perspective

Introduction to Transaction Processing

Ethics, Fraud, and Internal Control

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures

The Conversion Cycle

General Ledger, Financial Reporting, and Management Reporting Systems

Database Management Systems

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Construct, Deliver, and Maintain Systems Projects

IT Controls : Sarbanes-Oxley and IT Governance

IT Controls : Security and Access

IT Controls : Systems Development Program Changes and Application Controls

Filters