Question 1

Most companies implementing an REA model also maintain a traditional general ledger system for financial reporting.

Accepted Answer

A) True 
 B)False  True

Question 2

Explain the difference between producing financial statements in a traditional system and in a REA model.

Accepted Answer

In a traditional system,financial statements are usually prepared from general ledger accounts,whose values are derived from journal voucher postings.With REA,traditional accounting mechanisms are reproduced from the event tables.Accounting figures extracted from REA tables can be used to prepare income statements,balance sheets,and even journal entries.

Question 3

The 'R' in REA stands for

Accepted Answer

A) ratios 
B) relationships 
C) resources 
D) reserves 
A) ratios 
B) relationships 
C) resources 
D) reserves C

Question 4

Explain how events,resources and agents are linked in a REA diagram.

Accepted Answer

Each event must be linked to at least on

Question 5

Which of the following statements is correct?

Accepted Answer

A) The REA model requires that phenomena be characterized in a manner consistent with the development of a single user view. 
B) The REA model requires that phenomena be characterized in a manner consistent with the development of a selected user view. 
C) The REA model requires that phenomena be characterized in a manner consistent with the development of a unique user view. 
D) The REA model requires that phenomena be characterized in a manner consistent with the development of a multiple user view. 
A) The REA model requires that phenomena be characterized in a manner consistent with the development of a single user view. 
B) The REA model requires that phenomena be characterized in a manner consistent with the development of a selected user view. 
C) The REA model requires that phenomena be characterized in a manner consistent with the development of a unique user view. 
D) The REA model requires that phenomena be characterized in a manner consistent with the development of a multiple user view.

Question 6

Support events include control,planning,and management activities that directly effect a change in resources.

Accepted Answer

A) True 
 B)False

Question 7

What is a semantic data model?

Accepted Answer

It is a framework for designin

Question 8

What are the four basic forms of cardinality?

Accepted Answer

The four basic forms of cardin

Question 9

Which of the following tables would most likely have a composite key?

Accepted Answer

A) Take Order 
B) Cash 
C) Ship Product 
D) Inventory Ship Link 
A) Take Order 
B) Cash 
C) Ship Product 
D) Inventory Ship Link

Question 10

Value chain analysis distinguishes between primary activities and support activities.

Accepted Answer

A) True 
 B)False

Question 11

What is the REA model? What does it mean for accountants?

Accepted Answer

The REA model is an alternative accounti

Question 12

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 13

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

Accepted Answer

A) True 
 B)False

Question 14

Modeling economic transactions under the REA approach always includes depicting both internal and external agents.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

Accounting activities such as recording

Question 16

Define view integration?

Accepted Answer

It is the process of combining

Question 17

When developing an REA model:

Accepted Answer

A) accounting artifacts are represented as support events 
B) the same resource is both increased and decreased by the duality association 
C) link tables are explicitly depicted 
D) events are organized in sequence of occurrence 
A) accounting artifacts are represented as support events 
B) the same resource is both increased and decreased by the duality association 
C) link tables are explicitly depicted 
D) events are organized in sequence of occurrence

Question 18

Many believe that the accounting profession should shift away from financial statement reporting and toward providing information that assists decision-making.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is not an example of an economic event?

Accepted Answer

A) Ship goods 
B) Receive goods 
C) Get employee time 
D) Prepare cash disbursements voucher 
A) Ship goods 
B) Receive goods 
C) Get employee time 
D) Prepare cash disbursements voucher

Question 20

REA diagrams include all of the following entities except

Accepted Answer

A) support events 
B) economic events 
C) internal agents 
D) users 
A) support events 
B) economic events 
C) internal agents 
D) users

Most companies implementing an REA model also maintain a traditional general ledger system for financial reporting.

Explain the difference between producing financial statements in a traditional system and in a REA model.

The 'R' in REA stands for

Explain how events,resources and agents are linked in a REA diagram.

Which of the following statements is correct?

Support events include control,planning,and management activities that directly effect a change in resources.

What is a semantic data model?

What are the four basic forms of cardinality?

Which of the following tables would most likely have a composite key?

Value chain analysis distinguishes between primary activities and support activities.

What is the REA model? What does it mean for accountants?

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

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

Modeling economic transactions under the REA approach always includes depicting both internal and external agents.

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

Define view integration?

When developing an REA model:

Many believe that the accounting profession should shift away from financial statement reporting and toward providing information that assists decision-making.

Which of the following is not an example of an economic event?

REA diagrams include all of the following entities except

The Information System: an Accountants 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

Financial Reporting,and Management Reporting Systems

Database Management Systems

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Auditing It Controls Part I: Sarbanes-Oxley and It Governance

Auditing It Controls Part II: Security and Access

Auditing It Controls Part III: Systems Development, program Changes, and Application Auditing

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Exam 10: The Rea Approach to Business Process Modeling

Most companies implementing an REA model also maintain a traditional general ledger system for financial reporting.

Explain the difference between producing financial statements in a traditional system and in a REA model.

The 'R' in REA stands for

Explain how events,resources and agents are linked in a REA diagram.

Which of the following statements is correct?

Support events include control,planning,and management activities that directly effect a change in resources.

What is a semantic data model?

What are the four basic forms of cardinality?

Which of the following tables would most likely have a composite key?

Value chain analysis distinguishes between primary activities and support activities.

What is the REA model? What does it mean for accountants?

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

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

Modeling economic transactions under the REA approach always includes depicting both internal and external agents.

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

Define view integration?

When developing an REA model:

Many believe that the accounting profession should shift away from financial statement reporting and toward providing information that assists decision-making.

Which of the following is not an example of an economic event?

REA diagrams include all of the following entities except

The Information System: an Accountants 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

Financial Reporting,and Management Reporting Systems

Database Management Systems

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Auditing It Controls Part I: Sarbanes-Oxley and It Governance

Auditing It Controls Part II: Security and Access

Auditing It Controls Part III: Systems Development, program Changes, and Application Auditing

Filters