Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

The concept of duality means that a REA diagram must consist of:

Accepted Answer

A)  two events, one of them economic the other support 
B)  two agents, one of them internal and the other external 
C)  two resources, one increased and the other decreased by the same event 
D)  none of the above 
A)  two events, one of them economic the other support 
B)  two agents, one of them internal and the other external 
C)  two resources, one increased and the other decreased by the same event 
D)  none of the above

Question 3

List and explain the steps involved in preparing an REA model of a business process.

Accepted Answer

The preparation of an REA model of a bus

Question 4

Which of the following associations requires a separate link table?

Accepted Answer

A)  1:1 
B)  1:M 
C)  M:M 
D)  none of the above 
A)  1:1 
B)  1:M 
C)  M:M 
D)  none of the above

Question 5

Define cardinality.

Accepted Answer

Cardinality describes the numb

Question 6

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

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

The 'E' in REA stands for

Accepted Answer

A)  events 
B)  estimates 
C)  economics 
D)  entities 
A)  events 
B)  estimates 
C)  economics 
D)  entities

Question 10

Explain the relationship between cardinality and association.

Accepted Answer

The upper cardinalities for each of the

Question 11

Discuss the concept of duality as it relates modeling an economic transaction.

Accepted Answer

The rationale behind an economic transac

Question 12

When assigning foreign keys in a 1:M association

Accepted Answer

A)  The primary key of each table should be embedded as a foreign key in the related table 
B)  The primary key on the (0,M) side of the relation should be embedded as the foreign key on the (1,1) side. 
C)  The primary key on the (1,1) side of the relation should be embedded as the foreign key on the (0,M) side. 
D)  None of the above is true 
A)  The primary key of each table should be embedded as a foreign key in the related table 
B)  The primary key on the (0,M) side of the relation should be embedded as the foreign key on the (1,1) side. 
C)  The primary key on the (1,1) side of the relation should be embedded as the foreign key on the (0,M) side. 
D)  None of the above is true

Question 13

Value chain analysis distinguishes between primary activities and support activities.

Accepted Answer

A) True 
 B)False

Question 14

REA modeling embraces two classes of events: economic events and support events.

Accepted Answer

A) True 
 B)False

Question 15

Describe the two economic events that occur for payroll procedures.

Accepted Answer

The Get Time event captures the daily ti

Question 16

What are the minimum number and type of event entities that an REA diagram must include?

Accepted Answer

An REA model must, as a minimum, include

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

An example of an economic event is checking customer credit prior to processing a sale.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following statement 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 20

What are support events?

Accepted Answer

Support events include control

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

The concept of duality means that a REA diagram must consist of:

List and explain the steps involved in preparing an REA model of a business process.

Which of the following associations requires a separate link table?

Define cardinality.

In a REA diagram each economic event is always

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

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

The 'E' in REA stands for

Explain the relationship between cardinality and association.

Discuss the concept of duality as it relates modeling an economic transaction.

When assigning foreign keys in a 1:M association

Value chain analysis distinguishes between primary activities and support activities.

REA modeling embraces two classes of events: economic events and support events.

Describe the two economic events that occur for payroll procedures.

What are the minimum number and type of event entities that an REA diagram must include?

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

An example of an economic event is checking customer credit prior to processing a sale.

Which of the following statement is correct?

What are support events?

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

Construct, Deliver, and Maintain Systems Projects

IT Controls Part I: Sarbanes-Oxley and It Governance

IT Controls Part II: Security and Access

IT Controls Part III: Systems Development, Program Changes, and Application Controls

Filters

Exam 10: The Rea Approach to Business Process Modeling

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

The concept of duality means that a REA diagram must consist of:

List and explain the steps involved in preparing an REA model of a business process.

Which of the following associations requires a separate link table?

Define cardinality.

In a REA diagram each economic event is always

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

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

The 'E' in REA stands for

Explain the relationship between cardinality and association.

Discuss the concept of duality as it relates modeling an economic transaction.

When assigning foreign keys in a 1:M association

Value chain analysis distinguishes between primary activities and support activities.

REA modeling embraces two classes of events: economic events and support events.

Describe the two economic events that occur for payroll procedures.

What are the minimum number and type of event entities that an REA diagram must include?

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

An example of an economic event is checking customer credit prior to processing a sale.

Which of the following statement is correct?

What are support events?

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

Construct, Deliver, and Maintain Systems Projects

IT Controls Part I: Sarbanes-Oxley and It Governance

IT Controls Part II: Security and Access

IT Controls Part III: Systems Development, Program Changes, and Application Controls

Filters