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The REA Method

The REA method is an accounting framework for modeling an organization's critical resources, events, and agents and the relationships between them. It was proposed in 1982 by William E. McCarthy as a generalized accounting model. The basic REA pattern shows resources, events, and agents and the relationships between them.

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Jannelle Salac
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45 views15 pages

The REA Method

The REA method is an accounting framework for modeling an organization's critical resources, events, and agents and the relationships between them. It was proposed in 1982 by William E. McCarthy as a generalized accounting model. The basic REA pattern shows resources, events, and agents and the relationships between them.

Uploaded by

Jannelle Salac
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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The REA

Method
MARY JOY DELA CRUZ ^ JANNELLE SALAC
REA
is an accounting framework for modelling
an organization's critical resources, events,
and agents and the relationships between
them.

Proposed in 1982 by William E. McCarthy


as a generalized accounting model.
The Basic REA Pattern

Resources Events Agents


RESOURCES EVENTS
AGENTS

Economic resources Economic events Economic agents

Are the assets of the Are phenomena that Are individuals and
organization. affect changes in departments that
resources. participate in an
economic event.
The basic REA pattern
Sales person
handles
goods outflow
sales

sell to

customer
duality

collect from

cash receipt
inflow
money Receives
cashier
Inventory

Customer (hungry)

with money

Employee
The employee sells the cupcakes to the customer
the cutomer pays the employee for the cupcakes
the customer deposits the money in the bank
CUPCAKES EMPLOYEE
(Inventoty) (Internal Agent)

CUSTOMER
(External Agent)
CUPCAKES SALE EMPLOYEE
(Inventoty) (Event) (Internal Agent)

CUSTOMER
(External Agent)
EMPLOYEE
(Internal Agent)

CASH RECEIPT CUSTOMER


(Events) (External Agent)
CASH CASH RECEIPT
(Resource) (Event)
Cupcakes sale employee
(Inventory) (event) (internal agent)

cash cash receipt customer


(resources) (event) (external agent)
Thank You!

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