Quiz:The REA
Approach to
Business Process
Modeling
Total points 18/40
The respondent's email
(anvruiz@mcian.edu.ph) was recorded on
submission of this form.
In a REA diagram each economic *0/2
event is always
linked to at least two resource
entities
linked to two external agents
linked to two internal agents
linked to another economic event
At least two REA agents *0/2
participate in each an economic
event.
True
False
The ‘A’ in REA stands for * 2/2
agents
apportionment
assets
allocation
Modern managers need both *0/2
financial and nonfinancial
information that traditional
GAAP-based accounting
systems are incapable of
providing.
False
True
Name of the student: *
Ashley Nicolette V. Ruiz
REA modeling embraces two *2/2
classes of events: economic
events and support events.
False
True
An example of an economic *0/2
event is checking customer
credit prior to processing a sale.
False
True
The concept of duality means *0/2
that a REA diagram must consist
of:
none of these
two agents, one of them internal
and the other external
two resources, one increased and the
other decreased by the same event
two events, one of them economic the
other support
In REA, resources are assets that *0/2
include accounts receivable.
True
False
Many believe that the accounting *2/2
profession should shift away
from financial statement
reporting toward providing
information that assists
decision-making.
False
True
Which of the following is true? * 2/2
All of these
REA diagram entities are arranged in
constellations by entity class.
ER diagrams present a static picture of
the underlying business phenomena
Events entity names in REA diagrams
are in the verb form
Under the REA approach support *2/2
events may directly affect a
change in resources.
False
True
The events depicted on an REA *0/2
diagram are transformed into
computer processes while the
resources and agents become
relational database tables.
True
False
The ‘R’ in REA stands for * 2/2
reserves
ratios
relationships
resources
Which of the following are *2/2
characteristics of internal
agents?
They participate in economic events,
but do not assume control of the
resources
All of the above
They are employees of the
company whose system is being
modeled
They participate in economic events,
but not in support events
The REA model is an alternative *0/2
accounting framework for
modeling an organization’s
critical resources, events, and
accounts.
False
True
Which of the following events *0/2
would be least likely to be
modeled in a REA diagram?
posting accounts payable
receiving cash
customer inquires
sales to a customer
According to the REA philosophy, *2/2
information systems should
support only the needs of
accounting professionals.
True
False
All of the following are examples *0/2
of economic events except
receiving raw materials from a
supplier
checking a customer’s credit prior to
processing a sales order
shipping product to a customer
disbursing cash for inventories
received
The ‘E’ in REA stands for * 2/2
estimates
events
economics
entities
Which statement is NOT true? *0/2
REA resources are:
under the control of agents
assets
scarce
affected by support events
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