Duality in the REA model refers to:
A)Debits equalling credits when recording a transaction
B)The relationship between events that bring about an increase and decrease in resources
C)An event can only relate to one resource and each event can only relate to one other event
D)Each event needing two related agents - an internal and external agent

Question

Quizplus · Accepted Answer

Duality in the REA model refers to the fact that every event in the model affects at least two different resources, with each resource having a dual effect on the other. This means that any event that causes an increase in one resource (e.g. cash) must also cause a decrease in another resource (e.g. inventory). Option A is incorrect because debits and credits are simply a recording convention and do not relate to the concept of duality. Option C is incorrect because an event can relate to multiple resources, such as a sales transaction increasing revenue and decreasing inventory. Option D is incorrect because an event can involve only one agent or multiple agents, and there is no requirement for one of them to be internal and the other external.

Duality in the REA Model Refers To