REA data modeling
A)Can be used only to model financial data.
B)Can provide accountants with a method for more easily adapting the AIS to respond to change.
C)Is an example of a traditional accounting concept.
D)Is just a fancy way of doing E-R diagramming.

Question

Quizplus · Accepted Answer

REA (resources, events, agents) data modeling is a method for designing and implementing accounting information systems that emphasizes the relationships between resources (assets), events (transactions), and agents (people or organizations). It can be used to model not only financial data but also non-financial data such as inventory or production data in a business. REA modeling provides a flexible framework that enables accountants to easily adapt the AIS to respond to changes in the business environment. While it is based on accounting concepts, REA modeling is not just a fancy way of doing E-R diagramming, although it does share some similarities with E-R modeling.

REA Data Modeling