The REA model classifies entities into three basic categories.Which of the following is one of these three?
A)resources
B)relationships
C)accounting
D)entities

Question

Quizplus · Accepted Answer

The three basic categories in the REA model are resources, agents, and events. Resources refer to things of value to a business, such as inventory, cash, and equipment. Relationships are not one of the basic categories in the REA model, but rather refer to the connections between entities. Accounting is also not one of the basic categories, although the REA model is often used in accounting information systems. Entities is not a valid answer as it is too broad and encompasses all objects in the model.

The REA Model Classifies Entities into Three Basic Categories