In the REA framework, which of these would be recorded as an "event?"
A)Hiring a new president of the company
B)Taking an initial sales order from a customer
C)Buying a piece of equipment for cash
D)all of these would be recorded as events

Question

Quizplus · Accepted Answer

In the REA (Resources, Events, Agents) framework, an "event" is considered any occurrence that affects the resources of the firm and can include transactions and significant occurrences. Therefore, hiring a new president (a significant management event), taking an initial sales order (a sales transaction event), and buying equipment for cash (a purchasing transaction event) would all be recorded as events.

In the REA Framework, Which of These Would Be Recorded