Accounting Information Systems (14th Edition)
14th Edition
ISBN: 9780134474021
Author: Marshall B. Romney, Paul J. Steinbart
Publisher: PEARSON
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Question
Chapter 18, Problem 1CQ
To determine
Identify the correct option for the given statement.
Expert Solution & Answer
Answer to Problem 1CQ
Option “d”
Explanation of Solution
REA Diagram: REA (Resources, events, agents) diagram is a technique used to establish the relationship between resource, events and agents. This diagram is used to understand accounting transactions occurring in the business entity.
Modelling of business cycle makes it easier to identify the all relevant resources, events and agents for each business cycle. The relationship between the entities is prepared when the resources, events and agents are identified. At the same time, it is easier to assign the relationships in REA diagrams for a single business cycle, because it directly represents the business policies of organization. Hence, all type of entities (resources, events, and agents) are separated in different table for easy identification.
From the above explanation it is clear that “option a, b and c” are incorrect options and option “d” is a correct answer.
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Chapter 18 Solutions
Accounting Information Systems (14th Edition)
Ch. 18 - Prob. 1CQCh. 18 - Prob. 2CQCh. 18 - Prob. 3CQCh. 18 - Prob. 4CQCh. 18 - Prob. 5CQCh. 18 - Prob. 6CQCh. 18 - Prob. 7CQCh. 18 - Prob. 8CQCh. 18 - Prob. 9CQCh. 18 - Prob. 10CQ
Ch. 18 - Prob. 1CPCh. 18 - Prob. 1DQCh. 18 - Why take the time to develop separate REA diagrams...Ch. 18 - Prob. 3DQCh. 18 - Prob. 4DQCh. 18 - Prob. 5DQCh. 18 - Prob. 6DQCh. 18 - Prob. 7DQCh. 18 - Prob. 1PCh. 18 - Prob. 2PCh. 18 - Prob. 3PCh. 18 - Prob. 4PCh. 18 - Prob. 5PCh. 18 - Prob. 6PCh. 18 - Prob. 7PCh. 18 - Prob. 8PCh. 18 - Prob. 9PCh. 18 - Refer to Problem 17.10 and develop a set of tables...Ch. 18 - Prob. 11.1PCh. 18 - Prob. 11.2PCh. 18 - Prob. 11.3PCh. 18 - Prob. 11.4PCh. 18 - Prob. 11.5PCh. 18 - Prob. 11.6PCh. 18 - Prob. 1C
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