In an REA diagram,resource entities
A)can be linked to event entities in Business Cycle A and to event entities in Business Cycle B.
B)cannot be linked to event entities in Business Cycle A and to event entities in Business Cycle B.
C)cannot be linked to agent entities.
D)none of the above

Question

Quizplus · Accepted Answer

Resource entities can be linked to event entities in multiple business cycles in an REA diagram. This is because resource entities represent the economic resources of the organization, which can be involved in multiple business cycles. However, resource entities can also be linked to agent entities, as they are often acquired, used or managed by agents within the organization. Therefore, option B and C are not correct.

In an REA Diagram,resource Entities