Concerning the use of REA diagrams to retrieve information from a database
A) although neither journals nor ledgers appear explicitly in an REA diagram, each can be created through appropriate queries.
B) the information normally found in a journal is contained in the tables used to record data about events.
C) much of the information about an organization's assets that is traditionally recorded in ledgers is stored in resource tables in an REA-based relational database.
D) all of the above

Question

Quizplus · Accepted Answer

- A is true because REA diagrams focus on events and the resources involved, rather than the traditional accounting books like journals and ledgers, but their information can still be retrieved by running appropriate queries on the tables.
- B is also true because REA diagrams include tables for recording data about events, which would traditionally be recorded in a journal, so the information is already contained in the database.
- C is true because REA diagrams explicitly model the resources of an organization, so much of the information found in ledgers (e.g., asset balances) can be stored in resource tables in an REA-based database.

Concerning the Use of REA Diagrams to Retrieve Information from a Database