Question

What are the strengths and weaknesses of the REA Model when compared to a commercial system?

Answer 1

This is the model which can help us to structure databases which are there for AIS. This actually helps us to know about the entities which are to be included in the databases and the how-to structure them in the databases and what will be the relationship among them. This model deals with Resources Events and Agents.

Following are the strengths of the REA model.

1. The major strength of the REA model is that it can help us to make the operations more efficient.
2. It can help us to decide what are the attributes which are not adding value to the final output and thus we can discard them.
3. With the help of this, all the financial and non-financial data can be stored under one umbrella in one database collection.
4. As the financial and non-financial data is together, thus it can help us to make decisions and have a competitive advantage.

Following are the limitations of weaknesses of the REA model.

1. Due to this Model, there is loss of non-financial and non-economic information as this model focuses more on economic activities.
2. The other limitation is that this model is event-oriented, but it would have been better if it follows the principles of event-based.

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