What is important aspect about REA modeling for Accounting Information Systems database design?

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Answer :-

RESOURCES EVENTS AGENTS (REA) IN ACCOUNTING INFORMATION SYSTEMS

REA is an acronym for resources, events, and agents. The REA model views accounting data collection as a system to collect data about the resources, events, and agents within business processes.

An example of such an event is a sale. The resources exchanged are inventory and cash. The agents are the company (seller) and the customer (buyer).

An REA model suggests that the basic data collected should be the resources, events, and agents in this exchange.

Main disadvantage of this model focuses on economic data prior to all other systems it goes opposite to double entry system hence users are a little conscious of the process in and out logs.

So, important aspect of REA model for Accounting Information Systems database design is to collect data about the resources, events, and agents within business processes.

Thank you.

ekkarill92 answered 1 year ago

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