Question

Based on what you have learned about the REA perspective, what is the name of the agent the revenue cycle interacts with? It is important to remember agents are parties inside or outside the organization who participate in an economic event or activity, and can use or dispose of economic resources.

What is the ‘give’ resource and what is the ‘get’ resource? Being able to identify these resources indicates you are better equipped to pinpoint the assets of the business

Answer 1

• People or other human agencies, is the agent with which revenue cycles interact with.
• At the core of REA model, there exists usually a pair of events, linked by exchange nature and relation called duality.
• In one of these events, resource is given, while in other, resource is got or received.
• For example, when we purchase an item, we give cash and get the item. These two are inter related and linked together, so called with exchange relationship.
• It can be more complex, in manufacturing sector, it involves more than 2 events in exchange relationship.
• REA has continuous impact on e-commerce, and it is important to remember, agents as parties which are inside or outside the organization, who participate in economic event will be using or disposing of resources.
• Forexample, in case of purchases, Company must be clear about to whom the purchase of required items is handed over, who processes or initiates the transactions, how the agent treats the transaction, who is the incharge of receipt of items, who isthe in charge of outflow of cash(suppose, cashier) etc,
• Hence, it is very important to remember agevts in REA model, which is a relational database model and has duality or exchange relationship.