Reference no: EM131572184
1. Why are firms reluctant to implement REA modeling concepts?
2. Do you believe that REA modeling will become a standard for developing & implementing accounting information systems? Explain why or why not?
3. As you read this short example, think about which items need more detailed examples and what seems to be in error. Can you pick them out? Do you agree with the assessment or REA?
Ralph's surveying company (Ralph and three other survey agents) has several things that add economic value to his company. He is the biggest resource his company has to offer...that and orders for surveys, and of course cash. This is the resource part or R of REA.
The company collects information like section, township, range, parcel ID numbers in a efficiency process in order to save time with land surveying. It is nice to know that you just completed a survey on the next lot when you begin a new survey. Believe me, after a while all lots look very similar. These are the events that our important to our company and represent the E in REA.
Like most companies our agents are important to us. They are the clients and our personnel. Without them the REA model would seem useless. These are the agents we encounter and the A in REA.
4. What would be the problem of using standardized REA diagrams?