IntroRea - Learning Objectives Identify entities and...

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Unformatted text preview: Learning Objectives Identify entities and relationships in a business process Identify resources, events and agents (REA) in a business process Evaluate and determine the cardinalities Model a companys business processes using an REA diagram ERD An entity is anything about which a company would like to collect and store information. Example: inventory, purchase, vendor, etc. It is represented using a rectangle. A relationship is an association between entities. Example: one-to-one, one-to-many It is represented using a diamond. An attribute is a characteristic of an entity, such as the inventory number and the description of each item in the entity of inventory. Resource-Event-Agent (REA) Diagram REA diagram is a framework specifically designed for modeling accounting information systems in a shared data environment based on the ERD technique. Components in an REA diagram: Resources: Things that have economic value to a company, such as cash and inventory. Events: Various business processes conducted in a companys daily operations, such as sales and purchases. Agents: People and organizations, such as customers and salespeople, who participate in business events. REA Diagram E c o n o m ic E v e n t G e t R e s o u r c e A E c o n o m ic R e s o u r c e A E c o n o m ic R e s o u r c e B E c o n o m ic E v e n t G iv e R e s o u r c e B R e s o u r c e E v e n t s A g e n t s E c o n o m ic A g e n t I E c o n o m ic A g e n t II E c o n o m ic A g e n t III E c o n o m ic A g e n t IV In flo w In s id e p a r tic ip a tio n O u ts id e p a r tic ip a tio n E c o n o m ic d u a lity F ig u r e 1 -1 T h e R E A P a tte r n * O u tflo w In s id e p a rtic ip a tio n O u ts id e p a rtic ip a tio n A general rule: each economic event should be linked to at least one economic resource and two economic agents. The relationship shown between the two economic events is referred to as an economic duality relationship. The causal relationship occurs as a result of a give and a take happening. Transaction Cycles and REA Modeling The transaction cycles are combined into an REA model to create the entire...
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This note was uploaded on 09/27/2011 for the course 6K 180 taught by Professor Staff during the Spring '11 term at University of Iowa.

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IntroRea - Learning Objectives Identify entities and...

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