Question

1. Below the basic elements of REA data model:

• Inventory
• Sales
• Cash
• Cash received
• Employee
• Customer

Required: based on the basic elements above, draw a REA data model.

Answer 1

Resources that the organization acquires and uses.

INVENTORY - Inventory sold is SALES
CASH - Cash received becomes cash

Events in which the organization engages.

SALES - From inventory, made by employee, made to customer
CASH RECEIVED - From customer, handled by employee

Agents participating in these events.

EMPLOYEE - Records sales and collects cash
CUSTOMER - Buys inventory and pays cash

a) Rules of the Standard REA template:

I. Every event entity must be linked to at least one resource entity.

II. Every event entity must be linked to at least one other event entity.

III. Every event entity must be linked to at least two participating agents.