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Diagrams consist of two icons, each representing a business process, linked by one of several lines that signal predetermined relationships. The growing popularity of these models has made it a staple in the teaching curriculum of many AIS and computer science courses in colleges across the globe.
Components of REA
It is necessary to first define a few terms making the explanation of REA easier. First, an entity is anything about which the company wants to collect information. REA classifies these entities into three separate categories, which is how the model got its name; Economic Resources, Economic Events, and Economic Agents...
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