Answer to Question #315502 in Microeconomics for Jen

Question

The ultimate goal of Accounting Information System is to use relational database technologies to record and store data by digitizing business transactions and business policies. Based on the give-to-get economic duality, the REA theory demonstrates that Resource, Event, and Agent can conceptualize all business processes and policies. The cardinalities of ER (entity-relationship) guides how to develop the relationship between two tables. the approach to developing an REA diagram for each business cycle and integrating REA diagrams across cycles. 

The differences between merging redundant resources and merging redundant events in the integration. 3 sentences to explain the differences?

Can we directly link two entities (tables) if they have a Many-to-many relationship? If not, how to solve this issue?

Does the AIS database directly store Accounts Payable data? If not, how can we acquire this information for the financial report?

Answer 1

1. merging redundant resources does not affect cardinalities

2. merging redundant events alters the minimum cardinalities with the other events that are related to the merged event. usually changes from 1 to 0

3.Merging redundant resources does not affect any cardinalities, but merging redundant events alters the minimum cardinalities associated with the other events that are related to the merged event.

No, the problem can be solved by creating one-to-many relationships.

Yes, the AIS stores Accounts Payable data.