Question: Why does Figure show only one cash disbursement entity if Freds Train Shop uses a general operating checking account for purchases of inventory, supplies, and

Why does Figure show only one cash disbursement entity if Fred€™s Train Shop uses a general operating checking account for purchases of inventory, supplies, and operating expenses such as rent but also uses a separate checking account forpayroll?
Why does Figure show only one cash disbursement entity if

Suppliers Order Inventory Take Customer Order Customer Employees H Inventory Employee Salesperson Receive Inventory Sales Customer Supplier Employee Cashier) Disburseo Receive Cash Cashier] O Cash CashH Employees as Poyee) Time Worked Employee Time Employee Supervisor) FIGURE 18-4 Integrated REA Diagram for Fred's Train Shop

Step by Step Solution

3.22 Rating (169 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

REA models do not represent actual physical accounts but types of accounts Th... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

373-B-A-I-S (5030).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!