topic 4

financial and non-financial information is that the company ends up with a lot of duplication of data (redundancy)

enterprise-wide information systems (large database management systems) that are based on REA approach

accounts

database which captures and stores both financial and nonfinancial data

alternative approach to information processing and doesn't use tradition acct concepts

• more efficient operations
• increase productivity
• increase competitive as management has more advantage access to more relevant, timely and accurate info which leads to better business

• 1: identify operating events
• 2: organize events in order they occur
• 3: identify resources and agents involved in each event
• 4: draw lines to each event with related resources/agents
• 5: assign cardinalities of all relationships (related to each other)
• 6: identify the attributes of interest
• 7: convert REA diagram into tables
• 8: create user views (design forms that users will use to record events, update resources/agents, create reports