in an rea model of the purchase and payment process, if each purchase involved only one high value item, such as a new automobile, the maximum multiplicity next to the inventory resource would be , and the maximum multiplicity next to the purchases event would also be .

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13-10-2022
Business

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in an rea model of the purchase and payment process, if each purchase involved only one high value item, such as a new automobile, the maximum multiplicity next to the inventory resource would be , and the maximum multiplicity next to the purchases event would also be .

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smecloudbird17 smecloudbird17 · Answer 1 · 2022-10-27T15:29:58+02:00

In an REA model of purchase and payment process, if each purchase involved only one high value item, the maximum multiplicity next to the inventory resource would be one, and the maximum multiplicity next to the purchase event would also be one.

It is seen that in the generic REA model of the purchase and payment process, the multiplicities on the association between the suppliers and the purchases indicates that each supplier can thus participate in a minimum of zero purchases and a maximum of many purchases altogether.

The REA model tends to view the accounting data collection as a system in order to collect data about the events, resources, and agents within business processes. Thus, here the maximum multiplicity next to the inventory resource would be one.

Hence, the maximum multiplicity next to purchase event would also be one.

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