Question

MC2. Which of the following pairs of classes would typically be related to each other in a stockflow association in a REA model?

A) Vendor and inventory
B) Purchase and cash disbursement
C) Purchase and purchasing agent
D) Purchase and inventory
E) Inventory and cash

Answer 1

In the REA model, a stock flow association relates an event to a change in resource quantity. The pair 'Purchase and inventory' appropriately represents this relationship, where purchasing leads to an increase in inventory.

Step-by-step explanation:

In the context of a Resources-Events-Agents (REA) model, the stock flow association pertains to the relationship between an event that affects a stock of resources and the resources themselves. The classes that would typically be related in a stock flow association are those which depict the flow of goods and the corresponding events that either increase or decrease the quantity of those goods. Hence, among the options provided, the pair that fits into this description would be choice D) Purchase and inventory. This is because 'Purchase' is an event that would affect the stock of 'inventory' items in the sense that buying more goods would increase the inventory. Other options do not represent stock flow associations because they either represent other types of associations or are unrelated to the stock of goods (like a Vendor or Cash).