What does an entity-relationship diagram represent? Why do accountants need to understand them?
What will be an ideal response?
Entity relationship diagrams represent the relationship between entities in a system. An entity is either 1) a resource (such as cash or inventory), 2) an event (such as a sale or a receipt of cash), or 3) an agent (such as a customer or vendor). ERDs represent the relationship between entities graphically. ERDs are used in the design of databases.
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