Since REA databases do not employ journals and ledgers, how can they support financial statement reporting?


Journals, ledgers, and double-entry bookkeeping are the traditional mechanisms for formatting and transmitting accounting data, but they are not essential elements of an accounting database. REA systems capture the essence of what accountants account for by modeling the underlying economic phenomena directly from the transaction data. Organizations employing REA can thus produce financial statements, journals, and ledgers.

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