Elegant Limited sells restored classic cars. Most of its customers are private buyers who buy cars for themselves. However, some of them are investors who buy multiple cars and hold them for resale. All
sales of Elegant Limited are for cash.
Depict the association and cardinality for the sales of cars at Elegant Limited based on REA mode

Elegant Limited

a) Association for the sales of cars based on the REA model:

The association indicates the relationships that exist between economic agents in the sales of cars.  The relationships are between the seller (Elegant Limited) and the buyers or customers (private buyers and investors).  The association based on the REA model is that each economic agent exchanges some economic resources during an economic event.  Elegant Limited will give cars to customers in exchange for cash or initially and in some cases, a promise to pay cash later.  This is an economic event.  When the customer pays, another economic event takes place, and resources are also exchanged.

b) Cardinality of the sales of cars:  The cardinality defines the elements involved in the sales of cars based on the REA model.  The elements are the economic resources (cars and cash), the economic events or business transactions that take place (sales of cars and payment of cash), and the economic agents (Elegant Limited and customers) who make the events and the exchange of resources to happen.

Explanation:

The REA model is a framework for defining business processes.  It was originally proposed in 1982 by William E. McCarthy as a generalized accounting model, and contained the concepts of resources, events, and agents.  It proposed to replace accounting objects like assets and liabilities with real-life objects, including:

1) goods, services or money, or resources

2) business transactions or agreements that affect resources, events

3) people or other human agencies (other companies, etc.), agents.

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