Deck 3: Electronic Business E-Business Systems

Question 1

The Internet is a massive interconnection of computer networks worldwide that enables communication between dissimilar technology platforms.

Answer 1

True

Question 2

Processes that include distribution, manufacturing, and accounting operations are front office processes.

Answer 2

False

Question 3

A device that is not directly connected to the central computer or network is referred to as an online device.

Answer 3

False

Question 4

Local area networks (LANs) are communication networks that link up distributed users and local networks into an integrated communication network.

Question 5

Client/server technology is the physical and logical division between user-oriented application programs that are run at the client (user) level and the shared data that must be available through the server (i.e. separate computer containing a database that handles centrally shared activities.

Question 6

Information processing includes data processing functions related to accounting events, internal operations and financial statement preparation.

Question 7

In an online transaction entry (OLTE) system, use of data entry devices allows business event data to be entered directly into the information system at the time and place that the business event occurs.

Question 8

Periodic mode is the data processing mode in which there can be a delay exists between data processing steps.

Question 9

Value-added networks (VANs) are communication networks that link together several different local user machines with printers, databases, and other shared devices.

Question 10

E-Business is the application of electronic networks (including the Internet) to exchange information and link business processes among organizations and individuals.

Question 11

Data maintenance refers to the recording of business event data and transactions.

Question 12

Batch processing is the aggregation of several business events over some period of time with the subsequent processing of these data as a group by the information system.

Question 13

Batch mode is the data processing mode in which there is little or no delay between any two data processing steps.

Question 14

Master data are repositories of relatively permanent data maintained over an extended period of time.

Question 15

A computer configuration in which certain equipment is directly connected to the computer is said to be online.

Question 16

Adding, deleting, or replacing standing data is called transaction processing.

Question 17

Standing data is relatively permanent portions of master data.

Question 18

Web browsers are software programs designed specifically to allow users to view the various documents and data sources available on the Internet.

Question 19

Online real-time (OLRT) systems gather business event data at the time of occurrence, update the master data essentially instantaneously, and provide the results arising from the business event within a very short amount of time.

Question 20

Immediate mode is the data processing mode in which there is delay between data processing steps.

Question 21

A by-product of e-business is

A) elimination of sales staff
B) increase in accounting staff
C) production of hard copy reports
D) increased errors

Question 22

E-mail is the electronic transmission of nonstandardized messages between two individuals who are linked via a communications network.

Question 23

Back-office functions include:

A) customer interface
B) supplier interface
C) purchasing
D) accounting

Question 24

Purchasing function benefits from e-business include

A) elimination of sales staff
B) automatic price checking by the computer
C) interaction with supplier sales staff
D) all of the above

Question 25

Network providers are companies that provide a link into the Internet by making their directly connected networks available for access by fee-paying customers.

Question 26

Cloud computing is the use of the Internet to provide scalable services, such as software, and resources, such as data storage, to users.

Question 27

Electronic document management (EDM) is the computer-to-computer exchange of business data in structured formats that allow direct processing of those electronic documents by the receiving computer system.

Question 28

Extranet auction markets provide an Internet base for companies to place products up for bid or for buyers to put proposed purchases up for bid.

Question 29

Electronic data interchange (EDI) is the capture, storage, management, and control of electronic document images for the purpose of supporting management decision making and facilitating business event processing.

Question 30

The AICPA Internet assurance program that includes a certification and seal is called VeriSign.

Question 31

Electronic store fronts are Internet-located resources for displaying goods and services for sale and for conducting related sales transactions.

Question 32

Internet assurance is a service provided for a fee to vendors in order to provide absolute assurance to users of the vendor's web site that the site is in fact reliable and event data security is reasonable.

Question 33

A type of intranet, which has been extended to limited external access, is referred to as an extranet.

Question 34

The benefits of electronic document management (EDM) include improved staff productivity, reduced cost of handling and storing paper and faster processing.

Question 35

Value-added network (VAN) service acts as the EDI "post office."

Question 36

Which of the following is NOT a primary e-business category?

A) Business-to-consumer
B) Consumer-to-consumer
C) Business-to-business
D) none of the above

Question 37

Applications such as ANSI (X12) and EDIFACT are referred to as transaction software.

Question 38

Internet market exchanges enable suppliers to put their products online, by feeding into electronic catalogs that sort through alternatives from different suppliers and electronically place an order.

Question 39

Internet commerce is computer-to-computer exchange of business event data in structured or semi-structured formats via Internet communication that allows the initiation and consummation of business events.

Question 40

SPAM is unsolicited unwanted mail.

Question 41

In a(n) ____ system, use of data entry devices allows business event data to be entered directly into the information system at the time and place the business event occurs

A) online transaction entry (OLTE)
B) online transaction data (OLTD)
C) Periodic
D) electronic document management (EDM)

Question 42

The processing mode in which there is no or little delay between any two data processing steps is referred to as:

A) imperial mode
B) periodic mode
C) immediate mode
D) passive mode

Question 43

A system that supports constantly up-to-date reporting of data is

A) online transaction entry (OLTE)
B) online real-time (OLRT)
C) online transaction data (OLTD)
D) electronic document management (EDM)

Question 44

This includes data processing functions related to accounting events, internal operations and financial statement preparation

A) batch processing
B) information processing
C) periodic processing
D) data maintenance

Question 45

A disadvantage of periodic mode systems is

A) online master data are only up to date right after the processing has been completed
B) it is more expensive to operate than immediate mode systems
C) query capability always exists to extract up-to-date data
D) data is updated after every transaction

Question 46

Systems that gather business event data at the time of occurrence, update the master data essentially instantaneously, and provide the results arising from the business event within a very short amount of time are referred to as:

A) online transaction entry (OLTE)
B) online real-time (OLRT)
C) online transaction data (OLTD)
D) electronic document management (EDM)

Question 47

Business to business (B2B)

A)systems are limited to companies that see over the Internet
B)represents the majority of e-business volume
C) both a. and b.
D) neither a. nor b.

Question 48

Electronic document management (EDM) systems are capable of performing all of the following except:

A) capture of data
B) storage of data
C) control of data
D) creation of data

Question 49

Suggesting items to Internet customers based on their buying patterns

A) is from the collection and analysis of customer purchase data
B) is known as "shop at one location"
C) has increased sellers' inventory levels
D) all of the above

Question 50

A disadvantage of the periodic mode is:

A) completeness
B) accuracy
C) validity
D) timeliness

Question 51

The correct sequence of subprocesses for the batch processing of accounting data is

A) business event occurs, update master data, record business event data, generate outputs
B) business event occurs, generate outputs, update master data, record business event data
C) business event occurs, record business event data, update master data, generate outputs
D) none of the above

Question 52

The technology that is the physical and logical division between user-oriented application programs that are run at the client level and the shared data that must be available through a separate computer (server) that handles centrally shared activities is:

A) online real-time technology
B) client/server technology
C) online transaction processing technology
D) online transaction entry technology

Question 53

In batch processing, business event data are collected and processed

A) as soon as possible
B) one at a time
C) in groups
D) using OLRT systems

Question 54

These are repositories of relatively permanent data maintained over an extended period of time

A) business event data
B) data maintenance
C) master data
D) standing data

Question 55

Vendor online catalogs can be viewed by customers through a(n):

A) Browser
B) Compiler
C) Intranet
D) none of the above

Question 56

These are relatively permanent portions of master data

A) business event data
B) data maintenance
C) master data
D) standing data

Question 57

An online transaction entry (OLTE) system merges the traditional subprocesses of:

A) business event occurrences and record business event data
B) business event occurrences and update master data
C) business event occurrences and generate outputs
D) record business event data and update master data

Question 58

The processing mode in which there is a delay between the various data processing steps is referred to as:

A) imperial mode
B) periodic mode
C) immediate mode
D) passive mode

Question 59

There are two categories of electronic document management (EDM) systems:

A) document storage and retrieval and business event data processing
B) document storage and document retrieval
C) periodic storage and immediate retrieval
D) immediate storage and periodic retrieval

Question 60

According to the text, this is a "book of original entry"

A) business event data store
B) data maintenance store
C) master data store
D) standing data store

Question 61

Internet market exchanges:

A) restrict those that can participate
B) eliminate the need for credit and background checks
C) bring together buyers and sellers in the same industry
D) are approved by the Federal Trade Commission (FTC)

Question 62

Which of the following is not a benefit of Internet commerce?

A) maintaining security of the Internet site
B) improved responsiveness to customers' needs
C) survival in a competitive industry
D) global penetration

Question 63

Which of the following is not a benefit of electronic data interchange (EDI)?

A) enables continued business with certain business partners
B) improved responsiveness to customers' needs
C) providing timely and accurate data
D) training employees

Question 64

The benefits of electronic document management (EDM) include all of the following except:

A) improved staff productivity
B) reduced computer processing requirements
C) reduced cost of handling and storing paper
D) faster processing

Question 65

In Electronic Data Interchange (EDI), the software that includes the purchasing system at the origin and the order entry system at the destination is known as

A) translation software
B) value-added network (VAN)
C) the communications network
D) application software

Question 66

____ is (are) communication networks that link several different local user machines with printers, databases, and other shared devices.

A) Wide area networks (WANs)
B) Client/server technology
C) Local area networks (LANs)
D) The Internet

Question 67

WebTrust is a(n):

A) e-mail program
B) Internet provider
C) Internet assurance service
D) electronic document management program

Question 68

To implement a secure Electronic Data Interchange (EDI) system between two or more companies, they might use a(n):

A) online transaction entry (OLTE)
B) value-added network (VAN)
C) online transaction data (OLTD)
D) online real-time (OLRT)

Question 69

Which of the following is not a cost of electronic data interchange (EDI)?

A) buying or leasing of hardware and software
B) training employees
C) responsiveness to customers' needs
D) reengineering applications

Question 70

Web Services includes the following technologies;

A) electronic data interchange (EDI)
B) simple object access protocol (SOAP)
C) electronic document management (EDM)
D) online transaction entry (OLTE)

Question 71

Costs of Internet commerce include

A) training employees
B) reengineering application systems
C) establishing connections with new customers
D) all of the above

Question 72

There is a high chance of success using an Electronic Data Management (EDM) for applications in which

A) data must be scanned
B) large amounts of paper are produced and stored
C) both of the above
D) none of the above

Question 73

Cloud computing uses the Internet to provide services such as:

A) electronic mail (e-mail)
B) data storage
C) software
D) all of the above

Question 74

Service-oriented architectures (SOAs) are independent functions (or applications) that can be distributed over a network via:

A) Web services
B) value-added networks (VANs)
C) local area networks (LANs)
D) wide area networks (WANs)

Question 75

Benefits of electronic data management (EDM) include all of the following except

A) reduced cost of handling and storing paper
B) improved staff productivity
C) faster processing
D) less disk storage

Question 76

The risks of Internet commerce include all of the following except:

A) redesign of existing business processes
B) hackers may attempt to access sensitive information
C) individuals or organizations may attempt to overload the system, preventing legitimate customers from accessing the site
D) business partners have access to sensitive information

Question 77

The proper sequence of activities in a manual accounting system is:

A) journalize, summarize, post
B) journalize, post, summarize
C) post, journalize, summarize
D) post, summarize, journalize

Question 78

Electronic document management (EDM) includes all of the following except:

A) capturing document images
B) controlling document images
C) storing document images
D) all of the above are included in EDM

Question 79

The fastest-growing segment of commerce-business is:

A) electronic mail (e-mail)
B) electronic document management (EDM)
C) electronic data interchange (EDI)
D) Internet commerce

Question 80

Which of the following are the two primary categories of e-business over the web?

A) Client and server relationships
B) Networks and network providers
C) Assurance providers and vendors
D) B2B and B2C