Question 1

Features that assist management and accountants, as the result of the point-of-sale systems, include all of the following, except:

Accepted Answer

The ability for check-out clerks to change list prices is not a feature that would assist management and accountants, as it could potentially result in inaccurate sales and inventory records. The other options all provide benefits for analysis, accuracy, and efficiency in management and accounting.

Question 2

This term refers to moving the current accounting period's cut-off date forward to include sales that correctly occur in a future period.This activity occurs so that the selling company can inflate their sales in the current period.

Accepted Answer

Leaving sales open refers to extending the accounting period to include future sales, inflating current period sales figures.

Question 3

The risks of e-commerce, or e-business, include all of the following, except:

Accepted Answer

Accuracy is not typically viewed as a risk of e-commerce or e-business. The main risks are confidentiality (protecting sensitive information), security (protecting against unauthorized access or data breaches), and processing integrity (ensuring that transactions are processed correctly).

Question 4

In a point of sale system, which of the following is NOT one of the processing integrity risks reduced by having an automated POS system?

Accepted Answer

While an automated POS system may help identify instances of theft (such as through inventory tracking), it cannot completely eliminate the risk of shrinkage due to theft. The other options, pricing errors, cash shortages, and erroneous/invalid sales invoices or voids, can all be reduced by an automated POS system.

Question 5

A control that limits the risk of network break-ins is the coding of data that makes data unreadable to those without the appropriate key.This process does not stop the breaches, but will make the data useless.

Accepted Answer

Encryption is the process of encoding data so that it can only be interpreted with the appropriate key. This is an effective control for limiting the risk of network break-ins because even if an attacker gains access to the encrypted data, they will not be able to read or use it without the key.

Question 6

Because it can be expensive to develop and maintain a system that links two companies directly, the companies often use a third-party network.This third-party network provides other valuable services such as translation and encryption of the EDI data and authentication of a valid and authorized training partner.These third-party networks are called:

Accepted Answer

These third-party networks are commonly referred to as Value Added Networks (VANs). They provide additional services such as data translation, encryption, data routing, and data archiving to companies using EDI. VANs allow companies to connect to multiple trading partners through a single connection, reducing the overall cost of EDI implementation and maintenance.

Question 7

Availability risks of e-commerce, or e-business, include all of the following, except:

Accepted Answer

All of the other options mentioned (hardware and software failures, virus and work attacks, denial-of-service attacks) are real risks associated with e-commerce. However, incomplete audit trails are not necessarily a risk to the availability of e-commerce systems, but rather a risk to the accuracy and accountability of financial transactions.

Question 8

The purposeful and organized changing of business processes to make the processes more efficient is known as:

Accepted Answer

Business process reengineering involves the purposeful and organized changing of business processes to make them more efficient. Option B is not a commonly used term, Option C refers to the redesigning of electronic data and Option D is the interchange of electronic data between two or more companies.

Question 9

The standard format used with electronic data interchange (EDI) allows all vendors and buyers to speak the same language.This group has developed the standard format for the common documents used in the sales process:

Accepted Answer

The American National Standards Institute (ANSI) is responsible for developing and maintaining standards for various industries, including the standard format used in electronic data interchange (EDI). The other options, Electronic Data Systems, American Common Forms Institute, and iation of Naturalized Documents, do not have a role in developing EDI standards.

Question 10

Which of the following is NOT an example of a programmed input validation check that would help to detect and prevent keying errors?

Accepted Answer

"Input checks" is not a specific type of input validation check. The other options (field checks, validity checks, and reasonableness checks) are all examples of input validation checks that help to detect and prevent keying errors.

Question 11

This type of highly integrated IT system, inter-company, computer-to-computer, communicates sales documents electronically with a standard business format.

Accepted Answer

Electronic data interchange (EDI) is a highly integrated IT system that enables intercompany, computer-to-computer communication of sales documents using a standard business format. EDI eliminates the need for paper-based transactions, reduces errors, and speeds up the processing of orders, invoices, and other documents. E-commerce and virtual commerce, on the other hand, refer to online buying and selling of goods and services, while point of sale refers to the physical location where a transaction occurs, such as a retail store checkout counter.

Question 12

The process of user identification to ensure that only authorized users are accessing the IT system, which occurs through the use of user ID, password, and other unique identifiers, is called:

Accepted Answer

Authentication is the process of verifying the identity of a user or system, and ensuring that only authorized users are accessing the IT system. This process often involves the use of unique identifiers such as a user ID or password. Processing integrity refers to ensuring that data is processed accurately and completely, virtualization refers to the creation of virtual versions of computing resources, and availability refers to ensuring that a system is available and accessible to authorized users.

Question 13

The advantages of e-commerce, or e-business, include all of the following, except:

Accepted Answer

Repudiation of sales transactions is not an advantage of e-commerce, as it refers to a situation where a party denies participating in a transaction, which can be difficult to resolve in a digital setting. The other options are all advantages of e-commerce.

Question 14

The Point-of-sales (POS) systems capture all relevant sales data at the point of sale - the cash register.The data that is captured includes all of the following, except:

Accepted Answer

Although POS systems can track inventory levels and generate alerts when stock is running low, they typically do not initiate ordering for low-inventory items. This is a separate process that requires manual input or integration with a separate inventory management system.

Question 15

This type of highly integrated IT system processes sales at a cash register in retail stores.

Accepted Answer

A point of sale system processes transactions at the cash register in a retail store, including scanning products, calculating totals, and processing payments.

Question 16

Important characteristics of electronic data interchange (EDI) include all of the following, except:

Accepted Answer

Sales register is not a characteristic of EDI. EDI involves the electronic exchange of business documents such as purchase orders, invoices, and shipping notices between two or more companies utilizing a standardized format and computer-to-computer connection.

Question 17

EDI systems have many advantages within the revenue and cash collection processes.Which of the following is not one of those benefits?

Accepted Answer

Trading partners gaining access to data is not considered a direct benefit of EDI systems within the context of revenue and cash collection processes. EDI systems primarily aim to improve efficiency and accuracy by automating data exchange, reducing manual data entry (A), eliminating postage costs by digitizing communications (C), and enhancing customer service for competitive advantage (D). Access by trading partners to data, while potentially beneficial in broader contexts, is not a primary advantage cited for revenue and cash collection processes specifically.

Question 18

This section of the common forms used as the standard format in EDI data transmission contains data about the file or transmission and identify the end of a particular transaction.

Accepted Answer

The header and trailer data includes information about the file or transmission, such as the sender and receiver IDs, date and time of creation, and total number of segments. The trailer segment also marks the end of a particular transaction or group of segments.

Question 19

This occurs when the IT system automatically makes a list of users and the actions they take within the IT system.

Accepted Answer

This is describing transaction logging, which is when an IT system automatically logs users' actions within the system. Control totals are a technique used to ensure that data has been accurately processed, encryption keys are used to secure data, and acknowledgment is a signal indicating that a message or request has been received.

Question 20

The standard format for common forms used in the United States for electronic data interchange (EDI) data transmission is divided into three parts.Which of the following is one of those "parts"?

Accepted Answer

The standard format for EDI data transmission in the United States includes "Labeling Interchanges" as one of its parts, which helps in identifying and routing the data correctly.

Quiz 8: Revenue and Cash Collection Processes and Controls