Question 1

Electronic transmission of financial information between a company and its bank is called&#10;A)financial EDI&#10;B)electronic information transfer&#10;C)wireless transfer&#10;D)electro-banking

Accepted Answer

Financial EDI (Electronic Data Interchange) is the electronic transmission of financial information between a company and its bank. This can include transactions such as payments, deposits, and balance inquiries.

Question 2

The electronic movement of information and funds between buyer and seller for the purpose of facilitating a business transaction is called&#10;A)electronic funds transfer&#10;B)electronic data interchange&#10;C)cyberspace coerce&#10;D)the worldwide web

Accepted Answer

Electronic Data Interchange (EDI) is the electronic movement of information and funds between buyer and seller for the purpose of facilitating a business transaction. Electronic Funds Transfer (EFT) is specifically the electronic transfer of funds between bank accounts. Cyberspace Coerce is not a commonly used term and the worldwide web refers to the internet as a whole, rather than a specific business transaction.

Question 3

Out of the three levels of information needs in the financial management of a company,the first level is:&#10;A)An operations level&#10;B)The strategic level&#10;C)The management level&#10;D)The analysis and decision support level.

Accepted Answer

The first level of information needs in the financial management of a company is the operations level. This level deals with the daily operational activities of the business, such as inventory management, sales tracking, payroll management, and so on. The information needs at this level are focused on the day-to-day operations and are required for the smooth functioning of the business. The other levels, strategic level and management level, are more focused on long-term planning and decision-making. The analysis and decision support level is more concerned with financial analysis and modeling.

Question 4

The credit manager is complaining that the data formats used by his customers do not match the computer system's capabilities for handling receivables.He should investigate use of a&#10;A)value-added network&#10;B)new computer system&#10;C)new accounting system&#10;D)mainframe computer

Accepted Answer

A value-added network (VAN) can provide translation services between different data formats, allowing the credit manager's computer system to handle receivables data from customers even if the formats do not initially match.

Question 5

EDI __________ e-commerce.&#10;A)Is the same as&#10;B)Is a sub-set of&#10;C)Has more applications than&#10;D)Is not related to

Accepted Answer

EDI (Electronic Data Interchange) is a specific type of e-commerce that involves the electronic exchange of business documents between trading partners. Therefore, it can be considered a sub-set of e-commerce, as it is a specialized form of conducting business transactions electronically.

Question 6

Survey evidence of large U.S.companies indicates that EDI usage in domestic operations is _______________ as compared to EDI usage in international operations.&#10;A)about the same&#10;B)much greater&#10;C)much smaller&#10;D)slightly greater&#10;E)slightly smaller

Accepted Answer

EDI (Electronic Data Interchange) usage in domestic operations of large U.S. companies is typically much greater than in international operations due to the more standardized and integrated supply chain and business processes within a single country.

Question 7

A major benefit of using EDI is that&#10;A)orders move faster with fewer errors&#10;B)the seller no longer needs to rely on its bank&#10;C)the ACH system can be circumvented,saving money&#10;D)both the accounts payable and accounts receivable functions can be totally eliminated

Accepted Answer

EDI streamlines the exchange of information between trading partners and reduces the time and errors associated with traditional paper-based communication. This results in faster order processing, improved efficiency, and cost savings. EDI does not eliminate the need for accounting functions such as accounts payable and accounts receivable.

Question 8

A cash manager wishes to automate most of her treasury management operations.She should investigate purchase of a&#10;A)PC-ACH system&#10;B)computerized accounting system&#10;C)treasury workstation&#10;D)hand-held personal data assistant

Accepted Answer

A treasury workstation is specifically designed to handle treasury management operations, and can automate a variety of tasks such as cash forecasting, bank reconciliation, and investment management. It would likely be the best choice for the cash manager's needs.

The other options may also have some usefulness in automating treasury management operations, but they are not as tailored to this specific purpose. A PC-ACH system is primarily designed for electronic payments, such as direct deposit or bill payments, but would not necessarily help with other treasury management tasks. A computerized accounting system could help with bookkeeping functions, but may not be as capable in other areas such as cash forecasting or investment management. A handheld personal data assistant may have some utility for on-the-go access to information, but would not be as powerful as a treasury workstation for overall automation of treasury management operations.

Question 9

The following would be an advantage of using electronic funds transfer over a paper-based collection system:&#10;A)lower costs per item&#10;B)improved cash forecasting&#10;C)more efficient return item processing&#10;D)all of the above

Accepted Answer

Electronic funds transfer (EFT) has lower costs per item compared to paper-based systems because there are no physical checks or paper documents that need to be processed. EFT also offers improved cash forecasting since transactions can be processed and posted faster, providing businesses with more up-to-date information on their cash position. Additionally, EFT allows for more efficient return item processing as it can be done electronically and automatically, reducing the need for manual intervention. Therefore, all of the above advantages are applicable to EFT.

Question 10

The major financial processes can be classified into the following categories:&#10;A)Transaction processing&#10;B)Control and risk management&#10;C)Decision support&#10;D)'a' and 'b'&#10;E)'a' 'b' and 'c'

Accepted Answer

The statement mentions that there are three categories of financial process, namely transaction processing, control and risk management and decision support. Thus, the answer is E, which states that all three categories are classified as major financial processes.

Question 11

A major goal of users of e-commerce is to&#10;A)use drafts instead of checks&#10;B)eliminate paper documents and payment methods&#10;C)move a business transactions to mainframe computers&#10;D)use wire transfers for all payments

Accepted Answer

The answer of A major goal of users of e-commerce...

Question 12

Which of the following is NOT a major reason for limited implementation of EDI in the U.S.?&#10;A)limited development and acceptance of data transmission standards&#10;B)workers' fears of loosing jobs have hampered individual company implementation&#10;C)legal liability issues&#10;D)data communication security and authorization concerns&#10;E)supplier reluctance to alter credit terms

Accepted Answer

The answer of Which of the following is NOT a...

Question 13

Document standards that enable a seller's data transmission be utilized by a seller's computer system are called&#10;A)EDI communication formats&#10;B)expert systems&#10;C)artificial intelligence systems&#10;D)none of the above

Accepted Answer

The answer of Document standards that enable a seller's data...

Deck 19: Treasury Information Management