Test bank accounting information system by turner 14 chapter

local ISP to regional ISP to national backbone provider to network access points to national backbone provider to regional ISP to local ISP.. connect to the Internet backbone through loc

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ACCOUNTING INFORMATION SYSTEMS

CONTROLS AND PROCESSES

TURNER / WEICKGENANNT

CHAPTER 14: E-Commerce and E-Business

TEST BANK – CHAPTER 14 – TRUE / FALSE

1 E-business is the use of electronic means to enhance business processes

2 E-commerce is electronically enabled transactions between a business and its

customers

3 E-commerce is the use of electronic means to enhance business processes

4 E-commerce only involves transactions between the business and its customers

5 Packet switching is the method used to send data over a computer network

6 A router is an electronic hardware device that is connected to each computer to

connect it to a network

7 A protocol is a standard data communication format that allows computers to

exchange data

8 TCP/IP is an abbreviation for terminal communications protocol/Internet protocol

9 The Internet (interconnected networks) serves as the backbone for the World

Wide Web (WWW)

10 A backbone provider is an organization such as the National Science Foundation

(NSF) which funded the Internet and/or the WWW

11 Regional ISPs connect to the backbone through lines that have less speed and

capacity than the backbone

12 Local ISPs connect to the backbone through lines that have less speed and

capacity than the backbone

13 A web server is a computer and hard drive space that connects to the backbone

through lines that have less speed and capacity than the backbone

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15 The standard form of encryption embedded in e-commerce sites and in web

browser software is “Safe Sending Language” (SSL)

16 Due to interstate trade events and taxation issues the U.S Government has

standardized the definition of e-commerce

17 The common term for business-to-consumer e-commerce is B2C The common

term for business-to-business electronic sales is B2B

18 E-commerce provides the potential for much richer marketing concepts that

include video, audio, product comparisons, and product testimonials or product tests

19 Because of computer interaction and the capability of almost instant verification

business across the World Wide Web has a lower probably of fraud, hackers, and compromised customer privacy

20 The AICPA Trust Services Principles do not protect the history of purchases since

these are classified as “public knowledge events.”

21 The AICPA Trust Services Principles state that the customer should be given the

choice regarding the collection and retention of data

22 The AICPA Trust Services Principles state that the customer need not be

contacted if a business is going to release non-sensitive information about the customer to a third party

23 The supply chain is the linked processes from the raw material vendor through

the manufacturer ending at the stage of finished goods

24 The supply chain may be larger at either or both ends as more than one vendor

may supply the same materials and more than one customer may purchase the finished products

25 A strength of the supply chain concept is that inconsistencies or poor quality

within the supply chain will be compensated by other strengths resulting in an overall satisfactory product

26 An example of vertical integration is a manufacturer who mines the raw

materials, produces the product, and then sells it in company owned stores

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28 One advantage in the B2B e-business environment is that operations costs can

be reduced through inventory reductions and efficiencies can be increased by location of nearby assets when needed

29 An intranet is a private network accessible only to the employees of a company

30 Because intranets do not transmit information through the Internet or WWW

they do not use protocols such as TCP/IP

31 An extranet is similar to an internet except that it offers access to a greater

number of sites than a standard Internet or WWW connection

32 One characteristic that the Internet, intranets, and extranets have in common is

that they are all networks that are intended for the sharing of information and the conducting of transactions

33 The general public has general access to the intranet and extranet networks

34 XML is a rich language that facilitates the exchange of data between

organizations via web pages

35 In XBRL complex financial statements are presented only in a static mode

36 Traditional EDI is a real-time processing system due to the 24 hour, 7 day a

week operation of computers and servers

37 Management has an ethical obligation to create and enforce policies and

practices which ensure that private customer data are not misused

38 Because of their sensitive nature, companies seldom sell or share customer lists

or customer data

39 While there is no requirement to disclose a privacy policy on a website, it is an

ethical obligation to disclose and follow the policy

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ANSWERS TO TEST BANK - CHAPTER 14 - TRUE/FALSE:

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TEST BANK – CHAPTER 14 – MULTIPLE CHOICE

40 E-commerce:

A is business-to-business electronic trading and process integration

B is electronically enabled transactions between a business and its vendors

C is electronic recording and control of internal processes

D is electronically enabled transactions between a business and its customers

41 E-business:

1 is a narrower concept than e-commerce

2 services the customers and the vendors

3 is electronic recording and control of internal processes

4 uses electronic means to enhance business processes

A 1 only

B 2 and 3 only

C 2, 3, and 4 only

D 1, 2, 3, and 4

42 The internal processes of e-business do not include:

A access to personnel records

B access to fringe benefit information

C on-line sales to customers

D travel and expense reporting

43 E-commerce:

A sales will usually be large dollar amounts with only a few items are sold

B is the sale of goods or services from a business to retailers

C is the sale of goods or services to an end-user consumer

D Both A and B are correct answers

44 E-business

1 includes the sale of raw materials between companies

2 includes using the Internet as an electronic network

3 sales will usually be smaller dollar amounts with many sales

4 is a broader concept than e-commerce

A 1, 2, 3, and 4

B 2, 3, and 4 only

C 1, 3, 4 only

D 1, 2, and 4 only

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45 Packet switching is a method of:

A turning routers off and on to send messages between computers

B dividing large messages into bundles for transmission over a network

C isolating computers connected to the network by disconnecting them

D keeping all associated bundles of the message on one network path

46 The transmission of packets:

A must be determined by the sender manually

B must be accomplished via the same network path

C allows great versatility in the transmission of data

D has diminished because of advances in connectivity

47 The transmission of packets:

A are usually sent in sequential order

B must be received in sequential order

C must follow the same network path

D will bundle small messages into larger bundles for transmission

48 A router is:

A a software application that creates path instructions for packets

B is hardware that connects two or more networks

C must receive its instructions from the user manually

D Both B and C are correct

49 The proper actions and capabilities is:

A packet switching bundles small messages into large messages for

transmission while routers determine the best path through the network

B packet switching replaces the need for routers to determine the best path

for the message through the network

C packet switching and routers both bundle small messages into large

messages for transmission

D packet switching divides large messages into small bundles for transmission

while routers determine the best path through the network

50 A protocol is required so that:

A computers from the same manufacturer can communication with each

other

B computers from different manufacturers can communicate with each other

C so that communications within the network can be routed properly

D Answers A, B, and C are all correct

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51 Protocols can be considered:

A a proprietary language to a specific computer manufacturer

B a language native to the network so all computers can translate it

C unnecessary if the computer is communicating on a LAN

D unnecessary if the computer is using packet switching and routers

52 TCP/IP is:

A trunk controlling protocol/intranet protocol

B transmission control protocol/intranet protocol

C trunk controlling protocol/Internet protocol

D transmission control protocol/Internet protocol

53 The ARPANET was:

A restricted to universities, libraries, research organizations, and commercial

A is a series of LANs connected together to increase their local capability

B is a series of networks connected to provide a global connectivity

C is generally restricted to universities, libraries, and research organizations

D utilizes the World Wide Web as a backbone to increase its capabilities

55 The Internet:

A utilizes LANs as a backbone to increase connectivity

B is a system of unconnected networks

C utilizes the World Wide Web as a backbone

D is compatible to graphic user interface tools

56 The expansive growth of web servers occurred:

A in the early 1990s – 1990~1994

B in the mid 1990s – 1993~1996

C in the late 1990s – 1995~2000

D in the early 2000s – 2000~2004

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57 The proper sequence of Internet connectivity between users is:

A regional ISP to national backbone provider to regional ISP

B local ISP to national backbone provider to network access point to national

backbone provider to local ISP

C regional ISP to national network access points to regional ISP

D local ISP to regional ISP to national backbone provider to network access

points to national backbone provider to regional ISP to local ISP

58 A backbone provider is an organization:

A that provides direct Internet access to the end users

B that provides regional ISPs direct access to the Internet

C that provides high-speed access to local ISP users

D that provides high-speed access to regional ISP users

59 The Internet backbone is:

A the network between the local ISP and the regional ISP

B the network between the regional ISP and the local ISP

C the network between the local ISP and the national backbone provider

D the network between national backbone providers

60 Regional ISPs:

A connect directly to the Internet backbone through network access points

B connect to the Internet backbone through local ISPs utilizing network

access points

C provide the connection between local ISPs and national backbone providers

D provide end users direct connects to the Internet backbone through

network access points

61 Regional ISPs do not include:

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63 Local ISPs would include:

A MCI and Sprint

B America Online and EarthLink

C BBN and a local cable company

D television and cable companies

64 A web server is:

A always located at national backbone provider levels

B always located at regional ISP provider levels

C is a computer and hard drive space that stores web pages and data

D always the access between the national backbone provider and the

backbone

65 HTML is:

A a language which allows computers to connect to the Internet and WWW

B a protocol language allowing user level computers to connect to local ISPs

C is a language utilized to present website words, data, and pictures

D used for information sharing between the Internet and WWW

66 HTML allows:

A user level computers to connect to the Internet through an ISP

B user level computers a way to display information the way it was intended

to be displayed

C local and regional ISPs to interact with national backbone providers

D national backbone providers to exchange information about trunk traffic

67 An example of a URL is:

A cjb@jhs-email.com

B http://www.cjb.org

C jhs-email.com

D All of the above, A, B, and C, are examples of URLs

68 Select the true statement from the following

A URL stands for uniform real-time locator while http stands for hypertext

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69 When a valid URL is entered into your web browser:

A your computer will send a network access protocol (NAP) command to your

A hypertext transmission protocol

B hypertransmission terminal protocol

C hypertext terminal protocol

D hypertext translation protocol

71 An example of a domain name is:

A jhs-email.com

B cjb@jhs-email.com

C http://www.cjb.org

D All of the above, A, B, and C, are examples of domain names

72 A URL is converted to an IP:

A by TCP/IP capabilities of the user level computer

B by a DNS accessed when the browser sends the command

C by the local ISP provider

D by the national backbone provider

73 SSL – secure sockets layering:

A reduces the frequency of Internet connection disconnects

B ensures that TCP/IP is correctly configured for Internet browsing

C is an effective way to prevent web pages from denial of service attacks

D is an encryption system which reduces the probably of improper use of

transmitted data

74 The ways to determine a secure sockets layering connection is:

A the “s” at the end of “www”

B the “s” at the end of “http.”

C the padlock on the lower bar of most web browsers

D Both answers, B and C, are correct

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75 Select the correct statement from the following

A B2C and B2B are both considered e-commerce

B B2C is considered e-commerce while B2B is considered e-business

C B2B is considered e-commerce while B2C is considered e-business

D B2C and B2B are both considered e-business

76 The common element in B2B and B2C is:

A both require a physical selling point

B a downloadable product

C both require access to the business’s website

D both require SSL (secure sockets layering) to complete the transaction

77 Advantages of e-commerce include all except:

A a narrower market for goods and services

B increased access to information

C the lack of geographic constraints

D All of the answers, A, B, and C, are advantages of e-commerce

78 All of the following are true statements about e-commerce except:

A e-commerce sites normally conduct sales 24 hours a day, 7 days a week, 12

D e-commerce consumers may incur shipping and handling charges not

incurred by retail customers

79 E-commerce sites may:

1 provide access to manufacturer information on the product

2 may provide tax free sales of retail goods

3 require shipping and handling fees to be paid

4 provide links to live or video presentations of product information

5 not provide as quick order processing as the company’s retail locations

A 1, 2, 3, 4, and 5 are correct

B 1, 3, 4, and 5 are correct

C 1, 2, 4, and 5 are correct

D 1, 2, 3, and 4 are correct

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80 Select the true statements from the following

1 Fraud, theft, or theft of data on the Internet and WWW are reduced by its regulated and controlled state

2 A customer may feel isolated from the product because of the inability to touch or handle the product

3 E-commerce customers may be targeted for solicitations based on their purchasing history

4 E-commerce customers will often incur a shipping and handling charge with purchases

5 E-commerce customers will always find the best product at the best price

A 1, 2, 3, 4, and 5 are all true statements

B 2, 3, and 4 are all true statements

C 1, 3, 4, and 5 are all true statements

D 1, 4, and 5 are all true statements

81 E-commerce business benefits include all except:

A a lower cost of advertising per customer reached

B more interaction with video and audio product comparisons

C more rigid advertising and product presentation requirements

D All of the above, A, B, and C, are benefits of e-commerce

82 E-commerce businesses are:

A normally confined to more restrictive marketing due to the larger market

B more likely to incur greater order processing costs because of technology

costs

C less confined in inventory stocking than a retail facility

D less flexible in pricing structures due to WWW and Internet distribution of

information

83 All of the following are disadvantages of e-commerce except:

A faster order processing prevents good assurance of order correctness

B greater probability of fraud or compromised customer privacy

C more complex sales, inventory, and payment applications

D All of the above, A, B, and C, are disadvantages of e-commerce

84 With the advent of technology, the Internet, and the WWW:

A commerce is moving only from physical to electronic positioning

B commerce has maintained its stance of physical and electronic

C commerce is moving both from electronic to physical and from physical to

electronic

D No notable trends have been identified

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85 Select the correct statement from those below

A Bricks and mortar refer to traditional stores while e-tailers are both brick

and mortar and e-commerce businesses

B Bricks and mortar refer to stores with both physical and electronic

presences while e-tailers are e-commerce businesses only

C Bricks and mortar refer to traditional stores while brick and click businesses

are both brick and mortar and e-commerce businesses

D Bricks and mortar refer to traditional stores while brick and click refers to

6 personal health conditions

7 personal financial information

87 The AICPA’s Trust Services Principles practice that states a specific person or

persons should be assigned the responsibility to insure that privacy

practices are followed by employees is under the title of:

A monitoring and enforcement

B security for privacy

C management

D choice and consent

88 The AICPA’s Trust Services Principles practice that states a company should have

policies and practices to maintain the privacy of customer data is under the title of:

A choice and consent

B collection

C use and retention

D notice

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89 The AICPA’s Trust Services Principles practice that states the organization should

provide the choice to its customers regarding the collection of data is under the title of:

B collection

C use and retention

D notice

ask about the collection, retention, and of the use is under the title of:

A use and retention

B access

C choice and consent

D disclosure to third parties

91 The AICPA’s Trust Services Principles practice that states that only the data that

is necessary for the purpose of conducting the transaction should be

collected is under the title of:

A use and retention

B collection

C choice and consent

D security for privacy

use customers’ personal data only in the manner described in “notice” is under the title of:

A security for privacy

B monitoring and enforcement

C use and retention

D choice and consent

93 The AICPA’s Trust Services Principles practice that states that customers should

have access to the data provided so that the customer can view, change, delete, or block further use of the data provided is under the title of:

A access

B choice and consent

C security for privacy

D use and retention

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94 The AICPA’s Trust Services Principles practice that states that organizations

should receive explicit or implicit consent of the customer before providing information to third parties is under the title of:

C monitoring and enforcement

95 The AICPA’s Trust Services Principles practice that states that the organization

has the necessary protections to try to insure that customer data is not lost, destroyed, altered, or subject to unauthorized access is under the title of:

96 The AICPA’s Trust Services Principles practice that states that all customer data

collected remains “accurate, complete, current, relevant, and reliable” is under the title of:

B quality

D use and retention

97 The AICPA’s Trust Services Principles practice that states that the organization

should have procedures to address privacy related inquiries or disputes is under the title of:

B quality

D use and retention

98 Internal processes of the organization include all of the following except:

A transactions involving suppliers

B movement of raw materials

C timekeeping and labor management

D sharing of data files among workers

99 The supply chain:

A is usually smaller at the customer end

B is usually more complex for service firms

C includes manufacturing facilities

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100 The supply chain:

A ends once the raw materials arrive at the manufacturing facility

B is an external process only

C is both an internal and external process

D ends once the product is manufactured and ready for sale

101 The correct sequence of the supply chain is:

A secondary suppliers, suppliers, manufacturer, warehouses, distributors,

retailers, and customers

B suppliers, secondary suppliers, manufacturer, warehouses, distributors,

C suppliers, secondary suppliers, manufacturer, distributors, warehouses,

D suppliers, secondary suppliers, manufacturer, distributors, warehouses,

102 The correct statement regarding the supply chain and B2C is the supply chain

extends from the:

A secondary supplier and ends with the retailer while B2C is from the

manufacturer to the final consumer

B secondary supplier and ends with the retailer while B2C is from the

C secondary supplier and ends with the manufacturer while B2C is from the

retailer to the final consumer

D secondary supplier and ends with the final customer while B2C is from the

103 The correct statement regarding the supply chain and B2B is the supply chain

extends from the:

A secondary supplier and ends with the retailer while B2B is from the

B secondary supplier and ends with the final customer while B2B is from the

secondary supplier to the distributor

C secondary supplier and ends with the manufacturer while B2B is from the

supplier to the retailer

D secondary supplier and ends with the final customer while B2B is from the

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