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Exam IIA-CIA-Part3 topic 2 question 53 discussion

Actual exam question from IIA's IIA-CIA-Part3
Question #: 53
Topic #: 2
[All IIA-CIA-Part3 Questions]

Which of the following is a result of implementing an e-commerce system, which relies heavily on electronic data interchange and electronic funds transfer, for purchasing and billing?

  • A. Higher cash flow and treasury balances.
  • B. Higher inventory balances.
  • C. Higher accounts receivable
  • D. Higher accounts payable.
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Suggested Answer: A 🗳️

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95529e0
11 months, 1 week ago
Selected Answer: A
i think its A
upvoted 1 times
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Domiii
1 year, 7 months ago
Selected Answer: A
correct answer is A. Higher cash flow and treasury balances. Justification: Implementing an e-commerce system that relies heavily on electronic data interchange (EDI) and electronic funds transfer (EFT) for purchasing and billing can result in higher cash flow and treasury balances. E-commerce systems enable faster and more efficient processing of transactions, reducing the time and effort required for traditional paper-based processes. This can lead to quicker payments from customers and more timely collection of accounts receivable, resulting in higher cash flow and treasury balances for the organization.
upvoted 3 times
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anjie2021
4 years, 1 month ago
answer is C
upvoted 1 times
yomang
4 years, 1 month ago
Would you mind explaining?
upvoted 2 times
Tico
3 years, 12 months ago
Would someone please explain?
upvoted 1 times
yomang
3 years, 12 months ago
It is C. I looked into this more and basically, adding EFT to your process doesn't necessarily increase your bills more (i.e., your accounts payable is always gonna be the same whether you have EFT or not); however, if you add an EFT feature to receiving payments from customers, you're gonna have a lot more people paying their bills to you on their credit cards - i.e., more accounts receivable.
upvoted 3 times
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