IIA Exam IIA-ACCA Topic 10 Question 84 Discussion

Actual exam question for IIA's IIA-ACCA exam

Question #: 84
Topic #: 10

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

AHigher cash flow and treasury balances

BHigher inventory balances

CHigher accounts receivable

DHigher accounts payable

Show Suggested Answer

Suggested Answer: C

by Chantay at Aug 27, 2024, 05:10 PM

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Janna

4 months ago

I believe the answer is D) Higher accounts payable, as more transactions may lead to more payments to suppliers.

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Jordan

4 months ago

I'm not sure, but I think it could also lead to higher accounts receivable due to increased sales.

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Jani

4 months ago

I agree with Stephane, because e-commerce systems can streamline processes and improve efficiency.

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Stephane

4 months ago

I think the answer is A) Higher cash flow and treasury balances.

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Dottie

4 months ago

I'm leaning towards A. Increased efficiency from e-commerce should boost cash flow, even if it also impacts other balances.

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Elouise

4 months ago

I see your point, but I still think A is the best choice.

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Laila

4 months ago

D) Higher accounts payable

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Robt

4 months ago

I agree, implementing e-commerce should definitely improve cash flow.

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Dong

4 months ago

A) Higher cash flow and treasury balances

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Roy

5 months ago

Haha, I bet the correct answer is 'All of the above'! E-commerce really shakes things up in the financial world.

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Olene

5 months ago

This is a tricky one. I could see an argument for C or D, as electronic transactions might increase accounts receivable or payable. But I'll go with A for now.

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Lashawna

4 months ago

I agree, electronic data interchange and electronic funds transfer could definitely lead to higher cash flow and treasury balances.

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Tomas

4 months ago

I think A makes sense, higher cash flow and treasury balances.

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Cristy

5 months ago

Hmm, I'm not so sure. E-commerce might lead to higher inventory balances to meet online demand. So I'm going with B.

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Taryn

5 months ago

I think the answer is A. Implementing an e-commerce system with EDI and EFT should improve cash flow and treasury balances by streamlining the billing and payment process.

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Leonard

4 months ago

I'm not sure about B) Higher inventory balances, that doesn't seem directly related to e-commerce systems.

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Olga

5 months ago

I think it could also be D) Higher accounts payable, since more transactions may lead to more payments.

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Huey

5 months ago

I agree, A) Higher cash flow and treasury balances make sense with e-commerce systems.

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