ACCOUNTING ON THE INTERNET

Core Concepts of Accounting Information Systems, 13 th Edition, by Simkin, Rose, and Norman

TB 2.1

Chapter 2

ACCOUNTING ON THE INTERNET

True-False Questions

• The domain address of a web page is the equivalent of its universal resource locator

(URL).

• The Internet Protocol address is a numerical translation of the text-based domain address.

• Another name for a URL is the term “domain address.”

• Most accountants believe that auditors do not need to concern themselves with IP

addresses.

• ICANN is an acronym that stands for Internet Control and Network Numbers.

• An example of an Internet domain address is www.Wiley.com.

• The new standard is IPv6 that uses 128 bits for Internet protocol addresses.

• Intranets do not use the same software as the Internet.

• An extranet is a network that a business might establish with its trading partners.

• The World Wide Web is the text portion of the Internet.

• The term “blog” is an acronym that stands for “binary login.”

• Social media is important to marketers, but only of passing interest to accountants.

• Surveys suggest that less than half of all companies use social media for business

purposes.

• Groupware is the technology that enables knowledge sharing and knowledge management

among employees.

• XBRL is not related to XML.

• XBRL allows users to extract and compare financial data from many different companies.

• HTML tags describe how data and graphics should be presented by a web browser.

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Core Concepts of Accounting Information Systems, 13 th Edition, by Simkin, Rose, and Norman

TB 2.2

• The SEC will not accept XBRL formatted data in electronically filed financial reports.

• All electronic commerce takes place over the Internet.

• XBRL is an acronym for “extensive business reports and liabilities.”

• XBRL is a type of XML.

• A set of XBRL tags identifies the data it contains as well as indicates how to display that

data.

• An advantage of XBRL is its ability to express semantic meaning—i.e., to express such

relationships as “assets = liabilities + equity.”

• IDEA is a computer system used by the Securities and Exchange Commission (SEC).

• IDEA uses XBRL-coded data of corporate financial statements.

• An advantage of XBRL is that the tags have been completely standardized by the XBRL

International Consortium and these standards are now fixed.

• An advantage of XBRL is that it can save companies the cost of rekeying financial data

from one computer application to another.

• An important disadvantage of XBRL is that most accounting packages cannot read or

write documents in XBRL format.

• E-wallets store customer data to facilitate online purchases. They do not store dollars.

• Use of electronic procurement systems typically raises purchasing costs.

• To date, e-commerce has had less impact on accounts payable and accounts receivable

than on procurement and inventory tracking.

• EDI automates the exchange of business information, particularly with respect to source

documents.

• EDI can only be used by private, for-profit businesses.

• A major issue impacting e-business is the trade-off between accessibility and

vulnerability.

• Firewalls are virtually unbreachable and offer assurance against any viruses.

Core Concepts of Accounting Information Systems, 13 th Edition, by Simkin, Rose, and Norman

TB 2.3

• Proxy servers can act as firewalls and can also limit employee Internet access to approved

web addresses only.

• Data encryption renders a text message unreadable during data transmission, even if

intercepted.

• Public key encryption requires the use of a pair of public/private encryption keys.

• Digital signatures can never be as secure as written signatures.

• Digital time stamping authenticates the time and sometimes the place a transmission or

transaction occurred.

• For all its exposure in the popular press media, identity theft affects a relatively small

number of people and, in total, involves a small amount of losses per year.

• Three types of access security are (1) what you have, (2) what you know, and (3) who you

are.

• Spam is annoying, but not a particularly costly or bothersome, to most businesses or

government agencies.

• The term “phishing” refers to the use of web pages or other means to trick viewers into

revealing their passwords or other personal information.

• Worldwide, the total annual financial losses resulting from all phishing activities was less

than $1 billion in 2010.

• Two types of firewall policies are protection by (1) inclusion, and (2) exclusion.

• An advantage of a proxy server is the ability to store commonly-requested web pages in

memory, thereby enabling it to respond quickly to internal user requests for them.

• The term “B2B” is Internet slang for “back to basics.”

• BASF is one of the world’s largest telephone companies.

• EDI is an acronym standing for “electronic delayed interface.”

• The term “SaaS” is an acronym standing for “software as a service.”

• When a cloud service company hosts a client’s website, this is an example of “platform as

a service.”

• For most businesses, cloud computing is an example of outsourcing.

Core Concepts of Accounting Information Systems, 13 th Edition, by Simkin, Rose, and Norman

TB 2.4

• The heaviest demands on book publishing websites come in the weeks just prior to the

start of a fall or spring semester.

• MozyHome is a cloud provider of backup services.

• One important personal category of cloud computing for accountants is educational

services.

• The Department of Justice prosecutes identity theft under the ITADA Act of 1998.

• An example of a social networking site is eBay.

• An example of a social networking site is FaceBook.

• Businesses can use social networking sites to better understand the reactions to new

products or services.

• Social networks do not pose privacy concerns.

• The most common reason businesses outsource is to increase control over their data and

data processing tasks.

Multiple-Choice Questions

63. An example of an Internet service provider is:

a) General Electric

b) AOL

c) PeachTree

d) ISP

• none of these

64. Another name for an Internet domain address is its:

a) URL

b) ISP

• email address

d) IETF

65. An example of a URL is:

• .gov
• 100.100.100.100
• www.wiley.com
• Title