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154.What types of controls should be used to properly limit access in intranets and extranets? 155.Why is the use of XML advantageous in Internet EDI? 156.In what ways are XBRL financial statements advantageous when compared to traditional paper financial statements? 157.What are some of the ethical obligations of companies related to e-commerce? 158.Is there.
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– CHAPTER 14 – PROBLEMS 169.Explain the hardware or standards that were developed during the ARPANET that were an important foundation for the Internet of today. 170.The Pizza Pie Pit is a local chain of pizza restaurants in Dallas. The chain has 30 locations throughout the city and its suburbs. The management.
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159.Using an internet search engine, search for the terms “big bang” + ERP. Identify at least one company that represents a success story with regard to this ERP implementation method (other than Marathon, as described in the Real World Example). Also identify at least one company that experienced problems with.
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Problems 1-1Plantier Company is considering the acquisition of Barkley, Inc.  To assess the amount it might be willing to pay, Plantier makes the following computations and assumptions. A.Barkley, Inc. has identifiable assets with a total fair value of $9,000,000 and liabilities of $5,300,000.  The assets include office equipment with a fair value.
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21.In a business combination in which the total fair value of the identifiable assets acquired over liabilities assumed is greater than the cost, the excess fair value is: classified as an extraordinary gain. allocated first to reduce proportionately non-current assets, except long-term marketable securities, and any remaining excess over cost is classified.
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– CHAPTER 14 –SHORT ESSAY 159.Much of the e-business and e-commerce conducted by companies uses the Internet as the form of electronic communication. Describe other electronic means to conduct e-business or e-commerce. 160.How does the use of HTML, URLs, domain names, and SSL contribute to an Internet that can be used world-wide? 161.Describe.
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51.The real-time nature of processing decreases the total processing time and allows more immediate feedback to management. 52.The real-time nature of processing increases the total processing time and precludes immediate feedback to management. 53.ERP systems are built to interact with the IT systems of trading partners such as customers and suppliers. 54.ERP systems.
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– CHAPTER 15 – TRUE / FALSE 1.The intent of an ERP (enterprise resource planning) system is to provide a single software application for revenue, expenditures, conversion, and administrative processes. 2.The intent of an ERP (enterprise resource planning) system is to provide a sales and inventory software application that will interact with.
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73.SAP R/3: A.operates on a mainframe environment with closed architecture. B.operates on a client-server environment with open architecture. C.operates on a client-server environment with closed architecture. D.operates on a mainframe environment with open architecture. 74.Y2K compatibility issues arose because: A.older computer systems recorded dates in mm/dd/yyyy formats and memory for these was expense. B.older computer systems recorded.
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148.What potential advantages and disadvantages exist with respect to engaging a consultant for an ERP implementation? Discuss. 149.What are the primary benefits of an ERP system? What are the primary risks? 150.What are Shang and Seddon’s five dimensions of ERP benefits? 1 .
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TEXTBOOK – CHAPTER 15 – END OF CHAPTER QUESTIONS 112.Which of the following advantages is least likely to be experienced by a company implementing an enterprise resource planning (ERP) system? A.Reduced cost B.Improved efficiency C.Broader access to information D.Reduced errors 113.An ERP system is a software system that provides each of the following except A.collection, processing, storage,.
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134.What are some of the activities included in an ERP module for supply chain management? 135.What are some of the features of an ERP module for customer relationship management? 136.Which company is today’s top-seller of ERP systems in the U.S.? 137.Differentiate between Oracle’s “back office” and “front office” modules. 138.Which tier one company introduced.
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Problems 3-1On December 31, 2004, Page Company purchased 80% of the outstanding common stock of Short Company for cash.  At the time of acquisition, Short Company's balance sheet was as follows: Current assets$  840,000 Plant and equipment790,000 Land     140,000 Total assets$1,770,000 Liabilities$   660,000 Common stock, $10 par value720,000 Other contributed capital350,000 Retained earnings     120,000 Total$1,850,000 Treasury stock at cost, 4,000 shares      .
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– CHAPTER 15 – SHORT ANSWER QUESTIONS 124.Describe how ERP systems enhance efficiency in a business organization. 125.Why is real-time processing essential in an ERP system? 126.How has ERP increased the responsibilities of customer service representatives? 127.What is an MRP II system and how is it different than the ERP systems in use today? 128.What.
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129.Differentiate between the “enterprise-wide” and “non-volatile” features of a company’s data warehouse. 130.What was unique about SAP’s first ERP system? 131.Differentiate between the features of SAP’s R/1, R/2, and R/3. What does the “R” stand for in this name? 132.How do ERP II systems allow for businesses to improve efficiencies with respect to.
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11.Early MRP applications utilized sales forecasts to compute material requirements for production. 12.The purpose of MRP II was to integrate manufacturing, engineering, marketing, finance, and human resources units to run on the same information system. 13.SAP R/3 had tremendous growth due to the use of closed architecture and client-server hardware compatibility. 14.Y2K compatibility.
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11.A potential offering price for a company is computed by adding the estimated goodwill to the book value of the company’s net assets. book value of the company’s identifiable assets. fair value of the company’s net assets. fair value of the company’s identifiable assets. 12.Estimated goodwill is determined by computing the present value of the .
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1-2Palmer Company is trying to decide whether to acquire Ellis Inc.  The following balance sheet for Ellis Inc. provides information about book values.  Estimated market values are also listed, based upon Palmer Company's appraisals. Ellis Inc.Ellis Inc. Book ValuesMarket Values Current Assets$  450,000$  450,000 Property, Plant & Equipment (net) 1,140,000 1,300,000 Total Assets$1,590,000$1,750,000 Total Liabilities$700,000$700,000 Common Stock,.
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2-5               The stockholders’ equities of P Corporation and S Corporation were as follows on January 1, 2004:     P Corp.    S Corp.  Common Stock, $1 par$2,000,000$   600,000 Other Contributed Capital  5,500,000  1,100,000 Retained Earnings  1,300,000     340,000   Total Stockholders’ equity$8,800,000$2,040,000 On January 2, 2004 P Corp. issued 200,000 of its shares with a market value.
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Multiple Choice 1.A business combination in which the boards of directors of the potential combining companies negotiate mutually agreeable terms is a(n) a.agreeable combination. b.friendly combination. c.hostile combination. d.unfriendly combination. 2.A merger between a supplier and a customer is a(n) a.friendly combination. b.horizontal combination. c.unfriendly combination. d.vertical combination. 3.When a business acquisition is financed using debt, the interest payments are tax.
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3-3P Company purchased 27,000 shares of the common stock of S Company on January 1, 2004, for $475,000 cash. The stockholders' equity section of S Company's balance sheet on that date was as follows: Common stock, $10 par value$300,000 Other contributed capital40,000 Retained earnings  160,000 Total$500,000 On the date of purchase, S Company owed P.
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164.What are the ten areas of privacy practices described in the Online Privacy section of the AICPA Trust Services Principles? 165.Describe the activities that take place in the supply chain of a manufacturing firm. 166.Describe the differences between B2C and B2B. 167.Explain the importance of user authentication and network break-in controls in extranets. 168.What.
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Problems 2-1Balance sheet information for Steve Corporation at January 1, 2004, is summarized as follows: Current assets$ 230,000Liabilities$ 300,000 Plant assets   450,000Capital stock $10 par   200,000        Retained earnings   180,000 $ 680,000$ 680,000 Steve’s assets and liabilities are fairly valued except for plant assets that are undervalued by $50,000.  On January 2, 2004, Paul Corporation.
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1-3Penn Company acquired an 80% interest in the common stock of Sweet Company for $772,000 on July 1, 2004.  Sweet Company's stockholders' equity on that date consisted of: Common stock$400,000 Other contributed capital200,000 Retained earnings165,000 The book values of Sweet's assets and liabilities are equal to their fair values except for the following:     Book.
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– CHAPTER 15 – PROBLEMS 153.Explain the hardware or standards that were developed during the ARPANET that were an important foundation for the Internet of today. 154.Describe the ERP’s modular interface that is necessary in a typical manufacturing environment. 155.Identify and describe the first generation of ERP systems used in the 1970s, and.
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41.Customizing an ERP system is recommended wherever the business has an existing process to accomplish a goal and that process is not compatible with the ERP system. 42.Customizing an ERP system should be limited due to cost and upgrading to the system in the future. 43.ERP implementation costs are kept to a.
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140.Why is business process reengineering an important aspect of ERP implementation? 141.Why should customization of an ERP system be limited? 142.Differentiate between location-wise and modular implementation approaches to the conversion to an ERP system. 143.Which method of conversion to an ERP system is sometimes referred to as a “pilot” method? Why is this.
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11.Which of the following is a limitation of consolidated financial statements? a.Consolidated statements provide no benefit for the stockholders and creditors of the parent company. b.Consolidated statements of highly diversified companies cannot be compared with industry standards. c.Consolidated statements are beneficial only when the consolidated companies operate within the same industry. d.Consolidated statements are.
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93.The advantage of “best of the breed” is: A.the best functionality of the ERP system as a result of total implementation. B.the best functionality of a unique process of the organization. C.best cost of implementation of the ERP system. D.total integration of the ERP modules 94.Business process reengineering (BPR): 1.aligns business processes with IT systems.
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Multiple Choice 1.A majority-owned subsidiary that is in legal reorganization should normally be accounted for using a.consolidated financial statements. b.the equity method. c.the market value method. d.the cost method. 2.Under the purchase method, indirect costs relating to acquisitions should be a.included in the investment cost. b.expensed as incurred. c.deducted from other contributed capital. d.none of these. 3.Eliminating entries are made to.
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11.A business combination is accounted for properly as a purchase. Which of the following expenses related to effecting the business combination should enter into the determination of net income of the combined corporation for the period in which the expenses are incurred? Accounting and Overhead allocated consulting feesto the merger a.YesYes b.YesNo c.NoYes d.NoNo 12. In a.
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2-7 Proust Corporation is considering a merger with Seville Company.  After considerable negotiations, the two companies determined that two shares of each Seville Company stock would be replaced with one share of Proust stock.  The balance sheets of the two companies are below, along with the fair value of Seville’s identifiable.
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1-4The following balances were taken from the records of S Company: Common stock (1/1/04 and 12/31/04)$360,000 Retained earnings 1/1/04$81,000 Net income for 200490,000 Dividends declared in 2004              (21,000) Retained earnings, 12/31/04  150,000 Total stockholders' equity on 12/31/04$510,000 P Company purchased 75% of S Company's common stock on January 1, 2004 for $450,000.  The difference between cost and.
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21.When following the parent company concept in the preparation of consolidated financial statements, noncontrolling interest in combined income is considered a(n) a.prorated share of the combined income. b.addition to combined income to arrive at consolidated net income. c.expense deducted from combined income to arrive at consolidated net income. d.deduction from current assets in the.
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21.ERP systems such as SAP normally post their financial transactions in real-time for current information through all of the appropriate modules. 22.Management must examine feedback from the ERP system to assist in the proper management and control of operations and financial conditions. 23.Supply Chain Management integrates supply and demand management within and.
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83.Processes in supply chain management: 1.involve trading processes from a supplier to the business. 2.involve trading processes from the business to a customer. 3.involve trading between the business and other intermediaries. 4.do not include any transactions once raw materials are put into production. A.1, 2, 3, and 4 are all correct. B.1, 2, and 4 are.
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31.Tier two includes software often used by large, multinational corporations. 32.Peoplesoft uses the terms “back office” in reference to managerial functions and “front office” in reference to customer and sales functions. 33.mySAP was the first “pure Internet” architecture, with no programming code residing on the client computer. 34.The strength of SAP is the.
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3-5  P Corporation paid $279,000 for 70% of S Corporation’s $10 par common stock on December 31, 2004, when S Corporation’s stockholders’ equity was made up of $200,000 of Common Stock, $60,000 of Other Contributed Capital and $40,000 of Retained Earnings.  S’s identifiable assets and liabilities reflected their fair values.
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Multiple Choice 1.Assets and liabilities acquired are recorded at their fair values under a.The pooling of interests method. b.The purchase method. c.Both the purchase and the pooling of interests methods. d.Neither the purchase nor the pooling of interests methods. 2.Equity shares issued as consideration are recorded at the book value of the acquired shares under a.The pooling.
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3 – 6 Pattern Company purchased 100% of Stock Company on January 2, 2004, for $450,000.  At the time, Stock’s capital stock was $300,000, and its retained earnings was $150,000.  At the time, Pattern and Stock had no intercompany transactions.  Any excess of cost over book value is attributable to land.             .
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156.Compare and contrast the functionality of the Logistics module and Supply Chain Management activities. 157.Suppose a company is experiencing problems with omitted transactions in the conversion processes: i.e., inventory transactions are not always being recorded as they occur. How can an ERP system help to alleviate such a problem? 158.Using an internet.
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2-3Pate Company acquired the assets (except cash) and assumed the liabilities of Sand Company on January 1, 2004, paying $1,200,000 cash. Immediately prior to the acquisition, Sand Company's balance sheet was as follows: BOOK VALUEFAIR VALUE Accounts receivable (net)$   120,000$   110,000 Inventory145,000160,000 Land480,000754,000 Buildings (net)     510,000     696,000 Total$1,255,000$1,720,000 Accounts payable$   135,000$  135,000 Note payable300,000300,000 Common stock, $5 par210,000 Other contributed.
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174.Using an Internet search engine, search for the terms “Internet EDI” and “Kate and Ashley.” Explain how Coty applies Internet EDI. 175.Visit the www.xbrl.org Web site. Click on the “Latest News” link, and then the “articles” link. After reading three or four of the most recent articles about XBRL, briefly describe.
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1.An investor adjusts the investment account for the amortization of any difference between cost and book value under the a.cost method. b.complete equity method. c.partial equity method. d.complete and partial equity methods. 2.Under the partial equity method, the entry to eliminate subsidiary income and dividends includes a debit to a.Dividend Income. b.Dividends Declared - S Company. c.Equity in.
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103.The advantages and disadvantages of modular implementation are: A.full system integration is available but hardware incompatibilities exist. B.installation and training is minimized but full system integration is not available. C.all employees are exposed to some portion of the ERP system but critical information is still in the legacy system. D.critical information is still available.
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– CHAPTER 15 – MULTIPLE CHOICE 63.Select the true statement from those provided below. A.An ERP system is designed to interact with a stand-alone sales and inventory application to create general ledger information. B.An ERP system is designed to be a stand-alone software application to accomplish revenue, expenditures, conversion, and administrative processes. C.An ERP.
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