Match each electronic commerce and data interchange component on the left with its correct primary functional role in digital accounting systems on the right.
- Electronic Funds Transfer (EFT)The automated financial process of transferring money electronically from one bank account directly to another.
- Electronic Data Interchange (EDI)The computer-to-computer transmission of structured business documents using standardized formats between trading organizations.
- Value-Added Network (VAN)A secure third-party private network that transmits and routes electronic business documents between trading partners.
Answer
Electronic Funds Transfer (EFT) pairs with automated bank account money transfers; Electronic Data Interchange (EDI) pairs with standard computer-to-computer business document exchange; Value-Added Network (VAN) pairs with secure third-party private telecommunications network routing.
Electronic Funds Transfer (EFT) automates direct money transfers between banks, Electronic Data Interchange (EDI) manages structured paperless business document exchange between computers, and a Value-Added Network (VAN) provides the secure third-party telecommunications infrastructure facilitating data transmission.
Step-by-Step Solution
Key Concept
Core concepts in Electronic Business and Electronic Data Interchange (EDI)