Match each electronic business concept used in accounting on the left with its correct functional description on the right.
- Electronic Data Interchange (EDI)Direct computer-to-computer exchange of structured business documents using standardized formats.
- Electronic Funds Transfer (EFT)Electronic transmission of money directly between bank accounts without physical cheques.
- Business-to-Business (B2B) E-commerceCommercial transactions conducted electronically between two business entities such as manufacturers and wholesalers.
- Payment GatewayAn e-commerce application service that authorizes and securely processes online credit or debit card payments.
Answer
Electronic Data Interchange (EDI) matches with direct computer-to-computer document exchange; Electronic Funds Transfer (EFT) matches with paperless bank account money transfer; Business-to-Business (B2B) E-commerce matches with commercial transactions between business entities; Payment Gateway matches with authorizing and processing online card payments.
Each e-business term correctly aligns with its primary accounting and operational function: EDI handles structured document exchange, EFT processes direct bank money transfers, B2B represents commercial trading between enterprises, and Payment Gateway manages online payment authorizations.
Step-by-Step Solution
Key Concept
Electronic Business and Data Interchange in Accounting