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Higher BM > ICT in Finance > Flashcards

ICT in Finance Flashcards

1
Q

internet

A

Saves time as reduces amount of trips required to go to the bank, but security has to be of high level and technology has to be working to access that money and keep it safe

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2
Q

Video conferencing

A

It is efficient, cost effective and scalable, but if there are network issues calls have to be cancelled which can take time

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3
Q
A
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4
Q

Spreadsheets

A

Spreadsheets store information in columns which can be manipulated and used in calculations.
Can be used to carry out calculations rather than having to do them by hand.
Can easily hold information within spreadsheets.
Relies on one person to do and if one small thing is wrong the whole spreadsheet can be wrong.

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5
Q

Databases

A

Databases store information in a table in columns and rows. There can be different calculation
s made within databases. They can be used to store transaction data and customer accounts. Advantage: They keep data secure.
Disadvantage: The software for databases can be complex.

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6
Q

BACS payment

A

BACS is a form of electronic payment transfer which is secure and instant. It allows payments to be made between businesses and customers and businesses.
Advantage: Cheap way to send money between people.
Disadvantage: BACS payments will only transfer on business days.

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7
Q
A
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8
Q

What are the benefits of using ICT in finance?

A
  • Increased efficiency
  • Increased flexibility
  • Increase in the amount of data and information that can be handled
  • Increased customer satisfaction
  • Competitive edge until rivals catch up
  • Possibility of reduced staffing costs
  • Creation of home workers
  • Access to new markets and customers

These benefits highlight how ICT can enhance operational capabilities in finance.

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9
Q

What is a spreadsheet?

A

An electronic document where data is arranged in rows and columns of a grid that can be manipulated and used in calculations.

Spreadsheets like Microsoft Excel are widely used in finance for various tasks.

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10
Q

List the advantages of using spreadsheets in finance.

A
  • Formulae function allows for instant calculations
  • Time-saving using spreadsheet templates
  • Easy to amend or edit
  • Information can be secured with a password

These advantages make spreadsheets a popular choice for financial tasks.

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11
Q

What are the disadvantages of using spreadsheets?

A
  • Reliant on a small group or one person
  • Open to human error
  • One wrong number can affect the entire document

These disadvantages highlight the risks associated with spreadsheet usage.

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12
Q

What are the costs associated with using ICT in finance?

A
  • Initial and ongoing costs of hardware and equipment
  • Ongoing costs of replacing and upgrading systems
  • New furniture for housing equipment
  • Staff training costs
  • Loss of efficiency during staff training
  • Risks from computer viruses/hackers
  • Health and safety issues for staff

Understanding these costs is crucial for financial planning when implementing ICT.

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13
Q

What is a database?

A

An organized collection of structured information or data, typically stored electronically in a computer system.

Databases are essential for managing financial transactions in a finance department.

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14
Q

List the advantages of using databases in finance.

A
  • Increased data consistency
  • Improved security

These advantages help finance departments manage sensitive information effectively.

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15
Q

What are the disadvantages of using databases?

A
  • Complex software
  • Requires more memory

These challenges can affect the usability of databases in a finance department.

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16
Q

What is SAGE software used for in finance?

A

To manage and process financial information, including generating invoices, managing payroll, and completing tax returns.

SAGE is popular among businesses for its efficiency in handling financial tasks.

17
Q

List the advantages of using SAGE software.

A
  • Makes managing financial information more efficient
  • Provides a strong inventory reporting function

These advantages enhance the overall functionality of financial management.

18
Q

What are the disadvantages of using SAGE software?

A
  • Not easy to use; requires training
  • Costly and geared towards larger businesses

These drawbacks can limit its accessibility for smaller businesses or less experienced users.

19
Q

What is Electronic Funds Transfer at Point of Sale (EFTPOS)?

A

A payment system that allows faster and safer digital fund transfers at payment terminals.

EFTPOS is increasingly used in finance for its efficiency.

20
Q

List the advantages of using EFTPOS.

A
  • Eliminates risks associated with lost or stolen cheques
  • Saves time by automating transactions

These benefits streamline payment processes for businesses.

21
Q

What are the disadvantages of using EFTPOS?

A
  • Higher processing fees
  • Some transfers take days to process

These factors can impact the overall cost-effectiveness of using EFTPOS.

22
Q

What is video conferencing?

A

The two-way or multipoint reception and transmission of audio and video signals for real-time communication.

Video conferencing facilitates remote collaboration in finance departments.

23
Q

List the advantages of using video conferencing.

A
  • Efficient and cost-effective
  • Environmentally-friendly collaboration solution

These advantages make video conferencing a sustainable choice for communication.

24
Q

What are the disadvantages of video conferencing?

A
  • Lack of personal interactions
  • Potential network connectivity issues

These challenges can hinder effective communication.

25
Q

What is internet banking?

A

A method of banking where transactions are conducted electronically via the internet.

Internet banking simplifies financial operations for finance departments.

26
Q

List the advantages of internet banking.

A
  • Saves time by reducing trips to the bank
  • Instant and convenient fund transfers

These benefits enhance the efficiency of banking operations.

27
Q

What are the disadvantages of internet banking?

A
  • Requires increased computer security
  • Dependent on technology functionality

These risks must be managed to ensure safe banking practices.

28
Q

What are BACS payments?

A

A method that allows a company to transfer money securely and quickly between bank accounts.

BACS payments are commonly used for payroll and supplier payments.

29
Q

List the advantages of BACS payments.

A
  • Cheapest way to send payments
  • Supported by all payroll/accounting software

These advantages make BACS payments a cost-effective solution.

30
Q

What are the disadvantages of BACS payments?

A
  • Only clear on business days
  • Strict cut-off times for processing

These limitations can affect payment timing.

Higher BM (15 decks)

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