AccountingvInformationvSystems
Instructor’s SolutionsManual
v v
Accounting Information v
Systems
15th Edition
v
Marshall B. Romney
Professor Emeritus, Brigham Young University
Paul John Steinbart
Professor Emeritus, Arizona State University
Scott L. Summers
Brigham Young University
David A. Wood
Brigham Young University
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Copyrightv(c)v2021vPearsonvEducation,vInc
.
, AccountingvInformationvSystems
ThisvworkvisvprotectedvbyvUnitedvStatesvcopyrightvlawsvandvisvprovidedvsol
elyvforvthevusevofvinstructorsvinvteachingvtheirvcoursesvandvassessingvstude
ntvlearning.vDisseminationvorvsalevofvanyvpartvofvthisvworkv(includingvonvthev
WorldvWidevWeb)vwillvdestroyvthevintegrityvofvthevworkvandvisvnotvpermitted.
Thevworkvandvmaterialsvfromvitvshouldvnevervbevmadevavailablevto
vstudentsvexceptvbyvinstructorsvusingvthe vaccompanyingvtextvinvtheirvclasse
s.
Allvrecipientsvofvthisvworkvarevexpectedvtovabidevbyvthesevrestricti
onsvandvtovhonorvthevintendedvpedagogicalvpurposesvandvthevneedsvofvother
vinstructorsvwhovrelyvonvthesevmaterials.
Copyrightv©v2021vbyvPearsonvEducation,vInc.vorvitsvaffiliates.vAllvRightsvReserved.vManufacture
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Copyrightv(c)v2021vPearsonvEducation,vInc
.
, AccountingvInformationvSystems
chapter 1 v
accounting informationsystems
v v
: An overview
v v
SuggestedvAnswersvtovDiscussionvQuestions
1.1 Thevvaluevofvinformationvisvthevdifferencevbetweenvthevbene
fitsvrealizedvfromvusingvthatvinformationvandvthevcostsvofvp
roducingvit.v Wouldvyou,vorvanyvorganization,vevervproducevi
nformationvifvitsvexpectedvcostsvexceededvitsvbenefits?vIfvs
o,vprovidevsomevexamples.vIfvnot,vwhy?
Mostvorganizationsvproducevinformationvonlyvifvitsvvaluevexc
eedsvitsvcost.v However,vtherevarevtwovsituationsvwherevinfo
rmationvmayvbevproducedvevenvifvitsvcostvexceedsvitsvvalue.
a. Itvisvoftenvdifficultvtovestimatevaccuratelyvthevvaluev
ofvinformationvandvthevcostvofvproducingvit.vTherefore,
vorganizationsvmayvproducevinformationvthatvtheyvexpec
tvwillvproducevbenefitsvinvexcessvofvitsvcosts,vonlyvtovb
evdisappointedvaftervthevfact.
b. Productionvofvthevinformationvmayvbevmandatedvbyveither
vavgovernmentvagencyvorvavprivatevorganization.vExample
svincludevthevtaxvreportsvrequiredvbyvthevIRSvandvdisclo
surevrequirementsvforvfinancialvreporting.
1.2 CanvthevcharacteristicsvofvusefulvinformationvlistedvinvTab
lev1-
1vbevmetvsimultaneously?vOrvdoesvachievingvonevmeanvsacrific
ingvanother?
SeveralvofvthevcriteriavinvTablev1.1vcanvbevmetvsimultaneousl
y.v Forvexample,vmorevtimelyvinformationvis
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Copyrightv(c)v2021vPearsonvEducation,vInc
.
, AccountingvInformationvSystems
alsovlikelyvtovbevmorevrelevant.v Verifiablevinformationvisvl
ikelyvtovbevmorevaccurate.
However,vachievingvonevobjectivevmayvrequirevsacrificingvano
ther.v Forvexample,vensuringvthatvinformationvisvmorevcomple
tevmayvreducevitsvtimeliness.v Similarly,vincreasedvverifia
bilityvandvaccuracyvmayvreducevitsvtimeliness.
Thevdecisionvmakervmustvdecidevwhichvtrade-
offsvarevwarrantedvinveachvsituation.
1.3 Youvandvavfewvofvyourvclassmatesvdecidedvtovbecomeventrepren
eurs.v Youvcamevupvwithvavgreatvideavforvavnewvmobilevphonevap
plicationvthatvyouvthinkvwillvmakevlotsvofvmoney.vYourvbusi
nessvplanvwonvsecondvplacevinvavlocalvcompetition,vandvyouva
revusingvthev$10,000vprizevtovsupportvyourselvesvasvyouvstar
tvyourvcompany.
a. Identifyvthevkeyvdecisionsvyouvneedvtovmakevtovbevsuccess
fulventrepreneurs,vthevinformationvyouvneedvtovmakevthem,v
andvthevbusinessvprocessesvyouvwillvneedvtovengagevin.
b. Yourvcompanyvwillvneedvtovexchangevinformationvwithvvar
iousvexternalvparties.vIdentifyvthevexternalvparties,v
andvspecifyvthevinformationvreceivedvfromvandvsentvtove
achvofvthem.
Thevauthorvturnsvthisvquestionvintovanvin-
classvgroupvactivity.vStudentsvarevdividedvupvinvgroups,vt
oldvtovclosevtheirvbooks,vandvgivenv15vminutesvto:
a. Thinkvthroughvthevbusinessvprocesses,vkeyvdecisions,vand
vinformationvneedsvissuesvinvtheirvgroup.
b. Identifyvthevexternalvusersvofvinformationvandvspeci
fyvthevinformationvreceivedvfromvandvsentvtoveachvofvt
hem.
Onevgroupvisvselectedvtovpresentvtheirvanswersvtovthevclass.v
Thevothervgroupsvarevtoldvtovchallengevthevgroup’svanswers,vp
rovidevalternativevanswers,vandvchipvinvwithvadditionalvans
wersvnotvprovidedvbyvthevselectedvgroup.vSincevthevgroupvtha
tvpresentsvisvnotvselectedvuntilvaftervthevtimevhasvexpired,v
studentsvarevmotivatedvtovdovavgoodvjob,vasvtheyvwillvbevprese
ntingvtovtheirvpeers.
Thevvaluevofvthisvactivityvisvnotvinvarrivingvatva
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Copyrightv(c)v2021vPearsonvEducation,vInc
.
