Accounting Information Systems 4e Vernon Richardson, Chengyee Chang, Rod Smith
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(Solutions Manual All Chapters, 100% Original Verified, A+ Grade) All Chapters
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Solutions Manual Supplement files download link at the end of this file.
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Chapter 1: Accounting Information Systems and Firm Value
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Multiple Choice Questions
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1. (LO 1-1) Accounting information systems
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a. are always computerized. l l
b. report only financially related information. l l l l
c. are information systems that record, process, and report on transactions to provide financial
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and nonfinancial information for decision making and control.
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d. require a CITP designation to understand. l l l l l
Answer: C l
2. (LO 1-1) Which of the following is a characteristic of relevance?
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a. Materiality
b. Timeliness
c. Verifiable
d. Cost to generate l l
Answer: A
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3. (LO 1-2) Which of the following is considered to be mandatory information required by a regulatory
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body?
a. 10-Q submission to the Securities and Exchange Commission
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b. The cost to produce a Samsung Galaxy
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c. The number of organic bananas that are sold at Whole Foods on July 28
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d. The cost to build an all-new Starbucks restaurant in Shenzhen, China
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Answer: A
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4. (LO 1-4) The correct order of events in the value chain is
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a. Inbound logistics ➛Operations ➛Service. l l l l l
b. Inbound logistics ➛Outbound logistics ➛Marketing and sales. l l l l l l l l
c. Inbound logistics ➛Operations ➛Outbound logistics. l l l l l l
d. Inbound logistics ➛Operations ➛Marketing and Sales. l l l l l l l
Answer: C l
5. (LO 1-8) Which system contributes information on direct labor to a cost accounting system?
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a. Supply chain management system (SCMS) l l l l
, End of Chapter Solutions Manual: Richardson, Chang, Smith, Accounting Information Systems, 4th edition
b. Financial reporting system (FRS) l l l
c. Customer Relational Management System (CRM) l l l l
d. Human resource management system (HRMS) l l l l
Answer: D
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6. (LO 1-7) A supply chain
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a. supplies jewelry chains. l l
b. refers to the flow of materials, information, payments, and services.
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c. is similar in function and purpose to the value chain.
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d. does not apply to a service firm like an accounting firm.
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Answer: B l
7. (LO 1-7) Customer relationship management software does not include information about
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a. current customers. l
b. prospective customers. l
c. former customers. l
d. current employees. l
Answer: D l
8. (LO 1-6) An information system that measures and records accounting transactions and reports
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them in the financial statements is called a
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a. financial reporting system (FRS). l l l
b. enterprise system (ES). l l
c. manufacturing system (MS). l l
d. cost accounting system. l l
Answer: A l
9. (LO 1-3) What is the name of the position for a person responsible for determining Information
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needs of a business and designing a system to meet those needs?
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a. Chief information officer l l
b. Controller
c. IT auditor l
d. Systems analyst l
Answer: D
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, End of Chapter Solutions Manual: Richardson, Chang, Smith, Accounting Information Systems, 4th edition
10. (LO 1-9) The balance sheet account most likely affected by an AIS investment in supply chain
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management software would be
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a. inventories.
b. fixed assets. l
c. cash and cash equivalents.
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d. unearned revenue. l
Answer: A l
11. (LO 1-7) The software/system that helps make sure the retail firm doesn’t have a stockout is
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a. supply chain management software. l l l
b. customer relationship management software. l l l
c. enterprise systems. l
d. human resource systems. l l
Answer: A l
12. (LO 1-9) Data analytics performed to identify the most profitable customers would be most likely to
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affect which income statement account?
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a. Selling, general, and administrative expenses (SG&A)
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b. Interest expense l
c. Revenues
d. Cost of goods sold l l l
Answer: C
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13. (LO 1-7, LO 1-9) Customer relationship management systems would generally be considered to be
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an
a. internal business process. l l
b. external business process. l l
c. interior business process. l l
d. exterior business process. l l
Answer: B l
14. (LO 1-3) An auditor testing internal controls would generally be considered to fill which role with
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respect to accounting information systems?
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a. User
b. Manager
c. Designer
, End of Chapter Solutions Manual: Richardson, Chang, Smith, Accounting Information Systems, 4th edition
d. Evaluator
Answer: D
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15. (LO 1-2) Which of these represents the proper transformation from data to decision according to the
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information value chain? l l
a. Data ➛Information ➛Knowledge ➛Decision
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b. Data ➛Knowledge ➛Information ➛Decision
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c. Data ➛Business event ➛Information ➛Decision
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d. Data ➛Analysis ➛Information ➛Decision
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Answer: A
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Discussion Questions l
1. Brainstorm a list of discretionary information that might be an output of an accounting l l l l l l l l l l l l l
information system and be needed by Starbucks. Prioritize which items might be most
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important and provide support.
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Answers will vary. Here are some potential answers:
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The cost of a cup of coffee, by type: Breakfast blend, Cafe estima, caffe Verona, espresso roast,
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Ethiopia sidamo, French roast, Gold Coast blend, Guatemala Antigua, house blend, Italian roast,
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Kenya coffee, komodo dragon blend, organic Serena blend, organic shade grown Mexico,
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Sumatra, decaf caffe Verona, decaf espresso roast, decaf house blend, and decaf Sumatra!
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Monthly Sales per square foot of retail space.
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Employee cost for each operating hour.
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Advertising expenditures per dollar of sales. l l l l l
The cost of condiments per dollar sales of coffee. Condiments might include sweeteners, liquid
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creamers, cream canisters, sugar packets, sugar canisters, stir sticks!
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The cost of electricity per operating hour each month of the year.
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2. Explain the information value chain. How do business events turn into data then into information
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and then into knowledge? Give an example starting with the business event of thepurchase of a
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Super Smash Bros. Nintendo Switch Game at GameStop all the way to giving useful information
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for the CEO and other decision makers.
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The information value chain represents the overall transformation from a business need and
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business event (like each individual sale of U.S. flag) to an ultimate decision. The information
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