Solution Manual
Accounting Information Systems
Rod E. Smith & Vernon Richardson
4th Edition
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,Table of Contents
1. Accounting Information Systems and Firm Value
2. Data Analytics: Addressing Accounting Questions with Data
3. Data Analytics: Data Visualizations
4. Process Modeling and Documentation Tools
5. Data Modeling and Control Concepts
6. Relational Databases and Enterprise Systems
7. Sales and Collections Business Process
8. Purchases and Payments Business Process
9. Conversion Business Process
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10.Integrated Project
11.Accounting Information Systems and Internal Controls
12.Cybersecurity and Computer Fraud
13.Monitoring and Auditing AIS
14.Extensible Business Reporting Language (XBRL)
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15.Emerging Technologies: Blockchain and AI Automation
16.The Balanced Scorecard and Business Value of Information Technology
17.Justifying and Planning IT Initiatives Using Project Management Techniques
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, Chapter 1: Accounting Information Systems and Firm Value
Multiple Choice Questions
1. (LO 1-1) Accounting information systems
a. are always computerized.
b. report only financially related information.
c. are information systems that record, process, and report on transactions to provide financial and
nonfinancial information for decision making and control.
d. require a CITP designation to understand.
Correct Answer: C
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2. (LO 1-1) Which of the following is a characteristic of relevance?
a. Materiality
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b. Timeliness
c. Verifiable
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d. Cost to generate Correct Answer: A
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
c. The number of organic bananas that are sold at Whole Foods on July 28
d. The cost to build an all-new Starbucks restaurant in Shenzhen, China Correct Answer: A
4. (LO 1-4) The correct order of events in the value chain is
a. Inbound logistics ➛ Operations ➛ Service.
b. Inbound logistics ➛ Outbound logistics ➛ Marketing and sales.
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, c. Inbound logistics ➛ Operations ➛ Outbound logistics.
d. Inbound logistics ➛ Operations ➛ Marketing and Sales.
Correct Answer: C
5. (LO 1-8) Which system contributes information on direct labor to a cost accounting system?
a. Supply chain management system (SCMS)
b. Financial reporting system (FRS)
c. Customer Relational Management System (CRM)
d. Human resource management system (HRMS) Correct Answer: D
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6. (LO 1-7) A supply chain
a. supplies jewelry chains.
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b. refers to the flow of materials, information, payments, and services.
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.
Correct Answer: B
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7. (LO 1-7) Customer relationship management software does not include information about
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a. current customers.
b. prospective customers.
c. former customers.
d. current employees.
Correct Answer: D
8. (LO 1-6) An information system that measures and records accounting transactions and reports them in
the financial statements is called a
a. financial reporting system (FRS).
Page | 4
Accounting Information Systems
Rod E. Smith & Vernon Richardson
4th Edition
PR
O
FD
O
C
Page | 1
,Table of Contents
1. Accounting Information Systems and Firm Value
2. Data Analytics: Addressing Accounting Questions with Data
3. Data Analytics: Data Visualizations
4. Process Modeling and Documentation Tools
5. Data Modeling and Control Concepts
6. Relational Databases and Enterprise Systems
7. Sales and Collections Business Process
8. Purchases and Payments Business Process
9. Conversion Business Process
PR
10.Integrated Project
11.Accounting Information Systems and Internal Controls
12.Cybersecurity and Computer Fraud
13.Monitoring and Auditing AIS
14.Extensible Business Reporting Language (XBRL)
O
15.Emerging Technologies: Blockchain and AI Automation
16.The Balanced Scorecard and Business Value of Information Technology
17.Justifying and Planning IT Initiatives Using Project Management Techniques
FD
O
C
Page | 2
, Chapter 1: Accounting Information Systems and Firm Value
Multiple Choice Questions
1. (LO 1-1) Accounting information systems
a. are always computerized.
b. report only financially related information.
c. are information systems that record, process, and report on transactions to provide financial and
nonfinancial information for decision making and control.
d. require a CITP designation to understand.
Correct Answer: C
PR
2. (LO 1-1) Which of the following is a characteristic of relevance?
a. Materiality
O
b. Timeliness
c. Verifiable
FD
d. Cost to generate Correct Answer: A
3. (LO 1-2) Which of the following is considered to be mandatory information required by a regulatory
O
body?
a. 10-Q submission to the Securities and Exchange Commission
C
b. The cost to produce a Samsung Galaxy
c. The number of organic bananas that are sold at Whole Foods on July 28
d. The cost to build an all-new Starbucks restaurant in Shenzhen, China Correct Answer: A
4. (LO 1-4) The correct order of events in the value chain is
a. Inbound logistics ➛ Operations ➛ Service.
b. Inbound logistics ➛ Outbound logistics ➛ Marketing and sales.
Page | 3
, c. Inbound logistics ➛ Operations ➛ Outbound logistics.
d. Inbound logistics ➛ Operations ➛ Marketing and Sales.
Correct Answer: C
5. (LO 1-8) Which system contributes information on direct labor to a cost accounting system?
a. Supply chain management system (SCMS)
b. Financial reporting system (FRS)
c. Customer Relational Management System (CRM)
d. Human resource management system (HRMS) Correct Answer: D
PR
6. (LO 1-7) A supply chain
a. supplies jewelry chains.
O
b. refers to the flow of materials, information, payments, and services.
c. is similar in function and purpose to the value chain.
FD
d. does not apply to a service firm like an accounting firm.
Correct Answer: B
O
7. (LO 1-7) Customer relationship management software does not include information about
C
a. current customers.
b. prospective customers.
c. former customers.
d. current employees.
Correct Answer: D
8. (LO 1-6) An information system that measures and records accounting transactions and reports them in
the financial statements is called a
a. financial reporting system (FRS).
Page | 4
