Endm ofm Chapter m SolutionsmManual: mRichardson,m Chang,m Smith,m AccountingmInformationm Systems,m 4thmedi
tion
Chapter 1: Accounting Information Systems and Firm Value
m m m m m m m
MultiplemChoicemQuestions
1. (LOm1-1) mAccountingminformationmsystems
a. are malwaysmcomputerized.
b. reportmonlymfinanciallymrelatedminformation.
c. are minformationmsystemsmthatmrecord,mprocess,mandmreportmonmtransactionsmtompro
vide mfinancialmandmnonfinancialminformationmformdecisionmmakingmandmcontrol.
d. require mamCITPmdesignationmtomunderstand.
Answer:mC
2. (LOm1-1) mWhichmofmthe mfollowingmismamcharacteristicmofmrelevance?
a. Materiality
b. Timeliness
c. Verifiable
d. Costmtomgenerat
e mAnswer:mA
3. (LOm1-
2) mWhichmofmthe mfollowingmismconsideredmtombe mmandatoryminformationmrequiredmbymamreg
ulatorymbody?
a. 10-Qmsubmissionmtomthe mSecuritiesmandmExchange mCommission
b. The mcostmtomproduce mamSamsungmGalaxy
c. The mnumbermofmorganicmbananasmthatmare msoldmatmWhole mFoodsmonmJulym28
d. The mcostmtombuildmanmall-
newmStarbucksmrestaurantminmShenzhen, mChinamAnswer:mA
4. (LOm1-4) mThe mcorrectmordermof meventsminmthe mvalue mchainmis
a. Inboundmlogisticsm➛mOperationsm➛mService.
b. Inboundmlogisticsm➛mOutboundmlogisticsm➛mMarketingmandmsales.
c. Inboundmlogisticsm➛mOperationsm➛mOutboundmlogistics.
d. Inboundmlogisticsm➛mOperationsm➛mMarketingmandmSales.
Answer:mC
5. (LOm1-8) mWhichmsystemmcontributesminformationmonmdirectmlabormtomamcostmaccountingmsystem?
a. Supplymchainmmanagementmsystemm(SCMS)
b. Financialmreportingmsystemm(FRS)
c. CustomermRelationalmManagementmSystemm(CRM)
1
, Endm ofm Chapter m SolutionsmManual: mRichardson,m Chang,m Smith,m AccountingmInformationm Systems,m 4thmedi
tion
d. Humanmresource mmanagementmsystemm(HRM
S) mAnswer:mD
6. (LOm1-7) mAmsupplymchain
a. suppliesmjewelrymchains.
b. refersmtomthe mflowmof mmaterials,minformation,mpayments,mandmservices.
c. ismsimilarminmfunctionmandmpurpose mtomthe mvalue mchain.
d. doesmnotmapplymtomamservice mfirmmlike manmaccountingmfirm.
Answer:mB
7. (LOm1-7) mCustomermrelationshipmmanagementmsoftware mdoesmnotminclude minformationmabout
a. currentmcustomers.
b. prospective mcustomers.
c. formermcustomers.
d. currentmemployees.
Answer:mD
8. (LOm1-
6) mAnminformationmsystemmthatmmeasuresmandmrecordsmaccountingmtransactionsmandmrep
ortsmthemminmthe mfinancialmstatementsmismcalledma
a. financialmreportingmsystemm(FRS).
b. enterprise msystemm(ES).
c. manufacturingmsystemm(MS).
d. costmaccountingmsystem.
Answer:mA
9. (LOm1-
3) mWhatmismthe mnamemofmthe mpositionmformampersonmresponsiblemformdeterminingmInf
ormationmneedsmof mambusinessmandmdesigningmamsystemmtommeetmthose mneeds?
a. Chief minformationmofficer
b. Controller
c. ITmauditor
d. Systemsmanalys
tmAnswer:mD
10. (LOm1-
9) mThe mbalance msheetmaccountmmostmlikelymaffectedmbymanmAISminvestmentminmsupplymchai
nmmanagementmsoftware mwouldmbe
a. inventories.
b. fixedmassets.
c. cashmandmcashmequivalents.
2
, Endm ofm Chapter m SolutionsmManual: mRichardson,m Chang,m Smith,m AccountingmInformationm Systems,m 4thmedi
tion
d. unearnedmrevenue.
Answer:mA
11. (LOm1-7) mThe msoftware/systemmthatmhelpsmmake msure mthe mretailmfirmmdoesn’tmhave mamstockoutmis
a. supplymchainmmanagementmsoftware.
b. customermrelationshipmmanagementmsoftware.
c. enterprise msystems.
d. humanmresource msystems.
Answer:mA
12. (LOm1-
9) mDatamanalyticsmperformedmtomidentifymthemmostmprofitablemcustomersmwouldmbe mmost
m likely m tom affectm which m income m statementm account?
a. Selling,mgeneral,mandmadministrative mexpensesm(SG&A)
b. Interestmexpense
c. Revenues
d. Costmof mgoodsmsol
dmAnswer:mC
13. (LOm1-7,mLOm1-
9) mCustomermrelationshipmmanagementmsystemsmwouldmgenerallymbe mconsideredmtombe man
a. internalmbusinessmprocess.
b. externalmbusinessmprocess.
c. interiormbusinessmprocess.
d. exteriormbusinessmprocess.
Answer:mB
14. (LOm1-
3) mAnmauditormtestingminternalmcontrolsmwouldmgenerallymbemconsideredmtomfillmwhichmrolem
withmrespectmtomaccountingminformationmsystems?
a. User
b. Manager
c. Designer
d. Evaluator
m Answer:mD
15. (LOm1-
2) mWhichmofmthesemrepresentsmthempropermtransformationmfrommdatamtomdecisionmaccor
dingmtomthe minformationmvalue mchain?
a. Datam➛mInformationm➛mKnowledge m➛mDecision
b. Datam➛mKnowledge m➛mInformationm➛mDecision
3
, Endm ofm Chapter m SolutionsmManual: mRichardson,m Chang,m Smith,m AccountingmInformationm Systems,m 4thmedi
tion
c. Datam➛mBusinessmeventm➛mInformationm➛mDecision
d. Datam➛mAnalysism➛mInformationm➛mDecisi
onmAnswer:mA
Discussion mQuestions
1. Brainstormmamlistmof mdiscretionaryminformationmthatmmightmbe manmoutputmofmanmaccoun
tingminformationmsystemmandmbemneededmbymStarbucks.m Prioritize mwhichmitemsmmightm
be mmostmimportantmandmprovide msupport.
Answersmwillmvary.m Here mare msome mpotentialmanswers:
The mcostmof mamcupmofmcoffee,mbymtype:mBreakfastmblend,mCafe mestima,mcaffe mVerona,mespressomr
oast,mEthiopiamsidamo,mFrench mroast,mGold mCoastmblend,mGuatemalamAntigua,mhouse mblend,m
Italian mroast,mKenyamcoffee,mkomodomdragonmblend,morganic mSerenamblend,morganic mshademg
rown mMexico,mSumatra,mdecafmcaffe mVerona,mdecafmespressomroast,mdecafmhousemblend,mand
m decafmSum atra!
MonthlymSalesmpermsquaremfootmofmretailmspace.mEmpl
oyee mcostmformeachmoperatingmhour.
Advertisingmexpendituresmpermdollarmofmsales.
The mcostmof mcondimentsmpermdollarmsalesmofmcoffee.mCondimentsmmightminclude msweeteners,mliq
uidmcreamers,mcream mcanisters,msugarmpackets,msugarmcanisters,mstirmsticks!
The mcostmof melectricitympermoperatingmhourmeachmmonthmofmthe myear.
2. Explainmthe minformationmvaluemchain.m Howmdombusinessmeventsmturnmintomdatamthenmintominfo
rmationmandmthenmintomknowledge?m Givemanmexample mstartingmwithmthe mbusinessmeventmofmth
e mpurchase mof mamSupermSmashmBros.mNintendomSwitchmGamematmGameStopmallmthe mwaymtomgiv
ingmusefulminformationmformthe mCEOmandmothermdecisionmmakers.
The minformationmvalue mchainmrepresentsmthe moverallmtransformationmfrommambusinessmneedman
dmbusinessmeventm(like meachmindividualmsalemof mU.S.mflag)mtomanmultimate mdecision.m The minform
ationmvalue mchainmmightmbemrepresentedmconsideringmthempurchasemofmamNintendomSwitchmGam
e matmBestmBuyminmthe mfollowingmway:
The mgame mwillmbe mrecordedmasmsalesmrevenuemandmthenmaftermdeductingmitsmcostsmwillmaddmtom
ormsubtractmfrommcorporatemincome.m The mcashmfrommthe mgame msale mwillmalsomaddmtomthe moper
atingmcashmflows.
4
tion
Chapter 1: Accounting Information Systems and Firm Value
m m m m m m m
MultiplemChoicemQuestions
1. (LOm1-1) mAccountingminformationmsystems
a. are malwaysmcomputerized.
b. reportmonlymfinanciallymrelatedminformation.
c. are minformationmsystemsmthatmrecord,mprocess,mandmreportmonmtransactionsmtompro
vide mfinancialmandmnonfinancialminformationmformdecisionmmakingmandmcontrol.
d. require mamCITPmdesignationmtomunderstand.
Answer:mC
2. (LOm1-1) mWhichmofmthe mfollowingmismamcharacteristicmofmrelevance?
a. Materiality
b. Timeliness
c. Verifiable
d. Costmtomgenerat
e mAnswer:mA
3. (LOm1-
2) mWhichmofmthe mfollowingmismconsideredmtombe mmandatoryminformationmrequiredmbymamreg
ulatorymbody?
a. 10-Qmsubmissionmtomthe mSecuritiesmandmExchange mCommission
b. The mcostmtomproduce mamSamsungmGalaxy
c. The mnumbermofmorganicmbananasmthatmare msoldmatmWhole mFoodsmonmJulym28
d. The mcostmtombuildmanmall-
newmStarbucksmrestaurantminmShenzhen, mChinamAnswer:mA
4. (LOm1-4) mThe mcorrectmordermof meventsminmthe mvalue mchainmis
a. Inboundmlogisticsm➛mOperationsm➛mService.
b. Inboundmlogisticsm➛mOutboundmlogisticsm➛mMarketingmandmsales.
c. Inboundmlogisticsm➛mOperationsm➛mOutboundmlogistics.
d. Inboundmlogisticsm➛mOperationsm➛mMarketingmandmSales.
Answer:mC
5. (LOm1-8) mWhichmsystemmcontributesminformationmonmdirectmlabormtomamcostmaccountingmsystem?
a. Supplymchainmmanagementmsystemm(SCMS)
b. Financialmreportingmsystemm(FRS)
c. CustomermRelationalmManagementmSystemm(CRM)
1
, Endm ofm Chapter m SolutionsmManual: mRichardson,m Chang,m Smith,m AccountingmInformationm Systems,m 4thmedi
tion
d. Humanmresource mmanagementmsystemm(HRM
S) mAnswer:mD
6. (LOm1-7) mAmsupplymchain
a. suppliesmjewelrymchains.
b. refersmtomthe mflowmof mmaterials,minformation,mpayments,mandmservices.
c. ismsimilarminmfunctionmandmpurpose mtomthe mvalue mchain.
d. doesmnotmapplymtomamservice mfirmmlike manmaccountingmfirm.
Answer:mB
7. (LOm1-7) mCustomermrelationshipmmanagementmsoftware mdoesmnotminclude minformationmabout
a. currentmcustomers.
b. prospective mcustomers.
c. formermcustomers.
d. currentmemployees.
Answer:mD
8. (LOm1-
6) mAnminformationmsystemmthatmmeasuresmandmrecordsmaccountingmtransactionsmandmrep
ortsmthemminmthe mfinancialmstatementsmismcalledma
a. financialmreportingmsystemm(FRS).
b. enterprise msystemm(ES).
c. manufacturingmsystemm(MS).
d. costmaccountingmsystem.
Answer:mA
9. (LOm1-
3) mWhatmismthe mnamemofmthe mpositionmformampersonmresponsiblemformdeterminingmInf
ormationmneedsmof mambusinessmandmdesigningmamsystemmtommeetmthose mneeds?
a. Chief minformationmofficer
b. Controller
c. ITmauditor
d. Systemsmanalys
tmAnswer:mD
10. (LOm1-
9) mThe mbalance msheetmaccountmmostmlikelymaffectedmbymanmAISminvestmentminmsupplymchai
nmmanagementmsoftware mwouldmbe
a. inventories.
b. fixedmassets.
c. cashmandmcashmequivalents.
2
, Endm ofm Chapter m SolutionsmManual: mRichardson,m Chang,m Smith,m AccountingmInformationm Systems,m 4thmedi
tion
d. unearnedmrevenue.
Answer:mA
11. (LOm1-7) mThe msoftware/systemmthatmhelpsmmake msure mthe mretailmfirmmdoesn’tmhave mamstockoutmis
a. supplymchainmmanagementmsoftware.
b. customermrelationshipmmanagementmsoftware.
c. enterprise msystems.
d. humanmresource msystems.
Answer:mA
12. (LOm1-
9) mDatamanalyticsmperformedmtomidentifymthemmostmprofitablemcustomersmwouldmbe mmost
m likely m tom affectm which m income m statementm account?
a. Selling,mgeneral,mandmadministrative mexpensesm(SG&A)
b. Interestmexpense
c. Revenues
d. Costmof mgoodsmsol
dmAnswer:mC
13. (LOm1-7,mLOm1-
9) mCustomermrelationshipmmanagementmsystemsmwouldmgenerallymbe mconsideredmtombe man
a. internalmbusinessmprocess.
b. externalmbusinessmprocess.
c. interiormbusinessmprocess.
d. exteriormbusinessmprocess.
Answer:mB
14. (LOm1-
3) mAnmauditormtestingminternalmcontrolsmwouldmgenerallymbemconsideredmtomfillmwhichmrolem
withmrespectmtomaccountingminformationmsystems?
a. User
b. Manager
c. Designer
d. Evaluator
m Answer:mD
15. (LOm1-
2) mWhichmofmthesemrepresentsmthempropermtransformationmfrommdatamtomdecisionmaccor
dingmtomthe minformationmvalue mchain?
a. Datam➛mInformationm➛mKnowledge m➛mDecision
b. Datam➛mKnowledge m➛mInformationm➛mDecision
3
, Endm ofm Chapter m SolutionsmManual: mRichardson,m Chang,m Smith,m AccountingmInformationm Systems,m 4thmedi
tion
c. Datam➛mBusinessmeventm➛mInformationm➛mDecision
d. Datam➛mAnalysism➛mInformationm➛mDecisi
onmAnswer:mA
Discussion mQuestions
1. Brainstormmamlistmof mdiscretionaryminformationmthatmmightmbe manmoutputmofmanmaccoun
tingminformationmsystemmandmbemneededmbymStarbucks.m Prioritize mwhichmitemsmmightm
be mmostmimportantmandmprovide msupport.
Answersmwillmvary.m Here mare msome mpotentialmanswers:
The mcostmof mamcupmofmcoffee,mbymtype:mBreakfastmblend,mCafe mestima,mcaffe mVerona,mespressomr
oast,mEthiopiamsidamo,mFrench mroast,mGold mCoastmblend,mGuatemalamAntigua,mhouse mblend,m
Italian mroast,mKenyamcoffee,mkomodomdragonmblend,morganic mSerenamblend,morganic mshademg
rown mMexico,mSumatra,mdecafmcaffe mVerona,mdecafmespressomroast,mdecafmhousemblend,mand
m decafmSum atra!
MonthlymSalesmpermsquaremfootmofmretailmspace.mEmpl
oyee mcostmformeachmoperatingmhour.
Advertisingmexpendituresmpermdollarmofmsales.
The mcostmof mcondimentsmpermdollarmsalesmofmcoffee.mCondimentsmmightminclude msweeteners,mliq
uidmcreamers,mcream mcanisters,msugarmpackets,msugarmcanisters,mstirmsticks!
The mcostmof melectricitympermoperatingmhourmeachmmonthmofmthe myear.
2. Explainmthe minformationmvaluemchain.m Howmdombusinessmeventsmturnmintomdatamthenmintominfo
rmationmandmthenmintomknowledge?m Givemanmexample mstartingmwithmthe mbusinessmeventmofmth
e mpurchase mof mamSupermSmashmBros.mNintendomSwitchmGamematmGameStopmallmthe mwaymtomgiv
ingmusefulminformationmformthe mCEOmandmothermdecisionmmakers.
The minformationmvalue mchainmrepresentsmthe moverallmtransformationmfrommambusinessmneedman
dmbusinessmeventm(like meachmindividualmsalemof mU.S.mflag)mtomanmultimate mdecision.m The minform
ationmvalue mchainmmightmbemrepresentedmconsideringmthempurchasemofmamNintendomSwitchmGam
e matmBestmBuyminmthe mfollowingmway:
The mgame mwillmbe mrecordedmasmsalesmrevenuemandmthenmaftermdeductingmitsmcostsmwillmaddmtom
ormsubtractmfrommcorporatemincome.m The mcashmfrommthe mgame msale mwillmalsomaddmtomthe moper
atingmcashmflows.
4
