A solution manual for a textbook on Accounting Information Systems by
Rooney 16th Edition All Chapters 1 - 24 COVERED.
, Accounting Information Systems
Accounting Information
Systems
16th Edition
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
3-1
Copyright (c) 2021 Pearson Education, Inc.
, Accounting Information Systems
3-2
Copyright (c) 2021 Pearson Education, Inc.
, Accounting Information Systems
chapter 1
accounting information systems: An overview
Suggested Answers to Discussion Questions
1.1 The value of information is the difference between the benefits realized from using that
information and the costs of producing it. Would you, or any organization, ever
produce information if its expected costs exceeded its benefits? If so, provide some
examples. If not, why?
Most organizations produce information only if its value exceeds its cost. However, there
are two situations where information may be produced even if its cost exceeds its value.
a. It is often difficult to estimate accurately the value of information and the cost of
producing it. Therefore, organizations may produce information that they expect
will produce benefits in excess of its costs, only to be disappointed after the fact.
b. Production of the information may be mandated by either a government agency
or a private organization. Examples include the tax reports required by the IRS
and disclosure requirements for financial reporting.
1.2 Can the characteristics of useful information listed in Table 1-1 be met simultaneously?
Or does achieving one mean sacrificing another?
Several of the criteria in Table 1.1 can be met simultaneously. For example, more timely
information is
3-3
Copyright (c) 2021 Pearson Education, Inc.
Rooney 16th Edition All Chapters 1 - 24 COVERED.
, Accounting Information Systems
Accounting Information
Systems
16th Edition
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
3-1
Copyright (c) 2021 Pearson Education, Inc.
, Accounting Information Systems
3-2
Copyright (c) 2021 Pearson Education, Inc.
, Accounting Information Systems
chapter 1
accounting information systems: An overview
Suggested Answers to Discussion Questions
1.1 The value of information is the difference between the benefits realized from using that
information and the costs of producing it. Would you, or any organization, ever
produce information if its expected costs exceeded its benefits? If so, provide some
examples. If not, why?
Most organizations produce information only if its value exceeds its cost. However, there
are two situations where information may be produced even if its cost exceeds its value.
a. It is often difficult to estimate accurately the value of information and the cost of
producing it. Therefore, organizations may produce information that they expect
will produce benefits in excess of its costs, only to be disappointed after the fact.
b. Production of the information may be mandated by either a government agency
or a private organization. Examples include the tax reports required by the IRS
and disclosure requirements for financial reporting.
1.2 Can the characteristics of useful information listed in Table 1-1 be met simultaneously?
Or does achieving one mean sacrificing another?
Several of the criteria in Table 1.1 can be met simultaneously. For example, more timely
information is
3-3
Copyright (c) 2021 Pearson Education, Inc.
