Solution Manual for Accounting Information Systems, 4th edition by Vernon J. Richardson | 2024 | All Chapters Updated 2025

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End of Chapter Solutions Manual: Richardson, Chang, Smith, Accounting Information Systems, 4 edition
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End of Chapter Solutions Manual: Richardson, Chang, Smith, Accounting Information Systems, 4 edition
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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. v v


b. report only financially related information.
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c. are information systems that record, process, and report on transactions to provide
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financial and nonfinancial information for decision making and control.
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d. require a CITP designation to understand. v v v v v




Answer: C v




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 v v




Answer: A
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3. (LO 1-2) Which of the following is considered to be mandatory information required by a
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regulatory body?
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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. v v v v v


b. Inbound logistics ➛ Outbound logistics ➛ Marketing and sales.
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c. Inbound logistics ➛ Operations ➛ Outbound logistics. v v v v v v


d. Inbound logistics ➛ Operations ➛ Marketing and Sales. v v v v v v v




Answer: C v




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)
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b. Financial reporting system (FRS) v v v


c. Customer Relational Management System (CRM) v v v v




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End of Chapter Solutions Manual: Richardson, Chang, Smith, Accounting Information Systems, 4 edition
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d. Human resource management system (HRMS) v v v v




Answer: D
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6. (LO 1-7) A supply chain
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a. supplies jewelry chains. v v


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 v




7. (LO 1-7) Customer relationship management software does not include information about
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a. current customers. v


b. prospective customers. v


c. former customers. v


d. current employees. v




Answer: D v




8. (LO 1-6) An information system that measures and records accounting transactions and
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reports them in the financial statements is called a
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a. financial reporting system (FRS). v v v


b. enterprise system (ES). v v


c. manufacturing system (MS). v v


d. cost accounting system. v v




Answer: A v




9. (LO 1-3) What is the name of the position for a person responsible for determining
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Information needs of a business and designing a system to meet those needs?
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a. Chief information officer v v


b. Controller
c. IT auditor v


d. Systems analyst v




Answer: D
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10. (LO 1-9) The balance sheet account most likely affected by an AIS investment in supply
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chain management software would be
v v v v v




a. inventories.
b. fixed assets. v


c. cash and cash equivalents.
v v v




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End of Chapter Solutions Manual: Richardson, Chang, Smith, Accounting Information Systems, 4 edition
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d. unearned revenue. v




Answer: A v




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.v v v


b. customer relationship management software. v v v


c. enterprise systems. v


d. human resource systems. v v




Answer: A v




12. (LO 1-9) Data analytics performed to identify the most profitable customers would be
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most likely to affect which income statement account?
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a. Selling, general, and administrative expenses (SG&A)
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b. Interest expense v


c. Revenues
d. Cost of goods sold v v v




Answer: C
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13. (LO 1-7, LO 1-9) Customer relationship management systems would generally be considered
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to be an
v v v




a. internal business process. v v


b. external business process. v v


c. interior business process. v v


d. exterior business process. v v




Answer: B v




14. (LO 1-3) An auditor testing internal controls would generally be considered to fill which
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role with respect to accounting information systems?
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a. User
b. Manager
c. Designer
d. Evaluator

Answer: D
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15. (LO 1-2) Which of these represents the proper transformation from data to decision
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according to the information value chain?
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a. Data ➛ Information ➛ Knowledge ➛ Decision
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b. Data ➛ Knowledge ➛ Information ➛ Decision
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