End79of79Chapter79Solutions79Manual:79Richardson,79Chang,79Smith,79Accounting79Information79Systems,79
th
4 edition
Chapter791:79Accounting79Information79Systems79and79Firm79Value
Multiple79Choice79Questions
1. (LO791-1)79Accounting79information79systems
a. are79always79computerized.
b. report79only79financially79related79information.
c. are79information79systems79that79record,79process,79and79report79on79transactions79to
79provide79financial79and79nonfinancial79information79for79decision79making79and79con
trol.
d. require79a79CITP79designation79to79understand.
Answer:79C
2. (LO791-1)79Which79of79the79following79is79a79characteristic79of79relevance?
a. Materiality
b. Timeliness
c. Verifiable
d. Cost79to79genera
te79Answer:79A
3. (LO791-
2)79Which79of79the79following79is79considered79to79be79mandatory79information79required79by
79a79regulatory79body?
a. 10-Q79submission79to79the79Securities79and79Exchange79Commission
b. The79cost79to79produce79a79Samsung79Galaxy
c. The79number79of79organic79bananas79that79are79sold79at79Whole79Foods79on79July7928
d. The79cost79to79build79an79all-
new79Starbucks79restaurant79in79Shenzhen,79China79Answer:79A
4. (LO791-4)79The79correct79order79of79events79in79the79value79chain79is
a. Inbound79logistics79➛79Operations79➛79Service.
b. Inbound79logistics79➛79Outbound79logistics79➛79Marketing79and79sales.
c. Inbound79logistics79➛79Operations79➛79Outbound79logistics.
d. Inbound79logistics79➛79Operations79➛79Marketing79and79Sales.
Answer:79C
5. (LO791-8)79Which79system79contributes79information79on79direct79labor79to79a79cost79accounting79system?
a. Supply79chain79management79system79(SCMS)
b. Financial79reporting79system79(FRS)
c. Customer79Relational79Management79System79(CRM)
1
, End79of79Chapter79Solutions79Manual:79Richardson,79Chang,79Smith,79Accounting79Information79Systems,79
th
4 edition
d. Human79resource79management79system79(HR
MS)79Answer:79D
6. (LO791-7)79A79supply79chain
a. supplies79jewelry79chains.
b. refers79to79the79flow79of79materials,79information,79payments,79and79services.
c. is79similar79in79function79and79purpose79to79the79value79chain.
d. does79not79apply79to79a79service79firm79like79an79accounting79firm.
Answer:79B
7. (LO791-7)79Customer79relationship79management79software79does79not79include79information79about
a. current79customers.
b. prospective79customers.
c. former79customers.
d. current79employees.
Answer:79D
8. (LO791-
6)79An79information79system79that79measures79and79records79accounting79transactions79and
79reports79them79in79the79financial79statements79is79called79a
a. financial79reporting79system79(FRS).
b. enterprise79system79(ES).
c. manufacturing79system79(MS).
d. cost79accounting79system.
Answer:79A
9. (LO791-
3)79What79is79the79name79of79the79position79for79a79person79responsible79for79determini
ng79Information79needs79of79a79business79and79designing79a79system79to79meet79thos
e79needs?
a. Chief79information79officer
b. Controller
c. IT79auditor
d. Systems79analys
t79Answer:79D
10. (LO791-
9)79The79balance79sheet79account79most79likely79affected79by79an79AIS79investment79in79suppl
y79chain79management79software79would79be
a. inventories.
b. fixed79assets.
2
,End79of79Chapter79Solutions79Manual:79Richardson,79Chang,79Smith,79Accounting79Information79Systems,79
th
4c. cash 79and79cash79equivalents.
edition
3
, End79of79Chapter79Solutions79Manual:79Richardson,79Chang,79Smith,79Accounting79Information79Systems,79
th
4 edition
d. unearned79revenue.
Answer:79A
11. (LO791-7)79The79software/system79that79helps79make79sure79the79retail79firm79doesn’t79have79a79stockout79is
a. supply79chain79management79software.
b. customer79relationship79management79 software.
c. enterprise79systems.
d. human79resource79systems.
Answer:79A
12. (LO791-
9)79Data79analytics79performed79to79identify79the79most79profitable79customers79would79be
79most79likely79to79affect79which79income79statement79account?
a. Selling,79general,79and79administrative79expenses79(SG&A)
b. Interest79expense
c. Revenues
d. Cost79of79goods79s
old79Answer:79C
13. (LO791-7,79LO791-
9)79Customer79relationship79management79systems79would79generally79be79considered79to79be79a
n
a. internal79business79process.
b. external79business79process.
c. interior79business79process.
d. exterior79business79process.
Answer:79B
14. (LO791-
3)79An79auditor79testing79internal79controls79would79generally79be79considered79to79fill79whic
h79role79with79respect79to79accounting79information79systems?
a. User
b. Manager
c. Designer
d. Evaluator
79Answer:79D
15. (LO791-
2)79Which79of79these79represents79the79proper79transformation79from79data79to79decision7
9according79to79the79information79value79chain?
a. Data79➛79Information79➛79Knowledge79➛79Decision
4
th
4 edition
Chapter791:79Accounting79Information79Systems79and79Firm79Value
Multiple79Choice79Questions
1. (LO791-1)79Accounting79information79systems
a. are79always79computerized.
b. report79only79financially79related79information.
c. are79information79systems79that79record,79process,79and79report79on79transactions79to
79provide79financial79and79nonfinancial79information79for79decision79making79and79con
trol.
d. require79a79CITP79designation79to79understand.
Answer:79C
2. (LO791-1)79Which79of79the79following79is79a79characteristic79of79relevance?
a. Materiality
b. Timeliness
c. Verifiable
d. Cost79to79genera
te79Answer:79A
3. (LO791-
2)79Which79of79the79following79is79considered79to79be79mandatory79information79required79by
79a79regulatory79body?
a. 10-Q79submission79to79the79Securities79and79Exchange79Commission
b. The79cost79to79produce79a79Samsung79Galaxy
c. The79number79of79organic79bananas79that79are79sold79at79Whole79Foods79on79July7928
d. The79cost79to79build79an79all-
new79Starbucks79restaurant79in79Shenzhen,79China79Answer:79A
4. (LO791-4)79The79correct79order79of79events79in79the79value79chain79is
a. Inbound79logistics79➛79Operations79➛79Service.
b. Inbound79logistics79➛79Outbound79logistics79➛79Marketing79and79sales.
c. Inbound79logistics79➛79Operations79➛79Outbound79logistics.
d. Inbound79logistics79➛79Operations79➛79Marketing79and79Sales.
Answer:79C
5. (LO791-8)79Which79system79contributes79information79on79direct79labor79to79a79cost79accounting79system?
a. Supply79chain79management79system79(SCMS)
b. Financial79reporting79system79(FRS)
c. Customer79Relational79Management79System79(CRM)
1
, End79of79Chapter79Solutions79Manual:79Richardson,79Chang,79Smith,79Accounting79Information79Systems,79
th
4 edition
d. Human79resource79management79system79(HR
MS)79Answer:79D
6. (LO791-7)79A79supply79chain
a. supplies79jewelry79chains.
b. refers79to79the79flow79of79materials,79information,79payments,79and79services.
c. is79similar79in79function79and79purpose79to79the79value79chain.
d. does79not79apply79to79a79service79firm79like79an79accounting79firm.
Answer:79B
7. (LO791-7)79Customer79relationship79management79software79does79not79include79information79about
a. current79customers.
b. prospective79customers.
c. former79customers.
d. current79employees.
Answer:79D
8. (LO791-
6)79An79information79system79that79measures79and79records79accounting79transactions79and
79reports79them79in79the79financial79statements79is79called79a
a. financial79reporting79system79(FRS).
b. enterprise79system79(ES).
c. manufacturing79system79(MS).
d. cost79accounting79system.
Answer:79A
9. (LO791-
3)79What79is79the79name79of79the79position79for79a79person79responsible79for79determini
ng79Information79needs79of79a79business79and79designing79a79system79to79meet79thos
e79needs?
a. Chief79information79officer
b. Controller
c. IT79auditor
d. Systems79analys
t79Answer:79D
10. (LO791-
9)79The79balance79sheet79account79most79likely79affected79by79an79AIS79investment79in79suppl
y79chain79management79software79would79be
a. inventories.
b. fixed79assets.
2
,End79of79Chapter79Solutions79Manual:79Richardson,79Chang,79Smith,79Accounting79Information79Systems,79
th
4c. cash 79and79cash79equivalents.
edition
3
, End79of79Chapter79Solutions79Manual:79Richardson,79Chang,79Smith,79Accounting79Information79Systems,79
th
4 edition
d. unearned79revenue.
Answer:79A
11. (LO791-7)79The79software/system79that79helps79make79sure79the79retail79firm79doesn’t79have79a79stockout79is
a. supply79chain79management79software.
b. customer79relationship79management79 software.
c. enterprise79systems.
d. human79resource79systems.
Answer:79A
12. (LO791-
9)79Data79analytics79performed79to79identify79the79most79profitable79customers79would79be
79most79likely79to79affect79which79income79statement79account?
a. Selling,79general,79and79administrative79expenses79(SG&A)
b. Interest79expense
c. Revenues
d. Cost79of79goods79s
old79Answer:79C
13. (LO791-7,79LO791-
9)79Customer79relationship79management79systems79would79generally79be79considered79to79be79a
n
a. internal79business79process.
b. external79business79process.
c. interior79business79process.
d. exterior79business79process.
Answer:79B
14. (LO791-
3)79An79auditor79testing79internal79controls79would79generally79be79considered79to79fill79whic
h79role79with79respect79to79accounting79information79systems?
a. User
b. Manager
c. Designer
d. Evaluator
79Answer:79D
15. (LO791-
2)79Which79of79these79represents79the79proper79transformation79from79data79to79decision7
9according79to79the79information79value79chain?
a. Data79➛79Information79➛79Knowledge79➛79Decision
4
