Solution Manual for Accounting Information Systems 15th Edition Romney Steinbart – Complete Solutions PDF

AccountingMInformationMSystem
s




Instructor’s SolutionsManual
M M




Accounting Information M




Systems
15th Edition M




Marshall B. Romney M M

ProfessorMEmeritus,MBrighamMYoungMUniversity
Paul John Steinbart
M M

ProfessorMEmeritus,MArizonaMStateMUniversity
Scott L. Summers
M M

BrighamMYoungMUniversity
David A. Wood M M

BrighamMYoungMUniversity




3-1
CopyrightM(c)M2021MPearsonMEducation,M
Inc.

, AccountingMInformationMSystem
s




ThisMworkMisMprotectedMbyMUnitedMStatesMcopyrightMlawsMandMisMprovidedM
solelyMforMtheMuseMofMinstructorsMinMteachingMtheirMcoursesMandMassessing
MstudentMlearning.MDisseminationMorMsaleMofManyMpartMofMthisMworkM(includi

ngMonMtheMWorldMWideMWeb)MwillMdestroyMtheMintegrityMofMtheMworkMandMisM
notMpermitted.
TheMworkMandMmaterialsMfromMitMshouldMneverMbeMmadeMavailabl
eMtoMstudentsMexceptMbyMinstructorsMusingMtheMaccompanyingMtextMinMtheir
Mclasses.

AllMrecipientsMofMthisMworkMareMexpectedMtoMabideMbyMtheseMrestr
ictionsMandMtoMhonorMtheMintendedMpedagogicalMpurposesMandMtheMneedsMo
fMotherMinstructorsMwhoMrelyMonMtheseMmaterials.




CopyrightM©M2021MbyMPearsonMEducation,MInc.MorMitsMaffiliates.MAllMRightsMReserved.MManu
facturedMinMtheMUnitedMStatesMofMAmerica.MThisMpublicationMisMprotectedMbyMcopyright,MandM
permissionMshouldMbeMobtainedMfromMtheMpublisherMpriorMtoManyMprohibitedMreproduction,Msto
rageMinMaMretrievalMsystem,MorMtransmissionMinManyMformMorMbyManyMmeans,Melectronic,Mmech
anical,Mphotocopying,Mrecording,MorMotherwise.MForMinformationMregardingMpermissions,Mreque
stMforms,MandMtheMappropriateMcontactsMwithinMtheMPearsonMEducationMGlobalMRightsMandMPe
rmissionsMdepartment,MpleaseMvisitMwww.pearsoned.com/permissions/.

PEARSON,MALWAYSMLEARNING,MandMREVELMareMexclusiveMtrademarksMownedMbyMP
earsonMEducation,MInc.MorMitsMaffiliatesMinMtheMU.S.Mand/orMotherMcountries.

UnlessMotherwiseMindicatedMherein,ManyMthird-
partyMtrademarks,Mlogos,MorMiconsMthatMmayMappearMinMthisMworkMareMtheMpropertyMofMtheirMr
espectiveMowners,MandManyMreferencesMtoMthird-
partyMtrademarks,Mlogos,Micons,MorMotherMtradeMdressMareMforMdemonstrativeMorMdescriptiveMp
urposesMonly.MSuchMreferencesMareMnotMintendedMtoMimplyManyMsponsorship,Mendorsement,Mau
thorization,MorMpromotionMofMPearson’sMproductsMbyMtheMownersMofMsuchMmarks,MorManyMrela
tionshipMbetweenMtheMownerMandMPearsonMEducation,MInc.,MorMitsMaffiliates,Mauthors,Mlicensee
s,MorMdistributors.




3-2
CopyrightM(c)M2021MPearsonMEducation,M
Inc.

, AccountingMInformationMSystem
s




chapter 1 M




accounting informationsystems
M M



: An overview
M M




SuggestedMAnswersMtoMDiscussionMQuestions

1.1 TheMvalueMofMinformationMisMtheMdifferenceMbetweenMtheMbene
fitsMrealizedMfromMusingMthatMinformationMandMtheMcostsMofMp
roducingMit.M WouldMyou,MorManyMorganization,MeverMproduceMi
nformationMifMitsMexpectedMcostsMexceededMitsMbenefits?MIfMs
o,MprovideMsomeMexamples.MIfMnot,Mwhy?

MostMorganizationsMproduceMinformationMonlyMifMitsMvalueMexc
eedsMitsMcost.M However,MthereMareMtwoMsituationsMwhereMinfo
rmationMmayMbeMproducedMevenMifMitsMcostMexceedsMitsMvalue.

a. ItMisMoftenMdifficultMtoMestimateMaccuratelyMtheMvalueM
ofMinformationMandMtheMcostMofMproducingMit.MTherefore,
MorganizationsMmayMproduceMinformationMthatMtheyMexpec

tMwillMproduceMbenefitsMinMexcessMofMitsMcosts,MonlyMtoMb
eMdisappointedMafterMtheMfact.
b. ProductionMofMtheMinformationMmayMbeMmandatedMbyMeither
MaMgovernmentMagencyMorMaMprivateMorganization.MExample

sMincludeMtheMtaxMreportsMrequiredMbyMtheMIRSMandMdisclo
sureMrequirementsMforMfinancialMreporting.

1.2 CanMtheMcharacteristicsMofMusefulMinformationMlistedMinMTab
leM1-
1MbeMmetMsimultaneously?MOrMdoesMachievingMoneMmeanMsacrific
ingManother?

SeveralMofMtheMcriteriaMinMTableM1.1McanMbeMmetMsimultaneousl
y.M ForMexample,MmoreMtimelyMinformationMis



3-3
CopyrightM(c)M2021MPearsonMEducation,M
Inc.

, AccountingMInformationMSystem
s




alsoMlikelyMtoMbeMmoreMrelevant.M VerifiableMinformationMisMl
ikelyMtoMbeMmoreMaccurate.

However,MachievingMoneMobjectiveMmayMrequireMsacrificingMano
ther.M ForMexample,MensuringMthatMinformationMisMmoreMcomple
teMmayMreduceMitsMtimeliness.M Similarly,MincreasedMverifia
bilityMandMaccuracyMmayMreduceMitsMtimeliness.

TheMdecisionMmakerMmustMdecideMwhichMtrade-
offsMareMwarrantedMinMeachMsituation.

1.3 YouMandMaMfewMofMyourMclassmatesMdecidedMtoMbecomeMentrepren
eurs.M YouMcameMupMwithMaMgreatMideaMforMaMnewMmobileMphoneMap
plicationMthatMyouMthinkMwillMmakeMlotsMofMmoney.MYourMbusi
nessMplanMwonMsecondMplaceMinMaMlocalMcompetition,MandMyouMa
reMusingMtheM$10,000MprizeMtoMsupportMyourselvesMasMyouMstar
tMyourMcompany.

a. IdentifyMtheMkeyMdecisionsMyouMneedMtoMmakeMtoMbeMsuccess
fulMentrepreneurs,MtheMinformationMyouMneedMtoMmakeMthem,M
andMtheMbusinessMprocessesMyouMwillMneedMtoMengageMin.
b. YourMcompanyMwillMneedMtoMexchangeMinformationMwithMvar
iousMexternalMparties.MIdentifyMtheMexternalMparties,M
andMspecifyMtheMinformationMreceivedMfromMandMsentMtoMe
achMofMthem.

TheMauthorMturnsMthisMquestionMintoManMin-
classMgroupMactivity.MStudentsMareMdividedMupMinMgroups,Mt
oldMtoMcloseMtheirMbooks,MandMgivenM15MminutesMto:

a. ThinkMthroughMtheMbusinessMprocesses,MkeyMdecisions,Mand
MinformationMneedsMissuesMinMtheirMgroup.

b. IdentifyMtheMexternalMusersMofMinformationMandMspeci
fyMtheMinformationMreceivedMfromMandMsentMtoMeachMofMt
hem.

OneMgroupMisMselectedMtoMpresentMtheirManswersMtoMtheMclass.M
TheMotherMgroupsMareMtoldMtoMchallengeMtheMgroup’sManswers,Mp
rovideMalternativeManswers,MandMchipMinMwithMadditionalMans
wersMnotMprovidedMbyMtheMselectedMgroup.MSinceMtheMgroupMtha
tMpresentsMisMnotMselectedMuntilMafterMtheMtimeMhasMexpired,M
studentsMareMmotivatedMtoMdoMaMgoodMjob,MasMtheyMwillMbeMprese
ntingMtoMtheirMpeers.

TheMvalueMofMthisMactivityMisMnotMinMarrivingMatMa




3-4
CopyrightM(c)M2021MPearsonMEducation,M
Inc.