Accounting Information Systems 3e Vernon Richardson, Janie Chang, Rodney
Smith (Test Bank All Chapters, 100% Original Verified, A+ Grade) Answers
At The End Of Each (Chapter Ch 8 Not Provided By Author)
Chapter 1:
1) After a college football game, a box score is produced detailing the number of yards
passing and running, receptions made and the number of interceptions and fumbles lost (among
other statistics). Using the characteristics of useful information (including relevance and
reliability), please explain how this box score meets (or does not meet) the characteristics of
useful information. How would the football coach use this information to prepare for the next
game, decide which players to start, etc.?
2) List and explain three ways that AIS affects the income statement and the firm’s
profitability.
3) Some would argue that the role of accounting is simply as an information provider.
Others suggest that accountants serve the role of business analyst. Which role produces more
value for a company like Starbucks? In the area of accounting information systems, what
specifically can the accountant do to serve as a business analyst to help address business
opportunities?
. 1
,4) Explain the types of discretionary information a company like Google would collect from
its accounting information system.
5) Why would the transform IT strategic role be more impactful on stock price than the
automate IT strategic role?
6) Stephen Gillett, Starbucks CIO, argues that his most crucial duty is to enhance Starbucks’
ability to mine its customer data to help “reignite our passion with our customers.” Starbucks
used loyalty cards (Starbucks’ Reward cards) and surveys to track its customers’ purchases and
build profiles of their customers as mentioned in the opening chapter vignette. Why is this a
good example of customer relationship management (CRM)?
7) Michael Dell of Dell Computer explained:
“We tell our suppliers exactly what our daily production requirements are so it is not, "Well,
every two weeks deliver 5,000 to this warehouse, and we'll put them on the shelf, and then we'll
take them off the shelf." It is, "Tomorrow morning we need 8,562, and deliver them to door
number seven by 7 am."
How does the supply chain management software allow this to happen? And how does it save
Dell money?
. 2
,8) Amazon.com is one of the best at fostering its interaction with their customers by keeping
a record of their past purchases and product searches and using that information to recommend
other similar products for the customer to consider. How can they use that information to help
them in their marketing efforts?
9) The Certified Information Systems Auditors (CISA) designation identifies those
professionals possessing IT audit, control and security skills. How do you think a professional
designation is helpful for IT auditors?
10) The American Institute of Certified Public Accountants (AICPA) and International
Federation of Accountants (IFAC) assumes that, at a minimum, all accountants will be proficient
in the AIS user role and at least one other role listed above (manager or designer or evaluator).
Why would the AICPA and IFAC expect this proficiency?
. 3
, 11) The International Federation of Accountants says:
K. K. K. K. K.
“IT has grown (and will continue to grow) in importance at such a rapid pace and with such
K. K. K. K. K. K. K. K. K. K. K. K. K. K. K. K. K.
far reaching effects that it can no longer be considered a discipline peripheral to accounting.
K. K. K. K. K. K. K. K. K. K. K. K. K. K. K.
Rather, professional accounting has merged and developed with IT to such an extent that one
K. K. K. K. K. K. K. K. K. K. K. K. K. K. K.
can hardly conceive of accounting independent from IT.”
K. K. K. K. K. K. K. K.
In your opinion, why is accounting now interdependent with IT?
K. K. K. K. K. K. K. K. K.
12) Wal-Mart’s Retail Link database is one of the world’s largest databases and allows
K. K. K. K. K. K. K. K. K. K. K. K.
many of their suppliers to view real-time sales data of their products for each store. This
K. K. K. K. K. K. K. K. K. K. K. K. K. K. K. K.
allows suppliers to assess the demand for their products and to optimize their own level of
K. K. K. K. K. K. K. K. K. K. K. K. K. K. K. K.
inventory and related logistics costs. How is this cost savings ultimately passed on to Wal-
K. K. K. K. K. K. K. K. K. K. K. K. K. K. K.
Mart and its customers?
K. K. K.
13) Business value is defined as all items, events and interactions that determine the
K. K. K. K. K. K. K. K. K. K. K. K.
financial health and well-being of the firm. This value may come from suppliers, customers or
K. K. K. K. K. K. K. K. K. K. K. K. K. K. K.
employees or even information systems.
K. K. K. K. K.
How would a not-for-profit group like the International Red Cross define business value for
K. K. K. K. K. K. K. K. K. K. K. K. K.
its group?
K. K.
. 4
Smith (Test Bank All Chapters, 100% Original Verified, A+ Grade) Answers
At The End Of Each (Chapter Ch 8 Not Provided By Author)
Chapter 1:
1) After a college football game, a box score is produced detailing the number of yards
passing and running, receptions made and the number of interceptions and fumbles lost (among
other statistics). Using the characteristics of useful information (including relevance and
reliability), please explain how this box score meets (or does not meet) the characteristics of
useful information. How would the football coach use this information to prepare for the next
game, decide which players to start, etc.?
2) List and explain three ways that AIS affects the income statement and the firm’s
profitability.
3) Some would argue that the role of accounting is simply as an information provider.
Others suggest that accountants serve the role of business analyst. Which role produces more
value for a company like Starbucks? In the area of accounting information systems, what
specifically can the accountant do to serve as a business analyst to help address business
opportunities?
. 1
,4) Explain the types of discretionary information a company like Google would collect from
its accounting information system.
5) Why would the transform IT strategic role be more impactful on stock price than the
automate IT strategic role?
6) Stephen Gillett, Starbucks CIO, argues that his most crucial duty is to enhance Starbucks’
ability to mine its customer data to help “reignite our passion with our customers.” Starbucks
used loyalty cards (Starbucks’ Reward cards) and surveys to track its customers’ purchases and
build profiles of their customers as mentioned in the opening chapter vignette. Why is this a
good example of customer relationship management (CRM)?
7) Michael Dell of Dell Computer explained:
“We tell our suppliers exactly what our daily production requirements are so it is not, "Well,
every two weeks deliver 5,000 to this warehouse, and we'll put them on the shelf, and then we'll
take them off the shelf." It is, "Tomorrow morning we need 8,562, and deliver them to door
number seven by 7 am."
How does the supply chain management software allow this to happen? And how does it save
Dell money?
. 2
,8) Amazon.com is one of the best at fostering its interaction with their customers by keeping
a record of their past purchases and product searches and using that information to recommend
other similar products for the customer to consider. How can they use that information to help
them in their marketing efforts?
9) The Certified Information Systems Auditors (CISA) designation identifies those
professionals possessing IT audit, control and security skills. How do you think a professional
designation is helpful for IT auditors?
10) The American Institute of Certified Public Accountants (AICPA) and International
Federation of Accountants (IFAC) assumes that, at a minimum, all accountants will be proficient
in the AIS user role and at least one other role listed above (manager or designer or evaluator).
Why would the AICPA and IFAC expect this proficiency?
. 3
, 11) The International Federation of Accountants says:
K. K. K. K. K.
“IT has grown (and will continue to grow) in importance at such a rapid pace and with such
K. K. K. K. K. K. K. K. K. K. K. K. K. K. K. K. K.
far reaching effects that it can no longer be considered a discipline peripheral to accounting.
K. K. K. K. K. K. K. K. K. K. K. K. K. K. K.
Rather, professional accounting has merged and developed with IT to such an extent that one
K. K. K. K. K. K. K. K. K. K. K. K. K. K. K.
can hardly conceive of accounting independent from IT.”
K. K. K. K. K. K. K. K.
In your opinion, why is accounting now interdependent with IT?
K. K. K. K. K. K. K. K. K.
12) Wal-Mart’s Retail Link database is one of the world’s largest databases and allows
K. K. K. K. K. K. K. K. K. K. K. K.
many of their suppliers to view real-time sales data of their products for each store. This
K. K. K. K. K. K. K. K. K. K. K. K. K. K. K. K.
allows suppliers to assess the demand for their products and to optimize their own level of
K. K. K. K. K. K. K. K. K. K. K. K. K. K. K. K.
inventory and related logistics costs. How is this cost savings ultimately passed on to Wal-
K. K. K. K. K. K. K. K. K. K. K. K. K. K. K.
Mart and its customers?
K. K. K.
13) Business value is defined as all items, events and interactions that determine the
K. K. K. K. K. K. K. K. K. K. K. K.
financial health and well-being of the firm. This value may come from suppliers, customers or
K. K. K. K. K. K. K. K. K. K. K. K. K. K. K.
employees or even information systems.
K. K. K. K. K.
How would a not-for-profit group like the International Red Cross define business value for
K. K. K. K. K. K. K. K. K. K. K. K. K.
its group?
K. K.
. 4
