AccountingpoInformationpoSyste
ms
Instructor’s Solutions
Manual
Accounting Information
Systems
15th Edition
MarshallpoB.poRomney
ProfessorpoEmeritus,poBrighampoYoungpoUniversity
PaulpoJohnpoSteinbart
ProfessorpoEmeritus,poArizonapoStatepoUniversity
ScottpoL.poSummers
BrighampoYoungpoUniversity
DavidpoA.poWood
BrighampoYoungpoUniversity
3-1
Copyrightpo(c)po2021poPearsonpoEducation
,poInc.
, AccountingpoInformationpoSyste
ms
ThispoworkpoispoprotectedpobypoUnitedpoStatespocopyrightpolawspoandpoispo
providedposolelypoforpothepousepoofpoinstructorspoinpoteachingpotheirpocours
espoandpoassessingpostudentpolearning.poDisseminationpoorposalepoofpoanyp
opartpoofpothispoworkpo(includingpoonpothepoWorldpoWidepoWeb)powillpodestr
oypothepointegritypoofpothepoworkpoandpoisponotpopermitted.
Thepoworkpoandpomaterialspofrompoitposhouldponeverpobepomadepo
availablepotopostudentspoexceptpobypoinstructorspousingpothepoaccompanyi
ngpotextpoinpotheirpoclasses.
Allporecipientspoofpothispoworkpoarepoexpectedpotopoabidepobypoth
eseporestrictionspoandpotopohonorpothepointendedpopedagogicalpopurposespo
andpotheponeedspoofpootherpoinstructorspowhoporelypoonpothesepomaterials.
Copyrightpo©po2021pobypoPearsonpoEducation,poInc.poorpoitspoaffiliates.poAllpoRightspoReserved.
poManufacturedpoinpothepoUnitedpoStatespoofpoAmerica.poThispopublicationpoispoprotectedpobypoco
pyright,poandpopermissionposhouldpobepoobtainedpofrompothepopublisherpopriorpotopoanypoprohibit
edporeproduction,postoragepoinpoaporetrievalposystem,poorpotransmissionpoinpoanypoformpoorpobypo
anypomeans,poelectronic,pomechanical,pophotocopying,porecording,poorpootherwise.poForpoinform
ationporegardingpopermissions,porequestpoforms,poandpothepoappropriatepocontactspowithinpothepo
PearsonpoEducationpoGlobalpoRightspoandpoPermissionspodepartment,popleasepovisitpowww.pears
oned.com/permissions/.
PEARSON,poALWAYSpoLEARNING,poandpoREVELpoarepoexclusivepotrademarkspoownedpo
bypoPearsonpoEducation,poInc.poorpoitspoaffiliatespoinpothepoU.S.poand/orpootherpocountries.
Unlesspootherwisepoindicatedpoherein,poanypothird-
partypotrademarks,pologos,poorpoiconspothatpomaypoappearpoinpothispoworkpoarepothepopropertypoof
potheirporespectivepoowners,poandpoanyporeferencespotopothird-
partypotrademarks,pologos,poicons,poorpootherpotradepodresspoarepoforpodemonstrativepoorpodescri
ptivepopurposespoonly.poSuchporeferencespoareponotpointendedpotopoimplypoanyposponsorship,poen
dorsement,poauthorization,poorpopromotionpoofpoPearson’spoproductspobypothepoownerspoofposuc
hpomarks,poorpoanyporelationshippobetweenpothepoownerpoandpoPearsonpoEducation,poInc.,poorpoit
spoaffiliates,poauthors,policensees,poorpodistributors.
3-2
Copyrightpo(c)po2021poPearsonpoEducation
,poInc.
, AccountingpoInformationpoSyste
ms
chapter 1 po
accounting informationsystems
po p
o
: An overview
po po
SuggestedpoAnswerspotopoDiscussionpoQuestions
1.1 Thepovaluepoofpoinformationpoispothepodifferencepobetweenpot
hepobenefitsporealizedpofrompousingpothatpoinformationpoand
pothepocostspoofpoproducingpoit.p o Wouldpoyou,poorpoanypoorga
nization,pe
o verpoproducepoinformationpoifpoitspoexpectedpocos
tspoexceededpi
o tspobenefits?poIfposo,poprovideposomepoexample
s.poIfponot,powhy?
Mostpoorganizationspoproducepoinformationpoonlypoifpoitspova
luepe
o xceedspoitspocost.p o However,potherepoarepotwoposituati
onspowherepoinformationpomaypobepoproducedpoevenpoifpoitspocos
tpoexceedspoitspovalue.
a. Itpoispooftenpodifficultpotopoestimatepoaccuratelypothep
ovaluepoofpoinformationpoandpothepocostpoofpoproducingpo
it.poTherefore,poorganizationspomaypoproducepoinformat
ionpothatpotheypoexpectpowillpoproducepobenefitspoinpoex
cesspoofpi
o tspocosts,poonlypotopobepodisappointedpoafterpo
thepofact.
b. Productionpoofpothepoinformationpomaypobepomandatedpobyp
oeitherpoapogovernmentpoagencypoorpoapoprivatepoorganiz
ation.poExamplespoincludepothepotaxporeportsporequiredp
obypothepoIRSpoandpodisclosureporequirementspoforp f
o inanc
ialporeporting.
1.2 Canpothepocharacteristicspoofpousefulpoinformationpolistedp
oinp
T
o ablepo1-
1pobepometposimultaneously?poOrpodoespoachievingpoonepm
o eanpos
acrificingpoanother?
3-3
Copyrightpo(c)po2021poPearsonpoEducation
,poInc.
, AccountingpoInformationpoSyste
SeveralpoofpothepocriteriapoinpoTablepo1.1
ms pocanpobepometposimu
ltaneously.p o Forpoexample,pomorepotimelypoinformationpois
3-4
Copyrightpo(c)po2021poPearsonpoEducation
,poInc.
ms
Instructor’s Solutions
Manual
Accounting Information
Systems
15th Edition
MarshallpoB.poRomney
ProfessorpoEmeritus,poBrighampoYoungpoUniversity
PaulpoJohnpoSteinbart
ProfessorpoEmeritus,poArizonapoStatepoUniversity
ScottpoL.poSummers
BrighampoYoungpoUniversity
DavidpoA.poWood
BrighampoYoungpoUniversity
3-1
Copyrightpo(c)po2021poPearsonpoEducation
,poInc.
, AccountingpoInformationpoSyste
ms
ThispoworkpoispoprotectedpobypoUnitedpoStatespocopyrightpolawspoandpoispo
providedposolelypoforpothepousepoofpoinstructorspoinpoteachingpotheirpocours
espoandpoassessingpostudentpolearning.poDisseminationpoorposalepoofpoanyp
opartpoofpothispoworkpo(includingpoonpothepoWorldpoWidepoWeb)powillpodestr
oypothepointegritypoofpothepoworkpoandpoisponotpopermitted.
Thepoworkpoandpomaterialspofrompoitposhouldponeverpobepomadepo
availablepotopostudentspoexceptpobypoinstructorspousingpothepoaccompanyi
ngpotextpoinpotheirpoclasses.
Allporecipientspoofpothispoworkpoarepoexpectedpotopoabidepobypoth
eseporestrictionspoandpotopohonorpothepointendedpopedagogicalpopurposespo
andpotheponeedspoofpootherpoinstructorspowhoporelypoonpothesepomaterials.
Copyrightpo©po2021pobypoPearsonpoEducation,poInc.poorpoitspoaffiliates.poAllpoRightspoReserved.
poManufacturedpoinpothepoUnitedpoStatespoofpoAmerica.poThispopublicationpoispoprotectedpobypoco
pyright,poandpopermissionposhouldpobepoobtainedpofrompothepopublisherpopriorpotopoanypoprohibit
edporeproduction,postoragepoinpoaporetrievalposystem,poorpotransmissionpoinpoanypoformpoorpobypo
anypomeans,poelectronic,pomechanical,pophotocopying,porecording,poorpootherwise.poForpoinform
ationporegardingpopermissions,porequestpoforms,poandpothepoappropriatepocontactspowithinpothepo
PearsonpoEducationpoGlobalpoRightspoandpoPermissionspodepartment,popleasepovisitpowww.pears
oned.com/permissions/.
PEARSON,poALWAYSpoLEARNING,poandpoREVELpoarepoexclusivepotrademarkspoownedpo
bypoPearsonpoEducation,poInc.poorpoitspoaffiliatespoinpothepoU.S.poand/orpootherpocountries.
Unlesspootherwisepoindicatedpoherein,poanypothird-
partypotrademarks,pologos,poorpoiconspothatpomaypoappearpoinpothispoworkpoarepothepopropertypoof
potheirporespectivepoowners,poandpoanyporeferencespotopothird-
partypotrademarks,pologos,poicons,poorpootherpotradepodresspoarepoforpodemonstrativepoorpodescri
ptivepopurposespoonly.poSuchporeferencespoareponotpointendedpotopoimplypoanyposponsorship,poen
dorsement,poauthorization,poorpopromotionpoofpoPearson’spoproductspobypothepoownerspoofposuc
hpomarks,poorpoanyporelationshippobetweenpothepoownerpoandpoPearsonpoEducation,poInc.,poorpoit
spoaffiliates,poauthors,policensees,poorpodistributors.
3-2
Copyrightpo(c)po2021poPearsonpoEducation
,poInc.
, AccountingpoInformationpoSyste
ms
chapter 1 po
accounting informationsystems
po p
o
: An overview
po po
SuggestedpoAnswerspotopoDiscussionpoQuestions
1.1 Thepovaluepoofpoinformationpoispothepodifferencepobetweenpot
hepobenefitsporealizedpofrompousingpothatpoinformationpoand
pothepocostspoofpoproducingpoit.p o Wouldpoyou,poorpoanypoorga
nization,pe
o verpoproducepoinformationpoifpoitspoexpectedpocos
tspoexceededpi
o tspobenefits?poIfposo,poprovideposomepoexample
s.poIfponot,powhy?
Mostpoorganizationspoproducepoinformationpoonlypoifpoitspova
luepe
o xceedspoitspocost.p o However,potherepoarepotwoposituati
onspowherepoinformationpomaypobepoproducedpoevenpoifpoitspocos
tpoexceedspoitspovalue.
a. Itpoispooftenpodifficultpotopoestimatepoaccuratelypothep
ovaluepoofpoinformationpoandpothepocostpoofpoproducingpo
it.poTherefore,poorganizationspomaypoproducepoinformat
ionpothatpotheypoexpectpowillpoproducepobenefitspoinpoex
cesspoofpi
o tspocosts,poonlypotopobepodisappointedpoafterpo
thepofact.
b. Productionpoofpothepoinformationpomaypobepomandatedpobyp
oeitherpoapogovernmentpoagencypoorpoapoprivatepoorganiz
ation.poExamplespoincludepothepotaxporeportsporequiredp
obypothepoIRSpoandpodisclosureporequirementspoforp f
o inanc
ialporeporting.
1.2 Canpothepocharacteristicspoofpousefulpoinformationpolistedp
oinp
T
o ablepo1-
1pobepometposimultaneously?poOrpodoespoachievingpoonepm
o eanpos
acrificingpoanother?
3-3
Copyrightpo(c)po2021poPearsonpoEducation
,poInc.
, AccountingpoInformationpoSyste
SeveralpoofpothepocriteriapoinpoTablepo1.1
ms pocanpobepometposimu
ltaneously.p o Forpoexample,pomorepotimelypoinformationpois
3-4
Copyrightpo(c)po2021poPearsonpoEducation
,poInc.
