EndDofDChapterDSolutionsDManual:DRichardson,DChang,DSmith,DAccountingDInformationDSystems,D4thDediti
on
Chapter 1: Accounting Information Systems and Firm Value
D D D D D D D
MultipleDChoiceDQuestions
1. (LOD1-1)DAccountingDinformationDsystems
a. areDalwaysDcomputerized.
b. reportDonlyDfinanciallyDrelatedDinformation.
c. areDinformationDsystemsDthatDrecord,Dprocess,DandDreportDonDtransactionsDtoDprovi
deDfinancialDandDnonfinancialDinformationDforDdecisionDmakingDandDcontrol.
d. requireDaDCITPDdesignationDtoDunderstand.
Answer:DC
2. (LOD1-1)DWhichDofDtheDfollowingDisDaDcharacteristicDofDrelevance?
a. Materiality
b. Timeliness
c. Verifiable
d. CostDtoDgenerat
eDAnswer:DA
3. (LOD1-
2)DWhichDofDtheDfollowingDisDconsideredDtoDbeDmandatoryDinformationDrequiredDbyDaDregula
toryDbody?
a. 10-QDsubmissionDtoDtheDSecuritiesDandDExchangeDCommission
b. TheDcostDtoDproduceDaDSamsungDGalaxy
c. TheDnumberDofDorganicDbananasDthatDareDsoldDatDWholeDFoodsDonDJulyD28
d. TheDcostDtoDbuildDanDall-
newDStarbucksDrestaurantDinDShenzhen,DChinaDAnswer:DA
4. (LOD1-4)DTheDcorrectDorderDofDeventsDinDtheDvalueDchainDis
a. InboundDlogisticsD➛DOperationsD➛DService.
b. InboundDlogisticsD➛DOutboundDlogisticsD➛DMarketingDandDsales.
c. InboundDlogisticsD➛DOperationsD➛DOutboundDlogistics.
d. InboundDlogisticsD➛DOperationsD➛DMarketingDandDSales.
Answer:DC
5. (LOD1-8)DWhichDsystemDcontributesDinformationDonDdirectDlaborDtoDaDcostDaccountingDsystem?
a. SupplyDchainDmanagementDsystemD(SCMS)
b. FinancialDreportingDsystemD(FRS)
c. CustomerDRelationalDManagementDSystemD(CRM)
1
, EndDofDChapterDSolutionsDManual:DRichardson,DChang,DSmith,DAccountingDInformationDSystems,D4thDediti
on
d. HumanDresourceDmanagementDsystemD(HRMS
)DAnswer:DD
6. (LOD1-7)DADsupplyDchain
a. suppliesDjewelryDchains.
b. refersDtoDtheDflowDofDmaterials,Dinformation,Dpayments,DandDservices.
c. isDsimilarDinDfunctionDandDpurposeDtoDtheDvalueDchain.
d. doesDnotDapplyDtoDaDserviceDfirmDlikeDanDaccountingDfirm.
Answer:DB
7. (LOD1-7)DCustomerDrelationshipDmanagementDsoftwareDdoesDnotDincludeDinformationDabout
a. currentDcustomers.
b. prospectiveDcustomers.
c. formerDcustomers.
d. currentDemployees.
Answer:DD
8. (LOD1-
6)DAnDinformationDsystemDthatDmeasuresDandDrecordsDaccountingDtransactionsDandDreport
sDthemDinDtheDfinancialDstatementsDisDcalledDa
a. financialDreportingDsystemD(FRS).
b. enterpriseDsystemD(ES).
c. manufacturingDsystemD(MS).
d. costDaccountingDsystem.
Answer:DA
9. (LOD1-
3)DWhatDisDtheDnameDofDtheDpositionDforDaDpersonDresponsibleDforDdeterminingDInform
ationDneedsDofDaDbusinessDandDdesigningDaDsystemDtoDmeetDthoseDneeds?
a. ChiefDinformationDofficer
b. Controller
c. ITDauditor
d. SystemsDanalys
tDAnswer:DD
10. (LOD1-
9)DTheDbalanceDsheetDaccountDmostDlikelyDaffectedDbyDanDAISDinvestmentDinDsupplyDchainD
managementDsoftwareDwouldDbe
a. inventories.
b. fixedDassets.
c. cashDandDcashDequivalents.
2
, EndDofDChapterDSolutionsDManual:DRichardson,DChang,DSmith,DAccountingDInformationDSystems,D4thDediti
on
d. unearnedDrevenue.
Answer:DA
11. (LOD1-7)DTheDsoftware/systemDthatDhelpsDmakeDsureDtheDretailDfirmDdoesn’tDhaveDaDstockoutDis
a. supplyDchainDmanagementDsoftware.
b. customerDrelationshipDmanagementDsoftware.
c. enterpriseDsystems.
d. humanDresourceDsystems.
Answer:DA
12. (LOD1-
9)DDataDanalyticsDperformedDtoDidentifyDtheDmostDprofitableDcustomersDwouldDbeDmostDlik
elyDtoDaffectDwhichDincomeDstatementDaccount?
a. Selling,Dgeneral,DandDadministrativeDexpensesD(SG&A)
b. InterestDexpense
c. Revenues
d. CostDofDgoodsDsol
dDAnswer:DC
13. (LOD1-7,DLOD1-
9)DCustomerDrelationshipDmanagementDsystemsDwouldDgenerallyDbeDconsideredDtoDbeDan
a. internalDbusinessDprocess.
b. externalDbusinessDprocess.
c. interiorDbusinessDprocess.
d. exteriorDbusinessDprocess.
Answer:DB
14. (LOD1-
3)DAnDauditorDtestingDinternalDcontrolsDwouldDgenerallyDbeDconsideredDtoDfillDwhichDroleDwit
hDrespectDtoDaccountingDinformationDsystems?
a. User
b. Manager
c. Designer
d. Evaluator
Answer:DD
D
15. (LOD1-
2)DWhichDofDtheseDrepresentsDtheDproperDtransformationDfromDdataDtoDdecisionDaccordi
ngDtoDtheDinformationDvalueDchain?
a. DataD➛DInformationD➛DKnowledgeD➛DDecision
b. DataD➛DKnowledgeD➛DInformationD➛DDecision
3
, EndDofDChapterDSolutionsDManual:DRichardson,DChang,DSmith,DAccountingDInformationDSystems,D4thDediti
on
c. DataD➛DBusinessDeventD➛DInformationD➛DDecision
d. DataD➛DAnalysisD➛DInformationD➛DDecisio
nDAnswer:DA
DiscussionDQuestions
1. BrainstormDaDlistDofDdiscretionaryDinformationDthatDmightDbeDanDoutputDofDanDaccounti
ngDinformationDsystemDandDbeDneededDbyDStarbucks.DPrioritizeDwhichDitemsDmightDbeD
mostDimportantDandDprovideDsupport.
AnswersDwillDvary.D HereDareDsomeDpotentialDanswers:
TheDcostDofDaDcupDofDcoffee,DbyDtype:DBreakfastDblend,DCafeDestima,DcaffeDVerona,DespressoDroa
st,DEthiopiaDsidamo,DFrenchDroast,DGoldDCoastDblend,DGuatemalaDAntigua,DhouseDblend,DItalian
Droast,DKenyaDcoffee,D komodoDdragonDblend,DorganicDSerenaDblend,DorganicDshadeD grownDMex
ico,DSumatra,DdecafDcaffeDVerona,DdecafDespressoDroast,DdecafDhouseDblend,DandDdecafDSumat
ra!
MonthlyDSalesDperDsquareDfootDofDretailDspac
e.DEmployeeDcostDforDeachDoperatingDhour.
AdvertisingDexpendituresDperDdollarDofDsales.
TheDcostDofDcondimentsDperDdollarDsalesDofDcoffee.DCondimentsDmightDincludeDsweeteners,Dliqu
idDcreamers,DcreamDcanisters,DsugarDpackets,DsugarDcanisters,DstirDsticks!
TheDcostDofDelectricityDperDoperatingDhourDeachDmonthDofDtheDyear.
2. ExplainDtheDinformationDvalueDchain.DHowDdoDbusinessDeventsDturnDintoDdataDthenDintoDinforma
tionDandDthenDintoDknowledge?DGiveDanDexampleDstartingDwithDtheDbusinessDeventDofDtheDpurch
aseDofDaDSuperDSmashDBros.DNintendoDSwitchDGameDatDGameStopDallDtheDwayDtoDgivingDusefulDi
nformationDforDtheDCEODandDotherDdecisionDmakers.
TheDinformationDvalueDchainDrepresentsDtheDoverallDtransformationDfromDaDbusinessDneedDandD
businessDeventD(likeDeachDindividualDsaleDofDU.S.Dflag)DtoDanDultimateDdecision.DTheDinformation
DvalueDchainDmightDbeDrepresentedDconsideringDtheDpurchaseDofDaDNintendoDSwitchDGameDatDB
estDBuyDinDtheDfollowingDway:
TheDgameDwillDbeDrecordedDasDsalesDrevenueDandDthenDafterDdeductingDitsDcostsDwillDaddDtoDorD
subtractDfromDcorporateDincome.DTheDcashDfromDtheDgameDsaleDwillDalsoDaddDtoDtheDoperatingDc
ashDflows.
4
on
Chapter 1: Accounting Information Systems and Firm Value
D D D D D D D
MultipleDChoiceDQuestions
1. (LOD1-1)DAccountingDinformationDsystems
a. areDalwaysDcomputerized.
b. reportDonlyDfinanciallyDrelatedDinformation.
c. areDinformationDsystemsDthatDrecord,Dprocess,DandDreportDonDtransactionsDtoDprovi
deDfinancialDandDnonfinancialDinformationDforDdecisionDmakingDandDcontrol.
d. requireDaDCITPDdesignationDtoDunderstand.
Answer:DC
2. (LOD1-1)DWhichDofDtheDfollowingDisDaDcharacteristicDofDrelevance?
a. Materiality
b. Timeliness
c. Verifiable
d. CostDtoDgenerat
eDAnswer:DA
3. (LOD1-
2)DWhichDofDtheDfollowingDisDconsideredDtoDbeDmandatoryDinformationDrequiredDbyDaDregula
toryDbody?
a. 10-QDsubmissionDtoDtheDSecuritiesDandDExchangeDCommission
b. TheDcostDtoDproduceDaDSamsungDGalaxy
c. TheDnumberDofDorganicDbananasDthatDareDsoldDatDWholeDFoodsDonDJulyD28
d. TheDcostDtoDbuildDanDall-
newDStarbucksDrestaurantDinDShenzhen,DChinaDAnswer:DA
4. (LOD1-4)DTheDcorrectDorderDofDeventsDinDtheDvalueDchainDis
a. InboundDlogisticsD➛DOperationsD➛DService.
b. InboundDlogisticsD➛DOutboundDlogisticsD➛DMarketingDandDsales.
c. InboundDlogisticsD➛DOperationsD➛DOutboundDlogistics.
d. InboundDlogisticsD➛DOperationsD➛DMarketingDandDSales.
Answer:DC
5. (LOD1-8)DWhichDsystemDcontributesDinformationDonDdirectDlaborDtoDaDcostDaccountingDsystem?
a. SupplyDchainDmanagementDsystemD(SCMS)
b. FinancialDreportingDsystemD(FRS)
c. CustomerDRelationalDManagementDSystemD(CRM)
1
, EndDofDChapterDSolutionsDManual:DRichardson,DChang,DSmith,DAccountingDInformationDSystems,D4thDediti
on
d. HumanDresourceDmanagementDsystemD(HRMS
)DAnswer:DD
6. (LOD1-7)DADsupplyDchain
a. suppliesDjewelryDchains.
b. refersDtoDtheDflowDofDmaterials,Dinformation,Dpayments,DandDservices.
c. isDsimilarDinDfunctionDandDpurposeDtoDtheDvalueDchain.
d. doesDnotDapplyDtoDaDserviceDfirmDlikeDanDaccountingDfirm.
Answer:DB
7. (LOD1-7)DCustomerDrelationshipDmanagementDsoftwareDdoesDnotDincludeDinformationDabout
a. currentDcustomers.
b. prospectiveDcustomers.
c. formerDcustomers.
d. currentDemployees.
Answer:DD
8. (LOD1-
6)DAnDinformationDsystemDthatDmeasuresDandDrecordsDaccountingDtransactionsDandDreport
sDthemDinDtheDfinancialDstatementsDisDcalledDa
a. financialDreportingDsystemD(FRS).
b. enterpriseDsystemD(ES).
c. manufacturingDsystemD(MS).
d. costDaccountingDsystem.
Answer:DA
9. (LOD1-
3)DWhatDisDtheDnameDofDtheDpositionDforDaDpersonDresponsibleDforDdeterminingDInform
ationDneedsDofDaDbusinessDandDdesigningDaDsystemDtoDmeetDthoseDneeds?
a. ChiefDinformationDofficer
b. Controller
c. ITDauditor
d. SystemsDanalys
tDAnswer:DD
10. (LOD1-
9)DTheDbalanceDsheetDaccountDmostDlikelyDaffectedDbyDanDAISDinvestmentDinDsupplyDchainD
managementDsoftwareDwouldDbe
a. inventories.
b. fixedDassets.
c. cashDandDcashDequivalents.
2
, EndDofDChapterDSolutionsDManual:DRichardson,DChang,DSmith,DAccountingDInformationDSystems,D4thDediti
on
d. unearnedDrevenue.
Answer:DA
11. (LOD1-7)DTheDsoftware/systemDthatDhelpsDmakeDsureDtheDretailDfirmDdoesn’tDhaveDaDstockoutDis
a. supplyDchainDmanagementDsoftware.
b. customerDrelationshipDmanagementDsoftware.
c. enterpriseDsystems.
d. humanDresourceDsystems.
Answer:DA
12. (LOD1-
9)DDataDanalyticsDperformedDtoDidentifyDtheDmostDprofitableDcustomersDwouldDbeDmostDlik
elyDtoDaffectDwhichDincomeDstatementDaccount?
a. Selling,Dgeneral,DandDadministrativeDexpensesD(SG&A)
b. InterestDexpense
c. Revenues
d. CostDofDgoodsDsol
dDAnswer:DC
13. (LOD1-7,DLOD1-
9)DCustomerDrelationshipDmanagementDsystemsDwouldDgenerallyDbeDconsideredDtoDbeDan
a. internalDbusinessDprocess.
b. externalDbusinessDprocess.
c. interiorDbusinessDprocess.
d. exteriorDbusinessDprocess.
Answer:DB
14. (LOD1-
3)DAnDauditorDtestingDinternalDcontrolsDwouldDgenerallyDbeDconsideredDtoDfillDwhichDroleDwit
hDrespectDtoDaccountingDinformationDsystems?
a. User
b. Manager
c. Designer
d. Evaluator
Answer:DD
D
15. (LOD1-
2)DWhichDofDtheseDrepresentsDtheDproperDtransformationDfromDdataDtoDdecisionDaccordi
ngDtoDtheDinformationDvalueDchain?
a. DataD➛DInformationD➛DKnowledgeD➛DDecision
b. DataD➛DKnowledgeD➛DInformationD➛DDecision
3
, EndDofDChapterDSolutionsDManual:DRichardson,DChang,DSmith,DAccountingDInformationDSystems,D4thDediti
on
c. DataD➛DBusinessDeventD➛DInformationD➛DDecision
d. DataD➛DAnalysisD➛DInformationD➛DDecisio
nDAnswer:DA
DiscussionDQuestions
1. BrainstormDaDlistDofDdiscretionaryDinformationDthatDmightDbeDanDoutputDofDanDaccounti
ngDinformationDsystemDandDbeDneededDbyDStarbucks.DPrioritizeDwhichDitemsDmightDbeD
mostDimportantDandDprovideDsupport.
AnswersDwillDvary.D HereDareDsomeDpotentialDanswers:
TheDcostDofDaDcupDofDcoffee,DbyDtype:DBreakfastDblend,DCafeDestima,DcaffeDVerona,DespressoDroa
st,DEthiopiaDsidamo,DFrenchDroast,DGoldDCoastDblend,DGuatemalaDAntigua,DhouseDblend,DItalian
Droast,DKenyaDcoffee,D komodoDdragonDblend,DorganicDSerenaDblend,DorganicDshadeD grownDMex
ico,DSumatra,DdecafDcaffeDVerona,DdecafDespressoDroast,DdecafDhouseDblend,DandDdecafDSumat
ra!
MonthlyDSalesDperDsquareDfootDofDretailDspac
e.DEmployeeDcostDforDeachDoperatingDhour.
AdvertisingDexpendituresDperDdollarDofDsales.
TheDcostDofDcondimentsDperDdollarDsalesDofDcoffee.DCondimentsDmightDincludeDsweeteners,Dliqu
idDcreamers,DcreamDcanisters,DsugarDpackets,DsugarDcanisters,DstirDsticks!
TheDcostDofDelectricityDperDoperatingDhourDeachDmonthDofDtheDyear.
2. ExplainDtheDinformationDvalueDchain.DHowDdoDbusinessDeventsDturnDintoDdataDthenDintoDinforma
tionDandDthenDintoDknowledge?DGiveDanDexampleDstartingDwithDtheDbusinessDeventDofDtheDpurch
aseDofDaDSuperDSmashDBros.DNintendoDSwitchDGameDatDGameStopDallDtheDwayDtoDgivingDusefulDi
nformationDforDtheDCEODandDotherDdecisionDmakers.
TheDinformationDvalueDchainDrepresentsDtheDoverallDtransformationDfromDaDbusinessDneedDandD
businessDeventD(likeDeachDindividualDsaleDofDU.S.Dflag)DtoDanDultimateDdecision.DTheDinformation
DvalueDchainDmightDbeDrepresentedDconsideringDtheDpurchaseDofDaDNintendoDSwitchDGameDatDB
estDBuyDinDtheDfollowingDway:
TheDgameDwillDbeDrecordedDasDsalesDrevenueDandDthenDafterDdeductingDitsDcostsDwillDaddDtoDorD
subtractDfromDcorporateDincome.DTheDcashDfromDtheDgameDsaleDwillDalsoDaddDtoDtheDoperatingDc
ashDflows.
4
