Complete Solutions Manual_
Accounting Information Systems 2nd Edition,
By Vernon Richardson, Chengyee Chang & Rod Smith
All Chapters 1-16| 4 Units| Edition With Verified Solutions| Rated A+
From: [Bestmaxsolutions.stuvia
,TABLE OF CONTENTS
PART ONE: AIS AND THE BUSINESS
Chapter 1. Accounting Information Systems And Firm Value
Chapter 2. Accountants As Business
Chapter 3. Data Modeling
Chapter 4. Relational Databases And Enterprise Systems
PART TWO BUSINESS PROCESSES
Chapter 5. Sales And Collections Business Process
Chapter 6. Purchase And Payments Business Process
Chapter 7. Conversion Business Process
Chapter 8. Integrated Project
Chapter 9. Data Analytics In Accounting
Chapter 10. Reporting Processes And Extensible Business Reporting Language (Xbrl)
PART THREE MANAGING AND EVALUATING AIS PROJECTS
Chapter 11. Accounting Information Systems And Internal Controls
Chapter 12. Information Security And Computer Fraud
Chapter 13. Monitoring And Auditing Ais
PART FOUR AIS DEVELOPMENT AND MANAGEMENT
Chapter 14. The Balanced Scorecard And Business Value Of Information Technology
Chapter 15. Evaluating Ais Investments
Chapter 16. The Systems Development Life Cycle And Project Management: Addressing The
Challenges Of Building Ais Systems
,Chapter 1 – Accounting Information Systems And Firm Value
Multiple Choice Questions
1. C
2. D
3. A
4. C
5. D
6. B
7. D
8. A
9. D
10. B
11. B
12. C
13. A
14. C
15. A
Discussion Questions
1. Brainstorm A List Of Discretionary Information That Might Be An Output Of An Accounting
Information System And Be Needed By Starbucks. Prioritize Which Items Might Be Most
Important And Provide Support.
Answers Will Vary. Here Are Some Potential Answers:
The Cost Of A Cup Of Coffee, By Type: Breakfast Blend, Cafe Estima, Caffe Verona, Espresso Roast,
Ethiopia Sidamo, French Roast, Gold Coast Blend, Guatemala Antigua, House Blend, Italian Roast, Kenya
Coffee, Komodo Dragon Blend, Organic Serena Blend, Organic Shade Grown Mexico, Sumatra, Decaf
Caffe Verona, Decaf Espresso Roast, Decaf House Blend, And Decaf Sumatra!
Monthly Sales Per Square Foot Of Retail Space. Employee
Cost For Each Operating Hour.
Advertising Expenditures Per Dollar Of Sales.
The Cost Of Condiments Per Dollar Sales Of Coffee. Condiments Might Include Sweeteners, Liquid Creamers,
Cream Canisters, Sugar Packets, Sugar Canisters, Stir Sticks!
The Cost Of Electricity Per Operating Hour Each Month Of The Year.
..
1
, 2. Explain The Information Value Chain. How Do Business Events Turn Into Data Then Into Information And
Then Into Knowledge? Give An Example Starting With The Business Event Of The Purchase Of A DVD At
Best Buy All The Way To Useful Information For The CEO And Other Decision Makers.
The Information Value Chain Represents The Overall Transformation From A Business Need And Business
Event (Like Each Individual Sale Of U.S. Flag) To An Ultimate Decision. The Information Value Chain Might
Be Represented Considering The Purchase Of A DVD At Best Buy In The Following Way:
The DVD Will Be Recorded As Sales Revenue And Then After Deducting Its Costs Will Add To Or Subtract
From Corporate Income. The Cash From The DVD Sale Will Also Add To The Operating Cash Flows.
The Specific DVD Will Be Recorded In The Information As A Sale To Monitor Which Dvds Are Selling Within
Best Buy. This Will Help Best Buy And Its Suppliers Know Which Dvds Are Selling And Which Type Of Dvds
Should Be Reordered. The Type Of DVD Will Also Help The Marketing Department Better Understand Its
Customers And Their Respective Demographic Profile To Better Market To Them.
In Addition, Knowing The Location Of The DVD Sale Will Also Help Decision Makers Know Where Its Sales
Are Occurring.
The CEO Can Look At The Profitability Of Dvds Overall, The Specific Types Of Dvds That Are Selling And The
Location Of Those Sales All Due To The Information Value Chain.
3. Give Three Examples Of Types Of Discretionary Information At Your College Or University And
Explain How The Benefits Of Receiving That Information Outweigh The Costs.
Answers Will Vary. This Represents A Potential Answer.
Universities Are Often Interested In Their Freshmen Retention (The Percentage Of Sophomores That
Return After Their Freshman Year). They Also Quite Interested In Their Four- Or Five-Year Graduation
Rates.
Universities Are Also Interested In Their Production Of Research Grants. This Is Often Used To Monitor
The Success Of Their Research And Their Ability To Get Interested Sponsors (Such As The National Institute
Of Health Or The National Science Foundation).
Information For Each Of These Three Examples Can Be Gained By The Information System At The
University. However, A University Generic Information System Does Not Usually Offer This Information
As A Standard Report Or Standard Output Of The System. Therefore, Work Must Be Done To Capture
(And Potentially Digitize) This Information, Ensure Its Validity And Then Report It In An Appropriate
Useful Format. The Cost Of Getting Useful Information Will Depend On The University And Its
Technology. However, Since These Represent Three Keys Metrics Of A University
..
2
Accounting Information Systems 2nd Edition,
By Vernon Richardson, Chengyee Chang & Rod Smith
All Chapters 1-16| 4 Units| Edition With Verified Solutions| Rated A+
From: [Bestmaxsolutions.stuvia
,TABLE OF CONTENTS
PART ONE: AIS AND THE BUSINESS
Chapter 1. Accounting Information Systems And Firm Value
Chapter 2. Accountants As Business
Chapter 3. Data Modeling
Chapter 4. Relational Databases And Enterprise Systems
PART TWO BUSINESS PROCESSES
Chapter 5. Sales And Collections Business Process
Chapter 6. Purchase And Payments Business Process
Chapter 7. Conversion Business Process
Chapter 8. Integrated Project
Chapter 9. Data Analytics In Accounting
Chapter 10. Reporting Processes And Extensible Business Reporting Language (Xbrl)
PART THREE MANAGING AND EVALUATING AIS PROJECTS
Chapter 11. Accounting Information Systems And Internal Controls
Chapter 12. Information Security And Computer Fraud
Chapter 13. Monitoring And Auditing Ais
PART FOUR AIS DEVELOPMENT AND MANAGEMENT
Chapter 14. The Balanced Scorecard And Business Value Of Information Technology
Chapter 15. Evaluating Ais Investments
Chapter 16. The Systems Development Life Cycle And Project Management: Addressing The
Challenges Of Building Ais Systems
,Chapter 1 – Accounting Information Systems And Firm Value
Multiple Choice Questions
1. C
2. D
3. A
4. C
5. D
6. B
7. D
8. A
9. D
10. B
11. B
12. C
13. A
14. C
15. A
Discussion Questions
1. Brainstorm A List Of Discretionary Information That Might Be An Output Of An Accounting
Information System And Be Needed By Starbucks. Prioritize Which Items Might Be Most
Important And Provide Support.
Answers Will Vary. Here Are Some Potential Answers:
The Cost Of A Cup Of Coffee, By Type: Breakfast Blend, Cafe Estima, Caffe Verona, Espresso Roast,
Ethiopia Sidamo, French Roast, Gold Coast Blend, Guatemala Antigua, House Blend, Italian Roast, Kenya
Coffee, Komodo Dragon Blend, Organic Serena Blend, Organic Shade Grown Mexico, Sumatra, Decaf
Caffe Verona, Decaf Espresso Roast, Decaf House Blend, And Decaf Sumatra!
Monthly Sales Per Square Foot Of Retail Space. Employee
Cost For Each Operating Hour.
Advertising Expenditures Per Dollar Of Sales.
The Cost Of Condiments Per Dollar Sales Of Coffee. Condiments Might Include Sweeteners, Liquid Creamers,
Cream Canisters, Sugar Packets, Sugar Canisters, Stir Sticks!
The Cost Of Electricity Per Operating Hour Each Month Of The Year.
..
1
, 2. Explain The Information Value Chain. How Do Business Events Turn Into Data Then Into Information And
Then Into Knowledge? Give An Example Starting With The Business Event Of The Purchase Of A DVD At
Best Buy All The Way To Useful Information For The CEO And Other Decision Makers.
The Information Value Chain Represents The Overall Transformation From A Business Need And Business
Event (Like Each Individual Sale Of U.S. Flag) To An Ultimate Decision. The Information Value Chain Might
Be Represented Considering The Purchase Of A DVD At Best Buy In The Following Way:
The DVD Will Be Recorded As Sales Revenue And Then After Deducting Its Costs Will Add To Or Subtract
From Corporate Income. The Cash From The DVD Sale Will Also Add To The Operating Cash Flows.
The Specific DVD Will Be Recorded In The Information As A Sale To Monitor Which Dvds Are Selling Within
Best Buy. This Will Help Best Buy And Its Suppliers Know Which Dvds Are Selling And Which Type Of Dvds
Should Be Reordered. The Type Of DVD Will Also Help The Marketing Department Better Understand Its
Customers And Their Respective Demographic Profile To Better Market To Them.
In Addition, Knowing The Location Of The DVD Sale Will Also Help Decision Makers Know Where Its Sales
Are Occurring.
The CEO Can Look At The Profitability Of Dvds Overall, The Specific Types Of Dvds That Are Selling And The
Location Of Those Sales All Due To The Information Value Chain.
3. Give Three Examples Of Types Of Discretionary Information At Your College Or University And
Explain How The Benefits Of Receiving That Information Outweigh The Costs.
Answers Will Vary. This Represents A Potential Answer.
Universities Are Often Interested In Their Freshmen Retention (The Percentage Of Sophomores That
Return After Their Freshman Year). They Also Quite Interested In Their Four- Or Five-Year Graduation
Rates.
Universities Are Also Interested In Their Production Of Research Grants. This Is Often Used To Monitor
The Success Of Their Research And Their Ability To Get Interested Sponsors (Such As The National Institute
Of Health Or The National Science Foundation).
Information For Each Of These Three Examples Can Be Gained By The Information System At The
University. However, A University Generic Information System Does Not Usually Offer This Information
As A Standard Report Or Standard Output Of The System. Therefore, Work Must Be Done To Capture
(And Potentially Digitize) This Information, Ensure Its Validity And Then Report It In An Appropriate
Useful Format. The Cost Of Getting Useful Information Will Depend On The University And Its
Technology. However, Since These Represent Three Keys Metrics Of A University
..
2
