Accounting Information Systems 15th Edition Marshall B. Romney, Paul John Steinbart Scott L. David A. Wood Brigham

AccountingTInformationTSystems




Instructor’s SolutionsManual
T T




Accounting Information
Systems
15th Edition



Marshall B. Romney
Professor Emeritus, Brigham Young University
Paul John Steinbart
Professor Emeritus, Arizona State University
Scott L. Summers
Brigham Young University
David A. Wood
Brigham Young University




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.

, AccountingTInformationTSystems




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lyTforTtheTuseTofTinstructorsTinTteachingTtheirTcoursesTandTassessingTstudent
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orldTWideTWeb)TwillTdestroyTtheTintegrityTofTtheTworkTandTisTnotTpermitted.
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.
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onsTandTtoThonorTtheTintendedTpedagogicalTpurposesTandTtheTneedsTofTotherT
instructorsTwhoTrelyTonTtheseTmaterials.




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.

, AccountingTInformationTSystems




chapter 1 T




accounting informationsystems
T T




: An overview
T T




SuggestedTAnswersTtoTDiscussionTQuestions

1.1 TheTvalueTofTinformationTisTtheTdifferenceTbetweenTtheTbenef
itsTrealizedTfromTusingTthatTinformationTandTtheTcostsTofTpr
oducingTit.T WouldTyou,TorTanyTorganization,TeverTproduceTin
formationTifTitsTexpectedTcostsTexceededTitsTbenefits?TIfTso
,TprovideTsomeTexamples.TIfTnot,Twhy?

MostTorganizationsTproduceTinformationTonlyTifTitsTvalueTexce
edsTitsTcost.T However,TthereTareTtwoTsituationsTwhereTinform
ationTmayTbeTproducedTevenTifTitsTcostTexceedsTitsTvalue.

a. ItTisToftenTdifficultTtoTestimateTaccuratelyTtheTvalueTo
fTinformationTandTtheTcostTofTproducingTit.TTherefore,To
rganizationsTmayTproduceTinformationTthatTtheyTexpectTw
illTproduceTbenefitsTinTexcessTofTitsTcosts,TonlyTtoTbeTdi
sappointedTafterTtheTfact.
b. ProductionTofTtheTinformationTmayTbeTmandatedTbyTeitherT
aTgovernmentTagencyTorTaTprivateTorganization.TExamples
TincludeTtheTtaxTreportsTrequiredTbyTtheTIRSTandTdisclos

ureTrequirementsTforTfinancialTreporting.

1.2 CanTtheTcharacteristicsTofTusefulTinformationTlistedTinTTabl
eT1-
1TbeTmetTsimultaneously?TOrTdoesTachievingToneTmeanTsacrific
ingTanother?

SeveralTofTtheTcriteriaTinTTableT1.1TcanTbeTmetTsimultaneousl
y.T ForTexample,TmoreTtimelyTinformationTis



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.

, AccountingTInformationTSystems




alsoTlikelyTtoTbeTmoreTrelevant.T VerifiableTinformationTisTli
kelyTtoTbeTmoreTaccurate.

However,TachievingToneTobjectiveTmayTrequireTsacrificingTano
ther.T ForTexample,TensuringTthatTinformationTisTmoreTcomplet
eTmayTreduceTitsTtimeliness.T Similarly,TincreasedTverifiabi
lityTandTaccuracyTmayTreduceTitsTtimeliness.

TheTdecisionTmakerTmustTdecideTwhichTtrade-
offsTareTwarrantedTinTeachTsituation.

1.3 YouTandTaTfewTofTyourTclassmatesTdecidedTtoTbecomeTentrepren
eurs.T YouTcameTupTwithTaTgreatTideaTforTaTnewTmobileTphoneTapp
licationTthatTyouTthinkTwillTmakeTlotsTofTmoney.TYourTbusine
ssTplanTwonTsecondTplaceTinTaTlocalTcompetition,TandTyouTareTu
singTtheT$10,000TprizeTtoTsupportTyourselvesTasTyouTstartTyo
urTcompany.

a. IdentifyTtheTkeyTdecisionsTyouTneedTtoTmakeTtoTbeTsuccessf
ulTentrepreneurs,TtheTinformationTyouTneedTtoTmakeTthem,Ta
ndTtheTbusinessTprocessesTyouTwillTneedTtoTengageTin.
b. YourTcompanyTwillTneedTtoTexchangeTinformationTwithTvari
ousTexternalTparties.TIdentifyTtheTexternalTparties,Tan
dTspecifyTtheTinformationTreceivedTfromTandTsentTtoTeach
TofTthem.




TheTauthorTturnsTthisTquestionTintoTanTin-
classTgroupTactivity.TStudentsTareTdividedTupTinTgroups,Tt
oldTtoTcloseTtheirTbooks,TandTgivenT15TminutesTto:

a. ThinkTthroughTtheTbusinessTprocesses,TkeyTdecisions,TandT
informationTneedsTissuesTinTtheirTgroup.
b. IdentifyTtheTexternalTusersTofTinformationTandTspecif
yTtheTinformationTreceivedTfromTandTsentTtoTeachTofTthe
m.

OneTgroupTisTselectedTtoTpresentTtheirTanswersTtoTtheTclass.TT
heTotherTgroupsTareTtoldTtoTchallengeTtheTgroup’sTanswers,Tpr
ovideTalternativeTanswers,TandTchipTinTwithTadditionalTanswe
rsTnotTprovidedTbyTtheTselectedTgroup.TSinceTtheTgroupTthatTpr
esentsTisTnotTselectedTuntilTafterTtheTtimeThasTexpired,Tstude
ntsTareTmotivatedTtoTdoTaTgoodTjob,TasTtheyTwillTbeTpresentingTt
oTtheirTpeers.

TheTvalueTofTthisTactivityTisTnotTinTarrivingTatTa




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