Accounting Information Systems – 4th Edition (Vernon Richardson & Chengyee Janie Chang) | Complete Solution Manual & Study Guide

Accounting Information Systems 4th
Edition by Vernon Richardson, Chengyee
Janie Chang
SOLUTION MANUAL
COMPLETE CHAPTERS 1-17|
EXPERT VERIFIED STUDY GUIDE
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, Chapter 1: Accounting Information Systems and Firm Value

Multiple Choice Questions
1. (LO 1-1) Accounting information systems

a. are always computerized.

b. report only financially related information.

c. are information systems that record, process, and report on transactions to provide financial and
nonfinancial information for decision making and control.

d. require a CITP designation to understand.

Correct Answer: C



2. (LO 1-1) Which of the following is a characteristic of relevance?

a. Materiality

b. Timeliness

c. Verifiable

d. Cost to generate Correct Answer: A



3. (LO 1-2) Which of the following is considered to be mandatory information required by a regulatory

body?

a. 10-Q submission to the Securities and Exchange Commission

b. The cost to produce a Samsung Galaxy

c. The number of organic bananas that are sold at Whole Foods on July 28

d. The cost to build an all-new Starbucks restaurant in Shenzhen, China Correct Answer: A



4. (LO 1-4) The correct order of events in the value chain is

a. Inbound logistics ➛ Operations ➛ Service.

b. Inbound logistics ➛ Outbound logistics ➛ Marketing and sales.

c. Inbound logistics ➛ Operations ➛ Outbound logistics.

d. Inbound logistics ➛ Operations ➛ Marketing and Sales.
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Correct Answer: C
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,5. (LO 1-8) Which system contributes information on direct labor to a cost accounting system?

a. Supply chain management system (SCMS)

b. Financial reporting system (FRS)

c. Customer Relational Management System (CRM)

d. Human resource management system (HRMS) Correct Answer: D



6. (LO 1-7) A supply chain

a. supplies jewelry chains.

b. refers to the flow of materials, information, payments, and services.

c. is similar in function and purpose to the value chain.

d. does not apply to a service firm like an accounting firm.

Correct Answer: B



7. (LO 1-7) Customer relationship management software does not include information about

a. current customers.

b. prospective customers.

c. former customers.

d. current employees.

Correct Answer: D



8. (LO 1-6) An information system that measures and records accounting transactions and reports them in the
financial statements is called a

a. financial reporting system (FRS).

b. enterprise system (ES).

c. manufacturing system (MS).

d. cost accounting system.

Correct Answer: A
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, 9. (LO 1-3) What is the name of the position for a person responsible for determining Information needs of a
business and designing a system to meet those needs?

a. Chief information officer

b. Controller

c. IT auditor

d. Systems analyst Correct Answer: D



10. (LO 1-9) The balance sheet account most likely affected by an AIS investment in supply chain
management software would be

a. inventories.

b. fixed assets.

c. cash and cash equivalents.

d. unearned revenue.

Correct Answer: A



11. (LO 1-7) The software/system that helps make sure the retail firm doesn‘t have a stockout is

a. supply chain management software.

b. customer relationship management software.

c. enterprise systems.

d. human resource systems.

Correct Answer: A



12. (LO 1-9) Data analytics performed to identify the most profitable customers would be most likely to affect
which income statement account?

a. Selling, general, and administrative expenses (SG&A)

b. Interest expense

c. Revenues

d. Cost of goods sold Correct Answer: C
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