Accounting Information Systems 2nd Edition
Accounting Information Systems 2e Solutions Manual |
Richardson, Chang & Smith | Complete Chapter Solutions
| A+ Verified
This document contains:
✓ AIS 2nd edition complete solutions
✓ Accounting Information Systems verified A+
✓ AIS accounting systems solved problems
✓ Accounting Information Systems 2e solutions manual
,Accounting Information Systems 2e Vernon Richardson Janie
Chang Rodney Smith (Solutions Manual All Chapters, 100%
Original Verified, A+ Grade)
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
, Richardson, Chang, Smith – Accounting Information Systems, 2nd Edition – Chapter 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
, Richardson, Chang, Smith – Accounting Information Systems, 2nd Edition – Chapter 1
and will likely be used as a key input to manage the university, the benefits will potentially
outweigh those costs.
4. After a NBA basketball game a box score is produced detailing the number of points scored,
assists made and rebounds retrieved (among other statistics). Using the characteristics of useful
information discussed at the beginning of the chapter, please explain how this box score meets
(or does not meet) the characteristics of useful information.
A box score of a NBA basketball game (or other sports) produces overall team statistics by half
and quarter and details player performance including minutes played, shots taken, shots made,
free throw shots taken and made, assists, rebounds, steals, blocks and fouls.
To be relevant, the information must potentially impact a decision that a decision maker must
make. Relevant information is usually characterized by having predictive value, feedback value
and receiving it on a timely basis. This information provides feedback value to explain how
players performed in the game. The box score provides predictive value to the extent that prior
performance (as reflected in the box score) is predictive of future performance. Since box
scores are available immediately following the game, it is also received on a timely enough basis
to make decisions for a subsequent game.
To be reliable, the information must be verifiable, be representationally faithful and be neutral.
There are often some allegations that the statistics included in a box score is affected by the bias
of the scorekeeper. While the actual points scored by the team is verified by the officials, more
minute details are not verified and may be subject to bias, thus limiting their reliability.
The information is potentially relevant to the coach in helping to figure out which players are
most efficient and productive. Which players play well against different teams and which
players are good at particular aspects of offense and defense, among others.
5. Some would argue that the role of accounting is simply as an information provider. Will a
computer ultimately completely take over the job of the accountant? As part of your
explanation, explain how the role of accountants in information systems continues to evolve.
Accountants have a role as a business analyst. That is, they gather information to solve business
problems or address business opportunities. They determine what information is relevant in
solving business problems, then create or extract that information and finally analyze the
information to solve the problem. An AIS provides a systematic means for accountants to get
needed information and solve a problem.
While a computer is very good at reliably collecting, processing and producing information, the
role of the accountant when serving as a business analyst will continue to be able to assess the
problems the business is facing and work to provide information that will address it.
..
3
Accounting Information Systems 2e Solutions Manual |
Richardson, Chang & Smith | Complete Chapter Solutions
| A+ Verified
This document contains:
✓ AIS 2nd edition complete solutions
✓ Accounting Information Systems verified A+
✓ AIS accounting systems solved problems
✓ Accounting Information Systems 2e solutions manual
,Accounting Information Systems 2e Vernon Richardson Janie
Chang Rodney Smith (Solutions Manual All Chapters, 100%
Original Verified, A+ Grade)
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
, Richardson, Chang, Smith – Accounting Information Systems, 2nd Edition – Chapter 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
, Richardson, Chang, Smith – Accounting Information Systems, 2nd Edition – Chapter 1
and will likely be used as a key input to manage the university, the benefits will potentially
outweigh those costs.
4. After a NBA basketball game a box score is produced detailing the number of points scored,
assists made and rebounds retrieved (among other statistics). Using the characteristics of useful
information discussed at the beginning of the chapter, please explain how this box score meets
(or does not meet) the characteristics of useful information.
A box score of a NBA basketball game (or other sports) produces overall team statistics by half
and quarter and details player performance including minutes played, shots taken, shots made,
free throw shots taken and made, assists, rebounds, steals, blocks and fouls.
To be relevant, the information must potentially impact a decision that a decision maker must
make. Relevant information is usually characterized by having predictive value, feedback value
and receiving it on a timely basis. This information provides feedback value to explain how
players performed in the game. The box score provides predictive value to the extent that prior
performance (as reflected in the box score) is predictive of future performance. Since box
scores are available immediately following the game, it is also received on a timely enough basis
to make decisions for a subsequent game.
To be reliable, the information must be verifiable, be representationally faithful and be neutral.
There are often some allegations that the statistics included in a box score is affected by the bias
of the scorekeeper. While the actual points scored by the team is verified by the officials, more
minute details are not verified and may be subject to bias, thus limiting their reliability.
The information is potentially relevant to the coach in helping to figure out which players are
most efficient and productive. Which players play well against different teams and which
players are good at particular aspects of offense and defense, among others.
5. Some would argue that the role of accounting is simply as an information provider. Will a
computer ultimately completely take over the job of the accountant? As part of your
explanation, explain how the role of accountants in information systems continues to evolve.
Accountants have a role as a business analyst. That is, they gather information to solve business
problems or address business opportunities. They determine what information is relevant in
solving business problems, then create or extract that information and finally analyze the
information to solve the problem. An AIS provides a systematic means for accountants to get
needed information and solve a problem.
While a computer is very good at reliably collecting, processing and producing information, the
role of the accountant when serving as a business analyst will continue to be able to assess the
problems the business is facing and work to provide information that will address it.
..
3
