EndhofhChapterhSolutionshManual:hRichardson,hChang,hSmith,hAccountinghInformationhSystems,h4thheditio
n
Chapter 1: Accounting Information Systems and Firm Value
h h h h h h h
MultiplehChoicehQuestions
1. (LOh1-1)hAccountinghinformationhsystems
a. arehalwayshcomputerized.
b. reporthonlyhfinanciallyhrelatedhinformation.
c. arehinformationhsystemshthathrecord,hprocess,handhreporthonhtransactionshtohprovid
ehfinancialhandhnonfinancialhinformationhforhdecisionhmakinghandhcontrol.
d. requirehahCITPhdesignationhtohunderstand.
Answer:hC
2. (LOh1-1)hWhichhofhthehfollowinghishahcharacteristichofhrelevance?
a. Materiality
b. Timeliness
c. Verifiable
d. Costhtohgenerat
ehAnswer:hA
3. (LOh1-
2)hWhichhofhthehfollowinghishconsideredhtohbehmandatoryhinformationhrequiredhbyhahregulat
oryhbody?
a. 10-QhsubmissionhtohthehSecuritieshandhExchangehCommission
b. ThehcosthtohproducehahSamsunghGalaxy
c. ThehnumberhofhorganichbananashthatharehsoldhathWholehFoodshonhJulyh28
d. Thehcosthtohbuildhanhall-
newhStarbuckshrestauranthinhShenzhen,hChinahAnswer:hA
4. (LOh1-4)hThehcorrecthorderhofheventshinhthehvaluehchainhis
a. Inboundhlogisticsh➛hOperationsh➛hService.
b. Inboundhlogisticsh➛hOutboundhlogisticsh➛hMarketinghandhsales.
c. Inboundhlogisticsh➛hOperationsh➛hOutboundhlogistics.
d. Inboundhlogisticsh➛hOperationsh➛hMarketinghandhSales.
Answer:hC
5. (LOh1-8)hWhichhsystemhcontributeshinformationhonhdirecthlaborhtohahcosthaccountinghsystem?
a. Supplyhchainhmanagementhsystemh(SCMS)
b. Financialhreportinghsystemh(FRS)
c. CustomerhRelationalhManagementhSystemh(CRM)
1
, EndhofhChapterhSolutionshManual:hRichardson,hChang,hSmith,hAccountinghInformationhSystems,h4thheditio
n
d. Humanhresourcehmanagementhsystemh(HRMS
)hAnswer:hD
6. (LOh1-7)hAhsupplyhchain
a. supplieshjewelryhchains.
b. refershtohthehflowhofhmaterials,hinformation,hpayments,handhservices.
c. ishsimilarhinhfunctionhandhpurposehtohthehvaluehchain.
d. doeshnothapplyhtohahservicehfirmhlikehanhaccountinghfirm.
Answer:hB
7. (LOh1-7)hCustomerhrelationshiphmanagementhsoftwarehdoeshnothincludehinformationhabout
a. currenthcustomers.
b. prospectivehcustomers.
c. formerhcustomers.
d. currenthemployees.
Answer:hD
8. (LOh1-
6)hAnhinformationhsystemhthathmeasureshandhrecordshaccountinghtransactionshandhreportsh
themhinhthehfinancialhstatementshishcalledha
a. financialhreportinghsystemh(FRS).
b. enterprisehsystemh(ES).
c. manufacturinghsystemh(MS).
d. costhaccountinghsystem.
Answer:hA
9. (LOh1-
3)hWhathishthehnamehofhthehpositionhforhahpersonhresponsiblehforhdetermininghInforma
tionhneedshofhahbusinesshandhdesigninghahsystemhtohmeeththosehneeds?
a. Chiefhinformationhofficer
b. Controller
c. IThauditor
d. Systemshanalyst
Answer:hD
h
10. (LOh1-
9)hThehbalancehsheethaccounthmosthlikelyhaffectedhbyhanhAIShinvestmenthinhsupplyhchainhma
nagementhsoftwarehwouldhbe
a. inventories.
b. fixedhassets.
c. cashhandhcashhequivalents.
2
, EndhofhChapterhSolutionshManual:hRichardson,hChang,hSmith,hAccountinghInformationhSystems,h4thheditio
n
d. unearnedhrevenue.
Answer:hA
11. (LOh1-7)hThehsoftware/systemhthathhelpshmakehsurehthehretailhfirmhdoesn’thhavehahstockouthis
a. supplyhchainhmanagementhsoftware.
b. customerhrelationshiphmanagementhsoftware.
c. enterprisehsystems.
d. humanhresourcehsystems.
Answer:hA
12. (LOh1-
9)hDatahanalyticshperformedhtohidentifyhthehmosthprofitablehcustomershwouldhbehmosthlike
lyhtohaffecthwhichhincomehstatementhaccount?
a. Selling,hgeneral,handhadministrativehexpensesh(SG&A)
b. Interesthexpense
c. Revenues
d. Costhofhgoodshsol
dhAnswer:hC
13. (LOh1-7,hLOh1-
9)hCustomerhrelationshiphmanagementhsystemshwouldhgenerallyhbehconsideredhtohbehan
a. internalhbusinesshprocess.
b. externalhbusinesshprocess.
c. interiorhbusinesshprocess.
d. exteriorhbusinesshprocess.
Answer:hB
14. (LOh1-
3)hAnhauditorhtestinghinternalhcontrolshwouldhgenerallyhbehconsideredhtohfillhwhichhrolehwith
hrespecthtohaccountinghinformationhsystems?
a. User
b. Manager
c. Designer
d. Evaluatorh
Answer:hD
15. (LOh1-
2)hWhichhofhthesehrepresentshthehproperhtransformationhfromhdatahtohdecisionhaccordin
ghtohthehinformationhvaluehchain?
a. Datah➛hInformationh➛hKnowledgeh➛hDecision
b. Datah➛hKnowledgeh➛hInformationh➛hDecision
3
, EndhofhChapterhSolutionshManual:hRichardson,hChang,hSmith,hAccountinghInformationhSystems,h4thheditio
n
c. Datah➛hBusinessheventh➛hInformationh➛hDecision
d. Datah➛hAnalysish➛hInformationh➛hDecisionh
Answer:hA
DiscussionhQuestions
1. Brainstormhahlisthofhdiscretionaryhinformationhthathmighthbehanhoutputhofhanhaccountin
ghinformationhsystemhandhbehneededhbyhStarbucks.hPrioritizehwhichhitemshmighthbehmo
sthimportanthandhprovidehsupport.
Answershwillhvary.h Hereharehsomehpotentialhanswers:
Thehcosthofhahcuphofhcoffee,hbyhtype:hBreakfasthblend,hCafehestima,hcaffehVerona,hespressohroast
,hEthiopiahsidamo,hFrenchhroast,hGoldhCoasthblend,hGuatemalahAntigua,hhousehblend,hItalianhroa
st,hKenyahcoffee,h komodohdragonhblend,horganichSerenahblend,horganichshadehgrownhMexico,hS
umatra,hdecafhcaffehVerona,hdecafhespressohroast,hdecafhhousehblend,handhdecafhSumatra!
MonthlyhSaleshperhsquarehfoothofhretailhspace.
Employeehcosthforheachhoperatinghhour.
h
Advertisinghexpenditureshperhdollarhofhsales.
Thehcosthofhcondimentshperhdollarhsaleshofhcoffee.hCondimentshmighthincludehsweeteners,hliqui
dhcreamers,hcreamhcanisters,hsugarhpackets,hsugarhcanisters,hstirhsticks!
Thehcosthofhelectricityhperhoperatinghhourheachhmonthhofhthehyear.
2. Explainhthehinformationhvaluehchain.hHowhdohbusinessheventshturnhintohdatahthenhintohinformati
onhandhthenhintohknowledge?hGivehanhexamplehstartinghwithhthehbusinessheventhofhthehpurchase
hofhahSuperhSmashhBros.hNintendohSwitchhGamehathGameStophallhthehwayhtohgivinghusefulhinfor
mationhforhthehCEOhandhotherhdecisionhmakers.
Thehinformationhvaluehchainhrepresentshthehoverallhtransformationhfromhahbusinesshneedhandhb
usinessheventh(likeheachhindividualhsalehofhU.S.hflag)htohanhultimatehdecision.hThehinformationhva
luehchainhmighthbehrepresentedhconsideringhthehpurchasehofhahNintendohSwitchhGamehathBesthB
uyhinhthehfollowinghway:
Thehgamehwillhbehrecordedhashsaleshrevenuehandhthenhafterhdeductinghitshcostshwillhaddhtohorhsu
btracthfromhcorporatehincome.hThehcashhfromhthehgamehsalehwillhalsohaddhtohthehoperatinghcash
hflows.
4
n
Chapter 1: Accounting Information Systems and Firm Value
h h h h h h h
MultiplehChoicehQuestions
1. (LOh1-1)hAccountinghinformationhsystems
a. arehalwayshcomputerized.
b. reporthonlyhfinanciallyhrelatedhinformation.
c. arehinformationhsystemshthathrecord,hprocess,handhreporthonhtransactionshtohprovid
ehfinancialhandhnonfinancialhinformationhforhdecisionhmakinghandhcontrol.
d. requirehahCITPhdesignationhtohunderstand.
Answer:hC
2. (LOh1-1)hWhichhofhthehfollowinghishahcharacteristichofhrelevance?
a. Materiality
b. Timeliness
c. Verifiable
d. Costhtohgenerat
ehAnswer:hA
3. (LOh1-
2)hWhichhofhthehfollowinghishconsideredhtohbehmandatoryhinformationhrequiredhbyhahregulat
oryhbody?
a. 10-QhsubmissionhtohthehSecuritieshandhExchangehCommission
b. ThehcosthtohproducehahSamsunghGalaxy
c. ThehnumberhofhorganichbananashthatharehsoldhathWholehFoodshonhJulyh28
d. Thehcosthtohbuildhanhall-
newhStarbuckshrestauranthinhShenzhen,hChinahAnswer:hA
4. (LOh1-4)hThehcorrecthorderhofheventshinhthehvaluehchainhis
a. Inboundhlogisticsh➛hOperationsh➛hService.
b. Inboundhlogisticsh➛hOutboundhlogisticsh➛hMarketinghandhsales.
c. Inboundhlogisticsh➛hOperationsh➛hOutboundhlogistics.
d. Inboundhlogisticsh➛hOperationsh➛hMarketinghandhSales.
Answer:hC
5. (LOh1-8)hWhichhsystemhcontributeshinformationhonhdirecthlaborhtohahcosthaccountinghsystem?
a. Supplyhchainhmanagementhsystemh(SCMS)
b. Financialhreportinghsystemh(FRS)
c. CustomerhRelationalhManagementhSystemh(CRM)
1
, EndhofhChapterhSolutionshManual:hRichardson,hChang,hSmith,hAccountinghInformationhSystems,h4thheditio
n
d. Humanhresourcehmanagementhsystemh(HRMS
)hAnswer:hD
6. (LOh1-7)hAhsupplyhchain
a. supplieshjewelryhchains.
b. refershtohthehflowhofhmaterials,hinformation,hpayments,handhservices.
c. ishsimilarhinhfunctionhandhpurposehtohthehvaluehchain.
d. doeshnothapplyhtohahservicehfirmhlikehanhaccountinghfirm.
Answer:hB
7. (LOh1-7)hCustomerhrelationshiphmanagementhsoftwarehdoeshnothincludehinformationhabout
a. currenthcustomers.
b. prospectivehcustomers.
c. formerhcustomers.
d. currenthemployees.
Answer:hD
8. (LOh1-
6)hAnhinformationhsystemhthathmeasureshandhrecordshaccountinghtransactionshandhreportsh
themhinhthehfinancialhstatementshishcalledha
a. financialhreportinghsystemh(FRS).
b. enterprisehsystemh(ES).
c. manufacturinghsystemh(MS).
d. costhaccountinghsystem.
Answer:hA
9. (LOh1-
3)hWhathishthehnamehofhthehpositionhforhahpersonhresponsiblehforhdetermininghInforma
tionhneedshofhahbusinesshandhdesigninghahsystemhtohmeeththosehneeds?
a. Chiefhinformationhofficer
b. Controller
c. IThauditor
d. Systemshanalyst
Answer:hD
h
10. (LOh1-
9)hThehbalancehsheethaccounthmosthlikelyhaffectedhbyhanhAIShinvestmenthinhsupplyhchainhma
nagementhsoftwarehwouldhbe
a. inventories.
b. fixedhassets.
c. cashhandhcashhequivalents.
2
, EndhofhChapterhSolutionshManual:hRichardson,hChang,hSmith,hAccountinghInformationhSystems,h4thheditio
n
d. unearnedhrevenue.
Answer:hA
11. (LOh1-7)hThehsoftware/systemhthathhelpshmakehsurehthehretailhfirmhdoesn’thhavehahstockouthis
a. supplyhchainhmanagementhsoftware.
b. customerhrelationshiphmanagementhsoftware.
c. enterprisehsystems.
d. humanhresourcehsystems.
Answer:hA
12. (LOh1-
9)hDatahanalyticshperformedhtohidentifyhthehmosthprofitablehcustomershwouldhbehmosthlike
lyhtohaffecthwhichhincomehstatementhaccount?
a. Selling,hgeneral,handhadministrativehexpensesh(SG&A)
b. Interesthexpense
c. Revenues
d. Costhofhgoodshsol
dhAnswer:hC
13. (LOh1-7,hLOh1-
9)hCustomerhrelationshiphmanagementhsystemshwouldhgenerallyhbehconsideredhtohbehan
a. internalhbusinesshprocess.
b. externalhbusinesshprocess.
c. interiorhbusinesshprocess.
d. exteriorhbusinesshprocess.
Answer:hB
14. (LOh1-
3)hAnhauditorhtestinghinternalhcontrolshwouldhgenerallyhbehconsideredhtohfillhwhichhrolehwith
hrespecthtohaccountinghinformationhsystems?
a. User
b. Manager
c. Designer
d. Evaluatorh
Answer:hD
15. (LOh1-
2)hWhichhofhthesehrepresentshthehproperhtransformationhfromhdatahtohdecisionhaccordin
ghtohthehinformationhvaluehchain?
a. Datah➛hInformationh➛hKnowledgeh➛hDecision
b. Datah➛hKnowledgeh➛hInformationh➛hDecision
3
, EndhofhChapterhSolutionshManual:hRichardson,hChang,hSmith,hAccountinghInformationhSystems,h4thheditio
n
c. Datah➛hBusinessheventh➛hInformationh➛hDecision
d. Datah➛hAnalysish➛hInformationh➛hDecisionh
Answer:hA
DiscussionhQuestions
1. Brainstormhahlisthofhdiscretionaryhinformationhthathmighthbehanhoutputhofhanhaccountin
ghinformationhsystemhandhbehneededhbyhStarbucks.hPrioritizehwhichhitemshmighthbehmo
sthimportanthandhprovidehsupport.
Answershwillhvary.h Hereharehsomehpotentialhanswers:
Thehcosthofhahcuphofhcoffee,hbyhtype:hBreakfasthblend,hCafehestima,hcaffehVerona,hespressohroast
,hEthiopiahsidamo,hFrenchhroast,hGoldhCoasthblend,hGuatemalahAntigua,hhousehblend,hItalianhroa
st,hKenyahcoffee,h komodohdragonhblend,horganichSerenahblend,horganichshadehgrownhMexico,hS
umatra,hdecafhcaffehVerona,hdecafhespressohroast,hdecafhhousehblend,handhdecafhSumatra!
MonthlyhSaleshperhsquarehfoothofhretailhspace.
Employeehcosthforheachhoperatinghhour.
h
Advertisinghexpenditureshperhdollarhofhsales.
Thehcosthofhcondimentshperhdollarhsaleshofhcoffee.hCondimentshmighthincludehsweeteners,hliqui
dhcreamers,hcreamhcanisters,hsugarhpackets,hsugarhcanisters,hstirhsticks!
Thehcosthofhelectricityhperhoperatinghhourheachhmonthhofhthehyear.
2. Explainhthehinformationhvaluehchain.hHowhdohbusinessheventshturnhintohdatahthenhintohinformati
onhandhthenhintohknowledge?hGivehanhexamplehstartinghwithhthehbusinessheventhofhthehpurchase
hofhahSuperhSmashhBros.hNintendohSwitchhGamehathGameStophallhthehwayhtohgivinghusefulhinfor
mationhforhthehCEOhandhotherhdecisionhmakers.
Thehinformationhvaluehchainhrepresentshthehoverallhtransformationhfromhahbusinesshneedhandhb
usinessheventh(likeheachhindividualhsalehofhU.S.hflag)htohanhultimatehdecision.hThehinformationhva
luehchainhmighthbehrepresentedhconsideringhthehpurchasehofhahNintendohSwitchhGamehathBesthB
uyhinhthehfollowinghway:
Thehgamehwillhbehrecordedhashsaleshrevenuehandhthenhafterhdeductinghitshcostshwillhaddhtohorhsu
btracthfromhcorporatehincome.hThehcashhfromhthehgamehsalehwillhalsohaddhtohthehoperatinghcash
hflows.
4
