Accounting Information Systems
Instructor’s Solutions
Manual
Accounting Information x
Systems
15th Edition x
Marshall B. Romney x x
Professor Emeritus, Brigham Young University
x x x x
Paul John Steinbart
x x
Professor Emeritus, Arizona State University
x x x x
Scott L. Summers
x x
Brigham Young University
x x
David A. Wood x x
Brigham Young University
x x
3-1
Copyright (c) 2021 Pearson Education, Inc.
, Accounting Information Systems
This xwork xis xprotected xby xUnited xStates xcopyright xlaws xand xis xprovided
xsolely xfor xthe xuse xof xinstructors xin xteaching xtheir xcourses xand
xassessing xstudent xlearning. xDissemination xor xsale xof xany xpart xof xthis
xwork x(including xon xthe xWorld xWide xWeb) xwill xdestroy xthe xintegrity xof
xthe xwork xand xis xnot xpermitted. The xwork xand xmaterials xfrom xit xshould
xnever xbe xmade xavailable xto xstudents xexcept xby xinstructors xusing xthe
xaccompanying xtext xin xtheir xclasses. All xrecipients xof xthis xwork xare
xexpected xto xabide xby xthese xrestrictions xand xto xhonor xthe xintended
xpedagogical xpurposes xand xthe xneedsx of xother xinstructors xwho xrely xon
xthese xmaterials.
Copyright x© x2021 xby xPearson xEducation, xInc. xor xits xaffiliates. xAll xRights xReserved.
xManufacturedx in xthe xUnited xStates xof xAmerica. xThis xpublication xis xprotected xby xcopyright,
xand xpermission xshould xbe xobtained xfrom xthe xpublisher xprior xto xany xprohibited xreproduction,
xstorage xin xa xretrieval xsystem, xor xtransmission xin xany xform xor xby xany xmeans, xelectronic,
xmechanical, xphotocopying, xrecording, xor xotherwise. xFor xinformation xregarding xpermissions,
xrequest xforms, xand xthe xappropriate xcontacts xwithin xthe xPearson xEducation xGlobal xRights
xand xPermissions xdepartment, xplease xvisit xwww.pearsoned.com/permissions/.
PEARSON, xALWAYS xLEARNING, xand xREVEL xare xexclusive xtrademarks xowned xby
xPearsonx
Education, xInc. xor xits xaffiliates xin xthe xU.S. xand/or xother xcountries.
Unless xotherwise xindicated xherein, xany xthird-party xtrademarks, xlogos, xor xicons xthat xmay
xappear xinx this xwork xare xthe xproperty xof xtheir xrespective xowners, xand xany xreferences xto
xthird-party xtrademarks, xlogos, xicons, xor xother xtrade xdress xare xfor xdemonstrative xor
xdescriptive xpurposes xonly.x Such xreferences xare xnot xintended xto ximply xany xsponsorship,
xendorsement, xauthorization, xor xpromotion xof xPearson’s xproducts xby xthe xowners xof xsuch
xmarks, xor xany xrelationship xbetween xthe xowner xand xPearson xEducation, xInc., xor xits
xaffiliates, xauthors, xlicensees, xor xdistributors.
3-2
Copyright (c) 2021 Pearson Education, Inc.
, Accounting Information Systems
chapter 1 x
accounting information x
systems: An overview
x x x
Suggested xAnswers xto xDiscussion xQuestions
1.1 The xvalue xof xinformation xis xthe xdifference xbetween
xthe xbenefits xrealized xfrom xusing xthat xinformation
xand xthe xcosts xof xproducing xit. x Would xyou, xor xany
xorganization,xever xproduce xinformation xif xits xexpected
xcosts xexceededxits xbenefits? xIf xso, xprovide xsome
xexamples. xIf xnot, xwhy?
Most xorganizations xproduce xinformation xonly xif xits
xvaluexexceeds xits xcost. x However, xthere xare xtwo
xsituations xwhere xinformation xmay xbe xproduced xeven xif
xits xcost xexceeds xits xvalue.
a. It xis xoften xdifficult xto xestimate xaccurately xthe
xvalue xof xinformation xand xthe xcost xof xproducing
xit. xTherefore, xorganizations xmay xproduce
xinformation xthat xthey xexpect xwill xproduce
xbenefits xin xexcess xofx
its xcosts, xonly xto xbe
xdisappointed xafter xthe xfact.
b. Production xof xthe xinformation xmay xbe xmandated xby
xeither xa xgovernment xagency xor xa xprivate
xorganization. xExamples xinclude xthe xtax xreports
xrequired xby xthe xIRS xand xdisclosure xrequirements
xforx
financial xreporting.
1.2 Can xthe xcharacteristics xof xuseful xinformation xlisted
xin x
Table x1-1 xbe xmet xsimultaneously? xOr xdoes xachieving
xonex mean xsacrificing xanother?
Several xof xthe xcriteria xin xTable x1.1 xcan xbe xmet
3-3
Copyright (c) 2021 Pearson Education, Inc.
, Accounting Information Systems
xsimultaneously. x For xexample, xmore xtimely xinformation
xis
3-4
Copyright (c) 2021 Pearson Education, Inc.
Instructor’s Solutions
Manual
Accounting Information x
Systems
15th Edition x
Marshall B. Romney x x
Professor Emeritus, Brigham Young University
x x x x
Paul John Steinbart
x x
Professor Emeritus, Arizona State University
x x x x
Scott L. Summers
x x
Brigham Young University
x x
David A. Wood x x
Brigham Young University
x x
3-1
Copyright (c) 2021 Pearson Education, Inc.
, Accounting Information Systems
This xwork xis xprotected xby xUnited xStates xcopyright xlaws xand xis xprovided
xsolely xfor xthe xuse xof xinstructors xin xteaching xtheir xcourses xand
xassessing xstudent xlearning. xDissemination xor xsale xof xany xpart xof xthis
xwork x(including xon xthe xWorld xWide xWeb) xwill xdestroy xthe xintegrity xof
xthe xwork xand xis xnot xpermitted. The xwork xand xmaterials xfrom xit xshould
xnever xbe xmade xavailable xto xstudents xexcept xby xinstructors xusing xthe
xaccompanying xtext xin xtheir xclasses. All xrecipients xof xthis xwork xare
xexpected xto xabide xby xthese xrestrictions xand xto xhonor xthe xintended
xpedagogical xpurposes xand xthe xneedsx of xother xinstructors xwho xrely xon
xthese xmaterials.
Copyright x© x2021 xby xPearson xEducation, xInc. xor xits xaffiliates. xAll xRights xReserved.
xManufacturedx in xthe xUnited xStates xof xAmerica. xThis xpublication xis xprotected xby xcopyright,
xand xpermission xshould xbe xobtained xfrom xthe xpublisher xprior xto xany xprohibited xreproduction,
xstorage xin xa xretrieval xsystem, xor xtransmission xin xany xform xor xby xany xmeans, xelectronic,
xmechanical, xphotocopying, xrecording, xor xotherwise. xFor xinformation xregarding xpermissions,
xrequest xforms, xand xthe xappropriate xcontacts xwithin xthe xPearson xEducation xGlobal xRights
xand xPermissions xdepartment, xplease xvisit xwww.pearsoned.com/permissions/.
PEARSON, xALWAYS xLEARNING, xand xREVEL xare xexclusive xtrademarks xowned xby
xPearsonx
Education, xInc. xor xits xaffiliates xin xthe xU.S. xand/or xother xcountries.
Unless xotherwise xindicated xherein, xany xthird-party xtrademarks, xlogos, xor xicons xthat xmay
xappear xinx this xwork xare xthe xproperty xof xtheir xrespective xowners, xand xany xreferences xto
xthird-party xtrademarks, xlogos, xicons, xor xother xtrade xdress xare xfor xdemonstrative xor
xdescriptive xpurposes xonly.x Such xreferences xare xnot xintended xto ximply xany xsponsorship,
xendorsement, xauthorization, xor xpromotion xof xPearson’s xproducts xby xthe xowners xof xsuch
xmarks, xor xany xrelationship xbetween xthe xowner xand xPearson xEducation, xInc., xor xits
xaffiliates, xauthors, xlicensees, xor xdistributors.
3-2
Copyright (c) 2021 Pearson Education, Inc.
, Accounting Information Systems
chapter 1 x
accounting information x
systems: An overview
x x x
Suggested xAnswers xto xDiscussion xQuestions
1.1 The xvalue xof xinformation xis xthe xdifference xbetween
xthe xbenefits xrealized xfrom xusing xthat xinformation
xand xthe xcosts xof xproducing xit. x Would xyou, xor xany
xorganization,xever xproduce xinformation xif xits xexpected
xcosts xexceededxits xbenefits? xIf xso, xprovide xsome
xexamples. xIf xnot, xwhy?
Most xorganizations xproduce xinformation xonly xif xits
xvaluexexceeds xits xcost. x However, xthere xare xtwo
xsituations xwhere xinformation xmay xbe xproduced xeven xif
xits xcost xexceeds xits xvalue.
a. It xis xoften xdifficult xto xestimate xaccurately xthe
xvalue xof xinformation xand xthe xcost xof xproducing
xit. xTherefore, xorganizations xmay xproduce
xinformation xthat xthey xexpect xwill xproduce
xbenefits xin xexcess xofx
its xcosts, xonly xto xbe
xdisappointed xafter xthe xfact.
b. Production xof xthe xinformation xmay xbe xmandated xby
xeither xa xgovernment xagency xor xa xprivate
xorganization. xExamples xinclude xthe xtax xreports
xrequired xby xthe xIRS xand xdisclosure xrequirements
xforx
financial xreporting.
1.2 Can xthe xcharacteristics xof xuseful xinformation xlisted
xin x
Table x1-1 xbe xmet xsimultaneously? xOr xdoes xachieving
xonex mean xsacrificing xanother?
Several xof xthe xcriteria xin xTable x1.1 xcan xbe xmet
3-3
Copyright (c) 2021 Pearson Education, Inc.
, Accounting Information Systems
xsimultaneously. x For xexample, xmore xtimely xinformation
xis
3-4
Copyright (c) 2021 Pearson Education, Inc.
