SOLUTION MANUAL for Accounting Information
Systems 4th Edition Author; Vernon Richardson,
Chengyee Janie Chang, Rod E. Smith
All Chapters Fully Covered| Verified Questions & Accurate
Solutions | A+ GUIDE
Page | 1
, 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
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, 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.
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, c. Inbound logistics ➛ Operations ➛ Outbound logistics.
d. Inbound logistics ➛ Operations ➛ Marketing and Sales.
Correct answer: C
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
Page | 4
Systems 4th Edition Author; Vernon Richardson,
Chengyee Janie Chang, Rod E. Smith
All Chapters Fully Covered| Verified Questions & Accurate
Solutions | A+ GUIDE
Page | 1
, 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
Page | 2
, 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.
Page | 3
, c. Inbound logistics ➛ Operations ➛ Outbound logistics.
d. Inbound logistics ➛ Operations ➛ Marketing and Sales.
Correct answer: C
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
Page | 4
