(2026: Accounting Information Systems, 4th Edition – Richardson, Chang & Smith – Solutions Manual with Detailed Chapter Answers)
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Accounting Information Systems, 4th
Edition – Richardson, Chang & Smith –
Solutions Manual with Detailed
Chapter Answers
This document provides the solutions manual for Accounting Information Systems, 4th Edition by Vernon Richardson, Chang, and Smith. It includes detailed answers and explanations for
chapter exercises, discussion questions, and case problems from the textbook.
The material follows the structure of the book and helps students understand key AIS concepts, verify their solutions, and prepare effectively for assignments and exams.
Ch01- 04e
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 Answers: C
2. (LO 1-1) Which of the following is a characteristic of relevance?
a. Materiality
b. Timeliness
c. Verifiable
d. Cost to generate
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, (2026: Accounting Information Systems, 4th Edition – Richardson, Chang & Smith – Solutions Manual with Detailed Chapter Answers)
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Correct Answers: 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 Answers: 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.
Correct Answers: 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 Answers: 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 Answers: B
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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 Answers: 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 Answers: A
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 Answers: 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.
2
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, (2026: Accounting Information Systems, 4th Edition – Richardson, Chang & Smith – Solutions Manual with Detailed Chapter Answers)
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d. unearned revenue.
Correct Answers: 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 Answers: 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 Answers: C
13. (LO 1-7, LO 1-9) Customer relationship management systems would generally be considered to be an
a. internal business process.
b. external business process.
c. interior business process.
d. exterior business process.
Correct Answers: B
14. (LO 1-3) An auditor testing internal controls would generally be considered to fill which role with respect
to accounting information systems?
a. User
b. Manager
c. Designer
d. Evaluator
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Correct Answers: D
15. (LO 1-2) Which of these represents the proper transformation from data to decision according to the
information value chain?
a. Data ➛ Information ➛ Knowledge ➛ Decision
b. Data ➛ Knowledge ➛ Information ➛ Decision
3
c. Data ➛ Business event ➛ Information ➛ Decision
d. Data ➛ Analysis ➛ Information ➛ Decision
Correct Answers: A
DiscussionQuestions
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.
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 Super Smash Bros.
Nintendo Switch Game at GameStop all the way to giving 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 Nintendo Switch Game at Best Buy in the following way:
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Accounting Information Systems, 4th
Edition – Richardson, Chang & Smith –
Solutions Manual with Detailed
Chapter Answers
This document provides the solutions manual for Accounting Information Systems, 4th Edition by Vernon Richardson, Chang, and Smith. It includes detailed answers and explanations for
chapter exercises, discussion questions, and case problems from the textbook.
The material follows the structure of the book and helps students understand key AIS concepts, verify their solutions, and prepare effectively for assignments and exams.
Ch01- 04e
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 Answers: C
2. (LO 1-1) Which of the following is a characteristic of relevance?
a. Materiality
b. Timeliness
c. Verifiable
d. Cost to generate
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3/11/2026, 11:08:05 PM 3/11/2026, 11:08:01 PM 3/11/2026, 11:08:03 PM
, (2026: Accounting Information Systems, 4th Edition – Richardson, Chang & Smith – Solutions Manual with Detailed Chapter Answers)
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Correct Answers: 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 Answers: 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.
Correct Answers: 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 Answers: 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 Answers: B
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, (2026: Accounting Information Systems, 4th Edition – Richardson, Chang & Smith – Solutions Manual with Detailed Chapter Answers)
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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 Answers: 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 Answers: A
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 Answers: 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.
2
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, (2026: Accounting Information Systems, 4th Edition – Richardson, Chang & Smith – Solutions Manual with Detailed Chapter Answers)
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d. unearned revenue.
Correct Answers: 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 Answers: 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 Answers: C
13. (LO 1-7, LO 1-9) Customer relationship management systems would generally be considered to be an
a. internal business process.
b. external business process.
c. interior business process.
d. exterior business process.
Correct Answers: B
14. (LO 1-3) An auditor testing internal controls would generally be considered to fill which role with respect
to accounting information systems?
a. User
b. Manager
c. Designer
d. Evaluator
https://www.stuvia.com/user/coursecrack
3/11/2026, 11:08:05 PM 3/11/2026, 11:08:01 PM 3/11/2026, 11:08:03 PM
, (2026: Accounting Information Systems, 4th Edition – Richardson, Chang & Smith – Solutions Manual with Detailed Chapter Answers)
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Correct Answers: D
15. (LO 1-2) Which of these represents the proper transformation from data to decision according to the
information value chain?
a. Data ➛ Information ➛ Knowledge ➛ Decision
b. Data ➛ Knowledge ➛ Information ➛ Decision
3
c. Data ➛ Business event ➛ Information ➛ Decision
d. Data ➛ Analysis ➛ Information ➛ Decision
Correct Answers: A
DiscussionQuestions
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.
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 Super Smash Bros.
Nintendo Switch Game at GameStop all the way to giving 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 Nintendo Switch Game at Best Buy in the following way:
https://www.stuvia.com/user/coursecrack
3/11/2026, 11:08:05 PM 3/11/2026, 11:08:01 PM 3/11/2026, 11:08:03 PM
