SOLUTION MANUAL for Accounting Information Systems 4th
a a a a a a
Edition by Vernon Richardson, Chengyee Janie Chang, Rod E.
a a a a a a a a a
Smith a
Page | 1
a a
, Chapter 1: Accounting Information Systems and Firm Value Multiple
a a a a a a a a
a Choice Questions a
1. (LO 1-1) Accounting information systems
a a a a
a. are always computerized.
a a
b. report only financially related information.
a a a a
c. are information systems that record, process, and report on transactions to provide financial and
a a a a a a a a a a a a a
nonfinancial information for decision making and control.
a a a a a a a
d. require a CITP designation to understand.
a a a a a
Correct Answer: C a a
2. (LO 1-1) Which of the following is a characteristic of relevance?
a a a a a a a a a a
a. Materiality
b. Timeliness
c. Verifiable
d. Cost to generate Correct Answer: A
a a a a a
3. (LO 1-2) Which of the following is considered to be mandatory information required by a regulatory
a a a a a a a a a a a a a a a
a body?
a. 10-Q submission to the Securities and Exchange Commission
a a a a a a a
b. The cost to produce a Samsung Galaxy
a a a a a a
c. The number of organic bananas that are sold at Whole Foods on July 28
a a a a a a a a a a a a a
d. The cost to build an all-new Starbucks restaurant in Shenzhen, China Correct Answer: A
a a a a a a a a a a a a a
4. (LO 1-4) The correct order of events in the value chain is
a a a a a a a a a a a
a. Inbound logistics ➛Operations ➛Service.a a a a a
b. Inboundlogistics ➛Outbound logistics ➛Marketing and sales.
a a a a a a a a
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a a
,c. Inbound logistics ➛Operations ➛Outbound logistics.
a a a a a a
d. Inbound logistics ➛Operations ➛Marketing and Sales.
a a a a a a a
Correct Answer: Ca a
5. (LO 1-8) Which system contributes information on direct labor to a cost accounting system?
a a a a a a a a a a a a a
a. Supply chain management system (SCMS)
a a a a
b. Financial reporting system (FRS) a a a
c. Customer Relational Management System (CRM) a a a a
d. Human resource management system (HRMS) Correct Answer: D
a a a a a a a
6. (LO 1-7) A supply chain
a a a a
a. supplies jewelry chains. a a
b. refers to the flow of materials, information, payments, and services.
a a a a a a a a a
c. is similar in function and purpose to the value chain.
a a a a a a a a a
d. does not apply to a service firm like an accounting firm.
a a a a a a a a a a
Correct Answer: Ba a
7. (LO 1-7) Customer relationship management software does not include information about
a a a a a a a a a a
a. current customers. a
b. prospective customers. a
c. former customers. a
d. current employees. a
Correct Answer: Da a
8. (LO 1-6) An information system that measures and records accounting transactions and reports them in the
a a a a a a a a a a a a a a a
financial statements is called a
a a a a a
a. financial reporting system (FRS). a a a
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a a
, b. enterprise system (ES). a a
c. manufacturing system (MS). a a
d. cost accounting system.
a a
Correct Answer: Aa a
9. (LO 1-3) What is the name of the position for a person responsible for determining Information needs of a
a a a a a a a a a a a a a a a a a a
business and designing a system to meet those needs?
a a a a a a a a a
a. Chief information officer a a
b. Controller
c. IT auditor
a
d. Systems analyst Correct Answer: D a a a a
10. (LO 1-9) The balance sheet account most likely affected by an AIS investment in supply chain
a a a a a a a a a a a a a a a
management software would be
a a a a
a. inventories.
b. fixed assets. a
c. cash and cash equivalents.
a a a
d. unearned revenue. a
Correct Answer: Aa a
11. (LO 1-7) The software/system that helps make sure the retail firm doesn‘t have a stockout is
a a a a a a a a a a a a a a a
a. supply chain management software. a a a
b. customer relationship management software. a a a
c. enterprise systems. a
d. human resource systems. a a
Correct Answer: Aa a
Page | 4
a a
a a a a a a
Edition by Vernon Richardson, Chengyee Janie Chang, Rod E.
a a a a a a a a a
Smith a
Page | 1
a a
, Chapter 1: Accounting Information Systems and Firm Value Multiple
a a a a a a a a
a Choice Questions a
1. (LO 1-1) Accounting information systems
a a a a
a. are always computerized.
a a
b. report only financially related information.
a a a a
c. are information systems that record, process, and report on transactions to provide financial and
a a a a a a a a a a a a a
nonfinancial information for decision making and control.
a a a a a a a
d. require a CITP designation to understand.
a a a a a
Correct Answer: C a a
2. (LO 1-1) Which of the following is a characteristic of relevance?
a a a a a a a a a a
a. Materiality
b. Timeliness
c. Verifiable
d. Cost to generate Correct Answer: A
a a a a a
3. (LO 1-2) Which of the following is considered to be mandatory information required by a regulatory
a a a a a a a a a a a a a a a
a body?
a. 10-Q submission to the Securities and Exchange Commission
a a a a a a a
b. The cost to produce a Samsung Galaxy
a a a a a a
c. The number of organic bananas that are sold at Whole Foods on July 28
a a a a a a a a a a a a a
d. The cost to build an all-new Starbucks restaurant in Shenzhen, China Correct Answer: A
a a a a a a a a a a a a a
4. (LO 1-4) The correct order of events in the value chain is
a a a a a a a a a a a
a. Inbound logistics ➛Operations ➛Service.a a a a a
b. Inboundlogistics ➛Outbound logistics ➛Marketing and sales.
a a a a a a a a
Page | 2
a a
,c. Inbound logistics ➛Operations ➛Outbound logistics.
a a a a a a
d. Inbound logistics ➛Operations ➛Marketing and Sales.
a a a a a a a
Correct Answer: Ca a
5. (LO 1-8) Which system contributes information on direct labor to a cost accounting system?
a a a a a a a a a a a a a
a. Supply chain management system (SCMS)
a a a a
b. Financial reporting system (FRS) a a a
c. Customer Relational Management System (CRM) a a a a
d. Human resource management system (HRMS) Correct Answer: D
a a a a a a a
6. (LO 1-7) A supply chain
a a a a
a. supplies jewelry chains. a a
b. refers to the flow of materials, information, payments, and services.
a a a a a a a a a
c. is similar in function and purpose to the value chain.
a a a a a a a a a
d. does not apply to a service firm like an accounting firm.
a a a a a a a a a a
Correct Answer: Ba a
7. (LO 1-7) Customer relationship management software does not include information about
a a a a a a a a a a
a. current customers. a
b. prospective customers. a
c. former customers. a
d. current employees. a
Correct Answer: Da a
8. (LO 1-6) An information system that measures and records accounting transactions and reports them in the
a a a a a a a a a a a a a a a
financial statements is called a
a a a a a
a. financial reporting system (FRS). a a a
Page | 3
a a
, b. enterprise system (ES). a a
c. manufacturing system (MS). a a
d. cost accounting system.
a a
Correct Answer: Aa a
9. (LO 1-3) What is the name of the position for a person responsible for determining Information needs of a
a a a a a a a a a a a a a a a a a a
business and designing a system to meet those needs?
a a a a a a a a a
a. Chief information officer a a
b. Controller
c. IT auditor
a
d. Systems analyst Correct Answer: D a a a a
10. (LO 1-9) The balance sheet account most likely affected by an AIS investment in supply chain
a a a a a a a a a a a a a a a
management software would be
a a a a
a. inventories.
b. fixed assets. a
c. cash and cash equivalents.
a a a
d. unearned revenue. a
Correct Answer: Aa a
11. (LO 1-7) The software/system that helps make sure the retail firm doesn‘t have a stockout is
a a a a a a a a a a a a a a a
a. supply chain management software. a a a
b. customer relationship management software. a a a
c. enterprise systems. a
d. human resource systems. a a
Correct Answer: Aa a
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a a
