EndmofmChapter mSolutionsmManual: mRichardson, mChang,mSmith,mAccountingmInformation mSyste ms, m4 thmedit
ion
Chapter 1: Accounting Information Systems and Firm Value
m m m m m m m
MultiplemChoicemQuestions
1. (LOm1-1) mAccountingminformationmsystems
a. are malwaysmcomputerized.
b. reportmonlymfinanciallymrelatedminformation.
c. are minformationmsystemsmthatmrecord,mprocess,mandmreportmonmtransactionsmtomprovi
de mfinancialmandmnonfinancialminformationmformdecisionmmakingmandmcontrol.
d. require mamCITPmdesignationmtomunderstand.
Answer:mC
2. (LOm1-1) mWhichmofmthe mfollowingmismamcharacteristicmof mrelevance?
a. Materiality
b. Timeliness
c. Verifiable
d. Costmtomgenerat
e mAnswer:mA
3. (LOm1-
2) mWhichmofmthe mfollowingmismconsideredmtombe mmandatoryminformationmrequiredmbymamregu
latorymbody?
a. 10-Qmsubmissionmtomthe mSecuritiesmandmExchange mCommission
b. The mcostmtomproduce mamSamsungmGalaxy
c. The mnumbermofmorganicmbananasmthatmare msoldmatmWhole mFoodsmonmJulym28
d. The mcostmtombuildmanmall-
newmStarbucksmrestaurantminmShenzhen, mChinamAnswer:mA
4. (LOm1-4) mThe mcorrectmordermof meventsminmthe mvalue mchainmis
a. Inboundmlogisticsm➛mOperationsm➛mService.
b. Inboundmlogisticsm➛mOutboundmlogisticsm➛mMarketingmandmsales.
c. Inboundmlogisticsm➛mOperationsm➛mOutboundmlogistics.
d. Inboundmlogisticsm➛mOperationsm➛mMarketingmandmSales.
Answer:mC
5. (LOm1-8) mWhichmsystemmcontributesminformationmonmdirectmlabormtomamcostmaccountingmsystem?
a. Supplymchainmmanagementmsystemm(SCMS)
b. Financialmreportingmsystemm(FRS)
c. CustomermRelationalmManagementmSystemm(CRM)
1
, EndmofmChapter mSolutionsmManual: mRichardson, mChang,mSmith,mAccountingmInformation mSyste ms, m4 thmedit
ion
d. Humanmresource mmanagementmsystemm(HRMS
) mAnswer:mD
6. (LOm1-7) mAmsupplymchain
a. suppliesmjewelrymchains.
b. refersmtomthe mflowmof mmaterials,minformation,mpayments,mandmservices.
c. ismsimilarminmfunctionmandmpurpose mtomthe mvalue mchain.
d. doesmnotmapplymtomamservice mfirmmlike manmaccountingmfirm.
Answer:mB
7. (LOm1-7) mCustomermrelationshipmmanagementmsoftware mdoesmnotminclude minformationmabout
a. currentmcustomers.
b. prospective mcustomers.
c. formermcustomers.
d. currentmemployees.
Answer:mD
8. (LOm1-
6) mAnminformationmsystemmthatmmeasuresmandmrecordsmaccountingmtransactionsmandmrepo
rtsmthemminmthe mfinancialmstatementsmismcalledma
a. financialmreportingmsystemm(FRS).
b. enterprise msystemm(ES).
c. manufacturingmsystemm(MS).
d. costmaccountingmsystem.
Answer:mA
9. (LOm1-
3) mWhatmismthe mname mof mthe mpositionmformampersonmresponsible mformdeterminingmInfo
rmationmneedsmof mambusinessmandmdesigningmamsystemmtommeetmthose mneeds?
a. Chief minformationmofficer
b. Controller
c. ITmauditor
d. Systemsmanalys
tmAnswer:mD
10. (LOm1-
9) mThe mbalance msheetmaccountmmostmlikelymaffectedmbymanmAISminvestmentminmsupplymchain
mmanagementmsoftware mwould mbe
a. inventories.
b. fixedmassets.
c. cashmandmcashmequivalents.
2
, EndmofmChapter mSolutionsmManual: mRichardson, mChang,mSmith,mAccountingmInformation mSyste ms, m4 thmedit
ion
d. unearnedmrevenue.
Answer:mA
11. (LOm1-7) mThe msoftware/systemmthatmhelpsmmake msure mthe mretailmfirmmdoesn’tmhave mamstockoutmis
a. supplymchainmmanagementmsoftware.
b. customermrelationshipmmanagementm software.
c. enterprise msystems.
d. humanmresource msystems.
Answer:mA
12. (LOm1-
9) mDatamanalyticsmperformedmtomidentifymthe mmostmprofitable mcustomersmwouldmbe mmostm
likelymtomaffectmwhichmincome mstatementmaccount?
a. Selling,mgeneral,mandmadministrative mexpensesm(SG&A)
b. Interestmexpense
c. Revenues
d. Costmofmgoodsmsol
dmAnswer:mC
13. (LOm1-7,mLOm1-
9) mCustomermrelationshipmmanagementmsystemsmwouldmgenerallymbe mconsideredmtombe man
a. internalmbusinessmprocess.
b. externalmbusinessmprocess.
c. interiormbusinessmprocess.
d. exteriormbusinessmprocess.
Answer:mB
14. (LOm1-
3) mAnmauditormtestingminternalmcontrolsmwouldmgenerallymbe mconsideredmtomfillmwhichmrole m
withmrespectmtomaccountingminformationmsystems?
a. User
b. Manager
c. Designer
d. Evaluator
Answer:mD
m
15. (LOm1-
2) mWhichmofmthese mrepresentsmthe mpropermtransformationmfrommdatamtomdecisionmaccor
dingmtomthe minformationmvalue mchain?
a. Datam➛mInformationm➛mKnowledge m➛mDecision
b. Datam➛mKnowledge m➛mInformationm➛mDecision
3
, EndmofmChapter mSolutionsmManual: mRichardson, mChang,mSmith,mAccountingmInformation mSyste ms, m4 thmedit
ion
c. Datam➛mBusinessmeventm➛mInformationm➛mDecision
d. Datam➛mAnalysism➛mInformationm➛mDecisio
nmAnswer:mA
Discussion mQuestions
1. Brainstormmamlistmof mdiscretionaryminformationmthatmmightmbe manmoutputmof manmaccount
ingminformationmsystemmandmbe mneededmbymStarbucks.m Prioritize mwhichmitemsmmightmb
e mmostmimportantmandmprovide msupport.
Answersmwillmvary.m Here mare msome mpotentialmanswers:
The mcostmof mamcupmof mcoffee,mbymtype:mBreakfastm blend,m Cafe m estima,m caffe m Verona,m espresso m r
oast,mEthiopiam sidamo,m French m roast,m Goldm Coastm blend,m Guatemalam Antigua,m housem blend,m
Italian mroast,m Kenyam coffee,m komodom dragonm blend,m organicm Serenam blend,m organic m shadem g
rown mMexico,mSumatra,mdecafmcaffe mVerona,mdecafmespressomroast,mdecafmhousemblend,mand mde
cafmSum atra!
MonthlymSalesmpermsquare mfootmof mretailmspace.mEmpl
oyee mcostmformeachmoperatingmhour.
Advertisingmexpendituresmpermdollarmof msales.
The mcostmof mcondimentsmpermdollarmsalesmof mcoffee.mCondimentsmmightminclude msweeteners,mliq
uidmcreamers,mcream mcanisters,msugarmpackets,msugarmcanisters,mstirmsticks!
The mcostmof melectricitympermoperatingmhourmeachmmonthmofmthe myear.
2. Explainmthe minformationmvalue mchain.m Howmdombusinessmeventsmturnmintomdatamthenmintominfor
mationmandmthenmintomknowledge?m Givemanmexample mstartingmwithmthe mbusinessmeventmofmthe m
purchase mofmamSupermSmashmBros.mNintendomSwitchmGame matmGameStopmallmthe mwaymtomgiving
musefulminformation mformthe mCEOmandmothermdecision mmakers.
The minformationmvalue mchainmrepresentsmthemoverallmtransformationmfrommambusinessmneedmand
mbusiness meventm(like meachmindividualmsale mofmU.S. mflag)mtomanmultimate mdecision. m The minformati
onmvalue mchainmmightmbe mrepresentedmconsideringmthe mpurchasemofmamNintendomSwitchmGamemat
mBestmBuy minmthe mfollowingmway:
The mgame mwillmbe mrecordedmasmsalesmrevenue mandmthenmaftermdeductingmitsmcostsmwillmaddmtomo
rmsubtractmfrommcorporate mincome.m Themcashmfrommthe mgame msale mwillmalsomaddmtomthe moperati
ngmcashmflows.
4
ion
Chapter 1: Accounting Information Systems and Firm Value
m m m m m m m
MultiplemChoicemQuestions
1. (LOm1-1) mAccountingminformationmsystems
a. are malwaysmcomputerized.
b. reportmonlymfinanciallymrelatedminformation.
c. are minformationmsystemsmthatmrecord,mprocess,mandmreportmonmtransactionsmtomprovi
de mfinancialmandmnonfinancialminformationmformdecisionmmakingmandmcontrol.
d. require mamCITPmdesignationmtomunderstand.
Answer:mC
2. (LOm1-1) mWhichmofmthe mfollowingmismamcharacteristicmof mrelevance?
a. Materiality
b. Timeliness
c. Verifiable
d. Costmtomgenerat
e mAnswer:mA
3. (LOm1-
2) mWhichmofmthe mfollowingmismconsideredmtombe mmandatoryminformationmrequiredmbymamregu
latorymbody?
a. 10-Qmsubmissionmtomthe mSecuritiesmandmExchange mCommission
b. The mcostmtomproduce mamSamsungmGalaxy
c. The mnumbermofmorganicmbananasmthatmare msoldmatmWhole mFoodsmonmJulym28
d. The mcostmtombuildmanmall-
newmStarbucksmrestaurantminmShenzhen, mChinamAnswer:mA
4. (LOm1-4) mThe mcorrectmordermof meventsminmthe mvalue mchainmis
a. Inboundmlogisticsm➛mOperationsm➛mService.
b. Inboundmlogisticsm➛mOutboundmlogisticsm➛mMarketingmandmsales.
c. Inboundmlogisticsm➛mOperationsm➛mOutboundmlogistics.
d. Inboundmlogisticsm➛mOperationsm➛mMarketingmandmSales.
Answer:mC
5. (LOm1-8) mWhichmsystemmcontributesminformationmonmdirectmlabormtomamcostmaccountingmsystem?
a. Supplymchainmmanagementmsystemm(SCMS)
b. Financialmreportingmsystemm(FRS)
c. CustomermRelationalmManagementmSystemm(CRM)
1
, EndmofmChapter mSolutionsmManual: mRichardson, mChang,mSmith,mAccountingmInformation mSyste ms, m4 thmedit
ion
d. Humanmresource mmanagementmsystemm(HRMS
) mAnswer:mD
6. (LOm1-7) mAmsupplymchain
a. suppliesmjewelrymchains.
b. refersmtomthe mflowmof mmaterials,minformation,mpayments,mandmservices.
c. ismsimilarminmfunctionmandmpurpose mtomthe mvalue mchain.
d. doesmnotmapplymtomamservice mfirmmlike manmaccountingmfirm.
Answer:mB
7. (LOm1-7) mCustomermrelationshipmmanagementmsoftware mdoesmnotminclude minformationmabout
a. currentmcustomers.
b. prospective mcustomers.
c. formermcustomers.
d. currentmemployees.
Answer:mD
8. (LOm1-
6) mAnminformationmsystemmthatmmeasuresmandmrecordsmaccountingmtransactionsmandmrepo
rtsmthemminmthe mfinancialmstatementsmismcalledma
a. financialmreportingmsystemm(FRS).
b. enterprise msystemm(ES).
c. manufacturingmsystemm(MS).
d. costmaccountingmsystem.
Answer:mA
9. (LOm1-
3) mWhatmismthe mname mof mthe mpositionmformampersonmresponsible mformdeterminingmInfo
rmationmneedsmof mambusinessmandmdesigningmamsystemmtommeetmthose mneeds?
a. Chief minformationmofficer
b. Controller
c. ITmauditor
d. Systemsmanalys
tmAnswer:mD
10. (LOm1-
9) mThe mbalance msheetmaccountmmostmlikelymaffectedmbymanmAISminvestmentminmsupplymchain
mmanagementmsoftware mwould mbe
a. inventories.
b. fixedmassets.
c. cashmandmcashmequivalents.
2
, EndmofmChapter mSolutionsmManual: mRichardson, mChang,mSmith,mAccountingmInformation mSyste ms, m4 thmedit
ion
d. unearnedmrevenue.
Answer:mA
11. (LOm1-7) mThe msoftware/systemmthatmhelpsmmake msure mthe mretailmfirmmdoesn’tmhave mamstockoutmis
a. supplymchainmmanagementmsoftware.
b. customermrelationshipmmanagementm software.
c. enterprise msystems.
d. humanmresource msystems.
Answer:mA
12. (LOm1-
9) mDatamanalyticsmperformedmtomidentifymthe mmostmprofitable mcustomersmwouldmbe mmostm
likelymtomaffectmwhichmincome mstatementmaccount?
a. Selling,mgeneral,mandmadministrative mexpensesm(SG&A)
b. Interestmexpense
c. Revenues
d. Costmofmgoodsmsol
dmAnswer:mC
13. (LOm1-7,mLOm1-
9) mCustomermrelationshipmmanagementmsystemsmwouldmgenerallymbe mconsideredmtombe man
a. internalmbusinessmprocess.
b. externalmbusinessmprocess.
c. interiormbusinessmprocess.
d. exteriormbusinessmprocess.
Answer:mB
14. (LOm1-
3) mAnmauditormtestingminternalmcontrolsmwouldmgenerallymbe mconsideredmtomfillmwhichmrole m
withmrespectmtomaccountingminformationmsystems?
a. User
b. Manager
c. Designer
d. Evaluator
Answer:mD
m
15. (LOm1-
2) mWhichmofmthese mrepresentsmthe mpropermtransformationmfrommdatamtomdecisionmaccor
dingmtomthe minformationmvalue mchain?
a. Datam➛mInformationm➛mKnowledge m➛mDecision
b. Datam➛mKnowledge m➛mInformationm➛mDecision
3
, EndmofmChapter mSolutionsmManual: mRichardson, mChang,mSmith,mAccountingmInformation mSyste ms, m4 thmedit
ion
c. Datam➛mBusinessmeventm➛mInformationm➛mDecision
d. Datam➛mAnalysism➛mInformationm➛mDecisio
nmAnswer:mA
Discussion mQuestions
1. Brainstormmamlistmof mdiscretionaryminformationmthatmmightmbe manmoutputmof manmaccount
ingminformationmsystemmandmbe mneededmbymStarbucks.m Prioritize mwhichmitemsmmightmb
e mmostmimportantmandmprovide msupport.
Answersmwillmvary.m Here mare msome mpotentialmanswers:
The mcostmof mamcupmof mcoffee,mbymtype:mBreakfastm blend,m Cafe m estima,m caffe m Verona,m espresso m r
oast,mEthiopiam sidamo,m French m roast,m Goldm Coastm blend,m Guatemalam Antigua,m housem blend,m
Italian mroast,m Kenyam coffee,m komodom dragonm blend,m organicm Serenam blend,m organic m shadem g
rown mMexico,mSumatra,mdecafmcaffe mVerona,mdecafmespressomroast,mdecafmhousemblend,mand mde
cafmSum atra!
MonthlymSalesmpermsquare mfootmof mretailmspace.mEmpl
oyee mcostmformeachmoperatingmhour.
Advertisingmexpendituresmpermdollarmof msales.
The mcostmof mcondimentsmpermdollarmsalesmof mcoffee.mCondimentsmmightminclude msweeteners,mliq
uidmcreamers,mcream mcanisters,msugarmpackets,msugarmcanisters,mstirmsticks!
The mcostmof melectricitympermoperatingmhourmeachmmonthmofmthe myear.
2. Explainmthe minformationmvalue mchain.m Howmdombusinessmeventsmturnmintomdatamthenmintominfor
mationmandmthenmintomknowledge?m Givemanmexample mstartingmwithmthe mbusinessmeventmofmthe m
purchase mofmamSupermSmashmBros.mNintendomSwitchmGame matmGameStopmallmthe mwaymtomgiving
musefulminformation mformthe mCEOmandmothermdecision mmakers.
The minformationmvalue mchainmrepresentsmthemoverallmtransformationmfrommambusinessmneedmand
mbusiness meventm(like meachmindividualmsale mofmU.S. mflag)mtomanmultimate mdecision. m The minformati
onmvalue mchainmmightmbe mrepresentedmconsideringmthe mpurchasemofmamNintendomSwitchmGamemat
mBestmBuy minmthe mfollowingmway:
The mgame mwillmbe mrecordedmasmsalesmrevenue mandmthenmaftermdeductingmitsmcostsmwillmaddmtomo
rmsubtractmfrommcorporate mincome.m Themcashmfrommthe mgame msale mwillmalsomaddmtomthe moperati
ngmcashmflows.
4
