Accounting Information Systems
Accounting Information x
Systems
15th Edition x
Marshall B. Romney x x
ProfessorxEmeritus,xBrighamxYoungxUniversity
Paul John Steinbart
x x
ProfessorxEmeritus,xArizonaxStatexUniversity
Scott L. Summers
x x
BrighamxYoungxUniversity
David A. Wood x x
BrighamxYoungxUniversity
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Copyright (c) 2021 Pearson Education, Inc.
, Accounting Information Systems
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ntxlearning.xDisseminationxorxsalexofxanyxpartxofxthisxworkx(includingxonxthex
WorldxWidexWeb)xwillxdestroyxthexintegrityxofxthexworkxandxisxnotxpermitted.
Thexworkxandxmaterialsxfromxitxshouldxneverxbexmadexavailablexto
xstudentsxexceptxbyxinstructorsxusingxthexaccompanyingxtextxinxtheirxclasse
s.
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onsxandxtoxhonorxthexintendedxpedagogicalxpurposesxandxthexneedsxofxother
xinstructorsxwhoxrelyxonxthesexmaterials.
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Copyright (c) 2021 Pearson Education, Inc.
, Accounting Information Systems
chapter 1 x
accounting informationsystems
x x
: An overview
x x
SuggestedxAnswersxtoxDiscussionxQuestions
1.1 Thexvaluexofxinformationxisxthexdifferencexbetweenxthexbene
fitsxrealizedxfromxusingxthatxinformationxandxthexcostsxofxp
roducingxit.x Wouldxyou,xorxanyxorganization,xeverxproducexi
nformationxifxitsxexpectedxcostsxexceededxitsxbenefits?xIfxs
o,xprovidexsomexexamples.xIfxnot,xwhy?
Mostxorganizationsxproducexinformationxonlyxifxitsxvaluexexc
eedsxitsxcost.x However,xtherexarextwoxsituationsxwherexinfo
rmationxmayxbexproducedxevenxifxitsxcostxexceedsxitsxvalue.
a. Itxisxoftenxdifficultxtoxestimatexaccuratelyxthexvaluex
ofxinformationxandxthexcostxofxproducingxit.xTherefore,
xorganizationsxmayxproducexinformationxthatxtheyxexpec
txwillxproducexbenefitsxinxexcessxofxitsxcosts,xonlyxtoxb
exdisappointedxafterxthexfact.
b. Productionxofxthexinformationxmayxbexmandatedxbyxeither
xaxgovernmentxagencyxorxaxprivatexorganization.xExample
sxincludexthextaxxreportsxrequiredxbyxthexIRSxandxdisclo
surexrequirementsxforxfinancialxreporting.
1.2 CanxthexcharacteristicsxofxusefulxinformationxlistedxinxTab
lex1-
1xbexmetxsimultaneously?xOrxdoesxachievingxonexmeanxsacrific
ingxanother?
SeveralxofxthexcriteriaxinxTablex1.1xcanxbexmetxsimultaneousl
y.x Forxexample,xmorextimelyxinformationxis
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Copyright (c) 2021 Pearson Education, Inc.
, Accounting Information Systems
alsoxlikelyxtoxbexmorexrelevant.x Verifiablexinformationxisxl
ikelyxtoxbexmorexaccurate.
However,xachievingxonexobjectivexmayxrequirexsacrificingxano
ther.x Forxexample,xensuringxthatxinformationxisxmorexcomple
texmayxreducexitsxtimeliness.x Similarly,xincreasedxverifia
bilityxandxaccuracyxmayxreducexitsxtimeliness.
Thexdecisionxmakerxmustxdecidexwhichxtrade-
offsxarexwarrantedxinxeachxsituation.
1.3 Youxandxaxfewxofxyourxclassmatesxdecidedxtoxbecomexentrepren
eurs.x Youxcamexupxwithxaxgreatxideaxforxaxnewxmobilexphonexap
plicationxthatxyouxthinkxwillxmakexlotsxofxmoney.xYourxbusi
nessxplanxwonxsecondxplacexinxaxlocalxcompetition,xandxyouxa
rexusingxthex$10,000xprizextoxsupportxyourselvesxasxyouxstar
txyourxcompany.
a. Identifyxthexkeyxdecisionsxyouxneedxtoxmakextoxbexsuccess
fulxentrepreneurs,xthexinformationxyouxneedxtoxmakexthem,x
andxthexbusinessxprocessesxyouxwillxneedxtoxengagexin.
b. Yourxcompanyxwillxneedxtoxexchangexinformationxwithxvar
iousxexternalxparties.xIdentifyxthexexternalxparties,x
andxspecifyxthexinformationxreceivedxfromxandxsentxtoxe
achxofxthem.
Thexauthorxturnsxthisxquestionxintoxanxin-
classxgroupxactivity.xStudentsxarexdividedxupxinxgroups,xt
oldxtoxclosextheirxbooks,xandxgivenx15xminutesxto:
a. Thinkxthroughxthexbusinessxprocesses,xkeyxdecisions,xand
xinformationxneedsxissuesxinxtheirxgroup.
b. Identifyxthexexternalxusersxofxinformationxandxspeci
fyxthexinformationxreceivedxfromxandxsentxtoxeachxofxt
hem.
Onexgroupxisxselectedxtoxpresentxtheirxanswersxtoxthexclass.x
Thexotherxgroupsxarextoldxtoxchallengexthexgroup’sxanswers,xp
rovidexalternativexanswers,xandxchipxinxwithxadditionalxans
wersxnotxprovidedxbyxthexselectedxgroup.xSincexthexgroupxtha
txpresentsxisxnotxselectedxuntilxafterxthextimexhasxexpired,x
studentsxarexmotivatedxtoxdoxaxgoodxjob,xasxtheyxwillxbexprese
ntingxtoxtheirxpeers.
Thexvaluexofxthisxactivityxisxnotxinxarrivingxatxa
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Copyright (c) 2021 Pearson Education, Inc.
