AccountingWInformationWSyste
ms
Instructor’s SolutionsManual
W W
Accounting Information W
Systems
15th EditionW
Marshall B. Romney W W
ProfessorWEmeritus,WBrighamWYoungWUniversity
Paul John Steinbart
W W
ProfessorWEmeritus,WArizonaWStateWUniversity
Scott L. Summers
W W
BrighamWYoungWUniversity
David A. Wood
W W
BrighamWYoungWUniversity
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Inc.
, AccountingWInformationWSyste
ms
ThisWworkWisWprotectedWbyWUnitedWStatesWcopyrightWlawsWandWisWprovided
WsolelyWforWtheWuseWofWinstructorsWinWteachingWtheirWcoursesWandWassessi
ngWstudentWlearning.WDisseminationWorWsaleWofWanyWpartWofWthisWworkW(inc
ludingWonWtheWWorldWWideWWeb)WwillWdestroyWtheWintegrityWofWtheWworkWa
ndWisWnotWpermitted.
TheWworkWandWmaterialsWfromWitWshouldWneverWbeWmadeWavailab
leWtoWstudentsWexceptWbyWinstructorsWusingWtheWaccompanyingWtextWinWth
eirWclasses.
AllWrecipientsWofWthisWworkWareWexpectedWtoWabideWbyWtheseWres
trictionsWandWtoWhonorWtheWintendedWpedagogicalWpurposesWandWtheWneed
sWofWotherWinstructorsWwhoWrelyWonWtheseWmaterials.
CopyrightW©W2021WbyWPearsonWEducation,WInc.WorWitsWaffiliates.WAllWRightsWReserved.WMan
ufacturedWinWtheWUnitedWStatesWofWAmerica.WThisWpublicationWisWprotectedWbyWcopyright,Wand
WpermissionWshouldWbeWobtainedWfromWtheWpublisherWpriorWtoWanyWprohibitedWreproduction,Ws
torageWinWaWretrievalWsystem,WorWtransmissionWinWanyWformWorWbyWanyWmeans,Welectronic,Wm
echanical,Wphotocopying,Wrecording,WorWotherwise.WForWinformationWregardingWpermissions,Wr
equestWforms,WandWtheWappropriateWcontactsWwithinWtheWPearsonWEducationWGlobalWRightsWan
dWPermissionsWdepartment,WpleaseWvisitWwww.pearsoned.com/permissions/.
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earsonWEducation,WInc.WorWitsWaffiliatesWinWtheWU.S.Wand/orWotherWcountries.
UnlessWotherwiseWindicatedWherein,WanyWthird-
partyWtrademarks,Wlogos,WorWiconsWthatWmayWappearWinWthisWworkWareWtheWpropertyWofWtheirW
respectiveWowners,WandWanyWreferencesWtoWthird-
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purposesWonly.WSuchWreferencesWareWnotWintendedWtoWimplyWanyWsponsorship,Wendorsement,W
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nsees,WorWdistributors.
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, AccountingWInformationWSyste
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chapter 1 W
accounting informationsystems
W W
: An overview
W W
SuggestedWAnswersWtoWDiscussionWQuestions
1.1 TheWvalueWofWinformationWisWtheWdifferenceWbetweenWtheWbene
fitsWrealizedWfromWusingWthatWinformationWandWtheWcostsWofWp
roducingWit.W WouldWyou,WorWanyWorganization,WeverWproduceWi
nformationWifWitsWexpectedWcostsWexceededWitsWbenefits?WIfWs
o,WprovideWsomeWexamples.WIfWnot,Wwhy?
MostWorganizationsWproduceWinformationWonlyWifWitsWvalueWexc
eedsWitsWcost.W However,WthereWareWtwoWsituationsWwhereWinfo
rmationWmayWbeWproducedWevenWifWitsWcostWexceedsWitsWvalue.
a. ItWisWoftenWdifficultWtoWestimateWaccuratelyWtheWvalueW
ofWinformationWandWtheWcostWofWproducingWit.WTherefore,
WorganizationsWmayWproduceWinformationWthatWtheyWexpec
tWwillWproduceWbenefitsWinWexcessWofWitsWcosts,WonlyWtoWb
eWdisappointedWafterWtheWfact.
b. ProductionWofWtheWinformationWmayWbeWmandatedWbyWeither
WaWgovernmentWagencyWorWaWprivateWorganization.WExample
sWincludeWtheWtaxWreportsWrequiredWbyWtheWIRSWandWdisclo
sureWrequirementsWforWfinancialWreporting.
1.2 CanWtheWcharacteristicsWofWusefulWinformationWlistedWinWTab
leW1-
1WbeWmetWsimultaneously?WOrWdoesWachievingWoneWmeanWsacrific
ingWanother?
SeveralWofWtheWcriteriaWinWTableW1.1WcanWbeWmetWsimultaneousl
y.W ForWexample,WmoreWtimelyWinformationWis
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, AccountingWInformationWSyste
ms
alsoWlikelyWtoWbeWmoreWrelevant.W VerifiableWinformationWisWl
ikelyWtoWbeWmoreWaccurate.
However,WachievingWoneWobjectiveWmayWrequireWsacrificingWano
ther.W ForWexample,WensuringWthatWinformationWisWmoreWcomple
teWmayWreduceWitsWtimeliness.W Similarly,WincreasedWverifia
bilityWandWaccuracyWmayWreduceWitsWtimeliness.
TheWdecisionWmakerWmustWdecideWwhichWtrade-
offsWareWwarrantedWinWeachWsituation.
1.3 YouWandWaWfewWofWyourWclassmatesWdecidedWtoWbecomeWentrepren
eurs.W YouWcameWupWwithWaWgreatWideaWforWaWnewWmobileWphoneWap
plicationWthatWyouWthinkWwillWmakeWlotsWofWmoney.WYourWbusi
nessWplanWwonWsecondWplaceWinWaWlocalWcompetition,WandWyouWa
reWusingWtheW$10,000WprizeWtoWsupportWyourselvesWasWyouWstar
tWyourWcompany.
a. IdentifyWtheWkeyWdecisionsWyouWneedWtoWmakeWtoWbeWsuccess
fulWentrepreneurs,WtheWinformationWyouWneedWtoWmakeWthem,W
andWtheWbusinessWprocessesWyouWwillWneedWtoWengageWin.
b. YourWcompanyWwillWneedWtoWexchangeWinformationWwithWvar
iousWexternalWparties.WIdentifyWtheWexternalWparties,W
andWspecifyWtheWinformationWreceivedWfromWandWsentWtoWe
achWofWthem.
TheWauthorWturnsWthisWquestionWintoWanWin-
classWgroupWactivity.WStudentsWareWdividedWupWinWgroups,Wt
oldWtoWcloseWtheirWbooks,WandWgivenW15WminutesWto:
a. ThinkWthroughWtheWbusinessWprocesses,WkeyWdecisions,Wand
WinformationWneedsWissuesWinWtheirWgroup.
b. IdentifyWtheWexternalWusersWofWinformationWandWspeci
fyWtheWinformationWreceivedWfromWandWsentWtoWeachWofWt
hem.
OneWgroupWisWselectedWtoWpresentWtheirWanswersWtoWtheWclass.W
TheWotherWgroupsWareWtoldWtoWchallengeWtheWgroup’sWanswers,Wp
rovideWalternativeWanswers,WandWchipWinWwithWadditionalWans
wersWnotWprovidedWbyWtheWselectedWgroup.WSinceWtheWgroupWtha
tWpresentsWisWnotWselectedWuntilWafterWtheWtimeWhasWexpired,W
studentsWareWmotivatedWtoWdoWaWgoodWjob,WasWtheyWwillWbeWprese
ntingWtoWtheirWpeers.
TheWvalueWofWthisWactivityWisWnotWinWarrivingWatWa
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