Accounting Information xx!!
Systems
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Instructor’sSolutionsManual
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Accounting Information xx!!
Systems
15th Edition xx!!
Marshall B. Romney xx!! xx!!
Professor Emeritus, Brigham Young University
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Paul John Steinbart
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Professor Emeritus, Arizona State University
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Scott L. Summersxx!! xx!!
Brigham Young University
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David A. Wood xx!! xx!!
Brigham Young University
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3-1
Copyright (c) 2021 Pearson Education,
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, Accounting Information xx!!
Systems
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This work is protected by United States copyright laws and is
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integrity of the work and is not permitted. The work and materials
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from it should never be made available to students except by
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instructors using the accompanying text in their classes.
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recipients of this work are expected to abide by these restrictions
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and to honor the intended pedagogical purposes and the needsof
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x
other instructors who rely on these materials.
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reproduction, storage in a retrieval system, or transmission in any form or by any
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Copyright (c) 2021 Pearson Education, xx!! xx!! xx!! xx!!
Inc. xx!!
, Accounting Information xx!!
Systems
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chapter 1 xx!!
accounting
informationsystems: An
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overview
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Suggested Answers to Discussion Questions
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1.1 The value of information is the difference between
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the benefits realized from using that information
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and the costs of producing it.
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organization,ever produce information if its expected
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costs exceededits benefits? If so, provide some
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examples. If not, why?
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Most organizations produce information only if its
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valueexceeds its cost.
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x However, there are two xx!! xx!! x x ! ! xx!! xx!! xx!!
situations where information may be produced even if
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its cost exceeds its value.
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a. It is often difficult to estimate accurately the
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value of information and the cost of producing
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it. Therefore, organizations may produce
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information that they expect will produce
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benefits in excess ofits costs, only to be
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disappointed after the fact.
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b. Production of the information may be mandated by xx!! xx!! xx!! xx!! xx!! xx!! xx!!
either a government agency or a private
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organization. Examples include the tax reports
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required by the IRS and disclosure requirements
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forfinancial reporting.
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1.2 Can the characteristics of useful information listed
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inTable 1-1 be met simultaneously? Or does achieving
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onemean sacrificing another?
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3-3
Copyright (c) 2021 Pearson Education,
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Inc. xx!!
, Accounting Information xx!!
Systems
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Several of the criteria in Table 1.1 can be met
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simultaneously.
xx!! For example, more timely
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information is
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3-4
Copyright (c) 2021 Pearson Education,
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Inc. xx!!
