Accounting Information Systems 12th Edition By Romney Paul-Solution Manual

Solution Manual For Accounting Information Systems 12th Edition By Romney Paul

ISBN: 9780132552622

CHAPTER 1
ACCOUNTING INFORMATION SYSTEMS: AN OVERVIEW
SUGGESTED ANSWERS TO DISCUSSION QUESTIONS
1.1 The significance of information lies in the disparity between the advantages gained from utilizing that information and the expenses incurred in its creation. Would you, or any entity, ever generate information if its anticipated costs surpassed its benefits? If so, provide some instances. If not, why?
In most cases, entities generate information only when its worth exceeds its expenditure. However, there are two scenarios where information might be produced even if its cost surpasses its value.
a. It is often challenging to precisely determine the worth of information and its production cost. Hence, entities may generate information that they believe will yield benefits surpassing its expenses, only to be disheartened afterward.
b. The formation of information may be ordered by a governmental body or a private institution. Instances include the tax declarations demanded by the IRS and the disclosure requirements for financial reporting.

1.2 Can the attributes of useful information stated in Table 1-1 be satisfied concurrently? Or does attaining one imply compromising another?
Multiple criteria in Table 1.1 can be satisfied simultaneously. For instance, more prompt information is also likely to be more pertinent. Confirmable information is likely to be more dependable. Nonetheless, achieving one objective may necessitate sacrificing another. For instance, ensuring information is more comprehensive may hinder its promptness. Similarly, increased confirmability and dependability may slow down its timeliness.
The decision-maker must determine which compromises are justified in a specific scenario.
Ch. 1: Accounting Information Systems: An Overview

1.3 You and a few of your peers resolved to become entrepreneurs. You formulated a brilliant idea for a new mobile phone application that you believe will yield substantial earnings. Your business strategy clinched second place in a local contest, and you are utilizing the $10,000 award to sustain yourselves as you kickstart your enterprise.
a. Identify the pivotal choices you must make to prosper as entrepreneurs, the data required to make them, and the business procedures you will need to partake in.
b. Your enterprise will necessitate exchanging information with various external entities. Identify these external parties and specify the data received from and transmitted to each of them.

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