Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman
SM 2.8
a. History of XBRL. In April 1998, Charles Hoffman, a CPA in Tacoma, WA,
the website www.xbrl.org/history-print.aspx. The AICPA was active in supporting
the development of the language by funding a project to create prototype financial
statements in XML.
taxonomy requirements.
c. Continuous Reporting. XBRL-tagged data enable businesses to create a steady
stream of reports based on the underlying information, hence the term “continuous
reporting.” Three articles on this subject are: (1) Garbellotto, Gianluca (2009) “How
Managerial Auditing Journal Vol. 18, No. 9, pp. 732-736.
Continuous reporting is an interesting concept. Generally speaking, the technology
already exists for companies to report information more frequently than they
currently do. Presumably, other reasons exist for not reporting more often (and
auditing and the implications for corporate America. The following links provide
several articles of interest:
http://aaahq.org/AM2004/abstract.cfm?submissionID=1118
http://accounting.smartpros.com/x43141.xml
http://accounting.smartpros.com/x34375.xml
SM 2.9
reports in XBRL format. Students who access the IDEA database will have no
problem answering this question. The following websites identify industries and
companies that currently produce financial statements in XBRL format:
http://www.edgar-online.com/xbrl/industry.asp
http://bryant2.bryant.edu/~xbrl
2-24. We ran out of Internet addresses because the number of different IP addresses
available with 32 bits was insufficient to accommodate the global demand for different ones.
b. The new IP standard uses 128 bits. The value of 2128 is greater than
340,282,366,920,938,000,000,000,000,000,000,000,000 –a very large number that
c. Several reasons probably account for why we have not run out of telephone numbers,
despite their seemingly small size. These reasons include: (1) The base is “10” not
in addition to the 10 digits for the telephone number. This increases the number of
phone numbers available worldwide by one thousand ( = 103). Interestingly, cell
phone numbers available for use.
2-25. This problem requires students to encrypt a message, using a simple cyclic
substitution cipher. The encrypted message is:
2-26. This problem requires students to decrypt an encrypted message, using a simple
cyclic substitution cipher. The decrypted message is:
Message 1: “It is not what we don’t know that hurts us, it is what we do know that
just ain’t so.”
Trial key:
12
SM 2.10
Msg
Value
Value minus
Displacement
Add 26 if
required
New
Letter
F
6
-6
20
T
A
1
-11
15
O
A
1
-11
15
O
Y
25
13
13
M
M
13
1
1
A
Z
26
14
14
N
K
11
-1
25
Y
Etc.
Etc.
Etc.
Etc.
Etc.
2-27. This problem asks students to write a one-page summary of an article they find
online. Various accounting journals are going online. Besides the AICPA’s Journal of
and non-members, (2) fulfilling organizational mandates to disseminate information, and (3)
enabling users to search articles electronically for specific information or topics. To date,
articles less than one year old.
2-28. This problem involves the privacy statement of a fictitious company named Small
Computers, Inc. As a general statement, online consumers have several concerns about
computer security:
They want their privacy protected
They want a secure method of payment
They want to be sure they will be billed only for what they purchased
the consumer need only accept items ordered. The return policy appears lenient although it
does not state who is responsible for paying shipping on returned items. The statement about
Consumers are more likely to buy from a business online than they are off-line. They are
also more likely to buy products with brand names. A business selling goods to end-
SM 2.11
consumers online that does not have these characteristics will need to be extremely careful in
crafting statements about privacy and business policies.
Case Analyses
2-29. This case requires students to select an accounting blog from the list provided in
2-30. Me, Inc. (The Do’s, Don’ts, and Ethics of Social Networking Sites)
This case asks students to think about what to say, and what not to say, on social networking
sites such as Facebook, Twitter, or LinkedIn. For example, Part 1 asks students to list four
personal strengths. Some suggested answers to the various parts of this question are as
follows:
1. Possible personal strengths: education, honesty, prior relevant work experience,
and high IQ.
2. Possible red flags: prison or arrest record, making derogatory statements about the
drug use.
3. Some of the most popular networking sites are douban, Flixster, Friendster, Facebook,
list of over 200 social networking sites.
4. This part of the case asks students whether or not they would approve a high-level
statements.
5. Is it ethical for a boss to fire an employee for postings on Facebook? Again, students are
likely to not be sure about this. Are statements made outside of the work environment
Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman
SM 2.12
2-31. Anderson Manufacturing (Using XBRL-Enabled Software)
names of the individuals in this case.
1. XBRL-enabled software means that the software has the ability to create financial reports
software applications can import XBRL-coded data for analysis, further data processing,
capabilities.
2. Figure 2-3 identifies a number of advantages that Lloyd might wish to discuss with Dick.
3. Each student’s memo will be unique.
4. Several examples of XBRL PowerPoint presentations may be found on the Internet.
Some examples can be found at:
2-32. Barra Concrete (XOR Encryption)
This case requires students to use XOR operations to both encrypt and decrypt a message.
1. Applying the XOR cipher to the cipher message, we have:
Cyphertext:
0
1
0
0
1
0
1
1
Key:
1
1
1
0
1
1
1
0
XOR Result:
1
0
1
0
0
1
0
1
This brings us back to the plaintext message of 1010 0101.
2: Applying the XOR cipher to each letter, we have the results shown below. The encrypted
letters are shown in the XOR Result lines:
Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman
SM 2.13
Digit
1
Digit
2
Digit
3
Digit
4
Digit
5
Digit
6
Digit
7
Digit
8
G
0
1
0
0
0
1
1
1
Key:
1
1
0
0
0
0
1
1
XOR Result:
1
0
0
0
0
1
0
0
O
0
1
0
0
1
1
1
1
Key:
1
1
0
0
0
0
1
1
XOR Result:
1
0
0
0
1
1
0
0
,
0
0
1
0
1
1
0
0
Key:
1
1
0
0
0
0
1
1
XOR Result:
1
1
1
0
1
1
1
1
T
0
1
0
1
0
1
0
0
Key:
1
1
0
0
0
0
1
1
XOR Result:
1
0
0
1
0
1
1
1
E
0
1
0
0
0
1
0
1
Key:
1
1
0
0
0
0
1
1
XOR Result:
1
0
0
0
0
1
1
0
A
0
1
0
0
0
0
0
1
Key:
1
1
0
0
0
0
1
1
XOR Result:
1
0
0
0
0
0
1
0
M
0
1
0
0
1
1
0
1
Key:
1
1
0
0
0
0
1
1
XOR Result:
1
0
0
0
1
1
1
0