Questions and Answers of Data Analytics Accounting

What type of ratios measure a firm’s operating efficiency? a. DuPont ratios b. Liquidity ratios c. Activity ratios d. Solvency ratios
Determining how sensitive a stock’s intrinsic value to assumptions and estimates made would be an example of _____ analytics. a. Diagnostic b. Predictive c. Descriptive d.
What is the name of the output from data vendors to help compare companies using different XBRL tags for revenue? a. XBRL taxonomy b. Data assimilation c. Consonant tagging d.
Match the description of the financial statement analysis question to the data analytics type:Descriptive analytics Diagnostic analytics Predictive analytics Prescriptive analytics Financial
Match the following KPIs to one of the following KPI types: Financial Performance Operational Customer Employee Performance Marketing Environmental and Social Sustainability ΚΡΙ 1. Brand
Match the following KPIs to one of the following KPI types: Financial Performance Operational Customer Employee Performance Marketing Environmental and Social Sustainability. ΚΡΙ 1.
Of the list of KPIs shown below, indicate which would be considered to be financial performance KPIs, and which would not be. ΚΡΙ 1. Market Share 2. Net Income (Net Profit) 3. Cash Conversion
Of the list of KPIs shown below, indicate which would be considered to be employee performance KPIs, and which would not be. ΚΡΙ 1. Return on Assets 2. Time to Market 3. Revenue per Employee 4.
Of the list of KPIs shown below, indicate which would be considered to be marketing performance KPIs, and which would not be. ΚΡΙ 1. Conversion Rate 2. Cost per Lead 3. Page Views and
Match the following descriptions or equations to one of the following components of the DuPont ratio: Return on stockholders’ equity Profit margin Asset turnover Equity multiplier Return on
Match the following descriptions to one of the following visualization types: Heat map Sparklines Sunburst diagram Illustrates Description 1. Illustrates trends in sales 2. Illustrates inherent
Match the description of the financial statement analysis technique to the data analytics type: Descriptive analytics Diagnostic analytics Predictive analytics Prescriptive analytics Financial
Match the description of the tax analysis question to the data analytics type: Descriptive analytics Diagnostic analytics Predictive analytics Prescriptive analytics Tax Analysis Question 1. What
The DuPont analysis of return on equity (ROE) includes all of the following component ratios except: a. Asset turnover. b. Inventory turnover. c. Financial leverage. d. Profit
Performance comparisons to a company’s own past or to its competition would be considered _____ analytics. a. Prescriptive b. Descriptive c. Predictive d. Diagnostic
What computerized technique would be used to perform sentiment analysis on an annual accounting report? a. Text mining b. Sentiment mining c. Textual analysis d. Decision trees
Match the following tax KPIs to one of these areas:Tax costTax risk Tax KPI 1. Effective tax rate (ETR). 2. Levels of late filing or error penalties and fines. 3. Cash taxes paid. 4. Expiration of
Tax departments interested in maintaining their own data are likely to have their own: a. Tax reporting system. b. Tax data mart. c. Tax dashboard. d. Tax analytics.
According to the textbook, an example of a tax efficiency and effectiveness KPI would be: a. Number of audits closed. b. ETR (effective tax rate) over time. c. Number of resubmitted
Explain why the needs of the tax accountant are different than the needs of the financial accountants. Why does this lead to a tax data warehouse or tax data mart?
Match the following tax KPIs to one of these areas: Tax sustainability Tax efficiency/effectiveness Tax KPI 1. Number of company tax audits closed and significance of assessment over time. 2.
According to the textbook, an example of a tax sustainability KPI would be: a. Frequency of concerns pertaining to the organization’s tax position. b. Level of job satisfaction of the tax
Why would tracking a client’s unrealized capital gains be important to businesses trying to capitalize on the tax opportunities inherent in opportunity zones (a new investment opportunity available
According to the textbook, an example of a tax cost KPI would be: a. Employee turnover of the tax personnel. b. Levels of technology/tax training. c. ETR (effective tax rate). d.
The task of tax accountants and tax departments to minimize the amount of taxes paid in the future is called: a. Tax planning. b. Tax compliance. c. Tax minimization. d. Tax
Explain why tax sustainability would be of interest to the tax department. What does it allow them to do if they are able to gain tax sustainability?
Predictive analytics help identify future tax liabilities. What data would a tax accountant need in order to perform a predictive analysis?
Predictive analysis of potential tax liability and the formulation of a plan to reduce the amount of taxes paid is defined as: a. Tax data analytics. b. Tax data warehouses. c. Tax
The evaluation of the impact of different tax scenarios/alternatives on various outcome measures including the amount of taxable income or tax paid is called: a. Tax visualizations. b.
Match the description of the management accounting technique to the data analytics type: Descriptive analytics Diagnostic analytics Predictive analytics Prescriptive analytics Managerial
How do visualizations of tax compliance assist a company in its efforts to reduce tax risk and minimize the costs of tax preparation and compliance? In your opinion, what would be needed to
Which of the following would not be considered a prescriptive analytics technique? a. Sensitivity Analysis Evaluating Assumptions of Future Performance b. Crosstabulation Analyzing Past
What would you consider to be an operational KPI? a. Inventory Shrinkage Rate.b. Brand Equity. c. CAPEX to Sales Ratio.d. Revenue per Employee.
What does KPI stand for? a. Key performance index. b. Key performance indicator c. Key paired index.d. Key paired indicator.
The most important KPIs should be placed in the ______ corner of the page even if we are not following a strategy map template. a. Bottom right b. Bottom left c. Top left d. Top
According to the text, which of these are not helpful in refining a dashboard? a. Which metric are you using most frequently to help you make decisions? b. Are you downloading the data to
On a Balanced Scorecard, which is not included as a component? a. Financial Performance b. Customer/Stakeholderc. Internal Process.d. Employee Capacity.
Which of the following would be considered to be a diagnostic analytics technique in managerial accounting? a. Summary Statistics b. Computation of Job Order Costing c. Price and Rate
What is defined as an interactive report showing the most important metrics to help users understand how a company or an organization is performing? a. KPI.b. Performance metric.c. Digital
What would you consider to be a prescriptive analytics technique in management accounting? a. Computation of KPIs b. Capital Budgeting c. Comparison of Actual Performance to Budgeted
What would you consider to be a diagnostic analytics technique in management accounting? a. Computation of Rate Variances.b. Sales Forecasts based on Time Series Analysis.c. Breakeven Level in
One type of descriptive analytics is age analysis, which shows how old open accounts receivable and accounts payable are. How would age analysis be useful in the following situations? Select whether
Match the diagnostic analytics questions to the following diagnostic analytics techniques. Z-score T-Test Benford’s law Drill-downFuzzy matching Sequence check Diagnostic Analytics
Match the analytics question to the following predictive and prescriptive analytics techniques. Classification Regression Probability Sentiment analysis What-if analysisArtificial Intelligence
Which audit technique is used to test completeness? a. Benford’s law b. Sequence check c. Summary statistics d. Drill-down
Prescriptive analytics rely on models based on past actions to suggest recommended actions for new, similar situations. For example, auditors might review managers’ approval of new credit
Match the description of the data standard to each of the current audit data standards: Base General Ledger Order-to-Cash Subledger Procure-to-Pay Subledger Data Standard Description 1. Goods
Accounting has a great number of standards-setting bodies, who generally are referred to using an acronym. Match the relevant standards or the responsibility of each to the acronym of these
Which audit data standards ledger defines product master data, location data, inventory on hand data, and inventory movement? a. Order to Cash Subledger b. Procure to Pay Subledger c.
In each of the following situations, identify which situation exists with regard to normal and abnormal events, and alarms or lack of alarms from a continuous monitoring system with these
Which audit data standards ledger identifies data needed for purchase orders, goods received, invoices, payments, and adjustments to accounts? a. Order to Cash Subledger b. Procure to Pay
Match the definitions to these real-time terms: Continuous reporting Continuous auditing Continuous monitoring Real-Time Examples 1. Total sales recognized by the company today disclosed to
A company has two divisions, one in the United States and the other in China. One uses Oracle and the other uses SAP for its basic accounting system. What would we call this? a. Homogeneous
Which of the following defines the time period, the level of materiality, and the expected time for an audit? a. Audit scope b. Potential risk c. Methodology d. Procedures and
All of the following may serve as standards for the audit methodology except: a. PCAOB’s auditing standards. b. COSO’s ERM framework. c. ISACA’s COBIT framework. d. FASB’s
When there is an alarm in a continuous audit, but it is associated with a normal event, we would call that a: a. False negative. b. True negative. c. True positive. d. False
When there is no alarm in a continuous audit, but there is an abnormal event, we would call that a: a. False negative. b. True negative.c. True positive. d. False positive.
If purchase orders are monitored for unauthorized activity in real time while month-end adjusting entries are evaluated once a month, those transactions monitored in real time would be an example of
Who is most likely to have a working knowledge of the various enterprise systems that are in use in the company? a. Chief executive officer b. External auditor c. Internal
Which items would be currently out of the scope of Data Analytics? a. Direct observation of processes.b. Evaluation of time stamps to evaluate workflow c. Evaluation of phantom vendors.d.
Benford’s law suggests that the first digit of naturally occurring numerical datasets follow an expected distribution where: a. The leading digit of 4 is more common than 3. b. The
The determinants for sample size include all of the following except: a. Confidence level. b. Tolerable misstatement. c. Potential risk of account. d. Estimated misstatement.
CAATs are automated scripts that can be used to validate data, test controls, and enable substantive testing of transaction details or account balances and generate supporting evidence for the audit.
What describes finding correspondences between at least two types of text or entries that may not match perfectly? a. Incomplete linkages b. Algorithmic matching c. Fuzzy
Which type of audit analytics might be used to find hidden patterns or variables linked to abnormal behavior? a. Prescriptive analytics b. Predictive analytics c. Diagnostic
Which testing approach would be used to predict whether certain cases should be evaluated as having fraud or no fraud? a. Classification b. Probability c. Sentiment analysis d.
Which testing approach would be useful in assessing the value of inventory shrinkage given multiple environmental factors? a. Probability b. Sentiment analysis c. Regression d.
What type of analysis would help auditors find missing checks? a. Sequence check b. Benford’s law analysis c. Fuzzy matching d. Decision support systems.
Match the desired visualization for quantitative data to the following chart types: Line charts Bar charts Box and whisker plots Scatter plots Filled geographic maps Desired Visualization 1.
Match the data examples to one of the following data types:Interval data Nominal data Ordinal data Ratio data Structured data Unstructured data Data Example 1. GMAT Score 2. Total Sales 3. Blue
Match the chart type to whether it is used primarily to communicate qualitative or quantitative results: Chart Type 1. Pie chart 2. Box and whisker plot 3. Word cloud 4. Symbol map 5. Scatter
Match the definition to one of the following data terms:Declarative visualization Exploratory visualization Interval data Nominal dataOrdinal data Ratio data Data Definition 1. Method used to
Anscombe’s Quartet suggests that: a. Statistics should be used instead of visualizations. b. Visualizations should be used instead of statistics. c. Visualizations should be used in
In the late 1960s, Ed Altman developed a model to predict if a company was at severe risk of going bankrupt. He called his statistic Altman’s Z-score, now a widely used score in finance. Based on
Justin Zobel suggests that revising your writing requires you to “be egoless—ready to dislike anything you have previously written,” suggesting that it is _____ you need to please. a.
Which of the following is not a typical example of nominal data? a. Gender b. SAT scores c. Hair color d. Ethnic group
The Fahrenheit scale of temperature measurement would best be described as an example of: a. Interval data. b. Discrete data. c. Nominal data. d. Continuous data.
Why was the heat map associated with the opening vignette regarding the 1854 cholera epidemic effective? Now that we have more sophisticated tools and methods for visualizing data, what else could
_____ data would be considered the least sophisticated type of data. a. Ratio b. Interval c. Ordinal d. Nominal
_____ data would be considered the most sophisticated type of data. a. Ratio b. Interval c. Ordinal d. Nominal
Line charts are not recommended for what type of data? a. Normalized data b. Qualitative data c. Continuous data d. Trend lines.
Match each specific Data Analytics test to a specific test approach, as part of performing a test plan: Classification Regression Similarity Matching Clustering
For each of the six questions suggested by the Institute of Business Ethics to evaluate data privacy, categorize each question into one of these three types: A. Evaluate the company’s purpose of
Match the relational database function to the appropriate relational database term: Composition primary key Descriptive attribute Foreign key Primary key Relational database Relational Database
Match each of the specific Data Analytics tasks to the stage of the IMPACT cycle: Identify the Questions Master the DataPerform Test Plan Address and Refine Results Communicate Insights Track
Match the specific analysis need/characteristic to the appropriate Microsoft Track software tool: ExcelPower Query Power BI Power Automate Specific Analysis Need/Characteristic 1. Basic
Navigate to the Connect Additional Student Resources page. Under Chapter 1 Data Files, download and consider the rejected loans dataset of LendingClub data titled “DAA Chapter 1-1 Data.” Choose
Match the specific analysis need/characteristic to the appropriate Tableau Track software tool: Tableau Prep Builder Tableau Desktop Tableau Public Specific Analysis Need/Characteristic 1.
Identify the order sequence in the ETL process as part of mastering the data (i.e., 1 is first; 5 is last). Steps of the ETL Process 1. Validate the data for completeness and integrity. 2. Sanitize
Identify which ETL tasks would be considered “Validating” the data, and which would be considered “Cleaning” the data. ETL Task 1. Compare the number of records that were extracted to the
Match each ETL task to the stage of the ETL process:Determine purpose Obtain Validate Clean Load ETL Task 1. Use SQL to extract data from the source database. 2. Remove headings or subtotals. 3.
Which of the following are useful, established characteristics of using a relational database? Institute of Business Ethics Questions regarding Data Use and Privacy 1. Completeness 2. Reliable 3.
The opening article “Accountants to Rely More on Big Data in 2020” suggested that Data Analytics would be increasingly implementing Big Data in their business processes. Why is that? How can Data
Which data approach attempts to assign each unit in a population into a small set of classes (or groups) where the unit best fits? a. Regression.b. Similarity matching.c. Co-occurrence
Which data approach attempts to identify similar individuals based on data known about them? a. Classification. b. Regression.c. Similarity matching.d. Data reduction.
Match the test approach to the appropriate type of Data Analytics: Descriptive analytics Diagnostic analytics Predictive analytics Prescriptive analytics Test Approach 1. Clustering 2.
Which data approach attempts to predict connections between two data items? a. Profiling b. Classification c. Link prediction d. Regression
Which of these terms is defined as being a central repository of descriptions for all of the data attributes of the dataset? a. Big Data b. Data warehouse c. Data dictionary d.
Which skills were not emphasized that analytic-minded accountants should have? a. Developed an analytics mindset b. Data scrubbing and data preparation c. Classification of test
Match the accounting question to the appropriate type of Data Analytics: Descriptive analytics Diagnostic analytics Predictive analyticsPrescriptive analytics Accounting Question 1. What are the

Showing 1 - 100 of 258