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Copyright2019?McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducation.
DataAnalyticsforAccounting,1e(Richardson)
Chapter1DataAnalyticsinAccountingandBusiness
1)Dataanalyticsistheprocessofevaluatingdatawiththepurposeofdrawingconclusionstoaddressbusinessquestions.
2)Theprocessofdataanalyticsaimstotransformrawinformationintodatatocreatevalue.
3)Dataanalyticshasthepotentialtotransformthemannerinwhichcompaniesruntheirbusinesses;however,itisnotpracticalinthenearfuture.
4)Auditorscanusesocialmediatohearwhatcustomersaresayingaboutacompanyandcomparethistoinventoryobsolescenceandotherestimates.
5)Dataanalyticsallowsauditorstogleaninsightsthatarebeneficialtotheclient,withoutbreachingindependence.
6)Thepredictiveanalyticsisanimportantaspectofdataanalyticsforauditors,butisnotapplicablefortaxaccountants.
7)TheIinIMPACTCyclerepresentsIdentifytheQuestion.
8)TheMinIMPACTCyclerepresentsMastertheData.
9)ThePinIMPACTCyclerepresentsPredicttheResults.
10)TheAinIMPACTCyclerepresentsAnalyzetheData.
11)TheCinIMPACTCyclerepresentsContinuouslyTrack.
12)TheTinIMPACTCyclerepresentsTrackOutcomes.
13)Datanormalizationcanreducedataredundancyandimprovedataintegrity.
14)TheIMPACTcycleisiterative,asinsightsaregained,outcomesaretracked,andnewquestionsareidentified.
15)Dataanalyticsprofessionalsestimatethattheyspendbetween25percentand70percentoftheirtimecleaningdatasoitcanbeanalyzed.
16)Dataanalysisthroughdatamanipulationisperformingbasicanalysistounderstandthequalityoftheunderlyingdataanditsabilitytoaddressthebusinessquestion.
17)Tobeproficientindataanalysis,accountantsneedtobecomedatascientists.
18)Bydevelopingananalyticsmindset,accountantswillbeabletorecognizewhenandhowdataanalyticscanaddressbusinessquestions.
19)Whileitisimportantforaccountantstoclearlyarticulatethebusinessproblem,drawingappropriateconclusions,basedonthedata,shouldbelefttostatisticians.
20)Analytic-mindedaccountantsshouldreportresultsofanalysisinanaccessiblewaytoeachvarieddecisionmaker,alongwiththeirspecificneeds.
21)Withagoalofgivingorganizationstheinformationtheyneedtomakesoundandtimelybusinessdecisions,dataanalyticsofteninvolvesallofthefollowingexcept:
A)technologies.
B)statistics.
C)growth.
D)databases.
22)Patternsdiscoveredfrom________enablebusinessestoidentifyopportunitiesandrisksinordertobetterplanfor________.
A)pastarchives;thefuture
B)currentdata;thefuture
C)currentdata;today
D)pastarchives;today
23)Whichofthefollowingbestdescribesthedataanalyticsskillofdescriptivedataanalysis?
A)recognizewhatismeantbydataquality,beitcompleteness,reliabilityorvalidity
B)performbasicanalysistounderstandthequalityoftheunderlyingdataanditsabilitytoaddressthebusinessquestion
C)demonstrateabilitytosort,rearrange,merge,andreconfiguredatainamannerthatallowsenhancedanalysis
D)comprehendtheprocessneededtocleanandpreparethedatabeforeanalysis
24)Whichofthefollowingbestdescribesthedataanalyticsskillofdataquality?
A)recognizewhatismeantbydataquality,beitcompleteness,reliabilityorvalidity
B)performbasicanalysistounderstandthequalityoftheunderlyingdataanditsabilitytoaddressthebusinessquestion
C)demonstratetheabilitytosort,rearrange,merge,andreconfiguredatainamannerthatallowsenhancedanalysis
D)comprehendtheprocessneededtocleanandpreparethedatabeforeanalysis
25)Whichofthefollowingbestdescribesthedataanalyticsskillofdataanalysisthroughdatamanipulation?
A)recognizewhatismeantbydataquality,beitcompleteness,reliabilityorvalidity
B)performbasicanalysistounderstandthequalityoftheunderlyingdataanditsabilitytoaddressthebusinessquestion
C)demonstrateabilitytosort,rearrange,merge,andreconfiguredatainamannerthatallowsenhancedanalysis
D)comprehendtheprocessneededtocleanandpreparethedatabeforeanalysis
26)Whichofthefollowingbestdescribesthedataanalyticsskillofdatascrubbinganddatapreparation?
A)recognizewhatismeantbydataquality,beitcompleteness,reliabilityorvalidity
B)performbasicanalysistounderstandthequalityoftheunderlyingdataanditsabilitytoaddressthebusinessquestion
C)demonstratetheabilitytosort,rearrange,mergeandreconfiguredatainamannerthatallowsenhancedanalysis
D)comprehendtheprocessneededtocleanandpreparethedatabeforeanalysis
27)Whichofthefollowingbestdescribesthedataanalyticsskillofdevelopingananalyticsmindset?
A)recognizewhenandhowdataanalyticscanaddressbusinessquestions
B)performbasicanalysistounderstandthequalityoftheunderlyingdataanditsabilitytoaddressthebusinessquestion
C)recognizewhatismeantbydataquality,beitcompleteness,reliabilityorvalidity
D)comprehendtheprocessneededtocleanandpreparethedatabeforeanalysis
28)Whichofthefollowingbestdescribesthedataanalyticsskillofdatavisualizationanddatareporting?
A)recognizewhenandhowdataanalyticscanaddressbusinessquestions
B)performbasicanalysistounderstandthequalityoftheunderlyingdataanditsabilitytoaddressthebusinessquestion
C)recognizewhatismeantbydataquality,beitcompleteness,reliabilityorvalidity
D)reportresultsofanalysisinanaccessiblewaytoeachvarieddecisionmakerandtheirspecificneeds
29)Whichofthefollowingbestdescribesthedataanalyticsskillofdefiningandaddressingproblemsthroughstatisticaldataanalysis?
A)recognizewhatismeantbydataquality,beitcompleteness,reliabilityorvalidity
B)performbasicanalysistounderstandthequalityoftheunderlyingdataanditsabilitytoaddressthebusinessquestion
C)demonstrateabilitytosort,rearrange,mergeandreconfiguredatainamannerthatallowsenhancedanalysis
D)identifyandimplementanapproachthatwillusestatisticaldataanalysistodrawconclusionsandmakerecommendationsonatimelybasis
30)Whileaccountantsdon'tneedtobecomedatascientists,theymustknowhowtodothefollowingexcept:
A)Clearlyarticulatethebusinessproblemthecompanyisfacing
B)Communicatewiththedatascientistsaboutspecificdataneedsandunderstandtheunderlyingqualityofthedata
C)Buildadatarepository
D)Comprehendtheprocessneededtocleanandpreparethedatabeforeanalysis
31)Whichapproachtodataanalyticsattemptstoestimateorpredict,foreachunit,thenumericalvalueofsomevariableusingsometypeofstatisticalmodel?
A)Similaritymatching.
B)Classification.
C)Datareduction.
D)Regression.
32)Whichapproachtodataanalyticsattemptstoassigneachunit(orindividual)inapopulationintoafewcategories?
A)Similaritymatching.
B)Classification.
C)Datareduction.
D)Regression
33)Whichapproachtodataanalyticsattemptstocharacterizethetypicalbehaviorofanindividual,grouporpopulationbygeneratingsummarystatisticsaboutthedata?
A)Similaritymatching.
B)Profiling.
C)Datareduction.
D)Regression.
34)Whichapproachtodataanalyticsattemptstoreducetheamountofinformationthatneedstobeconsideredtofocusonthemostcriticalitems?
A)Similaritymatching.
B)Profiling.
C)Datareduction.
D)Regression.
35)Whichofthefollowingbestdescribestheclassificationapproachtodataanalytics?
A)Anattempttoassigneachunit(orindividual)inapopulationintoafewcategories.
B)Anattempttoidentifysimilarindividualsbasedondataknownaboutthem.
C)Anattempttodivideindividualsintogroupsinausefulormeaningfulway.
D)Anattempttodiscoverassociationsbetweenindividualsbasedontransactionsinvolvingthem.
36)Whichofthefollowingbestdescribestheclusteringapproachtodataanalytics?
A)Anattempttoassigneachunit(orindividual)inapopulationintoafewcategories.
B)Anattempttoidentifysimilarindividualsbasedondataknownaboutthem.
C)Anattempttodivideindividualsintogroupsinausefulormeaningfulway.
D)Anattempttodiscoverassociationsbetweenindividualsbasedontransactionsinvolvingthem.
37)Whichofthefollowingbestdescribesthesimilaritymatchingapproachtodataanalytics?
A)Anattempttoassigneachunit(orindividual)inapopulationintoafewcategories.
B)Anattempttoidentifysimilarindividualsbasedondataknownaboutthem.
C)Anattempttodivideindividualsintogroupsinausefulormeaningfulway.
D)Anattempttodiscoverassociationsbetweenindividualsbasedontransactionsinvolvingthem.
38)Whichofthefollowingbestdescribestheregressionapproachtodataanalytics?
A)Anattempttoestimateorpredict,foreachunit,thenumericalvalueofsomevariableusingsometypeofstatisticalmodel.
B)Anattempttopredictarelationshipbetweentwodataitems.
C)Anattempttodivideindividualsintogroupsinausefulormeaningfulway.
D)Anattempttodiscoverassociationsbetweenindividualsbasedontransactionsinvolvingthem.
39)Whichofthefollowingbestdescribestheco-occurrencegroupingapproachtodataanalytics?
A)Anattempttocharacterizethetypicalbehaviorofanindividual,grouporpopulationbygeneratingsummarystatisticsaboutthedata.
B)Anattempttopredictarelationshipbetweentwodataitems.
C)Anattempttoreducetheamountofinformationthatneedstobeconsideredtofocusonthemostcriticalitems.
D)Anattempttodiscoverassociationsbetweenindividualsbasedontransactionsinvolvingthem.
40)Whichofthefollowingbestdescribesthelinkpredictionapproachtodataanalytics?
A)Anattempttocharacterizethetypicalbehaviorofanindividual,grouporpopulationbygeneratingsummarystatisticsaboutthedata.
B)Anattempttopredictarelationshipbetweentwodataitems.
C)Anattempttoreducetheamountofinformationthatneedstobeconsideredtofocusonthemostcriticalitems.
D)Anattempttodiscoverassociationsbetweenindividualsbasedontransactionsinvolvingthem.
41)Whichofthefollowingbestdescribestheprofilingapproachtodataanalytics?
A)Anattempttocharacterizethetypicalbehaviorofanindividual,grouporpopulationbygeneratingsummarystatisticsaboutthedata.
B)Anattempttopredictarelationshipbetweentwodataitems.
C)Anattempttoreducetheamountofinformationthatneedstobeconsideredtofocusonthemostcriticalitems.
D)Anattempttodiscoverassociationsbetweenindividualsbasedontransactionsinvolvingthem.
42)Whichofthefollowingbestdescribesthedatareductionapproachtodataanalytics?
A)Anattempttocharacterizethetypicalbehaviorofanindividual,grouporpopulationbygeneratingsummarystatisticsaboutthedata.
B)Anattempttopredictarelationshipbetweentwodataitems.
C)Anattempttoreducetheamountofinformationthatneedstobeconsideredtofocusonthemostcriticalitems.
D)Anattempttodiscoverassociationsbetweenindividualsbasedontransactionsinvolvingthem.
43)Whichapproachtodataanalyticsattemptstodiscoverassociationsbetweenindividualsbasedontransactionsinvolvingthem?
A)Similaritymatching.
B)Clustering.
C)Co-occurrencegrouping.
D)Linkprediction.
44)Whichapproachtodataanalyticsattemptstoidentifysimilarindividualsbasedondataknownaboutthem?
A)Similaritymatching.
B)Clustering.
C)Co-occurrencegrouping.
D)Linkprediction.
45)Whichapproachtodataanalyticsattemptstopredictarelationshipbetweentwodataitems?
A)Similaritymatching.
B)Clustering.
C)Co-occurrencegrouping.
D)Linkprediction.
46)Whichapproachtodataanalyticsattemptstodivideindividualsintogroupsinausefulormeaningfulway?
A)Similaritymatching.
B)Clustering.
C)Co-occurrencegrouping.
D)Linkprediction.
47)Theimpactcycleincludesallthefollowingprocessesexcept:
A)Communicateinsights.
B)Performtestplan.
C)Analyzethedata.
D)Trackoutcomes.
48)Theimpa
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