Test Bank For Data Analytics for Accounting, 3rd Edition Richardson

Test Bank For
Data Analytics for Accounting, 3rd Edition Richardson
Chapter 1-9
Answers are at the End of Each Chapter

Chapter 01:
Student name:__________
1) Data analytics is the process of evaluating data with the purpose of drawing conclusions to
address business questions.
⊚ true
⊚ false



2) The process of data analytics aims to transform raw information into data to create value.
⊚ true
⊚ false



3) Data analytics has the potential to transform the manner in which companies run their
businesses, however it is not practical in the near future.
⊚ true
⊚ false



4) Auditors can use social media to hear what customers are saying about a company and
compare this to inventory obsolescence and other estimates.
⊚ true
⊚ false



5) Data analytics allows auditors to glean insights that are beneficial to the client, without
breeching independence.
⊚ true
⊚ false

,6) The predictive analytics is an important aspect of data analytics for auditors, but is not
applicable for tax accountants.
⊚ true
⊚ false



7) The I in IMPACT Cycle represents Identify the Question.
⊚ true
⊚ false



8) The M in IMPACT Cycle represents Master the Data.
⊚ true
⊚ false



9) The P in IMPACT Cycle represents Predict the Results.
⊚ true
⊚ false



10) The A in IMPACT Cycle represents Analyze the Data.
⊚ true
⊚ false



11) The C in IMPACT Cycle represents Continuously Track.
⊚ true
⊚ false



12) The T in IMPACT Cycle represents Track Outcomes.
⊚ true
⊚ false

,13) The IMPACT cycle is iterative, as insights are gained, outcomes are tracked, and new
questions are identified.
⊚ true
⊚ false



14) Data analysis through data manipulation is performing basic analysis to understand the
quality of the underlying data and its ability to address the business question.
⊚ true
⊚ false



15) To be proficient in data analysis, accountants need to become data scientists.
⊚ true
⊚ false



16) By developing an analytics mindset, accountants will be able to recognize when and how
data analytics can address business questions.
⊚ true
⊚ false



17) While it is important for accountants to clearly articulate the business problem, drawing
appropriate conclusions, based on the data, should be left to statisticians.
⊚ true
⊚ false



18) Analytic-minded accountants should report results of analysis in an accessible way to each
varied decision maker and their specific needs.
⊚ true
⊚ false

, 19) With a goal to give organizations the information they need to make sound and timely
business decisions, data analytics often involves all of the following except:
A) technologies.
B) statistics.
C) strategies.
D) databases.



20) Patterns discovered from __________ enable businesses to identify opportunities and risks
and better plan for __________.
A) past archives; the future
B) current data; the future
C) current data; today
D) past archives; today



21) Which of the following best describes the goal of descriptive data analysis:
A) recognize what is meant by data quality, be it completeness, reliability or validity
B) perform basic analysis to understand the quality of the underlying data and its ability
to address the business question
C) demonstrate ability to sort, rearrange, merge, and reconfigure data in a manner that
allows enhanced analysis
D) comprehend the process needed to clean and prepare the data before analysis



22) Which of the following Microsoft software tool specializes in data joining?
A) Excel
B) Power Query
C) Power BI
D) Power Automate



23) Which of the following Microsoft software tools specializes in creating dashboards?
A) Excel
B) Power Query
C) Power BI
D) Power Automate