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Data Analytics for Accounting 1st edition by Vernon Richardson Test bank
Data Analytics for Accounting 1st edition by Vernon Richardson Test bank
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,Data Analytics for Accounting, 1e (Richardson)Chapter 1 Data Analytics in Accounting and Business
1) Data analytics is the process of evaluating data with the purpose of drawing conclusions to
address business questions.
Answer: TRUE
Difficulty: 1 Easy
Topic: Define Data Analytics
Learning Objective: 01-01 Define Data Analytics.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
2) The process of data analytics aims to transform raw information into data to create value.
Answer: FALSE
Difficulty: 1 Easy
Topic: Define Data Analytics
Learning Objective: 01-01 Define Data Analytics.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
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.
Answer: FALSE
Difficulty: 1 Easy
Topic: How Data Analytics Affects Business
Learning Objective: 01-02 Understand why Data Analytics matters to business.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
4) Auditors can use social media to hear what customers are saying about a company and
compare this to inventory obsolescence and other estimates.
Answer: TRUE
Difficulty: 2 Medium
Topic: Financial Reporting
Learning Objective: 01-03 Explain why Data Analytics matters to accountants.
Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
1
Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
,5) Data analytics allows auditors to glean insights that are beneficial to the client, without
breaching independence.
Answer: TRUE
Difficulty: 2 Medium
Topic: Auditing
Learning Objective: 01-03 Explain why Data Analytics matters to accountants.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
6) The predictive analytics is an important aspect of data analytics for auditors, but is not
applicable for tax accountants.
Answer: FALSE
Difficulty: 1 Easy
Topic: Tax
Learning Objective: 01-03 Explain why Data Analytics matters to accountants.
Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
7) The I in IMPACT Cycle represents Identify the Question.
Answer: TRUE
Difficulty: 2 Medium
Topic: The Data Analytics Process Using the Impact Cycle
Learning Objective: 01-04 Describe the Data Analytics Process Using the IMPACT Cycle.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
8) The M in IMPACT Cycle represents Master the Data.
Answer: TRUE
Difficulty: 2 Medium
Topic: The Data Analytics Process Using the Impact Cycle
Learning Objective: 01-04 Describe the Data Analytics Process Using the IMPACT Cycle.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
2
Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
,9) The P in IMPACT Cycle represents Predict the Results.
Answer: FALSE
Difficulty: 2 Medium
Topic: The Data Analytics Process Using the Impact Cycle
Learning Objective: 01-04 Describe the Data Analytics Process Using the IMPACT Cycle.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
10) The A in IMPACT Cycle represents Analyze the Data.
Answer: FALSE
Difficulty: 2 Medium
Topic: The Data Analytics Process Using the Impact Cycle
Learning Objective: 01-04 Describe the Data Analytics Process Using the IMPACT Cycle.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
11) The C in IMPACT Cycle represents Continuously Track.
Answer: FALSE
Difficulty: 2 Medium
Topic: The Data Analytics Process Using the Impact Cycle
Learning Objective: 01-04 Describe the Data Analytics Process Using the IMPACT Cycle.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
12) The T in IMPACT Cycle represents Track Outcomes.
Answer: TRUE
Difficulty: 2 Medium
Topic: The Data Analytics Process Using the Impact Cycle
Learning Objective: 01-04 Describe the Data Analytics Process Using the IMPACT Cycle.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
3
Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
,13) Data normalization can reduce data redundancy and improve data integrity.
Answer: TRUE
Difficulty: 1 Easy
Topic: The Data Analytics Process Using the Impact Cycle
Learning Objective: 01-04 Describe the Data Analytics Process Using the IMPACT Cycle.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
14) The IMPACT cycle is iterative, as insights are gained, outcomes are tracked, and new
questions are identified.
Answer: TRUE
Difficulty: 1 Easy
Topic: The Data Analytics Process Using the Impact Cycle
Learning Objective: 01-04 Describe the Data Analytics Process Using the IMPACT Cycle.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
15) Data analytics professionals estimate that they spend between 25 percent and 70 percent of
their time cleaning data so it can be analyzed.
Answer: FALSE
Difficulty: 1 Easy
Topic: Data-Analytic Skills Needed by Analytic-Minded Accountants
Learning Objective: 01-05 Describe the Skills Needed by Accountants.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
16) 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.
Answer: FALSE
Difficulty: 2 Medium
Topic: Data-Analytic Skills Needed by Analytic-Minded Accountants
Learning Objective: 01-05 Describe the Skills Needed by Accountants.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
4
Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
,17) To be proficient in data analysis, accountants need to become data scientists.
Answer: FALSE
Difficulty: 1 Easy
Topic: Data-Analytic Skills Needed by Analytic-Minded Accountants
Learning Objective: 01-05 Describe the Skills Needed by Accountants.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
18) By developing an analytics mindset, accountants will be able to recognize when and how
data analytics can address business questions.
Answer: TRUE
Difficulty: 1 Easy
Topic: Data-Analytic Skills Needed by Analytic-Minded Accountants
Learning Objective: 01-05 Describe the Skills Needed by Accountants.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
19) While it is important for accountants to clearly articulate the business problem, drawing
appropriate conclusions, based on the data, should be left to statisticians.
Answer: FALSE
Difficulty: 2 Medium
Topic: Data-Analytic Skills Needed by Analytic-Minded Accountants
Learning Objective: 01-05 Describe the Skills Needed by Accountants.
Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
20) Analytic-minded accountants should report results of analysis in an accessible way to each
varied decision maker, along with their specific needs.
Answer: TRUE
Difficulty: 1 Easy
Topic: Data-Analytic Skills Needed by Analytic-Minded Accountants
Learning Objective: 01-05 Describe the Skills Needed by Accountants.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
5
Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
,21) With a goal of giving 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) growth.
D) databases.
Answer: C
Difficulty: 1 Easy
Topic: Define Data Analytics
Learning Objective: 01-01 Define Data Analytics.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
22) Patterns discovered from ________ enable businesses to identify opportunities and risks in
order to better plan for ________.
A) past archives; the future
B) current data; the future
C) current data; today
D) past archives; today
Answer: A
Difficulty: 2 Medium
Topic: How Data Analytics Affects Business
Learning Objective: 01-02 Understand why Data Analytics matters to business.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
23) Which of the following best describes the data analytics skill 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
Answer: B
Difficulty: 2 Medium
Topic: Data-Analytic Skills Needed by Analytic-Minded Accountants
Learning Objective: 01-05 Describe the Skills Needed by Accountants.
Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
6
Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
,24) Which of the following best describes the data analytics skill of data quality?
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 the 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
Answer: A
Difficulty: 2 Medium
Topic: Data-Analytic Skills Needed by Analytic-Minded Accountants
Learning Objective: 01-05 Describe the Skills Needed by Accountants.
Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
25) Which of the following best describes the data analytics skill of data analysis through data
manipulation?
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 the 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
Answer: C
Difficulty: 2 Medium
Topic: Data-Analytic Skills Needed by Analytic-Minded Accountants
Learning Objective: 01-05 Describe the Skills Needed by Accountants.
Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
7
Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
,26) Which of the following best describes the data analytics skill of data scrubbing and data
preparation?
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
Answer: D
Difficulty: 2 Medium
Topic: Data-Analytic Skills Needed by Analytic-Minded Accountants
Learning Objective: 01-05 Describe the Skills Needed by Accountants.
Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
27) Which of the following best describes the data analytics skill of developing an analytics
mindset?
A) recognize when and how data analytics can address business questions
B) perform basic analysis to understand the quality of the underlying data and its ability to
address the business question
C) recognize what is meant by data quality, be it completeness, reliability or validity
D) comprehend the process needed to clean and prepare the data before analysis
Answer: A
Difficulty: 2 Medium
Topic: Data-Analytic Skills Needed by Analytic-Minded Accountants
Learning Objective: 01-05 Describe the Skills Needed by Accountants.
Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
8
Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
, 28) Which of the following best describes the data analytics skill of data visualization and data
reporting?
A) recognize when and how data analytics can address business questions
B) perform basic analysis to understand the quality of the underlying data and its ability to
address the business question
C) recognize what is meant by data quality, be it completeness, reliability or validity
D) report results of analysis in an accessible way to each varied decision maker and their specific
needs
Answer: D
Difficulty: 2 Medium
Topic: Data-Analytic Skills Needed by Analytic-Minded Accountants
Learning Objective: 01-05 Describe the Skills Needed by Accountants.
Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
29) Which of the following best describes the data analytics skill of defining and addressing
problems through statistical 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) identify and implement an approach that will use statistical data analysis to draw conclusions
and make recommendations on a timely basis
Answer: D
Difficulty: 2 Medium
Topic: Data-Analytic Skills Needed by Analytic-Minded Accountants
Learning Objective: 01-05 Describe the Skills Needed by Accountants.
Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
9
Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
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