DATA AND ANALYTICS IN ACCOUNTING UPDATED ACTUAL EXAM QUESTIONS CORRECT
ANSWERS GRADED A PLUS
Question:
What is Big Data?
Answer:
Big Data refers to datasets that are too large and complex to be analyzed using traditional methods.
Question:
What are the 4 V's of Big Data?
Answer:
Volume (size), Velocity (frequency), Variety (different types), and Veracity (data quality).
Question:
Why does data analytics matter to business?
Answer:
85% of CEOs value data analytics highly, and it can generate up to $2 trillion in value per year.
Question:
How does data analytics enhance auditing?
Answer:
It improves audit quality, expands services, and adds value to clients.
Question:
What benefits does data analytics provide in management accounting?
,Answer:
It enhances cost analysis and enables better decision- making, forecasting, budgeting, and sales.
Question:
How does data analytics affect financial reporting?
Answer:
It helps accountants make better estimates and allows managers to understand the business
environment better.
Question:
What is the IMPACT cycle in data analytics?
Answer:
The IMPACT cycle includes Identify the questions, Master the data, Perform the test plan, Address
and refine results, Communicate insights, and Track outcomes.
Question:
What is the first step of the IMPACT model?
Answer:
Identify the questions that need to be addressed in the business.
Question:
What does 'Master the Data' entail in the IMPACT model?
Answer:
It involves understanding what data are available and how they relate to the problem.
Question:
What types of models can be used in the 'Perform the Test Plan' step?
,Answer:
Classification, Regression, Similarity matching, Clustering, Co-occurrence grouping, and Profiling.
Question:
What is the purpose of the 'Address and Refine Results' step?
Answer:
To identify issues with analyses and refine the model by asking further questions and exploring data.
Question:
What is important in the 'Communicate Insights' step?
Answer:
Using clear language and visualizations like dashboards and reports to communicate findings.
Question:
What does the 'Track Outcomes' step involve?
Answer:
Following up on the results of the analysis and observing trends and changes over time.
Question:
What skills do accountants need for data analytics?
Answer:
They need to articulate business problems, communicate with data scientists, draw conclusions, and
present results.
Question:
What are the key data analytics tools mentioned?
Answer:
, Microsoft tools (Excel, Power BI) and Tableau tools (Tableau Prep Builder, Tableau Desktop).
Question:
What is the role of data scrubbing in data analytics?
Answer:
It involves preparing data to ensure quality and completeness before analysis.
Question:
What is a primary key in a relational database?
Answer:
A unique identifier for a record in a table.
Question:
What is a foreign key?
Answer:
An attribute in one table that points to a primary key in another table.
Question:
What are composite keys?
Answer:
A combination of two foreign keys used for line items in a database.
Question:
What is the significance of descriptive attributes?
Answer:
They include all other attributes that provide additional information about records.
ANSWERS GRADED A PLUS
Question:
What is Big Data?
Answer:
Big Data refers to datasets that are too large and complex to be analyzed using traditional methods.
Question:
What are the 4 V's of Big Data?
Answer:
Volume (size), Velocity (frequency), Variety (different types), and Veracity (data quality).
Question:
Why does data analytics matter to business?
Answer:
85% of CEOs value data analytics highly, and it can generate up to $2 trillion in value per year.
Question:
How does data analytics enhance auditing?
Answer:
It improves audit quality, expands services, and adds value to clients.
Question:
What benefits does data analytics provide in management accounting?
,Answer:
It enhances cost analysis and enables better decision- making, forecasting, budgeting, and sales.
Question:
How does data analytics affect financial reporting?
Answer:
It helps accountants make better estimates and allows managers to understand the business
environment better.
Question:
What is the IMPACT cycle in data analytics?
Answer:
The IMPACT cycle includes Identify the questions, Master the data, Perform the test plan, Address
and refine results, Communicate insights, and Track outcomes.
Question:
What is the first step of the IMPACT model?
Answer:
Identify the questions that need to be addressed in the business.
Question:
What does 'Master the Data' entail in the IMPACT model?
Answer:
It involves understanding what data are available and how they relate to the problem.
Question:
What types of models can be used in the 'Perform the Test Plan' step?
,Answer:
Classification, Regression, Similarity matching, Clustering, Co-occurrence grouping, and Profiling.
Question:
What is the purpose of the 'Address and Refine Results' step?
Answer:
To identify issues with analyses and refine the model by asking further questions and exploring data.
Question:
What is important in the 'Communicate Insights' step?
Answer:
Using clear language and visualizations like dashboards and reports to communicate findings.
Question:
What does the 'Track Outcomes' step involve?
Answer:
Following up on the results of the analysis and observing trends and changes over time.
Question:
What skills do accountants need for data analytics?
Answer:
They need to articulate business problems, communicate with data scientists, draw conclusions, and
present results.
Question:
What are the key data analytics tools mentioned?
Answer:
, Microsoft tools (Excel, Power BI) and Tableau tools (Tableau Prep Builder, Tableau Desktop).
Question:
What is the role of data scrubbing in data analytics?
Answer:
It involves preparing data to ensure quality and completeness before analysis.
Question:
What is a primary key in a relational database?
Answer:
A unique identifier for a record in a table.
Question:
What is a foreign key?
Answer:
An attribute in one table that points to a primary key in another table.
Question:
What are composite keys?
Answer:
A combination of two foreign keys used for line items in a database.
Question:
What is the significance of descriptive attributes?
Answer:
They include all other attributes that provide additional information about records.
