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TEST BANK FOR
Data Analytics for Accounting, 3rd Edition by Vernon Richardson, Teeter
Answers Included ✅
M
Chapter 01 3e
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) Data analytics is the process of evaluating data with the purpose of drawing conclusions
PR
to address business questions.
⊚ true
⊚ false
ES
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
SI
businesses, however it is not practical in the near future.
⊚ true
⊚ false
VE
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
G
5) Data analytics allows auditors to glean insights that are beneficial to the client, without
breeching independence.
R
⊚ true
⊚ false
AD
6) The predictive analytics is an important aspect of data analytics for auditors, but is not
applicable for tax accountants.
⊚ true
⊚ false
ES
7) The I in IMPACT Cycle represents Identify the Question.
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⊚ true
⊚ false
M
8) The M in IMPACT Cycle represents Master the Data.
PR
⊚ true
⊚ false
9) The P in IMPACT Cycle represents Predict the Results.
⊚ true
ES
⊚ false
10) The A in IMPACT Cycle represents Analyze the Data.
⊚ true
SI
⊚ false
11) The C in IMPACT Cycle represents Continuously Track.
VE
⊚ true
⊚ false
12) The T in IMPACT Cycle represents Track Outcomes.
⊚ true
G
⊚ false
R
13) The IMPACT cycle is iterative, as insights are gained, outcomes are tracked, and new
questions are identified.
⊚ true
AD
⊚ 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
ES
⊚ false
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M
15) To be proficient in data analysis, accountants need to become data scientists.
⊚ true
⊚ false
PR
16) By developing an analytics mindset, accountants will be able to recognize when and how
data analytics can address business questions.
⊚ true
⊚ false
ES
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
SI
⊚ false
18) Analytic-minded accountants should report results of analysis in an accessible way to
VE
each varied decision maker and their specific needs.
⊚ true
⊚ false
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
G
answers the question.
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:
R
A) technologies.
B) statistics.
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C) strategies.
D) databases.
20) Patterns discovered from blank enable businesses to identify opportunities
ES
and risks and better plan for blank.
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A) past archives; the future
M
B) current data; the future
C) current data; today
D) past archives; today
PR
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
ES
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
SI
22) Which of the following Microsoft software tool specializes in data joining?
VE
A) Excel
B) Power Query
C) Power BI
D) Power Automate
G
23) Which of the following Microsoft software tools specializes in creating dashboards?
R
A) Excel
B) Power Query
AD
C) Power BI
D) Power Automate
24) Which of the following Tableau software tools specializes in data transformation?
ES
iuytrew
TEST BANK FOR
Data Analytics for Accounting, 3rd Edition by Vernon Richardson, Teeter
Answers Included ✅
M
Chapter 01 3e
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) Data analytics is the process of evaluating data with the purpose of drawing conclusions
PR
to address business questions.
⊚ true
⊚ false
ES
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
SI
businesses, however it is not practical in the near future.
⊚ true
⊚ false
VE
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
G
5) Data analytics allows auditors to glean insights that are beneficial to the client, without
breeching independence.
R
⊚ true
⊚ false
AD
6) The predictive analytics is an important aspect of data analytics for auditors, but is not
applicable for tax accountants.
⊚ true
⊚ false
ES
7) The I in IMPACT Cycle represents Identify the Question.
iuytrew
, iuytre
⊚ true
⊚ false
M
8) The M in IMPACT Cycle represents Master the Data.
PR
⊚ true
⊚ false
9) The P in IMPACT Cycle represents Predict the Results.
⊚ true
ES
⊚ false
10) The A in IMPACT Cycle represents Analyze the Data.
⊚ true
SI
⊚ false
11) The C in IMPACT Cycle represents Continuously Track.
VE
⊚ true
⊚ false
12) The T in IMPACT Cycle represents Track Outcomes.
⊚ true
G
⊚ false
R
13) The IMPACT cycle is iterative, as insights are gained, outcomes are tracked, and new
questions are identified.
⊚ true
AD
⊚ 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
ES
⊚ false
iuytrew
, iuytre
M
15) To be proficient in data analysis, accountants need to become data scientists.
⊚ true
⊚ false
PR
16) By developing an analytics mindset, accountants will be able to recognize when and how
data analytics can address business questions.
⊚ true
⊚ false
ES
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
SI
⊚ false
18) Analytic-minded accountants should report results of analysis in an accessible way to
VE
each varied decision maker and their specific needs.
⊚ true
⊚ false
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
G
answers the question.
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:
R
A) technologies.
B) statistics.
AD
C) strategies.
D) databases.
20) Patterns discovered from blank enable businesses to identify opportunities
ES
and risks and better plan for blank.
iuytrew
, iuytre
A) past archives; the future
M
B) current data; the future
C) current data; today
D) past archives; today
PR
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
ES
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
SI
22) Which of the following Microsoft software tool specializes in data joining?
VE
A) Excel
B) Power Query
C) Power BI
D) Power Automate
G
23) Which of the following Microsoft software tools specializes in creating dashboards?
R
A) Excel
B) Power Query
AD
C) Power BI
D) Power Automate
24) Which of the following Tableau software tools specializes in data transformation?
ES
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