SOLUTION MANUAL for Data Analytics for Accounting,
3rd Edition by Vernon Richardson, Chapters 1 - 9
1
,TABLE OF CONTENTS
Chapter 1: Data Analytics for Accounting and Identifying the Questions
Chapter 2: Mastering the Data
Chapter 3: Performing the Test Plan and Analyzing the Results
Chapter 4: Communicating Results and Visualizations
Chapter 5: The Modern Accounting Environment
Chapter 6: Audit Data Analytics
Chapter 7: Managerial Analytics
Chapter 8: Financial Statement Analytics
Chapter 9: Tax Analytics
2
,Solutions Manual – Chapter 1
Solutions to Multiple Choice Questions
1. (LO 1-1) Big Data is often described by the four Vs, or
a. volume, velocity, veracity, and variability.
b. volume, velocity, veracity, and variety.
c. volume, volatility, veracity, and variability.
d. variability, velocity, veracity, and variety.
Answer: b
2. LO 1-4) Which data approach attempts to assign each unit in a population into a small set ofclasses (or
groups) where the unit best fits?
a. Regression
b. Similarity matching
c. Co-occurrence grouping
d. Classification
Answer: d
3. (LO 1-4) Which data approach attempts to identify similar individuals based on data knownabout
them?
a. Classification
b. Regression
c. Similarity matching
d. Data reduction
Answer: c
4. (LO 1-4) Which data approach attempts to predict connections between two data items?
a. Profiling
b. Classification
c. Link prediction
d. Regression
3
, Answer: c
5. (LO y1-6) yWhich yof ythese yterms yis ydefined yas ybeing ya ycentral yrepository yof ydescriptions yfor yall yof
ythe ydata yattributes yof ythe ydataset?
a. Big yData
b. Data ywarehouse
c. Data ydictionary
d. Data yAnalytics
Answer: yc
6. (LO y1-5) yWhich yskills ywere ynot yemphasized ythat yanalytic-minded yaccountants yshould yhave?
a. Developed yan yanalytics ymindset
b. Data yscrubbing yand ydata ypreparation
c. Classification yof ytest yapproaches
d. Statistical ydata yanalysis ycompetency
Answer: yc
7. (LO y1-5) yIn ywhich yareas ywere yskills ynot yemphasized yfor yanalytic-minded yaccountants?
a. Data yquality
b. Descriptive ydata yanalysis
c. Data yvisualization yand ydata yreporting
d. Data yand ysystems yanalysis yand ydesign
Answer: yd
8. (LO y1-4) yThe yIMPACT ycycle yincludes yall yexcept ythe yfollowing ysteps:
a. perform ytest yplan.
b. visualize ythe ydata.
c. master ythe ydata.
d. track youtcomes.
Answer: yb
9. (LO y1-4) yThe yIMPACT ycycle yspecifically yincludes yall yexcept ythe yfollowing ysteps:
a. data ypreparation.
b. communicate yinsights.
c. address yand yrefine yresults.
d. perform ytest yplan.
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3rd Edition by Vernon Richardson, Chapters 1 - 9
1
,TABLE OF CONTENTS
Chapter 1: Data Analytics for Accounting and Identifying the Questions
Chapter 2: Mastering the Data
Chapter 3: Performing the Test Plan and Analyzing the Results
Chapter 4: Communicating Results and Visualizations
Chapter 5: The Modern Accounting Environment
Chapter 6: Audit Data Analytics
Chapter 7: Managerial Analytics
Chapter 8: Financial Statement Analytics
Chapter 9: Tax Analytics
2
,Solutions Manual – Chapter 1
Solutions to Multiple Choice Questions
1. (LO 1-1) Big Data is often described by the four Vs, or
a. volume, velocity, veracity, and variability.
b. volume, velocity, veracity, and variety.
c. volume, volatility, veracity, and variability.
d. variability, velocity, veracity, and variety.
Answer: b
2. LO 1-4) Which data approach attempts to assign each unit in a population into a small set ofclasses (or
groups) where the unit best fits?
a. Regression
b. Similarity matching
c. Co-occurrence grouping
d. Classification
Answer: d
3. (LO 1-4) Which data approach attempts to identify similar individuals based on data knownabout
them?
a. Classification
b. Regression
c. Similarity matching
d. Data reduction
Answer: c
4. (LO 1-4) Which data approach attempts to predict connections between two data items?
a. Profiling
b. Classification
c. Link prediction
d. Regression
3
, Answer: c
5. (LO y1-6) yWhich yof ythese yterms yis ydefined yas ybeing ya ycentral yrepository yof ydescriptions yfor yall yof
ythe ydata yattributes yof ythe ydataset?
a. Big yData
b. Data ywarehouse
c. Data ydictionary
d. Data yAnalytics
Answer: yc
6. (LO y1-5) yWhich yskills ywere ynot yemphasized ythat yanalytic-minded yaccountants yshould yhave?
a. Developed yan yanalytics ymindset
b. Data yscrubbing yand ydata ypreparation
c. Classification yof ytest yapproaches
d. Statistical ydata yanalysis ycompetency
Answer: yc
7. (LO y1-5) yIn ywhich yareas ywere yskills ynot yemphasized yfor yanalytic-minded yaccountants?
a. Data yquality
b. Descriptive ydata yanalysis
c. Data yvisualization yand ydata yreporting
d. Data yand ysystems yanalysis yand ydesign
Answer: yd
8. (LO y1-4) yThe yIMPACT ycycle yincludes yall yexcept ythe yfollowing ysteps:
a. perform ytest yplan.
b. visualize ythe ydata.
c. master ythe ydata.
d. track youtcomes.
Answer: yb
9. (LO y1-4) yThe yIMPACT ycycle yspecifically yincludes yall yexcept ythe yfollowing ysteps:
a. data ypreparation.
b. communicate yinsights.
c. address yand yrefine yresults.
d. perform ytest yplan.
4
