TEST BANK
INTRODUCTION TO DATA ANALYTICS FOR ACCOUNTING
2ND EDITION
CHAPTER NO. 1. ASK THE QUESTION: USING DATA ANALYTICS TO ADDRESS
ACCOUNTING QUESTIONS
1) "Create" is the highest skill in Bloom's Taxonomy.
⊚ true
⊚ false
ANSWER: TRUE
2) "Understand" is the lowest skill in Bloom's Taxonomy.
⊚ true
⊚ false
ANSWER: FALSE
3) "Remember" is a higher skill than "Understand" in Bloom's Taxonomy.
⊚ true
⊚ false
ANSWER: FALSE
4) "Ask the Right Question" is one of the desired skills for accounting professionals, consistent
with EY's "The Analytics Mindset".
⊚ true
⊚ false
ANSWER: TRUE
5) "Communicate results with management" is one of the desired skills for accounting
professionals, consistent with EY's "The Analytics Mindset".
⊚ true
⊚ false
ANSWER: TRUE
,6) "Extract, Transform and Load Relevant Data" is one of the desired skills for accounting
professionals, consistent with EY's "The Analytics Mindset".
⊚ true
⊚ false
ANSWER: TRUE
7) Of the options listed below, which is the lowest level of thinking skills in Bloom's
Taxonomy?
A) Create
B) Understand
C) Apply
D) Analyze
ANSWER: B
8) Of the options listed below, which is the highest level of thinking skills in Bloom's
Taxonomy?
A) Evaluate
B) Apply
C) Analyze
D) Understand
ANSWER: A
9) Which is the appropriate ordering of thinking skills in Bloom's Taxonomy, where the ">"
symbol means higher order skills?
A) Evaluate > Apply
B) Remember > Understand
C) Apply > Analyze
D) Analyze > Evaluate
ANSWER: A
10) Which component of the AMPS model would usually involve creating a pivottable?
A) Ask the Question
B) Master the Data
C) Perform the Analysis
D) Share the Story
ANSWER: C
,11) Which component of the AMPS model most appropriately addresses the skill mentioned by
EY's analytics mindset of "extract, transform and load relevant data"?
A) Ask the Question
B) Master the Data
C) Perform the Analysis
D) Share the Story
ANSWER: B
12) Use of a dashboard to track relevant outcomes would be consistent with which component of
the AMPS model?
A) Ask the Question
B) Master the Data
C) Perform the Analysis
D) Share the Story
ANSWER: D
13) A visualization may be used to help with which component of the AMPS model?
A) Ask the Question
B) Master the Data
C) Perform the Analysis
D) Share the Story
ANSWER: D
14) Benford's law might be used as part of which component of the AMPS model?
A) Ask the Question
B) Master the Data
C) Perform the Analysis
D) Share the Story
ANSWER: C
, 15) What type of question(s) works to explain "Why did overall tax increase even though net
income did not?"
A) What happened? What is happening?
B) Why did it happen? What are the root causes of past results?
C) Will it happen in the future? What is the probability something will happen? Is it
forecastable?
D) What should we do based on what we expect will happen? How do we optimize our
performance based on potential constraints?
ANSWER: B
16) What type of question is used in finding the level of sales needed to break even?
A) What happened? What is happening?
B) Why did it happen? What are the root causes of past results?
C) Will it happen in the future? What is the probability something will happen? Is it
forecastable?
D) What should we do based on what we expect will happen? How do we optimize our
performance based on potential constraints?
ANSWER: D
17) What type of question is used in learning how much the company paid in interest expenses
last year?
A) What happened? What is happening?
B) Why did it happen? What are the root causes of past results?
C) Will it happen in the future? What is the probability something will happen? Is it
forecastable?
D) What should we do based on what we expect will happen? What should we do based
on what we expect will happen? How do we optimize our performance based on
potential constraints?
ANSWER: A
18) What type of question is predicting whether borrowers will be able to repay their loans?
A) What happened? What is happening?
B) Why did it happen? What are the root causes of past results?
C) Will it happen in the future? What is the probability something will happen? Is it
forecastable?
D) What should we do based on what we expect will happen? How do we optimize our
performance based on potential constraints?
ANSWER: C
INTRODUCTION TO DATA ANALYTICS FOR ACCOUNTING
2ND EDITION
CHAPTER NO. 1. ASK THE QUESTION: USING DATA ANALYTICS TO ADDRESS
ACCOUNTING QUESTIONS
1) "Create" is the highest skill in Bloom's Taxonomy.
⊚ true
⊚ false
ANSWER: TRUE
2) "Understand" is the lowest skill in Bloom's Taxonomy.
⊚ true
⊚ false
ANSWER: FALSE
3) "Remember" is a higher skill than "Understand" in Bloom's Taxonomy.
⊚ true
⊚ false
ANSWER: FALSE
4) "Ask the Right Question" is one of the desired skills for accounting professionals, consistent
with EY's "The Analytics Mindset".
⊚ true
⊚ false
ANSWER: TRUE
5) "Communicate results with management" is one of the desired skills for accounting
professionals, consistent with EY's "The Analytics Mindset".
⊚ true
⊚ false
ANSWER: TRUE
,6) "Extract, Transform and Load Relevant Data" is one of the desired skills for accounting
professionals, consistent with EY's "The Analytics Mindset".
⊚ true
⊚ false
ANSWER: TRUE
7) Of the options listed below, which is the lowest level of thinking skills in Bloom's
Taxonomy?
A) Create
B) Understand
C) Apply
D) Analyze
ANSWER: B
8) Of the options listed below, which is the highest level of thinking skills in Bloom's
Taxonomy?
A) Evaluate
B) Apply
C) Analyze
D) Understand
ANSWER: A
9) Which is the appropriate ordering of thinking skills in Bloom's Taxonomy, where the ">"
symbol means higher order skills?
A) Evaluate > Apply
B) Remember > Understand
C) Apply > Analyze
D) Analyze > Evaluate
ANSWER: A
10) Which component of the AMPS model would usually involve creating a pivottable?
A) Ask the Question
B) Master the Data
C) Perform the Analysis
D) Share the Story
ANSWER: C
,11) Which component of the AMPS model most appropriately addresses the skill mentioned by
EY's analytics mindset of "extract, transform and load relevant data"?
A) Ask the Question
B) Master the Data
C) Perform the Analysis
D) Share the Story
ANSWER: B
12) Use of a dashboard to track relevant outcomes would be consistent with which component of
the AMPS model?
A) Ask the Question
B) Master the Data
C) Perform the Analysis
D) Share the Story
ANSWER: D
13) A visualization may be used to help with which component of the AMPS model?
A) Ask the Question
B) Master the Data
C) Perform the Analysis
D) Share the Story
ANSWER: D
14) Benford's law might be used as part of which component of the AMPS model?
A) Ask the Question
B) Master the Data
C) Perform the Analysis
D) Share the Story
ANSWER: C
, 15) What type of question(s) works to explain "Why did overall tax increase even though net
income did not?"
A) What happened? What is happening?
B) Why did it happen? What are the root causes of past results?
C) Will it happen in the future? What is the probability something will happen? Is it
forecastable?
D) What should we do based on what we expect will happen? How do we optimize our
performance based on potential constraints?
ANSWER: B
16) What type of question is used in finding the level of sales needed to break even?
A) What happened? What is happening?
B) Why did it happen? What are the root causes of past results?
C) Will it happen in the future? What is the probability something will happen? Is it
forecastable?
D) What should we do based on what we expect will happen? How do we optimize our
performance based on potential constraints?
ANSWER: D
17) What type of question is used in learning how much the company paid in interest expenses
last year?
A) What happened? What is happening?
B) Why did it happen? What are the root causes of past results?
C) Will it happen in the future? What is the probability something will happen? Is it
forecastable?
D) What should we do based on what we expect will happen? What should we do based
on what we expect will happen? How do we optimize our performance based on
potential constraints?
ANSWER: A
18) What type of question is predicting whether borrowers will be able to repay their loans?
A) What happened? What is happening?
B) Why did it happen? What are the root causes of past results?
C) Will it happen in the future? What is the probability something will happen? Is it
forecastable?
D) What should we do based on what we expect will happen? How do we optimize our
performance based on potential constraints?
ANSWER: C
