SOLUTION MANUAL
Data Analytics for Accounting, 3rd Edition
by Vernon Richardson, Chapters 1 - 9
1
,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 1-6) Which of these terms is defined as being a central repository of descriptions for all of
the data attributes of the dataset?
a. Big Data
b. Data warehouse
c. Data dictionary
d. Data Analytics
Answer: c
6. (LO 1-5) Which skills iwere inot iemphasized ithat ianalytic-minded iaccountants ishould ihave?
a. Developed ian ianalytics imindset
b. Data iscrubbing iand idata ipreparation
c. Classification iof itest iapproaches
d. Statistical idata ianalysis icompetency
Answer: ic
7. (LO i1-5) iIn iwhich iareas iwere iskills inot iemphasized ifor ianalytic-minded iaccountants?
a. Data iquality
b. Descriptive idata ianalysis
c. Data ivisualization iand idata ireporting
d. Data iand isystems ianalysis iand idesign
Answer: id
8. (LO i1-4) iThe iIMPACT icycle iincludes iall iexcept ithe ifollowing isteps:
a. perform itest iplan.
b. visualize ithe idata.
c. master ithe idata.
d. track ioutcomes.
Answer: ib
9. (LO i1-4) iThe iIMPACT icycle ispecifically iincludes iall iexcept ithe ifollowing isteps:
a. data ipreparation.
b. communicate iinsights.
c. address iand irefine iresults.
d. perform itest iplan.
4
Data Analytics for Accounting, 3rd Edition
by Vernon Richardson, Chapters 1 - 9
1
,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 1-6) Which of these terms is defined as being a central repository of descriptions for all of
the data attributes of the dataset?
a. Big Data
b. Data warehouse
c. Data dictionary
d. Data Analytics
Answer: c
6. (LO 1-5) Which skills iwere inot iemphasized ithat ianalytic-minded iaccountants ishould ihave?
a. Developed ian ianalytics imindset
b. Data iscrubbing iand idata ipreparation
c. Classification iof itest iapproaches
d. Statistical idata ianalysis icompetency
Answer: ic
7. (LO i1-5) iIn iwhich iareas iwere iskills inot iemphasized ifor ianalytic-minded iaccountants?
a. Data iquality
b. Descriptive idata ianalysis
c. Data ivisualization iand idata ireporting
d. Data iand isystems ianalysis iand idesign
Answer: id
8. (LO i1-4) iThe iIMPACT icycle iincludes iall iexcept ithe ifollowing isteps:
a. perform itest iplan.
b. visualize ithe idata.
c. master ithe idata.
d. track ioutcomes.
Answer: ib
9. (LO i1-4) iThe iIMPACT icycle ispecifically iincludes iall iexcept ithe ifollowing isteps:
a. data ipreparation.
b. communicate iinsights.
c. address iand irefine iresults.
d. perform itest iplan.
4
