Accounting 185 Comprehensive Exam | Questions and Answers (Complete Solutions)

Accounting 185 Comprehensive Exam | Questions and Answers (Complete Solutions) There are really very few opportunities to have a question-and-answer session with the CEO of a company and have it recorded for others to use. However, _______ of such an interactive question-and-answer session that is fairly widely available to all interested parties. Press releases SEC form 8-K The management discussion and analysis as part of the 10-K Conference call transcripts What would be most likely to be disclosed in an 8-K filing to the SEC? Management discussion and analysis Change in auditor Overview of a company's main operations Financial statements Data considering the text in blogs would generally be considered _______. Unstructured data Interval data Ratio data Structured data Select the data term to its appropriate definition. Categorical Data That Could Not Be Ranked Nominal Data Numerical Data Measured Along with A Scale Interval Categorical Data with Natural Ordered Categories Ordinal Numerical Data with an equal and definitive ratio between each data point where "absolute zero" in ratio data is a point of origin Ratio A centralized repository of information about data containing a separate record for each field/variable in the database data dictionary Mark the summarization method as either numerical, categorical, or both. Counting and Grouping Both Averaging Numerical Proportion Both Ranking Categorical Summing Numerical What is the data type for each of these variables in a products table? Choose between possible answers: short text, long text, currency, Yes/No flag or number. Product Name - short text Product Description - long text Sales Price - currency Coupon Available - Yes/No Flag Prime Shipping Available - Yes/No Flag Count On Hand – Number If there are 20 return transactions and 50 sales transactions, what is the proportion of return transactions? = 70/20 = 50/20 = 20/70 = 20/50 SAT score Interval data Nominal data Ordinal data Ratio data Structured data Unstructured data Categorical data Total assets Interval data Nominal data Ordinal data Ratio data Structured data Unstructured data Categorical data Gold, silver, bronze Interval data Nominal data Ordinal data Ratio data Structured data Unstructured data Categorical data Audit report (e.g., unqualified, qualified, disclaimer, adverse) Interval data Nominal data Ordinal data Ratio data Structured data Unstructured data Categorical data Depreciation method (declining balance, straight-line, etc.) Interval data Nominal data Ordinal data Ratio data Structured data Unstructured data Categorical data Conference call transcript Interval data Nominal data Ordinal data Ratio data Structured data Unstructured data Categorical data Unformatted Statement of Cash Flows Interval data Nominal data Ordinal data Ratio data Structured data Unstructured data Categorical data Inventory method (FIFO, LIFO, etc.) Interval data Nominal data Ordinal data Ratio data Structured data Unstructured data Categorical data Blogs Interval data Nominal data Ordinal data Ratio data Structured data Unstructured data Categorical data Sales Interval data Nominal data Ordinal data Ratio data Structured data Unstructured data Categorical data Unformatted Balance Sheet Interval data Nominal data Ordinal data Ratio data Structured data Unstructured data Categorical data Whereas _______ would generally be considered to structured data, _______ would generally be considered to be unstructured data. Product reviews; financial statements Instagram pictures; product reviews Financial statements; product reviews Geographic images; firm budget Averaging is a summarization method for which type of data? Numerical Categorical Both categorical and numerical Speed of generation Variety Velocity Veracity Volume Unstructured data Variety Velocity Veracity Volume Uncleaned data Variety Velocity Veracity Volume Sheer size of data Variety Velocity Veracity Volume Untrusted data Variety Velocity Veracity Volume Semi-structured data Variety Velocity Veracity Volume Rate of analysis Variety Velocity Veracity Volume Plant (factories, office buildings, stores, etc.) and equipment (vehicles, fork lifts, computers, machinery, power tools, technical apparatus). 8-K Accounting data analytics EDGAR Fixed assets Automatically collects, validates, indexes and services as a repository for all forms submitted to the Securities and Exchange Commission. 8-K Accounting data analytics EDGAR Fixed assets A required submission to the Securities and Exchange Commission that is used to notify investors of important events or announcements that either the SEC or shareholders might be interested in receiving. 8-K Accounting data analytics EDGAR Fixed assets The technologies, systems, practices, methodologies, databases, statistics, and applications used to analyze diverse accounting and nonaccounting data to give organizations the information they need to make sound and timely business decisions. 8-K Accounting data analytics EDGAR Fixed assets Noting gold, silver, and bronze medals for Olympic athletes would be considered a form of _______ data. Numerical Ratio Interval Ordinal "create" is the highest skill in bloom's taxonomy True Which component of the AMPS model most appropriately addresses the axiom "your data won't speak unless you ask it the right analytics questions." Ask the question Which is the lowest level of skills in blooms taxonomy Remember A visualization may be used to help with which component of the AMPS model Share the Story The third step of the AMPS model is Perform the analysis A ___ is used to access data from a larger dataset needed for analysis query or macro For each of the questions below, categorize them as one of the following question types: 1. How much did we pay in fed taxes last year? 2. If we have a 12/31 year-end audit clients, how will we organize our audit work in the new year? 3. Can the IRS find those individuals or corporations evading taxes using predictive techniques? 4. Did the airline company's on-time departures improve this past month? 5. Can our variance analysis help explain why the labor expenses increased over the past year? 1. What happened? what is happening? 2. What should we do based on what we expect will happen? How do we optimize our performance based on potential constraints? 3. Will it happen in the future? What is the probability something will happen? Is it forecastable? 4. Why did it happen? What are the root causes of past results? 5. What should we do based on what we expect will happen? How do we optimize our performance based on potential constraints? For each of the questions below, categorize the appropriate statistical technique that should be used to perform the analysis. 1. Finding the frequency of all transactions, from the minimum to the maximum. 2. Looking for potentially fraudulent transactions. 3. Minimizing tax payment based on expected changes in tax legislation. 4. Segregating total costs into fixed and variable cost components. 5. Displaying total accounts receivable balance by days overdue (aging). 1. Histogram 2. regression analysis 3. what if/ goal seek 4. pivot table 5. benford's law A business report that allows an easy, automated exchange between a financial statement repository and a financial statement user is possible using XBRL If there were fake news presented by someone trying to sway an opinion (or vote), that would bring into question which aspect of big data Veracity data with greater veracity is often more impactful, carrying more weight in analysis than data with lesser veracity in addressing accounting questions True According to the AMPS model, the analyst should know the question they are trying to address before considering and accessing available data True EDGAR, the SEC repository of SEC forms, stands for Electronic data gathering, analysis and retrieval system An information system for managing all interactions with current and potential employees is called an human resource management system whereas ___ would generally be considered to structured data, ___ would generally be considered to be unstructured data financial statements, product reviews the biggest difference between 10-k and 10-q is the ___ disclosure frequency of there is more social media data than financial statement data available true the ___ summarizes all of the journal entries which forms the basis for the financial statements general ledger earnings per share would be considered ___ data ratio the dollar amounts included in the financial statements would be examples of ratio data true an example of unstructured data would include pictures an example of structured data would include product reviews Ratio data has absolute zero True f there are 6 transactions on 11/1, 3 transactions on 11/2 and 10 transactions on 11/3, what is the proportion of the 11/1 transactions to the total transactions that occur during the first three days of November? = 6/19 The Northwinds database has several tables, including Products, Suppliers, and Categories. A subset of the Products table is provided, which details all the products that a fictional company named Northwinds sells. The Northwinds database is generously provided by Microsoft as an example database 1. Glancing through each variable in the Products table, which stand out as numerical data, that is, data that would be interesting to add or average? 2.If you averaged everything in the SupplierID field, would you obtain a useful number? 3.If you averaged UnitPrice, would you obtain a useful number? 4. What does the field Supplier ID represent? 5. Which fields should you use to calculate when it's time to reorder a product? 6. If you were to create a meaningful report regarding when products should be reordered, which fields would you include? 7. Which fields would you create via numerical calculations? 1. unit price, units in stock, units on order, reorder level 2. no 3. yes 4. categorical in stock and units on order 6. reorder level, product name 7. units in stock, units on order primary keys are required in every relational database true tableau shows you are importing numerical variables by showing the ___ icon # one of the primary internal control benefits of storing data in a relational database is increased redundancy cuts down on errors false version control reduces the possibility of having more than one version of the data on different computers true Select the relational database component term to its description: 1. These are the rows in a table; each row, or record, corresponds to a unique instance of what is being described in the table. 2.These are the columns that contain descriptive information about the observations in the table. Specific types of fields are primary keys and foreign keys. 3. Data organized into sets of columns (fields) and rows (records) 4. These are the columns that contain descriptive information about the observations in the table. Specific types of variables are primary keys and foreign keys. 1. records 2. fields 3. tables 4. variables a row that corresponds to a unique instance of what is being described in the table is called an record it is possible to input raw data in tableau false tableau shows you are importing a geographical variable by showing the ___ icon globe what type of question does diagnostic analytics address why did it happen what type of question does prescriptive analysis address what should we do based on what we expect will happen a ___ t test is more powerful than a ___ t test one tailed, two tailed predictive analysis emphasizes "will something happen in the future" true if p value < = alpha threshold, you should reject the null hypothesis (i.e., significant result). what tool or technique is used to quantitatively analyze the relationship between and among multiple variables cross- tabulations diagnostic analytics emphasizes " what happened" false which distribution is a probability distribution with a low mean and highly skewed to the right poisson distribution 1. If the alpha threshold is 0.05, and the p-value on a t-test comparing one company's ROA to the industry average ROA is 0.045, what do you conclude about the null hypothesis that the company's ROA is the same as the industry? 2. Is the roa the same of different than that of the industry? 3.. If the alpha threshold is 0.10, and the p-value on a t-test comparing one company's ROA to the industry average ROA is 0.11, what do you conclude about the null hypothesis that the company's ROA is the same as the industry? 4. Is the ROA the same or different than that of the industry? 1. reject the null hypothesis 2. different 3. accept null hypothesis 4. same descriptive analytic measures of variability include all except which of the following- minimums, maximums, standard deviation, medians medians the best way to analyze the variability in the sample would be to consider the standard deviation which measure would help us evaluate what happens in the highest and lowest 10 percent of the data deciles in vertical analysis, the relevant base for long term debt is which of the following total assets a realistic expectation an accountant could hold is that addresses of the company vendors are not similar to that of the company employees true Select the diagnostic analytics to an example or definition. 1. Analytics to see if we can find all of the skipped purchase order numbers. 2.An observation that lies outside its expected distribution. 3. Test used to evaluate if accounting profits are greater at manufacturing firms as compared to retailing firms. 4. The price variance is favorable, but the quantity variance is not favorable. 5. Difficulty cutting out unprofitable products. 1. sequence check 2. outlier 3. two sample t test difference of means 4. variance analysis 5. sunk cost fallacy the 2011 movie moneyball is an example of ___ analytics applied to the sport of baseball drill down, detailed diagnostic analytics is broken down into all except for which of the following broad categorites performing descriptive analytics the appropriate test to see if independent variables are related to dependent variable is called a regression the appropriate test to compare one sample to another sample to see if one is greater that another in some way is called an two sample t test of a difference in means Management accounting uses variance analysis to explain what and why something happened in the cost of producing products. It is done by comparing actual outcomes to expected, or standard, costs. What is the expectation when the price of raw materials unexpectedly decreases below the standard price? favorable price variance which is an observation that lies outside its expected distribution outlier For which of the various potential transactions would analysis using Benford's law be useful to perform? 1. $500 is the minimum refund 2. ATM withdrawals are in $20 denominations ($20, $40, $60, etc.) 3. Each sales transaction amount 4. Each participant receives $100 if they participated in the survey 5. Total Assets of the Fortune 500 1. not useful 2, not useful 3. useful 4. not useful 5, useful Data considering the text in blogs would generally be considered _______. unstructured data Noting gold, silver, and bronze medals for Olympic athletes would be considered a form of _______ data. Ordinal Employee salaries would be considered examples of _______ data. Ratio Blogs and social media posts would be considered _______. unstructured data If there are 20 return transactions and 50 sales transactions, what is the proportion of return transactions? = 20/70 If there are five transactions on 12/1, four transactions on 12/2, and nine transactions on 12/3, what is the proportion of the 12/1 transactions that occur during the first three days of December? = 5/18 Transaction_Type in Exhibit 3.3 is considered _______. categorical data The term "useful life" in the fixed asset subledger is considered to be helpful to the preparer and the user because it _______. tells the accountant the depreciation period the assets will be depreciated over Facebook, Twitter and Instagram posts would generally be considered to be Unstructured Data Averaging is a summarization method for which type of data? Numerical _______ is data about the data. A data dictionary True or false: Sometimes we need to reformat structured data to make it more useful. True Proportions are used to summarize _____ data. Categorical True or false: Eye color is an example of ordinal data. False Examples of _____ data include blue, red, and yellow ribbons awarded at the state fair. Ordinal Transactions categorized as sales or returns are examples of _____ data types. Ordinal _______ data tends to be text data without internal organization. Unstructured Ordinal data is summarized by counting and grouping, proportions and Ranking _____ data tend to classify items represented by words, such as identifying a group of people by gender (male, female, nonbinary), labeling transaction types (sales vs. returns) or ordering outcomes. Categorical _________ data is categorical data that cannot be ranked. Nominal Categorical and _____ data make up the two major data types. Numerical Ranking is associated with ______ data. Ordinal The results of an IQ (intelligence quotient) test is an example of ____ data. Interval Calculating the ______ of sales to returns each day for a retail organization is an example of summarizing ordinal data. Proportion Ranking used as a means of summarizing ordinal data refers to a position on a Scale Proportions are used to summarize _____ data. Categorical ______ data includes both interval data and ratio data. Numerical The height of each basketball player on a team is an example of which type of data? ratio data ______ data is so named because there is an equal distance between two observations. Interval The numerical data type that has a meaningful distance between observations uses a(an) _____ scale. Interval Transactions categorized as sales or returns are examples of ______ data types. Ordinal Ordinal data is summarized by counting and grouping, proportions and Ranking _________ data tend to classify items represented by words, such as identifying a group of people by gender (male, female, nonbinary), labeling transaction types (sales vs. returns) or ordering outcomes. Categorical True or false: Databases and other statistical analysis tools use more than the four data types to categorize data. True The average time outstanding for a company's accounts receivable is an example of which type of data? ratio data ____________ help run summary statistics quickly and provide the flexibility to explore data and interact with it based on the results through analysis without modifying the data. Pivottables The data type that ranks, or orders, items is called the _____ data type. Ordinal Calculating the _____ of sales to returns each day for a retail organization is an example of summarizing ordinal data. Listen to the complete question Proportion The asset description from a fixed asset ledger is an example of ____ data. Categorical Data regarding inventory being in stock is an example of _____ data. Categorical In string, short text, or alphanumeric data type, the data can be made up of ______. several different data types _____ are one of the best methods for summarizing many types of raw data in Excel. Pivottables Since average customer rating is computed each time a product is displayed in Amazon, it is an example of a ____ variable. Calculated The data dictionary contains a separate _____ for each field (or variable). Record The net book value of each asset from a fixed asset ledger is an example of _____ data. Numerical Product price is an example of _____ data. Numerical In a data dictionary, transaction type, whether it be the sale of a product or return of the product, is an example of the _____ data type. short text True or false: Databases and other statistical analysis tools use more than the four data types to categorize data. True True or false: Product price for an Amazon product is an example of a calculated variable. False A data ______ is a centralized repository of information about a set of data. Dictionary In a data dictionary, product price is an example of the _____ data type. Currency In a data dictionary, transaction ID, a unique identifier for each transaction is an example of the _____ data type. short text True or false: Product price for an Amazon product is an example of a calculated variable. - "Create" is the highest skill in Bloom's Taxonomy. True False One of the four V's describing Big Data that notes that some data will be structured and other data is unstructured would be _____. Variety Each of the following is potentially a company subledger except: Employee subledger "Ask the Right Question" is one of the desired skills for accounting professionals, consistent with EY's "The Analytics Mindset". True False A visualization may be used to help with which component of the AMPS model? Ask the Question Master the Data Perform the Analysis Share the Story A _____ is used to access data from a larger dataset needed for analysis. pivottable query or macro visualization Benford's law analysis The third step of the AMPS model is _____. Ask the Question Master the Data Perform the Analysis Share the Story There is more social media data than financial statement data available. True False According to the AMPS model, the analyst should know the question they are trying to address before considering and accessing available data. True False The _____ summarizes all of the journal entries which forms the basis for the financial statements. Sales Journal General Ledger Special Journal General Journal EDGAR, the SEC repository of SEC forms, stands for _______. Electronic Data Gathering, Analysis Repository System Electronic Data Gathering, and Archive Retrieval System Electronic Data Gathering, Analysis and Retrieval System Electronic Data Gathering, Analysis Resource System An information system for managing all interactions with current and potential employees is called a(n) _____ . Employee management system Human Resource management system Staff management reporting system Management information system A data map is a centralized repository of information about data containing a separate record for each field/variable in the database. True False Ratio data has an absolute zero. True False If there are 6 transactions on 11/1, 3 transactions on 11/2 and 10 transactions on 11/3, what is the proportion of the 11/1 transactions to the total transactions that occur during the first three days of November? =19/6 =6/13 =6/19 =6/6 An example of unstructured data would include __________. names and addresses pictures financial statements product reviews Earnings per share would be considered to be __________ data. ordinal nominal interval ratio It is possible to input raw data within Tableau. True False Version control reduces the possibility of having more than one version of the data on different computers. True False The most common type of database model is the __________ database. hierarchical network relational star schema A row that corresponds to a unique instance of what is being described in the table is called a(n) __________. attribute field data point record When the source data used to create an Excel pivottable change, the pivottable will update __________. automatically only after the file is saved only when the pivottable is "refreshed" never, any change requires a new pivottable "What should we do based on what we expect will happen?" is investigated using Prescriptive Analytics. True False Optimization is most closely associated with prescriptive analytics. True False Which type of question does diagnostic analytics address? What happened? What should we do based on what we expect will happen? Why did it happen? Will it happen in the future? Which distribution is a probability distribution with a low mean and highly skewed to the right? Normal Distribution Poisson Distribution Level Distribution Uniform Distribution What tool or technique is used to quantitatively analyze the relationship between and among multiple variables? Cross-Tabulations Time Series Histograms Descriptive Statistics Department stores have faster asset turnover than airline companies. True False Descriptive statistics are analytics that characterize, summarize, and organize features and properties of the data to facilitate understanding. True False In vertical analysis, the relevant base for long-term debt is which of the following? Sales Revenue Total Assets Total Equity Total Liabilities Descriptive analytic measures of variability include all except which of the following? Minimums Maximums Standard Deviation Medians Descriptive analytics of a return on market equity performed by researchers, __________ , provide examples of a possible anomaly right around zero that requires further analysis. Burgstahler and Dichev Deutch and Sensenbrenner Davis and Castro Buck and Jordan Standard cost is an estimated, or expected, cost of producing a good or service used in management accounting. True False A realistic expectation an accountant could hold is that addresses of the company vendors are not similar to that of the company employees. True False Management accounting uses variance analysis to explain what and why something happened in the cost of producing products. It is done by comparing actual outcomes to expected, or standard, costs. What is the expectation when the price of raw materials unexpectedly decreases below the standard price? Unfavorable price variance Favorable price variance Unfavorable quantity variance Favorable quantity variance What is an observation that lies outside its expected distribution? Outlier Unexpected Observation Fuzzy Matching Management by exception Diagnostic analytics is broken down into all except for which of the following broad categories? Identifying anomalies and outliers Performing drill-down detailed analytics Performing statistical analyses Performing descriptive analytics We would expect a positive (+) relationship between loan acceptance and employment length. True False The balance in the cash account is deterministic as compared to being probabilistic. True False Forecasting sales for budget purposes is an example of which type of predictive analytics? Time Series Regression Classification Fuzzy Matching __________ is the repeatability of the financial statement variables (e.g., earnings, sales, cash flows) over time. Persistence Durability Continuity Repetitive Nature Predictive analytics is useful for which type of analysis? Summarizing Data Finding Anomalies and Outliers Uncovering Patterns Regression Analysis The process of changing the values in various input cells to see how they might affect the output is called foregone costs. True False Whether the investment returns arrive in year 1 versus year 2 will not make a difference on the calculation of net present value. True False The __________ is the interest rate that makes the present value of cash inflows just equal to the present value of cash outflows. Net Present Value Internal Rate of Return Capital Budget Marginal Analysis What is the net present value for a $55,000 investment (−$55,000 in year zero) and cash inflows of $20,000 per year for years 1 through 4, using a 4% discount rate? 16,921.06 25,000 -25,.06 In any Excel functions that use rate (e.g. PMT, IRR, NPV), the correct way to enter a monthly rate when the annual interest rate is 4 percent is __________. .04 .04/12 4 4/12 Stage 1 of ERP (list data quality,completeness and reduandancy level) Customer Development Adv: get what you asked for Disadv: get what you asked for, money&time Harvey ball chart: Cost: doesn't meet requirements Benefit: almost fully meets requirements Risk: doesn't meet requirements quality=low,completeness=high,redundancy=high Analytics Data quality, Data completeness, Data redundancy Stage 2 of ERP (list data quality,completeness and reduandancy level) Tightly Coupled Adv: Designed to work together Disadv: Paying for stuff you dont need (ex: deloitte doesn't need SCM/Production modules) Harvery ball: Cost: half meet requirement Benefit: half meet requirement Risk: half meet requirement quality=high, completeness=medium+, redundancy=medium+ Stage 3 of ERP (list data quality,completeness and reduandancy level) Loosely coupled - can break apart system Adv: closely tied to what need disadv: doesn't precisly meet harvey ball: Cost: half meet requirement-more costly b/c tailored Benefit: 3/4 meet reuirement Risk: fully meets requirement (less risky/less integration issue) less data quality(compared to best of breed) b/c still isn't fully developed to business need but high, medium+ data completeness, higher data redundancy Stage 4 ERP (list data quality,completeness and reduandancy level) Best of Breed Adv: get exactly what you want disadv: integration issue harvey ball: cost: half meet requirement benefit: fully meet requirement - get exactly what need risk: 3/4 meet requirement - more risky than loosely coupled high data quality, higher data completeness, medium+ data redundancy ERP packages (tiers) Tier 1: big companies, good software/quality - SAP,Oracle Tier 2: Medium companies - in cloud, SAAS, netsuit, workday Tier 3: small companies - quickbooks, great plains Service providers 1. Bluechip companies: PWC,IBM,KPMG,Deloitte (tier 1 and tier 2) 2.Mid tier: HP,SAIC 3.Foreign companies: TCS, WiPro development approaches 1. configuration mization lite 3. customization heavy Implementation approaches 1. Pilot: use people to test out new system (takes a group of people to test system, then next group, and so on) 2. Phase: switches over one module at a time, once implementation of one is done it starts with the next 3. Big Bang: all at once in one moment of time new system is implemented LOWEST DATA QUALITY 4. Parallel: both systems running at same time, slow transition, most costly, both system run until certain new one works HIGHEST DATA QUALITY Blooms taxonomy (lowest to highest level of thinking) EXCEL: ber- facts and figures stand: meaning of facts (JE) : facts, rules, concepts&ideas WHERE WE ARE: ze: break info into pieces EXPERIENCE: ate: judge quality/value e:new whole AMPS model 1. Ask the question: most important to understand, want to know what you're addressing 2. Master the data: can it answer the question,type of data, data integrity, ease of getting data 3. Perform the analysis: most useful for data, use correct tools to perform analysis 4. Share the story: best way to communicate based on audience (static=reports/graphs, dynamic=dashboards) 4 types of questions: What happened? (descriptive) Why did it happen? (diagonostic) Will it happen in the future? (predictive) What should we do? (prescriptive) of the options listed below, which is the lowest and highest level of thinking skills in Bloom's Taxonomy? a. create b. understand c. apply d. analyze lowest=understand highest=create which component of the AMPS model would usually involve creating a pivot table? Perform the analysis Benfords law might be used as part of which component of the AMPS model Perform the analysis the accuracy, validity and consistency of data used and stored over time is called: a. data veracity b. data integrity quality d. truthful data a ____ is used to access data from a larger dataset needed for analysis table lization rds law impact of analytics on audit profession: positive: improved audit quality, enhanced audit, stay engaged negative: reduce fees, change is hard impact of analytics on financial reporting positive: better estimates, true business environment, look at risks better negative: ethical issues impact of analytics on tax positive: tax strategy and planning, tax consequences, what if questions negative: judgement, inertia 4 V's Volume: how much data is available (pro=more to be seen, con=confusing) QUANTITY Velocity: Speed of data (pro=always have latest info, con=need to have stopping point) SPEED Variety: Different data sources (pro=if it converges, trustworthy, con=doesnt converge, uncertainty) SOURCES Veracity: How trusted the data is (pro=can make things comfortable, con=timing issue) TRUST structured data comes from internal organization stable volume, low/medium velocity, low variety, high veracity unstructured data data from outside organization high volume, high velocity, have to judge veracity, high variety which system would be used to track sales with each customer? a.Human resource mgt system mer relationship mgt system y chain system cial reporting system of the data items, which has the highest velocity? cial statements prices r productivity meaures weather updates ___ represent an interactive question-and-answer session between investors, analysts, and other shareholders and mgt a. the management discussion and analysis part of the 10-k b. conference call transcripts c. press releases d. SEC form 8-k economic data includes all but the following: a. GDP b. Unemployment stats c. Consumer price index d. Budget data managerial accounting systems generally include ______ which represent a forecast of _____ a. budget, sales b. earnings, sales c. personnel hiring plans, earnings d. a plan for a loan, cash categorical data categorizing into different groups (male/female)--if given numbers (say male=1 female=2) and avg them...no meaning numeric data meaningful numbers, there is order subsets within categorical data: Nominal categories are not ranked (gender, transaction type) allows you to count, group, etc of categories subset within categorical data: Ordinal implied ranking, scale isn't meaningful (letter grade, olympic medals) how much do u love stats? 5=verymuch 4=somewhat 3=neither 2=somewhat dislike 1=hate meta data data about data normalizing makes sure there aren't any repeating PKs numerical data subset: interval equal interval between each observtion - doesn't have a meaningful zero (ex. temperature) numerical data subset: ratio majority of data related to accounting can be counted and ranked (like interval) but zero is meaningful ex: measure $, expense, rev, assets, etc since AssetID is a number identifying assets in a fixed asset ledger account, it would be considered: a. numerical data b. categorical data c. ratio data d. ordinal data Facebook, twitter, and Instagram platforms would generally be considered a, structutred data b. unstructed data c. numerical data d. ordinal data which of the following would NOT be a calculated variable from other data? a. number of products available b. coupon availability c. ranking of sales of one product compared to other products d. avg customer rating letter grades (a,b,c,d) would be considered ___ data a. numerical b. ordinal c. ratio d, interval while __ data classifies categorical items, __data ranks catergorical items a. ordinal, nominal b. nominal, ordinal c. nominal, interval d. ordinal, interval relational databases trying to show relationship between different things, very popular and efficient (internal control improved) pk, fk, composite key pk= unique identifier fk= pk of different table composite key= consists of 2 or more attributes together cardinalities minimum modality maximum internal controls preventative (write a check to supplier, supplier must exist) data entry- range check (max hrs = 50), limit check normalization - redundancy cut down one version of the truth 4 types of questions and tools used 1. what happened? descriptive- counts, tables, avg, summary, min and max, pivot table FACILITATE UNDERSTANDING 2. why did it happen? diagnostic- outliers(have to keep unless good reason to toss)/anomolies, variance analysis, reconciliations, patterns&linkages,sequence checks, correlations, configurational model, correlation model (look at different factors in isolation) UNDERLYING CAUSE 3. will this happen in the future? predictive - classification, regression, forcecast PROVIDE FORESIGHT 4. what should you do? prescriptive - sensitivity analysis, what if, goal seek IDENTIFY BEST POSSIBLE OPTION hypothesis testing: type 1 and type 2 error type 1= false positive (better safe than sorry) type 2=false negative (if you think harm is minimal) always have challenge of whichever more comfortable with cutoff limit: p-value < .05 with 95% correctness that our client is committing fraud (won't use p-value <.01 bc very costly and not necessary) descriptive analysis summarize, characterize and organize data to facilitate understanding vertical vs horizontal analysis vertical: host of different factos (taking everything on b/s and dividing by rev) horizontal: overtime comparison (AR is current year vs. AR in prior year) Dupont ratio: vertical analysis Return on equity - look @ component pieces --- profit margin: want more profit (profit/sales) asset turnover: sales/total assets financial leverage: total assets/equity - how are we using assets compared to equity by focusing on individual component pieces can find more information What is an example of a cash reconciling item for an item recorded by the bank but not yet recorded in the general ledger? a. Interest earned on notes held by the bank b. Outstanding deposits c. Outstanding checks d. There are no items recorded by the bank but not recorded in the general ledger. The practice of identifying the difference between a budget amount and actual performance is called: a. outlier analysis b. anomaly analysis c. variance analysis d. management by exception The practice of bringing specific issues to the attention of management if they depart from expectation is called ______. a. fuzzy matching b. management by exception