Test Bank
sl
1
,Data Analytics forAccounting, 3rd Edition by Vernon Richardson, Teeter
sl sl sl sl sl sl sl sl sl
Chapter 01 3e sl sl
Answers Included sl sl
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
s l s l s l s l s l s l s l s l s l s l s l s l s l s l s l
1) Data analytics is the process of evaluating data with the purpose of drawing conclusio ns t
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o address business questions.
sl sl sl
⊚ true
⊚ false
2) The process of data analytics aims to transform raw information into data to create value.
sl sl sl sl sl sl sl sl sl sl sl sl sl sl
⊚ true
⊚ false
3) Data analytics has the potential to transform the manner in which companies run th eir
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businesses, however it is not practical in the near future.
sl sl s l sl sl s l sl sl sl
⊚ true
⊚ false
4) Auditors can use social media to hear what customers are saying about a company a nd c
sl sl sl sl sl sl sl sl sl sl sl sl sl sl sl sl
ompare this to inventory obsolescence and other estimates.
sl sl sl sl sl sl sl
⊚ true
⊚ false
5) Data analytics allows auditors to glean insights that are beneficial to the client, witho ut b
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reeching independence.
sl
⊚ true
⊚ false
6) The predictive analytics is an important aspect of data analytics for auditors, but is n ot a
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pplicable for tax accountants.
sl sl sl
⊚ true
⊚ false
7) The I in IMPACT Cycle represents Identify the Question.
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2
, ⊚ true
⊚ false
8) The M in IMPACT Cycle represents Master the Data.
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⊚ true
⊚ false
9) The P in IMPACT Cycle represents Predict the Results.
sl sl sl sl sl sl sl sl
⊚ true
⊚ false
10) The A in IMPACT Cycle represents Analyze the Data.
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⊚ true
⊚ false
11) The C in IMPACT Cycle represents Continuously Track.
sl sl sl sl sl sl sl
⊚ true
⊚ false
12) The T in IMPACT Cycle represents Track Outcomes.
sl sl sl sl sl sl sl
⊚ true
⊚ false
13) The IMPACT cycle is iterative, as insights are gained, outcomes are tracked, and ne w q
sl sl sl sl sl sl sl sl sl sl sl sl sl sl sl
uestions are identified.
sl sl
⊚ true
⊚ false
14) Data analysis through data manipulation is performing basic analysis to understand t he
sl sl sl sl sl sl sl sl sl sl sl sl s
quality of the underlying data and its ability to address the business question.
l s l s l s l s l s l s l s l s l s l s l s l s l
⊚ true
⊚ false
3
, 15) To be proficient in data analysis, accountants need to become data scientists.
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⊚ true
⊚ false
16) By developing an analytics mindset, accountants will be able to recognize when and ho w d
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ata analytics can address business questions.
sl sl sl sl sl
⊚ true
⊚ false
17) While it is important for accountants to clearly articulate the business problem, drawi ng
sl sl sl sl sl sl sl sl sl sl sl sl sl s l
appropriate conclusions, based on the data, should be left to statisticians.
s l s l s l sl s l s l s l sl sl sl
⊚ true
⊚ false
18) Analytic-
minded accountants should report results of analysis in an accessible way to each varied d ecisio
sl sl sl sl sl sl sl sl sl sl sl sl sl sl sl
n maker and their specific needs.
sl sl sl sl sl
⊚ true
⊚ false
MULTIPLE CHOICE - sl sl
Choose the one alternative that best completes the statement or answers the question.
sl sl sl sl s l s l s l sl s l s l s l s l
19) With a goal to give organizations the information they need to make sound and time ly b
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usiness decisions, data analytics often involves all of the following except:
s l s l s l s l s l s l s l sl s l s l
A) technologies.
B) statistics.
C) strategies.
D) databases.
20) Patterns discovered from s l s l sl
blank enable businesses to identify opportunities and risks and better plan for
sl sl sl sl sl sl sl sl sl sl sl
blank.
4
sl
1
,Data Analytics forAccounting, 3rd Edition by Vernon Richardson, Teeter
sl sl sl sl sl sl sl sl sl
Chapter 01 3e sl sl
Answers Included sl sl
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
s l s l s l s l s l s l s l s l s l s l s l s l s l s l s l
1) Data analytics is the process of evaluating data with the purpose of drawing conclusio ns t
sl sl sl sl sl sl sl sl sl sl sl sl sl sl sl
o address business questions.
sl sl sl
⊚ true
⊚ false
2) The process of data analytics aims to transform raw information into data to create value.
sl sl sl sl sl sl sl sl sl sl sl sl sl sl
⊚ true
⊚ false
3) Data analytics has the potential to transform the manner in which companies run th eir
sl sl sl sl sl sl sl sl sl sl sl sl sl sl sl
businesses, however it is not practical in the near future.
sl sl s l sl sl s l sl sl sl
⊚ true
⊚ false
4) Auditors can use social media to hear what customers are saying about a company a nd c
sl sl sl sl sl sl sl sl sl sl sl sl sl sl sl sl
ompare this to inventory obsolescence and other estimates.
sl sl sl sl sl sl sl
⊚ true
⊚ false
5) Data analytics allows auditors to glean insights that are beneficial to the client, witho ut b
sl sl sl sl sl sl sl sl sl sl sl sl sl sl sl
reeching independence.
sl
⊚ true
⊚ false
6) The predictive analytics is an important aspect of data analytics for auditors, but is n ot a
sl sl sl sl sl sl sl sl sl sl sl sl sl sl sl sl
pplicable for tax accountants.
sl sl sl
⊚ true
⊚ false
7) The I in IMPACT Cycle represents Identify the Question.
sl sl sl sl sl sl sl sl
2
, ⊚ true
⊚ false
8) The M in IMPACT Cycle represents Master the Data.
sl sl sl sl sl sl sl sl
⊚ true
⊚ false
9) The P in IMPACT Cycle represents Predict the Results.
sl sl sl sl sl sl sl sl
⊚ true
⊚ false
10) The A in IMPACT Cycle represents Analyze the Data.
sl sl sl sl sl sl sl sl
⊚ true
⊚ false
11) The C in IMPACT Cycle represents Continuously Track.
sl sl sl sl sl sl sl
⊚ true
⊚ false
12) The T in IMPACT Cycle represents Track Outcomes.
sl sl sl sl sl sl sl
⊚ true
⊚ false
13) The IMPACT cycle is iterative, as insights are gained, outcomes are tracked, and ne w q
sl sl sl sl sl sl sl sl sl sl sl sl sl sl sl
uestions are identified.
sl sl
⊚ true
⊚ false
14) Data analysis through data manipulation is performing basic analysis to understand t he
sl sl sl sl sl sl sl sl sl sl sl sl s
quality of the underlying data and its ability to address the business question.
l s l s l s l s l s l s l s l s l s l s l s l s l
⊚ true
⊚ false
3
, 15) To be proficient in data analysis, accountants need to become data scientists.
sl sl sl sl sl sl sl sl sl sl sl
⊚ true
⊚ false
16) By developing an analytics mindset, accountants will be able to recognize when and ho w d
sl sl sl sl sl sl sl sl sl sl sl sl sl sl sl
ata analytics can address business questions.
sl sl sl sl sl
⊚ true
⊚ false
17) While it is important for accountants to clearly articulate the business problem, drawi ng
sl sl sl sl sl sl sl sl sl sl sl sl sl s l
appropriate conclusions, based on the data, should be left to statisticians.
s l s l s l sl s l s l s l sl sl sl
⊚ true
⊚ false
18) Analytic-
minded accountants should report results of analysis in an accessible way to each varied d ecisio
sl sl sl sl sl sl sl sl sl sl sl sl sl sl sl
n maker and their specific needs.
sl sl sl sl sl
⊚ true
⊚ false
MULTIPLE CHOICE - sl sl
Choose the one alternative that best completes the statement or answers the question.
sl sl sl sl s l s l s l sl s l s l s l s l
19) With a goal to give organizations the information they need to make sound and time ly b
sl sl sl sl sl sl sl sl sl sl sl sl sl sl sl s l
usiness decisions, data analytics often involves all of the following except:
s l s l s l s l s l s l s l sl s l s l
A) technologies.
B) statistics.
C) strategies.
D) databases.
20) Patterns discovered from s l s l sl
blank enable businesses to identify opportunities and risks and better plan for
sl sl sl sl sl sl sl sl sl sl sl
blank.
4
