Accounting Data Analytics Questions
and Answers 100% Pass
What is the main goal of accounting data analytics?
✔✔ To analyze financial data and derive insights that aid in decision-making and improve
financial performance
What is a common tool used in accounting data analytics?
✔✔ Microsoft Excel
What is the purpose of financial ratio analysis in accounting data analytics?
✔✔ To evaluate the financial health of a company by comparing key financial metrics
What is the role of predictive analytics in accounting?
✔✔ To forecast future financial trends and outcomes based on historical data
What is the significance of trend analysis in accounting?
✔✔ To identify patterns in financial data over time to guide future decisions
1
,What is a common use of data visualization in accounting analytics?
✔✔ To represent financial data in charts and graphs for better understanding and presentation
What is the purpose of data cleansing in accounting data analytics?
✔✔ To remove errors and inconsistencies in financial data before analysis
What is a key challenge in accounting data analytics?
✔✔ Ensuring data accuracy and consistency across various financial systems
What is the role of data aggregation in accounting analytics?
✔✔ To combine data from multiple sources to create a unified view for analysis
What is an example of using regression analysis in accounting?
✔✔ Predicting future revenue based on historical sales and external factors
What is the purpose of variance analysis in accounting?
✔✔ To compare actual financial performance against budgeted or forecasted performance
2
, What is the role of machine learning in accounting data analytics?
✔✔ To automate repetitive tasks and predict financial outcomes based on historical data
What is the importance of internal controls in accounting data analytics?
✔✔ To ensure the integrity and accuracy of financial data used in analytics
What does the term "financial forecasting" refer to in accounting?
✔✔ The process of estimating future financial outcomes based on historical data and
assumptions
What is the purpose of ratio analysis in accounting?
✔✔ To evaluate the efficiency, profitability, and solvency of a company using key financial
ratios
What is a key benefit of cloud-based accounting systems in data analytics?
✔✔ They allow for real-time access to financial data and enhanced collaboration across teams
What is the difference between descriptive and diagnostic analytics in accounting?
3
and Answers 100% Pass
What is the main goal of accounting data analytics?
✔✔ To analyze financial data and derive insights that aid in decision-making and improve
financial performance
What is a common tool used in accounting data analytics?
✔✔ Microsoft Excel
What is the purpose of financial ratio analysis in accounting data analytics?
✔✔ To evaluate the financial health of a company by comparing key financial metrics
What is the role of predictive analytics in accounting?
✔✔ To forecast future financial trends and outcomes based on historical data
What is the significance of trend analysis in accounting?
✔✔ To identify patterns in financial data over time to guide future decisions
1
,What is a common use of data visualization in accounting analytics?
✔✔ To represent financial data in charts and graphs for better understanding and presentation
What is the purpose of data cleansing in accounting data analytics?
✔✔ To remove errors and inconsistencies in financial data before analysis
What is a key challenge in accounting data analytics?
✔✔ Ensuring data accuracy and consistency across various financial systems
What is the role of data aggregation in accounting analytics?
✔✔ To combine data from multiple sources to create a unified view for analysis
What is an example of using regression analysis in accounting?
✔✔ Predicting future revenue based on historical sales and external factors
What is the purpose of variance analysis in accounting?
✔✔ To compare actual financial performance against budgeted or forecasted performance
2
, What is the role of machine learning in accounting data analytics?
✔✔ To automate repetitive tasks and predict financial outcomes based on historical data
What is the importance of internal controls in accounting data analytics?
✔✔ To ensure the integrity and accuracy of financial data used in analytics
What does the term "financial forecasting" refer to in accounting?
✔✔ The process of estimating future financial outcomes based on historical data and
assumptions
What is the purpose of ratio analysis in accounting?
✔✔ To evaluate the efficiency, profitability, and solvency of a company using key financial
ratios
What is a key benefit of cloud-based accounting systems in data analytics?
✔✔ They allow for real-time access to financial data and enhanced collaboration across teams
What is the difference between descriptive and diagnostic analytics in accounting?
3
