ACC330 Data Analytics Final Exam Latest Update
Give an example of a percentage increase or decrease of a current or long-term liability
that you might be interested in understanding. - ANSWER "Answers will vary. Because
of the importance of long-term debt to solvency, the com-pany will be most interested in
understanding what long-term debt it has, when it will have to be repaid, and whether or
not it expects to need additional long-term debt"
"If you have minimums and maximums that are far away (several standard deviations
away from the mean) from the rest of the data observations, which measure of central
tendency (mean, median, or mode) would be most appropriate" - ANSWER "Median is
the best measure of central tendency when there are extreme observations"
"Due to its e-commerce capabilities, Amazon has been very disruptive to the retail
industry. Given this, would it be appropriate to compare Amazon's perform-ance to
others in the retail industry?" - ANSWER "Because Amazon competes primarily against
other retailers, it would be smart to com-pare and contrast its performance to the retail
industry"
"Which would have a lower expectation of ultimately being collected: aged receivables
in the 1-30 days bucket or the 121-150 days bucket? Why?" - ANSWER " The receivables
in the 1-30 days bucket are more likely to be collected than those in the 121-150 days
bucket of aged receivables. One reason why is that at least some of the receivables in
the 121-150 bucket will already be collected, while most of those in the 1-30 days bucket
will not yet have been collected"
"Which would you guess would have a higher profit margin: jewelry or toilet paper? -
ANSWER Toilet paper is generally known for having very slim profit margins—those
margins are essentially the same and every retailer has it available for sale. However,
jewelry is much more one of a kind and unique, suggesting higher profit margins in
general.
Which would you guess would have a higher asset turnover: jewelry or toilet paper? -
ANSWER Toilet paper has a higher asset turnover than jewelry. It is easy to handle and
often sells quickly if at the appropriate price. Jewelry does not sell as quickly and thus
has a lower asset turnover.
What is the difference between return on assets and return on equity? Seeing that
return on assets only has two components and return on equity has three, how does that
help highlight the differences?" - ANSWER The difference is financial leverage, which is
how much of the capital of the company is financed by equity or by debt
"Why is descriptive analytics often the first type of analysis performed before
diagnostic, predictive, or prescriptive analytics? How can descriptive analytics lead to
additional analyses?" - ANSWER " It is often difficult to answer why something
, happened (diagnostic analytics), when or if it will happen (predictive analytics), or how
to optimize based on what it expects will happen (prescriptive analytics) before
understanding what happened (descriptive analytics). For this reason, descriptive
analytics is often considered to be the first step in addressing a question or solving a
problem"
"1. (LO 6-4) To compute the percentage change in a horizontal analysis, the
computation is:
a. (New - Old)/Old.
b. (Old - New)/Old.
c. (Old - New)/New.
d. (New - Old)/New. - ANSWER A
(LO 6-4) In vertical analysis, the relevant base for accounts receivable would be which
of the following?
a. Sales revenue
b. Total assets
c. Total stockholders' equity
d. Total credit sales - ANSWER B
(LO 6-3) In which of the buckets would you expect the greatest amount of aged
receivables to be?
a. 31-60 days
b. 61-90 days
c. 1-30 days
d. 91-120 days" - ANSWER B
(LO 6-4) Which would have a higher expected profit margin (per dollar of sales) than the
others?
a. Jewelry
b. Shampoo
c. Bananas
d. Clothing - ANSWER A
(LO 6-4) Which would have a higher expected asset turnover (per dollar of assets) than
the others?
Give an example of a percentage increase or decrease of a current or long-term liability
that you might be interested in understanding. - ANSWER "Answers will vary. Because
of the importance of long-term debt to solvency, the com-pany will be most interested in
understanding what long-term debt it has, when it will have to be repaid, and whether or
not it expects to need additional long-term debt"
"If you have minimums and maximums that are far away (several standard deviations
away from the mean) from the rest of the data observations, which measure of central
tendency (mean, median, or mode) would be most appropriate" - ANSWER "Median is
the best measure of central tendency when there are extreme observations"
"Due to its e-commerce capabilities, Amazon has been very disruptive to the retail
industry. Given this, would it be appropriate to compare Amazon's perform-ance to
others in the retail industry?" - ANSWER "Because Amazon competes primarily against
other retailers, it would be smart to com-pare and contrast its performance to the retail
industry"
"Which would have a lower expectation of ultimately being collected: aged receivables
in the 1-30 days bucket or the 121-150 days bucket? Why?" - ANSWER " The receivables
in the 1-30 days bucket are more likely to be collected than those in the 121-150 days
bucket of aged receivables. One reason why is that at least some of the receivables in
the 121-150 bucket will already be collected, while most of those in the 1-30 days bucket
will not yet have been collected"
"Which would you guess would have a higher profit margin: jewelry or toilet paper? -
ANSWER Toilet paper is generally known for having very slim profit margins—those
margins are essentially the same and every retailer has it available for sale. However,
jewelry is much more one of a kind and unique, suggesting higher profit margins in
general.
Which would you guess would have a higher asset turnover: jewelry or toilet paper? -
ANSWER Toilet paper has a higher asset turnover than jewelry. It is easy to handle and
often sells quickly if at the appropriate price. Jewelry does not sell as quickly and thus
has a lower asset turnover.
What is the difference between return on assets and return on equity? Seeing that
return on assets only has two components and return on equity has three, how does that
help highlight the differences?" - ANSWER The difference is financial leverage, which is
how much of the capital of the company is financed by equity or by debt
"Why is descriptive analytics often the first type of analysis performed before
diagnostic, predictive, or prescriptive analytics? How can descriptive analytics lead to
additional analyses?" - ANSWER " It is often difficult to answer why something
, happened (diagnostic analytics), when or if it will happen (predictive analytics), or how
to optimize based on what it expects will happen (prescriptive analytics) before
understanding what happened (descriptive analytics). For this reason, descriptive
analytics is often considered to be the first step in addressing a question or solving a
problem"
"1. (LO 6-4) To compute the percentage change in a horizontal analysis, the
computation is:
a. (New - Old)/Old.
b. (Old - New)/Old.
c. (Old - New)/New.
d. (New - Old)/New. - ANSWER A
(LO 6-4) In vertical analysis, the relevant base for accounts receivable would be which
of the following?
a. Sales revenue
b. Total assets
c. Total stockholders' equity
d. Total credit sales - ANSWER B
(LO 6-3) In which of the buckets would you expect the greatest amount of aged
receivables to be?
a. 31-60 days
b. 61-90 days
c. 1-30 days
d. 91-120 days" - ANSWER B
(LO 6-4) Which would have a higher expected profit margin (per dollar of sales) than the
others?
a. Jewelry
b. Shampoo
c. Bananas
d. Clothing - ANSWER A
(LO 6-4) Which would have a higher expected asset turnover (per dollar of assets) than
the others?
