Test Bank for Data Analytics for Accounting (1st Edition) by Richardson – Chapter 1: Data Analytics in Accounting and Business

,Data Analytics for Accounting, 1e (Richardson)
Chapter 1 Data Analytics in Accounting and Business

1) Data analytics is the process of evaluating data with the purpose of drawing conclusions to
address business questions.

Answer: TRUE
Difficulty: 1 Easy
Topic: Define Data Analytics
Learning Objective: 01-01 Define Data Analytics.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making

2) The process of data analytics aims to transform raw information into data to create value.

Answer: FALSE
Difficulty: 1 Easy
Topic: Define Data Analytics
Learning Objective: 01-01 Define Data Analytics.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making

3) Data analytics has the potential to transform the manner in which companies run their
businesses; however, it is not practical in the near future.

Answer: FALSE
Difficulty: 1 Easy
Topic: How Data Analytics Affects Business
Learning Objective: 01-02 Understand why Data Analytics matters to business.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making

4) Auditors can use social media to hear what customers are saying about a company and
compare this to inventory obsolescence and other estimates.

Answer: TRUE
Difficulty: 2 Medium
Topic: Financial Reporting
Learning Objective: 01-03 Explain why Data Analytics matters to accountants.
Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making


1
Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.

,5) Data analytics allows auditors to glean insights that are beneficial to the client, without
breaching independence.

Answer: TRUE
Difficulty: 2 Medium
Topic: Auditing
Learning Objective: 01-03 Explain why Data Analytics matters to accountants.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making

6) The predictive analytics is an important aspect of data analytics for auditors, but is not
applicable for tax accountants.

Answer: FALSE
Difficulty: 1 Easy
Topic: Tax
Learning Objective: 01-03 Explain why Data Analytics matters to accountants.
Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making

7) The I in IMPACT Cycle represents Identify the Question.

Answer: TRUE
Difficulty: 2 Medium
Topic: The Data Analytics Process Using the Impact Cycle
Learning Objective: 01-04 Describe the Data Analytics Process Using the IMPACT Cycle.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making

8) The M in IMPACT Cycle represents Master the Data.

Answer: TRUE
Difficulty: 2 Medium
Topic: The Data Analytics Process Using the Impact Cycle
Learning Objective: 01-04 Describe the Data Analytics Process Using the IMPACT Cycle.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making




2
Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.

, 9) The P in IMPACT Cycle represents Predict the Results.

Answer: FALSE
Difficulty: 2 Medium
Topic: The Data Analytics Process Using the Impact Cycle
Learning Objective: 01-04 Describe the Data Analytics Process Using the IMPACT Cycle.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making

10) The A in IMPACT Cycle represents Analyze the Data.

Answer: FALSE
Difficulty: 2 Medium
Topic: The Data Analytics Process Using the Impact Cycle
Learning Objective: 01-04 Describe the Data Analytics Process Using the IMPACT Cycle.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making

11) The C in IMPACT Cycle represents Continuously Track.

Answer: FALSE
Difficulty: 2 Medium
Topic: The Data Analytics Process Using the Impact Cycle
Learning Objective: 01-04 Describe the Data Analytics Process Using the IMPACT Cycle.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making

12) The T in IMPACT Cycle represents Track Outcomes.

Answer: TRUE
Difficulty: 2 Medium
Topic: The Data Analytics Process Using the Impact Cycle
Learning Objective: 01-04 Describe the Data Analytics Process Using the IMPACT Cycle.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making




3
Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.