SOLUTION MANUAL
Data Analytics for Accounting, 3rd Edition
by Vernon Richardson, Chapters 1 - 9
1
,Chapter 1: Data Analytics for Accounting and Identifying the Questions Chapter 2: Mastering the Data
e e e e e e e e e e e e e e
Chapter 3: Performing the Test Plan and Analyzing the Results Chapter 4: Communicating Results and
e e e e e e e e e e e e e e
Visualizations
e
Chapter 5: The Modern Accounting Environment Chapter 6: Audit Data Analytics
e e e e e e e e e e
Chapter 7: Managerial Analytics
e e e
Chapter 8: Financial Statement Analytics Chapter 9: Tax Analytics
e e e e e e e e
Solutions Manual – Chapter 1
e e e e
Solutions to Multiple Choice Questions
e e e e
1. (LO 1-1) Big Data is often described by the four Vs, or
e e e e e e e e e e e
a. volume, velocity, veracity, and variability.
e e e e
b. volume, velocity, veracity, and variety.
e e e e
c. volume, volatility, veracity, and variability.
e e e e
d. variability, velocity, veracity, and variety. e e e e
Answer: b e
2. LO 1-4) Which data approach attempts to assign each unit in a population into a small set ofclasses (or
e e e e e e e e e e e e e e e e e e
groups) where the unit best fits?
e e e e e e
a. Regression
b. Similarity matching e
c. Co-occurrence grouping e
d. Classification
Answer: d e
3. (LO 1-4) Which data approach attempts to identify similar individuals based on data knownabout
e e e e e e e e e e e e e
them?
e
a. Classification
b. Regression
c. Similarity matching e
d. Data reduction e
Answer: c e
4. (LO 1-4) Which data approach attempts to predict connections between two data items?
e e e e e e e e e e e e
a. Profiling
b. Classification
c. Link prediction e
2
, d. Regression
Answer: c e
5. (LO 1-6) Which of these terms is defined as being a central repository of descriptions for all of the data
e e e e e e e e e e e e e e e e e e e
attributes of the dataset?
e e e e
a. Big Datae
b. Data warehouse
e
c. Data dictionary
e
d. Data Analytics
e
Answer: c e
6. (LO 1-5) Which skills were not emphasized that analytic-minded accountants should have?
e e e e e e e e e e e
a. Developed an analytics mindset e e e
b. Data scrubbing and data preparation
e e e e
c. Classification of test approaches e e e
d. Statistical data analysis competencye e e
Answer: c e
7. (LO 1-5) In which areas were skills not emphasized for analytic-minded accountants?
e e e e e e e e e e e
a. Data qualitye
b. Descriptive data analysis e e
c. Data visualization and data reporting
e e e e
d. Data and systems analysis and design
e e e e e
Answer: d e
8. (LO 1-4) The IMPACT cycle includes all except the following steps:
e e e e e e e e e e
a. perform test plan. e e
b. visualize the data. e e
c. master the data. e e
d. track outcomes.
e
Answer: b e
9. (LO 1-4) The IMPACT cycle specifically includes all except the following steps:
e e e e e e e e e e e
a. data preparation. e
b. communicate insights. e
c. address and refine results. e e e
d. perform test plan. e e
Answer: a e
3
Data Analytics for Accounting, 3rd Edition
by Vernon Richardson, Chapters 1 - 9
1
,Chapter 1: Data Analytics for Accounting and Identifying the Questions Chapter 2: Mastering the Data
e e e e e e e e e e e e e e
Chapter 3: Performing the Test Plan and Analyzing the Results Chapter 4: Communicating Results and
e e e e e e e e e e e e e e
Visualizations
e
Chapter 5: The Modern Accounting Environment Chapter 6: Audit Data Analytics
e e e e e e e e e e
Chapter 7: Managerial Analytics
e e e
Chapter 8: Financial Statement Analytics Chapter 9: Tax Analytics
e e e e e e e e
Solutions Manual – Chapter 1
e e e e
Solutions to Multiple Choice Questions
e e e e
1. (LO 1-1) Big Data is often described by the four Vs, or
e e e e e e e e e e e
a. volume, velocity, veracity, and variability.
e e e e
b. volume, velocity, veracity, and variety.
e e e e
c. volume, volatility, veracity, and variability.
e e e e
d. variability, velocity, veracity, and variety. e e e e
Answer: b e
2. LO 1-4) Which data approach attempts to assign each unit in a population into a small set ofclasses (or
e e e e e e e e e e e e e e e e e e
groups) where the unit best fits?
e e e e e e
a. Regression
b. Similarity matching e
c. Co-occurrence grouping e
d. Classification
Answer: d e
3. (LO 1-4) Which data approach attempts to identify similar individuals based on data knownabout
e e e e e e e e e e e e e
them?
e
a. Classification
b. Regression
c. Similarity matching e
d. Data reduction e
Answer: c e
4. (LO 1-4) Which data approach attempts to predict connections between two data items?
e e e e e e e e e e e e
a. Profiling
b. Classification
c. Link prediction e
2
, d. Regression
Answer: c e
5. (LO 1-6) Which of these terms is defined as being a central repository of descriptions for all of the data
e e e e e e e e e e e e e e e e e e e
attributes of the dataset?
e e e e
a. Big Datae
b. Data warehouse
e
c. Data dictionary
e
d. Data Analytics
e
Answer: c e
6. (LO 1-5) Which skills were not emphasized that analytic-minded accountants should have?
e e e e e e e e e e e
a. Developed an analytics mindset e e e
b. Data scrubbing and data preparation
e e e e
c. Classification of test approaches e e e
d. Statistical data analysis competencye e e
Answer: c e
7. (LO 1-5) In which areas were skills not emphasized for analytic-minded accountants?
e e e e e e e e e e e
a. Data qualitye
b. Descriptive data analysis e e
c. Data visualization and data reporting
e e e e
d. Data and systems analysis and design
e e e e e
Answer: d e
8. (LO 1-4) The IMPACT cycle includes all except the following steps:
e e e e e e e e e e
a. perform test plan. e e
b. visualize the data. e e
c. master the data. e e
d. track outcomes.
e
Answer: b e
9. (LO 1-4) The IMPACT cycle specifically includes all except the following steps:
e e e e e e e e e e e
a. data preparation. e
b. communicate insights. e
c. address and refine results. e e e
d. perform test plan. e e
Answer: a e
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