Test Bank for Data Analytics for Accounting, 3rd Edition by Vernon Richardson

Test Bank Data Analytics for Accounting, 3rd Edition by Vernon Richardson, Teeter



Chapter 01 3e Answers Included ✅

TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) Data analytics is the process of evaluating data with the purpose of drawing conclusions
to address business questions.
⊚ true
⊚ false


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




S
⊚ true
⊚ false




R
VE
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.
⊚ true
⊚ false
IE
H
4) Auditors can use social media to hear what customers are saying about a company and
AC

compare this to inventory obsolescence and other estimates.
⊚ true
⊚ false
M
EA




5) Data analytics allows auditors to glean insights that are beneficial to the client, without
breeching independence.
⊚ true
⊚ false
R
D




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


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




1

, ⊚ true
⊚ false


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


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




S
⊚ true
⊚ false




R
VE
10) The A in IMPACT Cycle represents Analyze the Data.
⊚ true
⊚ false
IE
H
11) The C in IMPACT Cycle represents Continuously Track.
⊚ true
AC

⊚ false
M



12) The T in IMPACT Cycle represents Track Outcomes.
⊚ true
EA




⊚ false
R




13) The IMPACT cycle is iterative, as insights are gained, outcomes are tracked, and new
questions are identified.
D




⊚ true
⊚ false


14) Data analysis through data manipulation is performing basic analysis to understand the
quality of the underlying data and its ability to address the business question.
⊚ true
⊚ false



2

,15) To be proficient in data analysis, accountants need to become data scientists.
⊚ true
⊚ false


16) By developing an analytics mindset, accountants will be able to recognize when and how
data analytics can address business questions.
⊚ true




S
⊚ false




R
17) While it is important for accountants to clearly articulate the business problem, drawing




VE
appropriate conclusions, based on the data, should be left to statisticians.
⊚ true
⊚ false
IE
H
18) Analytic-minded accountants should report results of analysis in an accessible way to
each varied decision maker and their specific needs.
AC

⊚ true
⊚ false
M



MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
EA




answers the question.
19) With a goal to give organizations the information they need to make sound and timely
business decisions, data analytics often involves all of the following except:
R




A) technologies.
D




B) statistics.
C) strategies.
D) databases.



20) Patterns discovered from __________blank enable businesses to identify opportunities
and risks and better plan for __________blank.




3

, A) past archives; the future
B) current data; the future
C) current data; today
D) past archives; today



21) Which of the following best describes the goal of descriptive data analysis:

A) recognize what is meant by data quality, be it completeness, reliability or validity




S
B) perform basic analysis to understand the quality of the underlying data and its ability




R
to address the business question
C) demonstrate ability to sort, rearrange, merge, and reconfigure data in a manner that




VE
allows enhanced analysis
D) comprehend the process needed to clean and prepare the data before analysis



22)
IE
Which of the following Microsoft software tool specializes in data joining?
H
AC

A) Excel
B) Power Query
C) Power BI
D) Power Automate
M
EA




23) Which of the following Microsoft software tools specializes in creating dashboards?
R




A) Excel
D




B) Power Query
C) Power BI
D) Power Automate



24) Which of the following Tableau software tools specializes in data transformation?




4