Data Analytics for Accounting, 3rd Edition by Vernon
Richardson| SOLUTION & INSTRUCTOR’S MANUAL
Chapter 1-11| All Chapters Containing Verified Questions &
Solutions for the Study Guide
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, Chapter 1
Solutions to Multiple Choice Questions
1. (LO 1-1) Big Data is often described by the four Vs, or
a. volume, velocity, veracity, and variability.
b. volume, velocity, veracity, and variety.
c. volume, volatility, veracity, and variability.
d. variability, velocity, veracity, and variety.
Accurate Answer: b
2. LO 1-4) Which data approach attempts to assign each unit in a population into a small set of
classes (or groups) where the unit best fits?
a. Regression
b. Similarity matching
c. Co-occurrence grouping
d. Classification
Accurate Answer: d
3. (LO 1-4) Which data approach attempts to identify similar individuals based on data known about
them?
a. Classification
b. Regression
c. Similarity matching
d. Data reduction
Accurate Answer: c
4. (LO 1-4) Which data approach attempts to predict connections between two data items?
a. Profiling
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b. Classification
c. Link prediction
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,d. Regression
Accurate Answer: c
5. (LO 1-6) Which of these terms is defined as being a central repository of descriptions for all of the
data attributes of the dataset?
a. Big Data
b. Data warehouse
c. Data dictionary
d. Data Analytics
Accurate Answer: c
6. (LO 1-5) Which skills were not emphasized that analytic-minded accountants should have?
a. Developed an analytics mindset
b. Data scrubbing and data preparation
c. Classification of test approaches
d. Statistical data analysis competency
Accurate Answer: c
7. (LO 1-5) In which areas were skills not emphasized for analytic-minded accountants?
a. Data quality
b. Descriptive data analysis
c. Data visualization and data reporting
d. Data and systems analysis and design
Accurate Answer: d
8. (LO 1-4) The IMPACT cycle includes all except the following steps:
a. perform test plan.
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b. visualize the data.
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, c. master the data.
d. track outcomes.
Accurate Answer: b
9. (LO 1-4) The IMPACT cycle specifically includes all except the following steps:
a. data preparation.
b. communicate insights.
c. address and refine results.
d. perform test plan.
Accurate Answer: a
10. LO 1-1) By the year 2024, the volume of data created, captured, copied, and consumed
worldwide will be 149 .
a. zettabytes
b. petabytes
c. exabytes
d. yottabytes
Accurate Answer: a
Solutions to Discussion and Analysis Questions
1. The accounting function is one of being an information provider. To the extent that data is
available to address accounting questions, be they tax, managerial, audit or financial questions. With
such rich available data, and software tools to prepare and analyze the data, data analytics will
continue to be an important tool for accountants to use.
2. Data analytics is defined as the process of evaluating data with the purpose of drawing conclusions
to address business questions. Indeed, effective Data Analytics provides a way to search through
large structured and unstructured data to identify unknown patterns or relationships.
A university might learn from the analyzing the demographics of its current set of students in order to
attract its future student recruits. Did they come from cities or high schools that were close by? Were
their parents alumni of the university? Did they score high on certain parts of the ACT? Were those
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offered a scholarship more likely to attend, etc.? Was social media effective in attracting new,
potentially stronger students? By analyzing this type of data, previously unknown patterns will
emerge that will make recruiting students more effective.
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Richardson| SOLUTION & INSTRUCTOR’S MANUAL
Chapter 1-11| All Chapters Containing Verified Questions &
Solutions for the Study Guide
TB
Ac
Page | 1
er
, Chapter 1
Solutions to Multiple Choice Questions
1. (LO 1-1) Big Data is often described by the four Vs, or
a. volume, velocity, veracity, and variability.
b. volume, velocity, veracity, and variety.
c. volume, volatility, veracity, and variability.
d. variability, velocity, veracity, and variety.
Accurate Answer: b
2. LO 1-4) Which data approach attempts to assign each unit in a population into a small set of
classes (or groups) where the unit best fits?
a. Regression
b. Similarity matching
c. Co-occurrence grouping
d. Classification
Accurate Answer: d
3. (LO 1-4) Which data approach attempts to identify similar individuals based on data known about
them?
a. Classification
b. Regression
c. Similarity matching
d. Data reduction
Accurate Answer: c
4. (LO 1-4) Which data approach attempts to predict connections between two data items?
a. Profiling
TB
b. Classification
c. Link prediction
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Page | 2
er
,d. Regression
Accurate Answer: c
5. (LO 1-6) Which of these terms is defined as being a central repository of descriptions for all of the
data attributes of the dataset?
a. Big Data
b. Data warehouse
c. Data dictionary
d. Data Analytics
Accurate Answer: c
6. (LO 1-5) Which skills were not emphasized that analytic-minded accountants should have?
a. Developed an analytics mindset
b. Data scrubbing and data preparation
c. Classification of test approaches
d. Statistical data analysis competency
Accurate Answer: c
7. (LO 1-5) In which areas were skills not emphasized for analytic-minded accountants?
a. Data quality
b. Descriptive data analysis
c. Data visualization and data reporting
d. Data and systems analysis and design
Accurate Answer: d
8. (LO 1-4) The IMPACT cycle includes all except the following steps:
a. perform test plan.
TB
b. visualize the data.
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er
, c. master the data.
d. track outcomes.
Accurate Answer: b
9. (LO 1-4) The IMPACT cycle specifically includes all except the following steps:
a. data preparation.
b. communicate insights.
c. address and refine results.
d. perform test plan.
Accurate Answer: a
10. LO 1-1) By the year 2024, the volume of data created, captured, copied, and consumed
worldwide will be 149 .
a. zettabytes
b. petabytes
c. exabytes
d. yottabytes
Accurate Answer: a
Solutions to Discussion and Analysis Questions
1. The accounting function is one of being an information provider. To the extent that data is
available to address accounting questions, be they tax, managerial, audit or financial questions. With
such rich available data, and software tools to prepare and analyze the data, data analytics will
continue to be an important tool for accountants to use.
2. Data analytics is defined as the process of evaluating data with the purpose of drawing conclusions
to address business questions. Indeed, effective Data Analytics provides a way to search through
large structured and unstructured data to identify unknown patterns or relationships.
A university might learn from the analyzing the demographics of its current set of students in order to
attract its future student recruits. Did they come from cities or high schools that were close by? Were
their parents alumni of the university? Did they score high on certain parts of the ACT? Were those
TB
offered a scholarship more likely to attend, etc.? Was social media effective in attracting new,
potentially stronger students? By analyzing this type of data, previously unknown patterns will
emerge that will make recruiting students more effective.
Ac
Page | 4
er
