Solution Manual for Data and Analytics in Accounting An Integrated
Approach 1e Ann C. Dzuranin, Guido Geerts, Margarita Lenk
CHAPTER 1 |
DATA AND ANALYTICS IN THE ACCOUNTING
| | | | |
PROFESSION |
Learning |Objectives:
LO |1.1: |Summarize |how |advances |in |data |and |technology |are |impacting |accounting |professionals.
|LO |1.2: | Describe |the |stages |of |the |data |analysis |process.
LO |1.3: | Identify |the |skills |necessary |to |perform |data |analysis.
LO |1.4: |Explain |how |to |apply |a |data |analytics |mindset |during |the |data |analysis |process.
ANSWERS TO MULTIPLE CHOICE QUESTIONS
| | | |
1. | A 6. | | C
LO | 1.1, | BT: | K, | Difficulty: | Easy, | TOT: | 2 | min, | AACSB: | Knowledge,
| AICPA | FC: | Leverage |Technology |to |Develop |and |Enhance |Functional
|Competencies
2. | C
LO |1.1, |BT: |K, |Difficulty: |Easy, |TOT: |2 |min, |AACSB: |Knowledge, |AICPA
|FC: | Leverage | Technology | to | Develop |and | Enhance |Functional
|Competencies
3. | C
LO |1.2, |BT: |K, |Difficulty: |Easy, |TOT: |2 |min, |AACSB: |Knowledge, |AICPA
|FC: | Leverage | Technology | to | Develop |and | Enhance | Functional
|Competencies
4. | B
LO |1 |2, |BT: |K, |Difficulty: |Easy, |TOT: |2 |min, |AACSB: |Knowledge, |AICPA
|FC: | Leverage |Technology | to | Develop |and | Enhance |Functional
|Competencies
5. | B
LO |1.2, |BT: |K, |Difficulty: |Easy, |TOT: |2 |min, |AACSB: |Knowledge, |AICPA
|FC: | Leverage | Technology | to | Develop |and | Enhance |Functional
|Competencies
1-1
, LO |1.2, |BT: |K, |Difficulty: |Easy, |TOT: |2 |min, |AACSB:
|Knowledge, |AICPA |FC: | Leverage | Technology | to
| Develop |and | Enhance | Functional | Competencies
7. | D
LO |1.2, |BT: |C, |Difficulty: |Medium, |TOT: |3 |min, |AACSB:
|Analytic, |AICPA |FC: | Leverage | Technology | to | Develop
|and | Enhance | Functional |Competencies
8. | C
LO |1.2, |BT: |C, |Difficulty: |Medium, |TOT: |3 |min, |AACSB:
|Analytic, |AICPA |FC: | Leverage | Technology | to | Develop
|and | Enhance |Functional | Competencies
9. | A
LO |1.3, |BT: |K, |Difficulty: |Easy, |TOT: |2 |min,
|AACSB: |Knowledge, |AICPA |FC: | Leverage
|Technology | to |Develop |and | Enhance | Functional
| Competencies
10.D
LO |1.3, |BT: |K, |Difficulty: |Easy, |TOT: |2 |min, |AACSB:
|Knowledge, |AICPA |FC: | Leverage | Technology | to
|Develop |and | Enhance | Functional | Competencies
11.B
1-2
, LO |1.3, |BT: |K, |Difficulty: |Easy, |TOT: |2 |min, |AACSB: |Knowledge,
|AICPA |FC: | Leverage | Technology | to |Develop |and | Enhance
14.A
|Functional | Competencies
LO |1.4, |BT: |C, |Difficulty: |Medium, |TOT: |3 |min, |AACSB: |Analytic, |AICPA |FC:
| Leverage | Technology | to | Develop |and | Enhance |Functional | Competencies
12.A
LO |1.4, |BT: |K, |Difficulty: |Easy, |TOT: |2 |min, |AACSB: |Knowledge,
15.B
|AICPA |FC: | Leverage | Technology | to |Develop |and | Enhance
LO |1.4, |BT: |C, |Difficulty: |Medium, |TOT: |3 |min, |AACSB: |Analytic, |AICPA |FC:
| Leverage | Technology | to | Develop | and |Enhance | Functional | Competencies
|Functional | Competencies
13.D
LO |1.4, |BT: |K, |Difficulty: |Easy, |TOT: |2 |min, |AACSB: |Knowledge,
|AICPA |FC: | Leverage | Technology | to |Develop |and | Enhance
|Functional | Competencies
ANSWERS TO REVIEW QUESTIONS | | |
1. Both |the |CPA |exam |and |the |CMA |exam |have |added |data |analytic |content |to |their |exams. |This |is
|in |response |to |what |new |professionals |need |to |know |as |they |enter |the |accounting |profession. |The
|CPA |Exam |Evolution |is |a |strong |indication |of |how |the |accounting |profession |is |changing. |The |new
|CPA |exam |will |have |more |technology |and |data |analytics |questions |in |the |Core |exam, |as |well |as |the
|Discipline |exams.
LO |1.1, |BT: |K, |Difficulty: |Easy, |TOT: |6 |min, |AACSB: |Knowledge, |AICPA |FC: |Leverage |Technology |to |Develop |and |Enhance |Functional |Competencies
2.
Changes Accounting |Practice |Area
1. |Ability |to |use |entire |data |sets |to |identify ANS: |a. |Auditing, |c. |Managerial |accounting
|exceptions, |anomalies, |and |outliers
2. |Automation |of |manual |processes ANS: |a., |b., |c., |d. | (All |areas)
3. |Automation |of |journal |entries ANS: | b. |Financial |accounting
4. | Risk |identification ANS:. | a. |Auditing, |c. |Managerial |accounting
5. |Forecasting ANS: |b. |Financial |accounting, |c. |Managerial
|accounting
6. |Compliance |reporting ANS: |d. |Tax |accounting
LO |1.1, |BT: |C, |Difficulty: |Medium, |TOT: |8 |min, |AACSB: |Analytic, |AICPA |FC: |Leverage |Technology |to |Develop |and |Enhance |Functional |Competencies
3. Data |are |raw |facts |and |figures. |Technology |helps |covert |that |data |into |information. |Information |is
|the |knowledge |gained |from |analyzing |the |data.
LO |1.1, |BT: |C, |Difficulty: |Medium, |TOT: |6 |min, |AACSB: |Analytic, |AICPA |FC: |Leverage |Technology |to |Develop |and |Enhance |Functional |Competencies
4.
Purpose Method
1-3
, 1. |Understanding |what |is |happening |currently ANS: |a. |Descriptive
|and |what |has |happened |in |the |past.
2. |Understanding |what |should |happen |to |meet ANS: |d. |Prescriptive
|our |goals |and |objectives.
3. |Understanding |what |might |happen |in |the ANS: |c. |Prescriptive
|future.
4. |Understanding |why |something |happened. ANS: |b. |Diagnostic
LO |1.2, |BT: |C, |Difficulty: |Medium, |TOT: |6 |min, |AACSB: |Analytic, |AICPA |FC: |Leverage |Technology |to |Develop |and |Enhance |Functional |Competencies
5. The |first |step |is |to |identify |the |motivation |for |the |analysis. |The |motivation |for |a |project |is |the |why
|the |analysis |is |being |performed. |It |is |important |to |understand |the |reason |for |the |analysis |before
|beginning |the |analysis.
The |second |step |is |to |set |an |objective. |In |other |words, |“What |is |the |goal |of |the |analysis?” |This |step
|will |help |articulate |the |goal |and |specific |questions |that |will |be |analyzed.
The |third |step |is |to |develop |a |strategy. |In |this |step, |we |determine |the |data |and |analysis |methods
|necessary |to |achieve |the |project’s |goal.
LO |1.2, |BT: |K, |Difficulty: |Easy, |TOT: |8 |min, |AACSB: |Knowledge, |AICPA |FC: |Leverage |Technology |to |Develop |and |Enhance |Functional |Competencies
6. Extracting |is |the |process |in |which |data |is |retrieved |from |a |source. |This |could |involve |downloading
|an |Excel |file |or |extracting |data |from |a |database |or |a |data |warehouse.
Transforming |the |data |occurs |when |data |is |cleaned, |restructured, |and/or |integrated |prior |to |using |it
|for |analysis.
Loading |data |is |the |process |of |importing |transformed |data |into |the |software |used |to |perform |analyses.
LO |1.2, |BT: |K, |Difficulty: |Easy, |TOT: |8 |min, |AACSB: |Knowledge, |AICPA |FC: |Leverage |Technology |to |Develop |and |Enhance |Functional |Competencies
7.
Example Data |Analysis |Process |Stage
1. |Develop |a |model |to |calculate |contribution ANS: |b. |Analyze
|margin.
2. |Get |data |from |a |database. ANS: |b. |Analyze
3. |Upload |data |into |analysis |software. ANS:b. |Analyze
4. |Determine |the |objective |of |the |analysis. ANS: |a. |Plan
5. |Create |a |forecast |of |net |income. ANS: |b. |Analyze
6. |Identify |the |data |needed |for |analysis. ANS: |a. |Plan
7. |Identify |relationships |within |the |data. ANS: |b. |Analyze
8. |Create |a |visualization |to |show |the |results |of ANS: |c. |Report
|the |analyses.
9. |Identify |sales |patterns. ANS: |b. |Analyze
1-4
Approach 1e Ann C. Dzuranin, Guido Geerts, Margarita Lenk
CHAPTER 1 |
DATA AND ANALYTICS IN THE ACCOUNTING
| | | | |
PROFESSION |
Learning |Objectives:
LO |1.1: |Summarize |how |advances |in |data |and |technology |are |impacting |accounting |professionals.
|LO |1.2: | Describe |the |stages |of |the |data |analysis |process.
LO |1.3: | Identify |the |skills |necessary |to |perform |data |analysis.
LO |1.4: |Explain |how |to |apply |a |data |analytics |mindset |during |the |data |analysis |process.
ANSWERS TO MULTIPLE CHOICE QUESTIONS
| | | |
1. | A 6. | | C
LO | 1.1, | BT: | K, | Difficulty: | Easy, | TOT: | 2 | min, | AACSB: | Knowledge,
| AICPA | FC: | Leverage |Technology |to |Develop |and |Enhance |Functional
|Competencies
2. | C
LO |1.1, |BT: |K, |Difficulty: |Easy, |TOT: |2 |min, |AACSB: |Knowledge, |AICPA
|FC: | Leverage | Technology | to | Develop |and | Enhance |Functional
|Competencies
3. | C
LO |1.2, |BT: |K, |Difficulty: |Easy, |TOT: |2 |min, |AACSB: |Knowledge, |AICPA
|FC: | Leverage | Technology | to | Develop |and | Enhance | Functional
|Competencies
4. | B
LO |1 |2, |BT: |K, |Difficulty: |Easy, |TOT: |2 |min, |AACSB: |Knowledge, |AICPA
|FC: | Leverage |Technology | to | Develop |and | Enhance |Functional
|Competencies
5. | B
LO |1.2, |BT: |K, |Difficulty: |Easy, |TOT: |2 |min, |AACSB: |Knowledge, |AICPA
|FC: | Leverage | Technology | to | Develop |and | Enhance |Functional
|Competencies
1-1
, LO |1.2, |BT: |K, |Difficulty: |Easy, |TOT: |2 |min, |AACSB:
|Knowledge, |AICPA |FC: | Leverage | Technology | to
| Develop |and | Enhance | Functional | Competencies
7. | D
LO |1.2, |BT: |C, |Difficulty: |Medium, |TOT: |3 |min, |AACSB:
|Analytic, |AICPA |FC: | Leverage | Technology | to | Develop
|and | Enhance | Functional |Competencies
8. | C
LO |1.2, |BT: |C, |Difficulty: |Medium, |TOT: |3 |min, |AACSB:
|Analytic, |AICPA |FC: | Leverage | Technology | to | Develop
|and | Enhance |Functional | Competencies
9. | A
LO |1.3, |BT: |K, |Difficulty: |Easy, |TOT: |2 |min,
|AACSB: |Knowledge, |AICPA |FC: | Leverage
|Technology | to |Develop |and | Enhance | Functional
| Competencies
10.D
LO |1.3, |BT: |K, |Difficulty: |Easy, |TOT: |2 |min, |AACSB:
|Knowledge, |AICPA |FC: | Leverage | Technology | to
|Develop |and | Enhance | Functional | Competencies
11.B
1-2
, LO |1.3, |BT: |K, |Difficulty: |Easy, |TOT: |2 |min, |AACSB: |Knowledge,
|AICPA |FC: | Leverage | Technology | to |Develop |and | Enhance
14.A
|Functional | Competencies
LO |1.4, |BT: |C, |Difficulty: |Medium, |TOT: |3 |min, |AACSB: |Analytic, |AICPA |FC:
| Leverage | Technology | to | Develop |and | Enhance |Functional | Competencies
12.A
LO |1.4, |BT: |K, |Difficulty: |Easy, |TOT: |2 |min, |AACSB: |Knowledge,
15.B
|AICPA |FC: | Leverage | Technology | to |Develop |and | Enhance
LO |1.4, |BT: |C, |Difficulty: |Medium, |TOT: |3 |min, |AACSB: |Analytic, |AICPA |FC:
| Leverage | Technology | to | Develop | and |Enhance | Functional | Competencies
|Functional | Competencies
13.D
LO |1.4, |BT: |K, |Difficulty: |Easy, |TOT: |2 |min, |AACSB: |Knowledge,
|AICPA |FC: | Leverage | Technology | to |Develop |and | Enhance
|Functional | Competencies
ANSWERS TO REVIEW QUESTIONS | | |
1. Both |the |CPA |exam |and |the |CMA |exam |have |added |data |analytic |content |to |their |exams. |This |is
|in |response |to |what |new |professionals |need |to |know |as |they |enter |the |accounting |profession. |The
|CPA |Exam |Evolution |is |a |strong |indication |of |how |the |accounting |profession |is |changing. |The |new
|CPA |exam |will |have |more |technology |and |data |analytics |questions |in |the |Core |exam, |as |well |as |the
|Discipline |exams.
LO |1.1, |BT: |K, |Difficulty: |Easy, |TOT: |6 |min, |AACSB: |Knowledge, |AICPA |FC: |Leverage |Technology |to |Develop |and |Enhance |Functional |Competencies
2.
Changes Accounting |Practice |Area
1. |Ability |to |use |entire |data |sets |to |identify ANS: |a. |Auditing, |c. |Managerial |accounting
|exceptions, |anomalies, |and |outliers
2. |Automation |of |manual |processes ANS: |a., |b., |c., |d. | (All |areas)
3. |Automation |of |journal |entries ANS: | b. |Financial |accounting
4. | Risk |identification ANS:. | a. |Auditing, |c. |Managerial |accounting
5. |Forecasting ANS: |b. |Financial |accounting, |c. |Managerial
|accounting
6. |Compliance |reporting ANS: |d. |Tax |accounting
LO |1.1, |BT: |C, |Difficulty: |Medium, |TOT: |8 |min, |AACSB: |Analytic, |AICPA |FC: |Leverage |Technology |to |Develop |and |Enhance |Functional |Competencies
3. Data |are |raw |facts |and |figures. |Technology |helps |covert |that |data |into |information. |Information |is
|the |knowledge |gained |from |analyzing |the |data.
LO |1.1, |BT: |C, |Difficulty: |Medium, |TOT: |6 |min, |AACSB: |Analytic, |AICPA |FC: |Leverage |Technology |to |Develop |and |Enhance |Functional |Competencies
4.
Purpose Method
1-3
, 1. |Understanding |what |is |happening |currently ANS: |a. |Descriptive
|and |what |has |happened |in |the |past.
2. |Understanding |what |should |happen |to |meet ANS: |d. |Prescriptive
|our |goals |and |objectives.
3. |Understanding |what |might |happen |in |the ANS: |c. |Prescriptive
|future.
4. |Understanding |why |something |happened. ANS: |b. |Diagnostic
LO |1.2, |BT: |C, |Difficulty: |Medium, |TOT: |6 |min, |AACSB: |Analytic, |AICPA |FC: |Leverage |Technology |to |Develop |and |Enhance |Functional |Competencies
5. The |first |step |is |to |identify |the |motivation |for |the |analysis. |The |motivation |for |a |project |is |the |why
|the |analysis |is |being |performed. |It |is |important |to |understand |the |reason |for |the |analysis |before
|beginning |the |analysis.
The |second |step |is |to |set |an |objective. |In |other |words, |“What |is |the |goal |of |the |analysis?” |This |step
|will |help |articulate |the |goal |and |specific |questions |that |will |be |analyzed.
The |third |step |is |to |develop |a |strategy. |In |this |step, |we |determine |the |data |and |analysis |methods
|necessary |to |achieve |the |project’s |goal.
LO |1.2, |BT: |K, |Difficulty: |Easy, |TOT: |8 |min, |AACSB: |Knowledge, |AICPA |FC: |Leverage |Technology |to |Develop |and |Enhance |Functional |Competencies
6. Extracting |is |the |process |in |which |data |is |retrieved |from |a |source. |This |could |involve |downloading
|an |Excel |file |or |extracting |data |from |a |database |or |a |data |warehouse.
Transforming |the |data |occurs |when |data |is |cleaned, |restructured, |and/or |integrated |prior |to |using |it
|for |analysis.
Loading |data |is |the |process |of |importing |transformed |data |into |the |software |used |to |perform |analyses.
LO |1.2, |BT: |K, |Difficulty: |Easy, |TOT: |8 |min, |AACSB: |Knowledge, |AICPA |FC: |Leverage |Technology |to |Develop |and |Enhance |Functional |Competencies
7.
Example Data |Analysis |Process |Stage
1. |Develop |a |model |to |calculate |contribution ANS: |b. |Analyze
|margin.
2. |Get |data |from |a |database. ANS: |b. |Analyze
3. |Upload |data |into |analysis |software. ANS:b. |Analyze
4. |Determine |the |objective |of |the |analysis. ANS: |a. |Plan
5. |Create |a |forecast |of |net |income. ANS: |b. |Analyze
6. |Identify |the |data |needed |for |analysis. ANS: |a. |Plan
7. |Identify |relationships |within |the |data. ANS: |b. |Analyze
8. |Create |a |visualization |to |show |the |results |of ANS: |c. |Report
|the |analyses.
9. |Identify |sales |patterns. ANS: |b. |Analyze
1-4
