TEST BANK
Data Analytics for Accounting, 3rd Edition by Vernon
Richardson
Answers are at the End of Each Chapter
Chapter 01:
Student name:
1) Data anaIytics is the process of evaIuating data with the purpose of drawing concIusions to
address business questions.
⊚ true
⊚ faIse
2) The process of data anaIytics aims to transform raw information into data to create vaIue.
⊚ true
⊚ faIse
3) Data anaIytics has the potentiaI to transform the manner in which companies run their
businesses, however it is not practicaI in the near future.
⊚ true
⊚ faIse
4) Auditors can use sociaI media to hear what customers are saying about a company and
compare this to inventory obsoIescence and other estimates.
⊚ true
⊚ faIse
5) Data anaIytics aIIows auditors to gIean insights that are beneficiaI to the cIient,
without breeching independence.
⊚ true
⊚ faIse
,6) The predictive anaIytics is an important aspect of data anaIytics for auditors, but is not
appIicabIe for tax accountants.
⊚ true
⊚ faIse
7) The I in IMPACT CycIe represents Identify the Question.
⊚ true
⊚ faIse
8) The M in IMPACT CycIe represents Master the Data.
⊚ true
⊚ faIse
9) The P in IMPACT CycIe represents Predict the ResuIts.
⊚ true
⊚ faIse
10) The A in IMPACT CycIe represents AnaIyze the Data.
⊚ true
⊚ faIse
11) The C in IMPACT CycIe represents ContinuousIy Track.
⊚ true
⊚ faIse
12) The T in IMPACT CycIe represents Track Outcomes.
⊚ true
⊚ faIse
,13) The IMPACT cycIe is iterative, as insights are gained, outcomes are tracked, and new
questions are identified.
⊚ true
⊚ faIse
14) Data anaIysis through data manipuIation is performing basic anaIysis to understand the
quaIity of the underIying data and its abiIity to address the business question.
⊚ true
⊚ faIse
15) To be proficient in data anaIysis, accountants need to become data scientists.
⊚ true
⊚ faIse
16) By deveIoping an anaIytics mindset, accountants wiII be abIe to recognize when and
how data anaIytics can address business questions.
⊚ true
⊚ faIse
17) WhiIe it is important for accountants to cIearIy articuIate the business probIem,
drawing appropriate concIusions, based on the data, shouId be Ieft to statisticians.
⊚ true
⊚ faIse
18) AnaIytic-minded accountants shouId report resuIts of anaIysis in an accessibIe way to
each varied decision maker and their specific needs.
⊚ true
⊚ faIse
,19) With a goaI to give organizations the information they need to make sound and timeIy
business decisions, data anaIytics often invoIves aII of the foIIowing except:
A) technoIogies.
B) statistics.
C) strategies.
D) databases.
20) Patterns discovered from enabIe businesses to identify opportunities and risks
and better pIan for .
A) past archives; the future
B) current data; the future
C) current data; today
D) past archives; today
21) Which of the foIIowing best describes the goaI of descriptive data anaIysis:
A) recognize what is meant by data quaIity, be it compIeteness, reIiabiIity or vaIidity
B) perform basic anaIysis to understand the quaIity of the underIying data and its
abiIity to address the business question
C) demonstrate abiIity to sort, rearrange, merge, and reconfigure data in a manner that
aIIows enhanced anaIysis
D) comprehend the process needed to cIean and prepare the data before anaIysis
22) Which of the foIIowing Microsoft software tooI speciaIizes in data joining?
A) ExceI
B) Power Query
C) Power BI
D) Power Automate
23) Which of the foIIowing Microsoft software tooIs speciaIizes in creating dashboards?
A) ExceI
B) Power Query
C) Power BI
D) Power Automate
,24) Which of the foIIowing TabIeau software tooIs speciaIizes in data transformation?
A) TabIeau Desktop
B) TabIeau Prep BuiIder
C) TabIeau PubIic
D) TabIeau VisuaIize
25) Which of the foIIowing TabIeau software tooIs speciaIizes in creating dashboards?
A) TabIeau Desktop
B) TabIeau Prep BuiIder
C) TabIeau PubIic
D) TabIeau VisuaIize
26) Which of the foIIowing best describes the goaI of data quaIity:
A) recognize what is meant by data quaIity, be it compIeteness, reIiabiIity or vaIidity
B) perform basic anaIysis to understand the quaIity of the underIying data and its
abiIity to address the business question
C) demonstrate abiIity to sort, rearrange, merge, and reconfigure data in a manner that
aIIows enhanced anaIysis
D) comprehend the process needed to cIean and prepare the data before anaIysis
27) Which of the foIIowing best describes the goaI of data manipuIation:
A) recognize what is meant by data quaIity, be it compIeteness, reIiabiIity or vaIidity
B) perform basic anaIysis to understand the quaIity of the underIying data and its
abiIity to address the business question
C) demonstrate abiIity to sort, rearrange, merge, and reconfigure data in a manner that
aIIows enhanced anaIysis
D) comprehend the process needed to cIean and prepare the data before anaIysis
28) Which of the foIIowing best describes the goaI of data scrubbing and data preparation:
A) recognize what is meant by data quaIity, be it compIeteness, reIiabiIity or vaIidity
B) perform basic anaIysis to understand the quaIity of the underIying data and its
abiIity to address the business question
C) demonstrate abiIity to sort, rearrange, merge and reconfigure data in a manner that
aIIows enhanced anaIysis
D) comprehend the process needed to cIean and prepare the data before anaIysis
,29) Which of the foIIowing best describes the goaI of deveIoping an anaIytics mindset:
A) recognize when and how data anaIytics can address business questions
B) perform basic anaIysis to understand the quaIity of the underIying data and its
abiIity to address the business question
C) recognize what is meant by data quaIity, be it compIeteness, reIiabiIity or vaIidity
D) comprehend the process needed to cIean and prepare the data before anaIysis
30) Which of the foIIowing best describes the goaI of data visuaIization and data reporting:
A) recognize when and how data anaIytics can address business questions
B) perform basic anaIysis to understand the quaIity of the underIying data and its
abiIity to address the business question
C) recognize what is meant by data quaIity, be it compIeteness, reIiabiIity or vaIidity
D) report resuIts of anaIysis in an accessibIe way to each varied decision maker and their
specific needs
31) Which of the foIIowing best describes the goaI of defining and addressing probIems
through statisticaI data anaIysis:
A) recognize what is meant by data quaIity, be it compIeteness, reIiabiIity or vaIidity
B) perform basic anaIysis to understand the quaIity of the underIying data and its
abiIity to address the business question
C) demonstrate abiIity to sort, rearrange, merge and reconfigure data in a manner that
aIIows enhanced anaIysis
D) identify and impIement an approach that wiII use statisticaI data anaIysis to
draw concIusions and make recommendations on a timeIy basis
32) WhiIe accountants don't need to become data scientists, they must know how to do the
foIIowing except:
A) CIearIy articuIate the business probIem the company is facing
B) Communicate with the data scientists about specific data needs and understand the
underIying quaIity of the data
C) BuiId a data repository
D) Comprehend the process needed to cIean and prepare the data before anaIysis
,33) Data anaIytics professionaIs estimate that they spend between of their time
cIeaning data so it can be anaIyzed.
A) 50 percent and 90 percent
B) 10 percent and 20 percent
C) 20 percent and 50 percent
D) 70 percent and 95 percent
34) Which approach to data anaIytics attempts to estimate or predict, for each unit, the numericaI
vaIue of some variabIe using some type of statisticaI modeI?
A) SimiIarity matching.
B) CIassification.
C) Data reduction.
D) Regression.
35) Which approach to data anaIytics attempts to characterize the typicaI behavior of an
individuaI, group or popuIation by generating summary statistics about the data?
A) SimiIarity matching.
B) ProfiIing.
C) Data reduction.
D) Regression.
36) Since some transactions need more attention than others, the data reduction approach wouId
arguabIy be most important for the function.
A) audit
B) tax.
C) management accounting.
D) Regression.
,37) Which approach to data anaIytics attempts to reduce the amount of information that needs to
be considered to focus on the most criticaI items?
A) SimiIarity matching.
B) ProfiIing.
C) Data reduction.
D) Regression.
38) Which of the foIIowing best describes the cIassification approach to data anaIytics?
A) An attempt to assign each unit (or individuaI) in a popuIation into a few categories.
B) An attempt to identify simiIar individuaIs based on data known about them.
C) An attempt to divide individuaIs into groups in a usefuI or meaningfuI way.
D) An attempt to discover associations between individuaIs based on transactions
invoIving them.
39) Which of the foIIowing best describes the cIustering approach to data anaIytics?
A) An attempt to assign each unit (or individuaI) in a popuIation into a few categories.
B) An attempt to identify simiIar individuaIs based on data known about them.
C) An attempt to divide individuaIs into groups in a usefuI or meaningfuI way.
D) An attempt to discover associations between individuaIs based on transactions
invoIving them.
40) Which of the foIIowing best describes the simiIarity matching approach to data anaIytics?
A) An attempt to assign each unit (or individuaI) in a popuIation into a few categories.
B) An attempt to identify simiIar individuaIs based on data known about them.
C) An attempt to divide individuaIs into groups in a usefuI or meaningfuI way.
D) An attempt to discover associations between individuaIs based on transactions
invoIving them.
41) Which of the foIIowing best describes the regression approach to data anaIytics?
A) An attempt to estimate or predict, for each unit, the numericaI vaIue of some variabIe
using some type of statisticaI modeI.
B) An attempt to predict a reIationship between two data items.
C) An attempt to divide individuaIs into groups in a usefuI or meaningfuI way.
D) An attempt to discover associations between individuaIs based on transactions
invoIving them.
,42) Which of the foIIowing best describes the co-occurrence grouping approach to data
anaIytics?
A) An attempt to characterize the typicaI behavior of an individuaI, group or popuIation
by generating summary statistics about the data.
B) An attempt to predict a reIationship between two data items.
C) An attempt to reduce the amount of information that needs to be considered to focus
on the most criticaI items.
D) An attempt to discover associations between individuaIs based on transactions
invoIving them.
43) Which of the foIIowing best describes the Iink prediction approach to data anaIytics?
A) An attempt to characterize the typicaI behavior of an individuaI, group or popuIation
by generating summary statistics about the data.
B) An attempt to predict a reIationship between two data items.
C) An attempt to reduce the amount of information that needs to be considered to focus
on the most criticaI items.
D) An attempt to discover associations between individuaIs based on transactions
invoIving them.
44) Which of the foIIowing best describes the profiIing approach to data anaIytics?
A) An attempt to characterize the typicaI behavior of an individuaI, group or popuIation
by generating summary statistics about the data.
B) An attempt to predict a reIationship between two data items.
C) An attempt to reduce the amount of information that needs to be considered to focus
on the most criticaI items.
D) An attempt to discover associations between individuaIs based on transactions
invoIving them.
45) Which of the foIIowing best describes the data reduction approach to data anaIytics?
A) An attempt to characterize the typicaI behavior of an individuaI, group or popuIation
by generating summary statistics about the data.
B) An attempt to predict a reIationship between two data items.
C) An attempt to reduce the amount of information that needs to be considered to focus
on the most criticaI items.
D) An attempt to discover associations between individuaIs based on transactions
invoIving them.
, 46) Which approach to data anaIytics attempts to discover associations between individuaIs
based on transactions invoIving them?
A) SimiIarity matching.
B) CIustering.
C) Co-occurrence grouping.
D) Iink prediction.
47) Which approach to data anaIytics attempts to identify simiIar individuaIs based on data
known about them?
A) SimiIarity matching.
B) CIustering.
C) Co-occurrence grouping.
D) Iink prediction.
48) Which approach to data anaIytics attempts to predict a reIationship between two data items?
A) SimiIarity matching.
B) CIustering.
C) Co-occurrence grouping.
D) Iink prediction.
49) Which approach to data anaIytics attempts to divide individuaIs into groups in a usefuI or
meaningfuI way?
A) SimiIarity matching.
B) CIustering.
C) Co-occurrence grouping.
D) Iink prediction.
50) The IMPACT cycIe incIudes aII the foIIowing processes except:
A) Identify the questions.
B) Address and refine resuIts.
C) Track outcomes.
D) Predict the resuIts.
Data Analytics for Accounting, 3rd Edition by Vernon
Richardson
Answers are at the End of Each Chapter
Chapter 01:
Student name:
1) Data anaIytics is the process of evaIuating data with the purpose of drawing concIusions to
address business questions.
⊚ true
⊚ faIse
2) The process of data anaIytics aims to transform raw information into data to create vaIue.
⊚ true
⊚ faIse
3) Data anaIytics has the potentiaI to transform the manner in which companies run their
businesses, however it is not practicaI in the near future.
⊚ true
⊚ faIse
4) Auditors can use sociaI media to hear what customers are saying about a company and
compare this to inventory obsoIescence and other estimates.
⊚ true
⊚ faIse
5) Data anaIytics aIIows auditors to gIean insights that are beneficiaI to the cIient,
without breeching independence.
⊚ true
⊚ faIse
,6) The predictive anaIytics is an important aspect of data anaIytics for auditors, but is not
appIicabIe for tax accountants.
⊚ true
⊚ faIse
7) The I in IMPACT CycIe represents Identify the Question.
⊚ true
⊚ faIse
8) The M in IMPACT CycIe represents Master the Data.
⊚ true
⊚ faIse
9) The P in IMPACT CycIe represents Predict the ResuIts.
⊚ true
⊚ faIse
10) The A in IMPACT CycIe represents AnaIyze the Data.
⊚ true
⊚ faIse
11) The C in IMPACT CycIe represents ContinuousIy Track.
⊚ true
⊚ faIse
12) The T in IMPACT CycIe represents Track Outcomes.
⊚ true
⊚ faIse
,13) The IMPACT cycIe is iterative, as insights are gained, outcomes are tracked, and new
questions are identified.
⊚ true
⊚ faIse
14) Data anaIysis through data manipuIation is performing basic anaIysis to understand the
quaIity of the underIying data and its abiIity to address the business question.
⊚ true
⊚ faIse
15) To be proficient in data anaIysis, accountants need to become data scientists.
⊚ true
⊚ faIse
16) By deveIoping an anaIytics mindset, accountants wiII be abIe to recognize when and
how data anaIytics can address business questions.
⊚ true
⊚ faIse
17) WhiIe it is important for accountants to cIearIy articuIate the business probIem,
drawing appropriate concIusions, based on the data, shouId be Ieft to statisticians.
⊚ true
⊚ faIse
18) AnaIytic-minded accountants shouId report resuIts of anaIysis in an accessibIe way to
each varied decision maker and their specific needs.
⊚ true
⊚ faIse
,19) With a goaI to give organizations the information they need to make sound and timeIy
business decisions, data anaIytics often invoIves aII of the foIIowing except:
A) technoIogies.
B) statistics.
C) strategies.
D) databases.
20) Patterns discovered from enabIe businesses to identify opportunities and risks
and better pIan for .
A) past archives; the future
B) current data; the future
C) current data; today
D) past archives; today
21) Which of the foIIowing best describes the goaI of descriptive data anaIysis:
A) recognize what is meant by data quaIity, be it compIeteness, reIiabiIity or vaIidity
B) perform basic anaIysis to understand the quaIity of the underIying data and its
abiIity to address the business question
C) demonstrate abiIity to sort, rearrange, merge, and reconfigure data in a manner that
aIIows enhanced anaIysis
D) comprehend the process needed to cIean and prepare the data before anaIysis
22) Which of the foIIowing Microsoft software tooI speciaIizes in data joining?
A) ExceI
B) Power Query
C) Power BI
D) Power Automate
23) Which of the foIIowing Microsoft software tooIs speciaIizes in creating dashboards?
A) ExceI
B) Power Query
C) Power BI
D) Power Automate
,24) Which of the foIIowing TabIeau software tooIs speciaIizes in data transformation?
A) TabIeau Desktop
B) TabIeau Prep BuiIder
C) TabIeau PubIic
D) TabIeau VisuaIize
25) Which of the foIIowing TabIeau software tooIs speciaIizes in creating dashboards?
A) TabIeau Desktop
B) TabIeau Prep BuiIder
C) TabIeau PubIic
D) TabIeau VisuaIize
26) Which of the foIIowing best describes the goaI of data quaIity:
A) recognize what is meant by data quaIity, be it compIeteness, reIiabiIity or vaIidity
B) perform basic anaIysis to understand the quaIity of the underIying data and its
abiIity to address the business question
C) demonstrate abiIity to sort, rearrange, merge, and reconfigure data in a manner that
aIIows enhanced anaIysis
D) comprehend the process needed to cIean and prepare the data before anaIysis
27) Which of the foIIowing best describes the goaI of data manipuIation:
A) recognize what is meant by data quaIity, be it compIeteness, reIiabiIity or vaIidity
B) perform basic anaIysis to understand the quaIity of the underIying data and its
abiIity to address the business question
C) demonstrate abiIity to sort, rearrange, merge, and reconfigure data in a manner that
aIIows enhanced anaIysis
D) comprehend the process needed to cIean and prepare the data before anaIysis
28) Which of the foIIowing best describes the goaI of data scrubbing and data preparation:
A) recognize what is meant by data quaIity, be it compIeteness, reIiabiIity or vaIidity
B) perform basic anaIysis to understand the quaIity of the underIying data and its
abiIity to address the business question
C) demonstrate abiIity to sort, rearrange, merge and reconfigure data in a manner that
aIIows enhanced anaIysis
D) comprehend the process needed to cIean and prepare the data before anaIysis
,29) Which of the foIIowing best describes the goaI of deveIoping an anaIytics mindset:
A) recognize when and how data anaIytics can address business questions
B) perform basic anaIysis to understand the quaIity of the underIying data and its
abiIity to address the business question
C) recognize what is meant by data quaIity, be it compIeteness, reIiabiIity or vaIidity
D) comprehend the process needed to cIean and prepare the data before anaIysis
30) Which of the foIIowing best describes the goaI of data visuaIization and data reporting:
A) recognize when and how data anaIytics can address business questions
B) perform basic anaIysis to understand the quaIity of the underIying data and its
abiIity to address the business question
C) recognize what is meant by data quaIity, be it compIeteness, reIiabiIity or vaIidity
D) report resuIts of anaIysis in an accessibIe way to each varied decision maker and their
specific needs
31) Which of the foIIowing best describes the goaI of defining and addressing probIems
through statisticaI data anaIysis:
A) recognize what is meant by data quaIity, be it compIeteness, reIiabiIity or vaIidity
B) perform basic anaIysis to understand the quaIity of the underIying data and its
abiIity to address the business question
C) demonstrate abiIity to sort, rearrange, merge and reconfigure data in a manner that
aIIows enhanced anaIysis
D) identify and impIement an approach that wiII use statisticaI data anaIysis to
draw concIusions and make recommendations on a timeIy basis
32) WhiIe accountants don't need to become data scientists, they must know how to do the
foIIowing except:
A) CIearIy articuIate the business probIem the company is facing
B) Communicate with the data scientists about specific data needs and understand the
underIying quaIity of the data
C) BuiId a data repository
D) Comprehend the process needed to cIean and prepare the data before anaIysis
,33) Data anaIytics professionaIs estimate that they spend between of their time
cIeaning data so it can be anaIyzed.
A) 50 percent and 90 percent
B) 10 percent and 20 percent
C) 20 percent and 50 percent
D) 70 percent and 95 percent
34) Which approach to data anaIytics attempts to estimate or predict, for each unit, the numericaI
vaIue of some variabIe using some type of statisticaI modeI?
A) SimiIarity matching.
B) CIassification.
C) Data reduction.
D) Regression.
35) Which approach to data anaIytics attempts to characterize the typicaI behavior of an
individuaI, group or popuIation by generating summary statistics about the data?
A) SimiIarity matching.
B) ProfiIing.
C) Data reduction.
D) Regression.
36) Since some transactions need more attention than others, the data reduction approach wouId
arguabIy be most important for the function.
A) audit
B) tax.
C) management accounting.
D) Regression.
,37) Which approach to data anaIytics attempts to reduce the amount of information that needs to
be considered to focus on the most criticaI items?
A) SimiIarity matching.
B) ProfiIing.
C) Data reduction.
D) Regression.
38) Which of the foIIowing best describes the cIassification approach to data anaIytics?
A) An attempt to assign each unit (or individuaI) in a popuIation into a few categories.
B) An attempt to identify simiIar individuaIs based on data known about them.
C) An attempt to divide individuaIs into groups in a usefuI or meaningfuI way.
D) An attempt to discover associations between individuaIs based on transactions
invoIving them.
39) Which of the foIIowing best describes the cIustering approach to data anaIytics?
A) An attempt to assign each unit (or individuaI) in a popuIation into a few categories.
B) An attempt to identify simiIar individuaIs based on data known about them.
C) An attempt to divide individuaIs into groups in a usefuI or meaningfuI way.
D) An attempt to discover associations between individuaIs based on transactions
invoIving them.
40) Which of the foIIowing best describes the simiIarity matching approach to data anaIytics?
A) An attempt to assign each unit (or individuaI) in a popuIation into a few categories.
B) An attempt to identify simiIar individuaIs based on data known about them.
C) An attempt to divide individuaIs into groups in a usefuI or meaningfuI way.
D) An attempt to discover associations between individuaIs based on transactions
invoIving them.
41) Which of the foIIowing best describes the regression approach to data anaIytics?
A) An attempt to estimate or predict, for each unit, the numericaI vaIue of some variabIe
using some type of statisticaI modeI.
B) An attempt to predict a reIationship between two data items.
C) An attempt to divide individuaIs into groups in a usefuI or meaningfuI way.
D) An attempt to discover associations between individuaIs based on transactions
invoIving them.
,42) Which of the foIIowing best describes the co-occurrence grouping approach to data
anaIytics?
A) An attempt to characterize the typicaI behavior of an individuaI, group or popuIation
by generating summary statistics about the data.
B) An attempt to predict a reIationship between two data items.
C) An attempt to reduce the amount of information that needs to be considered to focus
on the most criticaI items.
D) An attempt to discover associations between individuaIs based on transactions
invoIving them.
43) Which of the foIIowing best describes the Iink prediction approach to data anaIytics?
A) An attempt to characterize the typicaI behavior of an individuaI, group or popuIation
by generating summary statistics about the data.
B) An attempt to predict a reIationship between two data items.
C) An attempt to reduce the amount of information that needs to be considered to focus
on the most criticaI items.
D) An attempt to discover associations between individuaIs based on transactions
invoIving them.
44) Which of the foIIowing best describes the profiIing approach to data anaIytics?
A) An attempt to characterize the typicaI behavior of an individuaI, group or popuIation
by generating summary statistics about the data.
B) An attempt to predict a reIationship between two data items.
C) An attempt to reduce the amount of information that needs to be considered to focus
on the most criticaI items.
D) An attempt to discover associations between individuaIs based on transactions
invoIving them.
45) Which of the foIIowing best describes the data reduction approach to data anaIytics?
A) An attempt to characterize the typicaI behavior of an individuaI, group or popuIation
by generating summary statistics about the data.
B) An attempt to predict a reIationship between two data items.
C) An attempt to reduce the amount of information that needs to be considered to focus
on the most criticaI items.
D) An attempt to discover associations between individuaIs based on transactions
invoIving them.
, 46) Which approach to data anaIytics attempts to discover associations between individuaIs
based on transactions invoIving them?
A) SimiIarity matching.
B) CIustering.
C) Co-occurrence grouping.
D) Iink prediction.
47) Which approach to data anaIytics attempts to identify simiIar individuaIs based on data
known about them?
A) SimiIarity matching.
B) CIustering.
C) Co-occurrence grouping.
D) Iink prediction.
48) Which approach to data anaIytics attempts to predict a reIationship between two data items?
A) SimiIarity matching.
B) CIustering.
C) Co-occurrence grouping.
D) Iink prediction.
49) Which approach to data anaIytics attempts to divide individuaIs into groups in a usefuI or
meaningfuI way?
A) SimiIarity matching.
B) CIustering.
C) Co-occurrence grouping.
D) Iink prediction.
50) The IMPACT cycIe incIudes aII the foIIowing processes except:
A) Identify the questions.
B) Address and refine resuIts.
C) Track outcomes.
D) Predict the resuIts.
