ACCT 3130 - Final Exam (Conceptual)
Revenue per employee is which of the following types of KPI?
Employee performance
Staff advocacy score is which of the following types of KPI?
Employee performance
Training return on investment is which of the following types of KPI?
Employee performance
Energy consumption is which of the following types of KPI?
Environmental and social sustainability
Waste reduction rate is which of the following types of KPI?
Environmental and social sustainability
The balanced scorecard is comprised of four components, which of the following is not a component of a balanced scorecard?
External process
Customer KPIs include price earnings ratio, net promoter score, and customer retention score.
FALSE
Data analytics has the potential to transform the manner in which companies run their businesses to better determine the gaps in actual company performance.
FALSE
Employee Performance KPIs include staff advocacy score and overall equipment effectiveness.
FALSE
Information such as goodwill or long-term debt will likely change on a minute-by-minute basis in real-time financial reporting.
FALSE
Once numbers are input into a financial system using XBRL-GL, they are already tagged and able to be transmitted on the next day of business to interested users.
FALSE
Performance metrics can be used to determine competence.
FALSE
Since KPI dashboards are usually monitored on a daily basis, the importance of communication between all users is trivial.
FALSE
The XBRL taxonomy helps define and describe each key data element (such as cash or employee spending).
FALSE
The balanced scorecard is based around a company's profit and loss statement.
FALSE
The balanced scorecard is comprised of four components: financial, customer, internal process and organizational validity.
FALSE
The use of tags allows data to be slowly transmitted and received and it serves as an input into financial analysts valuing a company. It also contributes to an auditor finding areas where an error might occur, or regulators verifying if firms are in compliance with various regulations and laws (like SEC or IRS).
FALSE
XBRL is a global standard for internet communication mostly among day traders.
FALSE
XBRL stands for eXtensible Business Reporting Linguistic.
FALSE
EBITDA is which of the following types of KPI?
Financial performance
Operating expense ratio is which of the following types of KPI?
Financial performance
Operating profit margin is which of the following types of KPI?
Financial performance
Return on investment is which of the following types of KPI?
Financial performance
KPI data is typically stored in the company's ERP or accounting information system while KPI data analysis for the digital dashboard is created in a data visualization tool such as Excel or Tableau.
TRUE
Many financial reporting systems within enterprise systems have general ledgers that are consistent with XBRL called XBRL-GL.
TRUE
Operational KPIs include six sigma level and first contact resolution.
TRUE
Ratio analysis is a tool used to evaluate relationships among different financial statement items to help understand a company's financial and operating performance.
TRUE
Sometimes outside data vendors create standardized metrics to make the company reported XBRL data more comparable.
TRUE
The IMPACT model should be used to complete a project using a balanced scorecard or some other type of digital dashboard to highlight metrics and KPIs.
TRUE
The Securities and Exchange Commission mandates all publicly traded companies file financial statements prepared in accordance with U.S. GAAP.
TRUE
The XBRL tag for cash is labeled Cash and is defined as follows: Amount of currency on hand as well as demand deposits with banks or financial institutions.
TRUE
The balanced scorecard helps companies turn their strategic goals into action by identifying the most important metrics to measure.
TRUE
The two types of standardized financial accounting are IFRS and U.S. GAAP.
TRUE
The value of a digital dashboard is maximized when the metrics provided are used to impact decision-making and action.
TRUE
There are basically four types of ratios: Liquidity, activity, solvency (or financing) and profitability ratios.
TRUE
When reporting financial statements, detailed tagging of the numbers included in the footnotes by use of XBRL tags is also required.
TRUE
Customer turnover rate is which of the following types of KPI?
Customer
Using the table below compute ROE for 2011 year-end for DuPont (Ticker = DD). ticker year period revenue cost of revenue assets equity DD 2010 Y $ 28,899,000,000 $ 20,574,000,000 $ 40,410,000,000 $ 9,800,000,000 DD 2011 Q1 10,059,000,000 6,831,000,000 42,600,000,000 11,279,000,000 DD 2011 Q2 10,493,000,000 7,191,000,000 47,736,000,000 12,502,000,000 DD 2011 Q3 8,303,000,000 6,345,000,000 47,794,000,000 12,024,000,000 DD 2011 Y 34,423,000,000 21,264,000,000 48,643,000,000 9,208,000,000 DD 2012 Q1 $ 10,194,000,000 $ 6,816,000,000 $ 50,223,000,000 $ 10,427,000,000
142.9%
Using the table below compute ROE for Q3, 2011 for DuPont (Ticker = DD). ticker year period revenue cost of revenue assets equity DD 2010 Y $ 28,899,000,000 $ 20,574,000,000 $ 40,410,000,000 $ 9,800,000,000 DD 2011 Q1 10,059,000,000 6,831,000,000 42,600,000,000 11,279,000,000 DD 2011 Q2 10,493,000,000 7,191,000,000 47,736,000,000 12,502,000,000 DD 2011 Q3 8,303,000,000 6,345,000,000 47,794,000,000 12,024,000,000 DD 2011 Y 34,423,000,000 21,264,000,000 48,643,000,000 9,208,000,000 DD 2012 Q1 $ 10,194,000,000 $ 6,816,000,000 $ 50,223,000,000 $ 10,427,000,000
16.3%
Using the table below compute operating leverage for Q3, 2011 for DuPont (Ticker = DD). ticker year period revenue cost of revenue assets equity DD 2010 Y $ 28,899,000,000 $ 20,574,000,000 $ 40,410,000,000 $ 9,800,000,000 DD 2011 Q1 10,059,000,000 6,831,000,000 42,600,000,000 11,279,000,000 DD 2011 Q2 10,493,000,000 7,191,000,000 47,736,000,000 12,502,000,000 DD 2011 Q3 8,303,000,000 6,345,000,000 47,794,000,000 12,024,000,000 DD 2011 Y 34,423,000,000 21,264,000,000 48,643,000,000 9,208,000,000 DD 2012 Q1 $ 10,194,000,000 $ 6,816,000,000 $ 50,223,000,000 $ 10,427,000,000
17.4%
Using the table below compute profit margin for Q3, 2011 for DuPont (Ticker = DD). ticker year period revenue cost of revenue assets equity DD 2010 Y $ 28,899,000,000 $ 20,574,000,000 $ 40,410,000,000 $ 9,800,000,000 DD 2011 Q1 10,059,000,000 6,831,000,000 42,600,000,000 11,279,000,000 DD 2011 Q2 10,493,000,000 7,191,000,000 47,736,000,000 12,502,000,000 DD 2011 Q3 8,303,000,000 6,345,000,000 47,794,000,000 12,024,000,000 DD 2011 Y 34,423,000,000 21,264,000,000 48,643,000,000 9,208,000,000 DD 2012 Q1 $ 10,194,000,000 $ 6,816,000,000 $ 50,223,000,000 $ 10,427,000,000
23.6%
Customer retention rate is which of the following types of KPI?
Customer
Market growth rate is which of the following types of KPI?
Marketing
Market share is which of the following types of KPI?
Marketing
Social networking footprint is which of the following types of KPI?
Marketing
Which of the following is an example of a customer KPI?
Net promoter score
First pass yield is which of the following types of KPI?
Operational
Inventory shrinkage rate is which of the following types of KPI?
Operational
Process downtime level is which of the following types of KPI?
Operational
Return on innovation investment is which of the following types of KPI?
Operational
Which of the following is an example of an operational KPI?
Overall equipment effectiveness
Which of the following is an example of a marketing KPI?
Page views and bounce rate
Which of the following is an example of an Employee Performance KPI? A) Six Sigma Level
Salary competitiveness ratio
With regard to sparklines, which of the following statements is false?
Sparklines can be added to a digital dashboard that already has many charts and dials, without cluttering up the overall appearance of a dashboard.
The Securities and Exchange Commission requires all public company filers to use XBRL tagging in all of the following financial statements except:
Statement of Changes in Working Capital
Which of the following is an example of an environmental and social performance sustainability KPI?
Supply chain miles
A balanced scorecard includes a well-defined mission, vision and set of values which are integral in creating and maintaining a successful culture.
TRUE
A digital dashboard allows for communicating a selection of KPIs.
TRUE
A major component of financial statement analysis is the use of ratio analysis.
TRUE
A proper strategy for a company's growth considers what a firm does well and how it achieves it.
TRUE
Artificial intelligence, machine learning, and sentiment analysis are three methods used to analyze publicly traded companies on Nasdaq and the NYSE to gain insight and track companies' business and financial operations.
TRUE
Creating a balanced scorecard or any type of digital dashboard to present KPIs for decision-making follows the IMPACT model.
TRUE
Data analytics can help predict a company's revenue, earnings, and cash flow.
TRUE
Data analytics is the process of measuring past performance while comparing it to targeted goals to better evaluate a company's progress.
TRUE
Data visualization is the most effective way to communicate the result of any data analysis.
TRUE
Defining over 19,000 elements, the 2017 US GAAP Financial Reporting Taxonomy tags unique financial data to a component within the taxonomy.
TRUE
Environmental and social sustainability KPIs include energy consumption and carbon footprint.
TRUE
Financial performance KPIs include net profit, net profit margin, and gross profit margin.
TRUE
Financial statement analysis is used by investors, analysts, auditors and other interested stakeholders to review and evaluate a company's financial statements and financial performance.
TRUE
In filing its financial statements with the SEC, a company must tag five basic financial statements, which include a balance sheet, income statement, statement of comprehensive income, statement of cash flows and statement of stockholder's equity.
TRUE
Which of the following statements is false?
XBRL uses a taxonomy to help define and describe each key data element, but it is not capable of defining relationships between each element.
Profitability ratios measure ________.
a firm's ability to generate earnings relative expenses
Liquidity ratios measure ________.
a firm's ability to pay short-term obligations using current assets
Solvency ratios measure ________.
a firm's ability to pay their debts and stay in business
Activity ratios measure ________.
a firm's operating efficiency
Accounts receivable turnover ratio is an example of which type of ratio?
activity ratio
Inventory turnover ratio is an example of which type of ratio?
activity ratio
Total assets turnover ratio is an example of which type of ratio?
activity ratio
A ________ is a particular type of report that is made up of strategic objectives and metrics to help the organization reach its target measures in line with strategic goals.
balanced scorecard
Which of the following is an example of a financial performance KPI?
conomic value added
The balanced scorecard is comprised of four components; which of the following is not an item that should be identified for each component?
destinations
A ________ is an interactive report showing the most important metrics to help users understand how a company or an organization is performing.
digital dashboard
XBRL stands for ________ and is a type of ________.
eXtensible Business Reporting Language; XML
Which of the following is not a type of tagging with XBRL?
hieroglyphs
A ________ is a particular type of metric that an organization deems the most important and influential on decision-making.
key performance indicator
The acid-test ratio is an example of which type of ratio?
liquidity ratio
The current ratio divides total current assets by total current liabilities and is an example of which type of ratio?
liquidity ratio
The quick ratio is an example of which type of ratio?
liquidity ratio
According to the text, research finds that as the use of ________ words in the 10-k ________ the stock market reacts ________.
negative; increases; negatively
XBRL is used for ________ and ________ financial elements.
organizing; defining
A ________ is a calculation measuring how an organization is performing, particularly when that measure is compared to a baseline.
performance metric
Profit margin is an example of which type of ratio?
profitability ratio
Return on assets is an example of which type of ratio?
profitability ratio
Return on equity is an example of which type of ratio?
profitability ratio
The authors discuss all of the following ways in which tags can serve as an input except:
regulators seeing if audit firms are in compliance with various regulations and laws.
Sparklines are generally ________ and show ________ trends.
small; simple
Debt-to-equity ratio is an example of which type of ratio?
solvency ratio
Long-term debt to equity ratios are examples of which type of ratio?
solvency ratio
XBRL uses a ________ to help describe each key data element.
taxonomy
According to the authors, the use of tags allows data to be quickly ________.
transmitted and received
