acct analytics final

According to Benford's law, numbers with the first digit "4" are more likely than those with first digit "3". True or False

False

Classification is most closely associated with diagnostic analytics. True or False

False

Descriptive analysis is always the first type of data analytics performed. True or False

False

Dupont analysis allows an analysis of profit margins, asset turnover and liquidity. True or False

False

Excel is generally regarded to be more secure than databases because users can add passwords to worksheets and workbooks. True or False

False

Financial statements would generally be considered to be unstructured data. True or False

False

It is possible to input raw data within Tableau. True or False

False

The higher the expected risk, the lower the expected return. True or False

False

We would expect a positive relationship (+) between loan acceptance and the debt-to-income ratio. True or False

False

"Create" is the highest skill in Bloom's Taxonomy. True or False

True

An adjusted R-squared value of 0 represents no ability of the model to explain the dependent variable. True or False.

True

Data with greater veracity is often more impactful, carrying more weight in analysis than data with lesser veracity in addressing accounting questions. True or False

True

Financial statements already contain many of the counts, totals, sums, averages, subtotals, minimums, and maximums that are needed as part of accounting descriptive analytics. True or False

True

Optimization is most closely associated with prescriptive analytics. True or False

True

Primary keys are required in every relational database table. True or False

True

The dollar amounts included in the financial statements would be examples of ratio data. True or False

True

The saying "Half the money I spend on advertising is wasted; the trouble is I don't know which half", illustrates the problem with knowing precisely how much value accrues from advertising expenses to sales or the value of the firm. True or False

True

With four possible audit opinion outcomes (e.g., unqualified, qualified, disclaimer, or adverse), the audit opinion would be considered categorical (as opposed to numerical). True or False

True

Which predictive analytics technique would be used to predict whether a firm is likely to have a material misstatement in the coming year? a. Classification b. Monetary unit sampling c. Regression d. Benford's law

a. Classification

Which analytics tool or technique is generally used in descriptive analytics? a. Horizontal analytics b. Time series c. Classification d. Variance analysis

a. Horizontal analytics

What would be most likely to be disclosed in an 8-K filing to the SEC? a. Naming of a new CFO b. Overview of a company's main risks c. Management discussion and analysis d. Company Statement of Cash Flows

a. Naming of the new CFO

Which component of the AMPS model would usually involve creating a pivottable? a. Perform the Analysis b. Master the Data c. Ask the Question d. Share the Story

a. Perform the Analysis

_________ data has an absolute zero. a. Ratio b. Interval c. Nominal d. Ordinal

a. Ratio

Which of the following are benefits of storing data in a relational database? a. Security around data entry and table access can aid in creating and enforcing data entry internal controls b. Ability to store more data c. Easier access by all database users d. Important data is stored in more than one database

a. Security around data entry and table access can aid in creating and enforcing data entry internal controls

Of the options listed below, which is the lowest level of thinking skills in Bloom's Taxonomy? a. Understand b. Analyze c. Apply d. Create

a. Understand

In SQL, the __________ clause acts like a filter. a. WHERE b. TABLE c. EXTRACT d. SELECT

a. WHERE

Proportion is used most effectively with __________ data. a. categorical b. interval c. ratio d. numerical

a. categorical

Structured set of data allowing access by many potential users is called a(n) __________. a. database b. data file c. excel spreadsheet d. data chache

a. database

If a company has an Altman Z-score of 1.7, the company would be classified in the __________. a. distress zone, or at significant risk of bankruptcy b. safe zone, not currently at risk of bankruptcy c. green zone, no risk of bankruptcy d. gray zone, or at risk of bankruptcy

a. distress zone, or at significant risk of bankruptcy

An illustration of the total aged receivables in each 30-day bucket is an example of a __________. a. histogram b. pivot chart c. line chart d. horizontal analysis

a. histogram

Sales figures would be considered to be examples of __________ data. a. ratio b. ordinal c. interval d. categorical

a. ratio

A __________ communicates the same pieces of information (which tables are in the database, which fields are in each table, and how each table is related through primary key/foreign key placement) as a data dictionary, but in visual form. a. relational database diagram b. relationship database diagram c. database diagram d. data flow diagram

a. relational database diagram

If p-value of a statistical test is 0.09 and is evaluated with a 90% confidence interval, you a. should reject the null hypothesis (i.e., significant result). b. have insufficient evidence to either reject or fail to reject the null hypothesis. c. accept the alternate hypothesis. d. should fail to reject the null hypothesis (i.e., not significant result).

a. should reject the null hypothesis (i.e., significant result).

To faithfully represent what occurs, accounting information needs to be all except for which of the following? a. timely b. complete c. neutral d. free from error

a. timely

If the profit margin is 0.1142, asset turnover is 0.5619 and financial leverage is 1.2937, what is the return on asset? a. 0.7269 b. 0.0642 c. 0.0830 d. 0.1142

b. 0.0642

According to the normal distribution, __________% of the data would fit within 2 standard deviations of the mean. a. 99 b. 95 c. 99.7 d. 68

b. 95

If there are 60 return transactions and 150 sales transactions in a month, what is the proportion of return transactions to all monthly transactions? a. =60/150 b. =60/210 c. =150/60 d. =210/60

b. =60/210

Management accounting uses variance analysis to explain what and why something happened in the cost of producing products. It is done by comparing actual outcomes to expected, or standard, costs. What is the expectation when the price of raw materials unexpectedly decreases below the standard price? a. Favorable quantity variance b. Favorable price variance c. Unfavorable price variance d. Unfavorable quantity variance

b. Favorable price variance

Analyzing relationships between vendors and A/P clerks to find potentially fraudulent relationships is an example of what type of diagnostic analytics? a. Identifying anomalies and outliers b. Finding previously unknown linkages, patterns, or relationships between variables c. Performing descriptive analytics d. Performing marginal analysis

b. Finding previously unknown linkages, patterns, or relationships between variables

According to the text, __________ does not prefer __________-basis accounting since it is inferior at forecasting future performance. a. tax accounting, accrual b. GAAP, cash c. tax accounting, cash d. GAAP, accrual

b. GAAP, cash

Internal controls testing is an example of what type of data analytics? a. Finding previously unknown linkages, patterns, or relationships between variables b. Identifying anomalies and outliers c. Performing marginal analysis d. Performing descriptive analytics

b. Identifying anomalies and outliers

Which cash reconciling item could potentially affect either the bank statement or the general ledger? a. Outstanding deposit b. Recording error c. Interest earned on notes held by the bank d. NSF checks

b. Recording error

Which ratio does not include a component to evaluate financial leverage? a. Return on investment b. Return on assets c. Return on sales d. Return on equity

b. Return on assets

In fuzzy matching, if the tolerance for a match is set to 0%, what is the likely consequence for finding potential matches? a. Good mix between exact and potential matches b. Too many potential matches c. Too few potential matches d. Only exactly matches, no potential matches

b. Too many potential matches

The Four V's associated with big data include all except which of the following: a. Veracity b. Variability c. Velocity d. Volume

b. Variability

What kind of analytics tool or technique is generally used to perform diagnostic analytics? a. Vertical analysis b. Variance analysis c. Regression d. Time series

b. Variance analysis

What type of question is used in determining how to maximize revenues if there is a trade war with China? a. Will it happen in the future? What is the probability something will happen? Is it forecastable? b. What should we do based on what we expect will happen? How do we optimize our performance based on potential constraints? c. Why did it happen? What are the root causes of past results? d. What happened? What is happening?

b. What should we do based on what we expect will happen? How do we optimize our performance based on potential constraints?

This computer standard allows an easy, automated exchange between a financial statement repository and a financial statement user. a. Google financials b. XBRL c. Excel d. EDGAR

b. XBRL

If we are running a regression to analyze the question if advertising expenses are related to sales revenue outcomes, what would be the independent variable? a. sales revenue b. advertising expenses c. operating expenses d. cost of goods sold

b. advertising expenses

There are four primary methods to summarize numerical data: counting and grouping, proportion, summing and __________. a. charting b. averaging c. ranking d. plotting

b. averaging

A(n) __________ diagram is a graphical representation of an information system, illustrating relationships among people, objects, places, and events within that system to allow you to SELECT data from more than one table, as long as those two tables are related. a. data flow diagram b. entity-relationship (ER) c. database d. relational

b. entity-relationship (ER)

The name of each patient at a doctor's office would be an example of a __________. a. row b. field c. data item d. record

b. field

Tax information at the company level comes primarily from the company's ________ . a. tax reporting system b. financial reporting system c. asset reporting system d. cost accounting system

b. financial reporting system

When using regression analysis, the relationship between two variables matters when you are trying to understand __________. a. how future values are based on past values of the same variable b. how an independent variable impacts a dependent variable c. how estimated trends from the past may continue into the future d. how a dependent variable impacts an independent variable

b. how an independent variable impacts a dependent variable

Performing a bank reconciliation is example of the diagnostic analytics of __________. a. determining relations/patterns/linkages between variables through statistical analysis b. identifying anomalies/outliers c. performing drill-down detailed analytics d. performing descriptive analytics

b. identifying anomalies/outliers

If p-value of a statistical test > alpha threshold, you a. should reject the alternate hypothesis (i.e., significant result). b. should fail to reject the null hypothesis (i.e., not significant result). c. have insufficient evidence to either reject or fail to reject the alternate hypothesis. d. accept the null hypothesis.

b. should fail to reject the null hypothesis (i.e., not significant result).

The appropriate test to compare one sample to another sample to see if one is greater than another in some way is called a(n) __________. a. chi-squared test of a difference in means b. two-sample t-test of a difference in means c. regression d. one-sample t-test of a difference in means

b. two-sample t-test of a difference in means

There is expected to be 175 _____ of data by 2025. a. terabytes b. zettabytes c. yottabyte d. exabyte

b. zettabytes

Albert Einstein's intelligence quotient (IQ) was reported to be 160. If the population mean IQ is 100 and the standard deviation is 15, what is the z-score associated with Albert Einstein's IQ? a. 10.666 b. 100 c. 4 d. 150

c. 4

Which of the following would be a calculated variable from other data? a. Coupon availability b. Product availability c. Average customer rating d. Product sales price

c. Average customer rating

If we run a regression where y (bankruptcy) = f (factors potentially predicting bankruptcy), what is the dependent variable? a. There are no dependent variables b. Factors potentially predicting bankruptcy c. Bankruptcy d. Cannot be determined

c. Bankruptcy

To access data through a query in Excel, you would click on the following to access a database. a. Data > From Database b. New Query > Data > From Database c. Data > New Query > From Database d. Data > From Database > New Query

c. Data > New Query > From Database

In a table of a relational database, columns correspond to fields, and rows correspond to __________. a. variables b. attributes c. transactions d. records

d. records

_______ often prepare research reports talking about company prospects by synthesizing financial statements, listening to conference calls, and talking to managers of the company and to its competitors. a. Regulators b. Auditors c. Financial analysts d. Investors

c. Financial analysts

Which of the following are not one of the five required sections in a form 10-K? a. Financial Statements and Supplemental Data b. Management's Discussion and Analysis c. Forecast of Future Performance d. Risk Factors

c. Forecast of Future Performance

Testing using fuzzy matching is an example of which type of diagnostic analytics? a. Performing marginal analysis b. Finding previously unknown linkages, patterns, or relationships between variables c. Identifying anomalies and outliers d. Performing descriptive analytics

c. Identifying anomalies and outliers

Which component of the AMPS model most appropriately addresses the skill mentioned by EY's analytics mindset of "extract, transform and load relevant data"? a. Perform the Analysis b. Ask the Question c. Master the Data d. Share the Story

c. Master the Date

Which predictive analytics technique would be used to predict the interest rate given from a lender (bank) to a borrower? a. Cross-tabulation b. Time-series analysis c. Regression d. Looking for anomalies and outliers

c. Regression

Which is more persistent in predicting future amounts of the variable based on current amounts of that same variable? a. Operating income b. Cash flows from investment activities c. Sales d. Cash flows from financing activities

c. Sales

In the United Kingdom (UK), financial statements for publicly traded firms are issued twice annually. In the United States (US), financial statements for publicly traded firms are issued quarterly. The difference in timing would address which aspect of Big Data? a. Volume b. Veracity c. Velocity d. Variety

c. Velocity

If a dataset has a lot of missing data would most directly concern which aspect of Big Data? a. Volume b. Velocity c. Veracity d. Variety

c. Veracity

What type of question(s) works to explain "Why did overall tax increase even though net income did not?" a. What should we do based on what we expect will happen? How do we optimize our performance based on potential constraints? b. What happened? What is happening? c. Why did it happen? What are the root causes of past results? d. Will it happen in the future? What is the probability something will happen? Is it forecastable?

c. Why did it happen? What are the root causes of past results?

The most appropriate data type for whether or not a product is eligible for Amazon prime shipping would be the use of __________. a. currency b. short text c. Y/N Flag d. number

c. Y/N Flag

Predictive and prescriptive analytics provide __________ deterministic output and __________ probabilistic models (judging the likelihood (probability) of a future event or outcome occurring) as compared to descriptive and diagnostic analytics. a. more; more b. less; less c. less; more d. more; less

c. less; more

The __________ recent the accounts receivable (i.e., shorter amount of time it has been outstanding), the __________ likely it will be that they will ultimately be collected. a. more, equally b. less, more c. more, more d. more, less

c. more, more

A __________ is a characteristic of a population. a. normal distribution b. descriptive statistics c. parameter d. sample

c. parameter

A(n) _____ is a tool that allows reorganization and summarization of certain data using crosstabulations without changing the underlying spreadsheet. a. functions b. graphing c. pivottable d. query

c. pivottable

Of the data items listed below, which has the highest velocity? a. Daily weather updates b. Financial statements c. Stock prices d. Worker productivity measures

c. stock prices

SQL stands for __________. a. standard query language b. structured query links c. structured query language d. standard query links

c. structured query language

The ability of a computer to automatically learn without being explicitly programmed to do so is called __________. a. automated task repetition b. predictive automation c. robotic process automation d. machine learning

d. machine learning

While __________ data classifies categorical items, __________ data ranks categorical items. a. ordinal; interval b. ordinal; nominal c. nominal; interval d. nominal; ordinal

d. nominal; ordinal

A histogram is used to understand: a. the relation between specific dependent variable values and independent variable inputs. b. the probability of a statistical difference in means between either two independent samples or a paired sample through time. c. the frequency of the data using a display of rectangles with area proportional to the underlying frequency of the data. d. the basic statistics, including the mean, standard deviation, minimums, and maximums of a data set.

c. the frequency of the data using a display of rectangles with area proportional to the underlying frequency of the data.

According to Benford's law, what is the expectation for the percentage of times that the first digit of a number is the number "1"? a. 24.58% b. 35.80% c. 15.12% d. 30.10%

d. 30.10%

While Benford's Law mainly applies to the first digit of a number, it can also be applied to: a. The second through fourth digits b. The first two digits c. The last two digits d. All of the above

d. All of the above

What type of analytics would investigate performance different than was expected, such anomalies/outliers? a. Predictive analytics b. Prescriptive analytics c. Descriptive analytics d. Diagnostic analytics

d. Diagnostic analytics

EDGAR, the SEC repository of SEC forms, stands for _______. a. Electronic Data Gathering and Archive Retrieval system b. Electronic Data Gathering, Analysis Repository system c. Electronic Data Gathering, Analysis Resource system d. Electronic Data Gathering, Analysis and Retrieval system

d. Electronic Data Gathering, Analysis and Retrieval system

Testing for duplicate transactions is an example of what type of diagnostic analytics? a. Finding previously unknown linkages, patterns, or relationships between variables b. Performing marginal analysis c. Performing descriptive analytics d. Identifying anomalies and outliers

d. Identifying anomalies and outliers

All of the following are factors used by Altman's Z in predicting bankruptcy except: a. Working capital/Total assets b. Market value of stockholders' equity/Book value of total debt owed c. Retained Earnings/Total assets d. Income/Total equity

d. Income/Total equity

Which of the following is not one of the five required forms required by the SEC? a. 10-Q b. S-1 c. 8-K d. M-1

d. M-1

Which required section in a form 10-K is likely to represent unstructured data? a. Financial Statements and Supplemental Data b. Selected Financial Data c. Risk Factors d. Management's Discussion and Analysis

d. Management's Discussion and Analysis

Ranking is a summarization method for which type of data? a. Nominal b. Both Categorical and Numerical c. Ratio d. Ordinal

d. Ordinal

What would be the best possible independent variable in a regression determining Sales next period, Salest+1? a. Sales t+1 b. Sales t-2 c. Sales t-1 d. Sales t

d. Sales t

A(n) __________ hypothesis is a hypothesis used in hypothesis testing that is opposite of the null hypothesis, or a potential result that the analyst may expect. a. correct b. incorrect c. null d. alternative

d. alternative

The probability of some event occurring based on some historical average is called __________. a. sample average b. historical rate c. classification d. base rates

d. base rates

The probability that a population parameter will fall between two set values is called a __________. a. sample b. parameter c. descriptive statistics d. confidence interval

d. confidence interval

ETL stands for __________: a. examine, translate, load b. extract, translate, link c. extract, translate, load d. extract, transform, load

d. extract, transform, load

A column (or group of columns) that exist to create relationships between two tables, linking to the primary key in another table is called a __________. a. foreign link b. primary key c. primary link d. foreign key

d. foreign key

A __________ communicates which tables are in the relational database, which fields are in the table, and how each table is related through primary key/foreign key placement. a. relational database atlas b. relational database data map c. relational database diagram d. relational database data dictionary

d. relational database data dictionary

In SQL, the command SELECT * denotes to __________. a. query some columns b. summarize some columns c. query all columns d. return every column

d. return every column

If the p-value of the chi-square test is __________ than the α (alpha) threshold, we could conclude that the observed relationship is __________ than that expected from Benford's law. a. greater; different b. greater; greater c. smaller; smaller d. smaller; different

d. smaller; different