data analytics chp 6

To compute the percentage change in a horizontal analysis from last year to this year, the computation will be: (Current Year - Last Year)/ Last Year. (Last Year- Current Year)/ Last Year. (Last Year- Current Year)/ Current Year. (Current Year- Last Year)/ Current Year.

(Current Year - Last Year)/ Last Year.

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

0.0642

If the profit margin is 0.1142, asset turnover is 0.5619 and financial leverage is 1.2937, what is the return on equity? 0.0830 0.0642 0.1142 0.7269

0.0830

All other things equal, in which of the following buckets would you expect the least amount of aged receivables to be? 31-60 days 61-90 days 1-30 days 91-120 days

91-120 days

Of the following measures, the best way to analyze the extreme values in the sample is to consider the __________. mean maximum or minimum mode standard deviation

maximum or minimum

Of the following measures, the best way to analyze the variability in the sample is to consider the __________. mean maximum or minimum mode standard deviation

standard deviation

Descriptive analytics are characterized by __________ of the relevant data. summarization uncovering patterns what-if scenarios cash flow analysis

summarization

Of the following measures, the best measure for evaluating firm efficiency in handling and using assets is __________. asset turnover return on assets profit margin return on equity

ASSET TURNOVER

__________ analytics are often the first type of analytics performed that leads to other types of analytics for further investigation. Descriptive Diagnostic Predictive Prescriptive

Descriptive

(T/F) Dupont analysis allows an analysis of profit margins, asset turnover and liquidity.

FALSE

(T/F) Diagnostic analytics emphasizes "What happened?"

FALSE

__________ provides comparative changes about various line items of each financial statement over time. Vertical analysis Horizontal analysis Percentage change A pivotable

Horizontal analysis

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. more, more less, more more, less more, equally

MORE,MORE

Profit margin is computed as follows: Net profit (net income) / Sales Gross profit / Sales Net profit (net income) / Assets Gross profit / Assets

Net profit (net income) / Sales

The calculation for return on equity using Dupont Analysis is: Profit margin x Asset turnover x Financial leverage Profit margin x Asset turnover Asset turnover x Financial leverage Gross profit margin x Asset turnover x Financial leverage

Profit margin x Asset turnover x Financial leverage

Comparing the extent of long-term debt to equity is an example of __________. Vertical analysis Horizontal analysis Ratio analysis Pivottables

Ratio analysis

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

Return on assets

Asset turnover is computed as follows: Sales / Assets Assets / Sales Net profit (net income) / Assets Gross profit / Assets

Sales / Assets

In vertical analysis, the relevant base for cost of goods sold is which of the following? Sales revenue Total assets Total stockholders' equity Total credit sales

Sales revenue

__________ are brief, generally small, visuals that fit within one cell in Excel that visually depict what happened in the cells next to it. Small graphics Sparklines Pivot charts Analytic charts

Sparklines

(T/F) A company's descriptive statistics are appropriately compared to either 1) the economy as a whole, 2) the company's respective industry, 3) competitors and 4) the company's own prior performance.

TRUE

(T/F) Descriptive analytics are analytics that characterize, summarize, and organize features and properties of the data to facilitate understanding.

TRUE

(T/F) 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

In vertical analysis, the relevant base for long-term debt is which of the following? Sales revenue Total assets Total equity Total liabilities

Total assets

__________ expresses financial information in relation to some relevant figure or base. Vertical analysis Horizontal analysis Ratio analysis Pivottables

Vertical analysis

A __________ is a display of rectangles with area proportional to the underlying frequency of the data. histogram frequency diagram line chart pie chart

histogram

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

histogram

While a __________ reorganizes and summarizes certain data using cross-tabulations without changing the underlying spreadsheet (or data), a __________ is a graphical depiction of those cross-tabulations. pivot chart; pivottable pivottable; pivot chart histogram; pivottable graph; table

pivottable; pivot chart

Descriptive quantitative analytic measures of financial statements to help evaluate liquidity, solvency, profitability and efficiency are called __________. vertical analysis horizontal analysis ratio analysis pivottables

ratio analysis