Fundamentals of Data Analytics - Exam 1

The adjusted R-squared ranges from a value of 0 to ___.

1

_____ is encapsulated as the technologies, systems, practices, methodologies, databases, statistics and applications used to analyze diverse accounting and non-accounting data to give organizations the information they need to make sound and timely business decisions.

Accounting data analytics

_____ attempts to allocate indirect costs on the basis or activities that drive them.

Activity-based costing

Blog sites, chat boards, Facebook, Twitter and StockTwits are all examples of ______ ______ data.

Blank 1: social or non Blank 2: media or accounting

Proportions are used to summarize _____ data.

Categorical

_______ data tend to classify items represented by words, such as identifying a group of people by gender (male, female, nonbinary), labeling transaction types (sales vs. returns) or ordering outcomes.

Categorical

As accountants of the future require higher levels of critical thinking and reasoning skills than what was previously required for accountants, which levels of critical thinking skills as outlined by Bloom's Taxonomy should accountants need to focus?

Create, Evaluate, and Analyze

____ is a source of macroeconomic data that serves as a measure of inflation.

Customer Price Index (CPI)

Which of the following is not an example of items included in a customer relationship management (CRM) system?

Customer projected purchase volume Correct Customer level of trade discounts customer payment history customer credit limit

True or false: After the AMPS model is completed, the data analysts work is considered complete.

False

True or false: An entity-relationship diagram contains more detailed information about each field than a data dictionary.

False

True or false: Diagnostic analytics addresses the question, "What is happening?".

False

True or false: Eye color is an example of ordinal data.

False

True or false: Once you import the data into Excel, any edits made to your Excel file will affect the data stored in the database.

False

True or false: Product price for an Amazon product is an example of a calculated variable.

False

True or false: The accounts receivable subledger keeps track of customer transactions when they pay using cash or credit.

False

Tax data comes from the _______ reporting system.

Financial

_____ give an opinion on whether to buy, hold or sell a company's stock.

Financial analysts

Which of the following is not considered one of the four primary financial statements?

Footnotes Correct BS Statement of Cash Flows IS

_____ keys exist to create relationships between two tables so that users of the database can look up details of the observation based on the primary key/foreign key relationship.

Foreign

___ analytics is associated with forecasting a future event.

Predictive

What type of analytics would primarily use analytics to separate, or classify, a sample into two or more groups or classes?

Predictive analytics

Which type of analytics will provide insight on whether the company should rent or own its headquarters?

Prescriptive analytics

Calculating the ______ of sales to returns each day for a retail organization is an example of summarizing ordinal data.

Proportion

The net book value of a fixed asset is a data item in the fixed asset subledger. Which of the following defines the net book value?

Purchase price less accumulated depreciation to date

A _____ is used to access data from a larger dataset needed for analysis.

Query or Macro

Internal control benefits of using relational databases include which of the following?

Reduced redundancy cuts down on errors. Security around data entry and table access can aid in creating data entry internal controls. Version control reduces the possibility of having more than one version of the data.

___ is a diagnostic analytics technique used to determine patterns between variables and assess how a specific dependent variable is related to an independent variable.

Regression

____________ includes information on active and inactive vendors and the orders made to date.

Supply chain system

Which is the best at data visualizations: a database, Excel or Tableau?

Tableau

Descriptive analytics would be more likely to use these tools in its analysis than other types of analytics?

Totals, sums, averages, and subtotals

General journal and special journal entries record all except for which of the following?

Transaction logs Correct who recorded the journal entry detailed transactions who authorized the journal entry

Stock prices are sources of non-accounting data.

True

True or false: A visual format is usually helpful in exploring data and identifying trends and outliers.

True

True or false: Accountants have a competitive advantage over machines with respect to higher level critical thinking skills.

True

True or false: Accounting data analytics are the technologies, systems, practices, methodologies, statistics and applications used to analyze diverse data to make sound and timely business decisions.

True

True or false: Auditors are increasingly able to consider data from the full population of transactions, rather than just a sample.

True

True or false: Data analytics is defined as the process of evaluating data with the purpose of drawing conclusions to address all types of questions.

True

True or false: Databases and other statistical analysis tools use more than the four data types to categorize data.

True

True or false: Every table must have a primary key because it is critical that every table have a unique listing of the data stored inside it.

True

True or false: If a company does not keep an active and approved vendor list, it is possible to erroneously or fraudulently send payment to the wrong, or non-existent (fraudulent) vendor and potentially lose that money.

True

True or false: It is preferable to store data in a database and simply connect it to Excel or Tableau for analysis.

True

True or false: Machine learning is used to assess the tone and sentiment of social media data.

True

True or false: Pitfalls to accessing data on the Internet include the chance that the access of the data and/or the layout of the data may change over time.

True

True or false: Prescriptive analytics is the ability to anticipate alternative scenarios.

True

True or false: Sometimes we need to reformat structured data to make it more useful.

True

True or false: The tax function does not generate its own data.

True

True or false: There will sometimes be trade offs between data that is relevant and data that is reliable.

True

The ______ is a statistic used to measure how good the model did at predicting the dependent variable in a regression.

adjusted r-square

The ___ hypothesis is the case management theorizes and/or believes is true.

alternative

The AMPS model should be _____.

considered recursive, or cyclical in nature

Prescriptive analytics is performed to identify the best possible options given ___ or changing conditions

constraints or constraint

The number of: direct labor hours worked, customer calls addressed, and change orders processed are all examples of potential ____.

cost drivers

In a data dictionary, product PRICE is an example of the _____ data type.

currency

A ______ relationship management system is an information system used to oversee all interactions with current and potential customers with the goal of improving relationships.

customer

A ________ is a graphical summary of various measures tracked by a company.

dashboard

The accuracy, validity and consistency of data used and stored over time is called ______ .

data integrity

A ___ is the most secure method of storing data.

database

A ____ is a structured data set that can be accessed by many potential authorized users via a computer system or network.

database

Structured set of data allowing access by many potential users is called a(n) __________.

database

Which of the following items would not be included in a relational database data dictionary?

database type correct description default value field size

Counts, totals, sums, averages, and subtotals are considered to be summarization tools used primarily in ___ analytics.

descriptive

Ratio analysis is considered a summarization tool used primarily in ___ analytics.

descriptive

What-if sensitivity analysis is an example of ___ analytics.

descriptive

A __________ corresponds to a column that contains descriptive information.

field

A relational database data dictionary describes each data ___ for each table in a relational database.

field

Spreadsheet programs, like Excel, are usually the _______ tool for a great deal of analytics that accountants will perform.

first

The detailed records of the manufacturing equipment used by the company would be included in a _____.

fixed asset ledger

A fixed asset ledger summarizes information regarding _________ assets

fixed or tangible

The ___ sheet is available in the Excel Data Analysis Toolpak to help with predictive analytics.

forecast or forecasting

Bloom's taxonomy offers a ________________________ , to think about critical thinking skills

framework or foundation

Bloom's taxonomy provides a ___________ view of critical thinking skills.

hierarchical

Data ____________ is the extent to which data is accurate, valid, and consistent over time.

integrity

If different versions of the data are stored in multiple locations, there is a risk that when data is extracted, the data ___ can be compromised.

integrity

The __________ of the data can be damaged if different versions of the data are stored on the users' desktop computers or laptops rather than analyzing data through a live connection to the database.

integrity

The sample arithmetic ___ is the sum of all data points divided by the number of observations.

mean or average

The median is the ___ of the data in a sorted array.

middle

Accounting data that is a faithful representation exhibiting ___ is not biased

neutral or neutrality

The bell-shaped probability distribution that is symmetric about its mean is called a ___ distribution.

normal

If the statistical test shows that the p-value > alpha, the researcher will fail to reject the ___ hypothesis

null

The ___ hypothesis assumes the hypothesized relationship does not exist.

null

Categorical and _____ data make up the two major data types.

numerical

Product price is an example of _____ data.

numerical

When the source data used to create an Excel pivottable change, the pivottable will update _____.

only when the pivottable is "refreshed"

When the source data used to create an Excel pivottable change, the pivottable will update __________.

only when the pivottable is "refreshed"

The data type that ranks, or orders, items is called the _______ data type.

ordinal

Transactions categorized as the date of sales or returns are examples of ______ data types.

ordinal

Information ______ is the situation where there is so much information it may not be properly synthesized or interpreted.

overload

Information _________ may hinder the work of the accountant due to receiving too much information.

overload

Uncovering the details by summarizing the data at different levels would be an example of _____.

performing drill-down analytics

Using ____for crosstabulations to view transactions from a different perspective, is an example of performing drill-down analytics (a category of diagnostic analytics).

pivottables

Budgets serve as a financial ____ for a company and are used to prioritize the needs of an organization.

plan

A group of phenomenon having something in common is called a _____.

population

The most common type of database model is the __________ database.

relational

Much of introductory accounting addresses the _____________________ critical thinking skill using Bloom's Taxonomy.

remember or remembering

Machines excel at ______ as compared to accountants in terms of Bloom's Taxonomy or critical thinking skills.

remembering

In SQL, the command SELECT * denotes to __________.

return every column

The task of the accountant is to match the ________ type of analytics with the right question.

right

Budgets generally start with a prediction of

sales

A ___ t-test is a statistical test used to compare the means of two sets of data observations.

sample

If we don't know the true population average, we will use the ___ average to make inferences about the true population average.

sample

The _____ chain represents the process of getting products from raw materials to production to distribution to the ultimate delivery of the final product to the customer.

supply

A sample ______ is used to compare the means of two sets of data observations to each other.

t-test

XBRL requires that each financial statement number be accompanied by a ______ from the XBRL library explaining exactly what that number represents.

tag

Companies keep track of both tangible and intangible assets. They keep track of _______ assets using the fixed asset subsidiary ledger.

tangible

The term "net book value" in the fixed asset ledger is considered to be useful to the preparer and the user because it __________.

tells the accountant the remaining value of the fixed asset less total depreciation to date

When data is stored in a relational database, you will often need to access or connect to that data in order to analyze it in another ___

tool

ETL stands for extract, ___, and load. It is useful for getting data ready for analysis

transform

In the ETL process, _____ includes sorting or filtering the data so it is easier to analyze.

transformation

In the ETL process, addressing missing values is included in the _____ step.

transformation

Data integrity means ____ in data.

truth

Tableau shows you are importing a numerical variable by showing the __________ icon.

#

Which distribution is a probability distribution with a low mean and highly skewed to the right?

Poisson distribution

_____________ can be used to help evaluate the supply of the product available.

Supply chain data

Which term refers to a required annual submission to the Securities and Exchange Commission reporting a company's financial performance.

10-K

While a form 8-K notifies investors of important events or announcements, a form ______ is an SEC quarterly filing reporting required information to investors.

10-Q or 10Q

According to the normal distribution, __________% of the data would fit within 1 standard deviations of the mean.

68

If there are 60 return transactions and 150 sales transactions in a month, what is the proportion of return transactions to all monthly transactions?

=60/210

Which of the following would be a calculated variable from other data?

Average customer rating

______ is most directly associated with helping to find anomalies and outliers.

Benford's Law

__________ is truth in data, or how the data presents the truth of the underlying transactions, transactions, or events that occurred.

Data Integrity

Which of the following is not a component of the analytics mindset?

Defend your assumptions. Correct Ask the right questions Interpret and share the results with shareholders Extract, transform, and load relevant data

___ analytics is associated with understanding what is happening.

Descriptive

What type of analytics addresses questions of "Why did it happen?"?

Diagnostic analytics

A graph or chart updated on a continuous basis would be an example of a ________________visualization.

Dynamic

The human resource management system manages interactions with current and potential ______.

Employees

_____ are a graphical representation of an information system, illustrating relationships among people, objects, places and events within that system.

Entity-relationship diagrams

Which is the appropriate ordering of thinking skills in Bloom's Taxonomy, where the ">" symbol means higher order skills?

Evaluate > Apply

Two of the most popular programs used in data analytics for business purposes is _____ and Tableau

Excel

___ , the software tool, allows the user to access external data from the Internet.

Excel

Prescriptive analytics would be more likely to use these tools in its analysis than other types of analytics?

Goal-seek analysis, what-if analysis

___ testing allows one to statistically test (i.e., using a t-test or other method) an assertion.

Hypothesis

Whereas ______________ would generally be considered to unstructured data, _____________ would generally be considered to be structured data.

Instagram pictures; financial statements

The numerical data type that has a meaningful distance between observations uses a(an) _____ scale.

Interval

The results of an IQ (intelligence quotient) test is an example of ____ data.

Interval

______ data is so named because there is an equal distance between two observations.

Interval

__________ data has a meaningful distance between data points.

Interval

The _____ is used to estimate lower of cost or market for inventory held by the company and inventory obsolescence.

Inventory subledger

Which of the following is not one of the five required forms required by the SEC?

M-1 Correct 8-K 10-Q S-1

Which component of the AMPS model most appropriately addresses the skill mentioned by EY's analytics mindset of "extract, transform and load relevant data"?

Master the Data

____ data is categorical data that cannot be ranked.

Nominal

The net book value of each asset from a fixed asset ledger is an example of _____ data.

Numerical

_______ data includes both interval data and ratio data.

Numerical

Examples of _____ data include blue, red, and yellow ribbons awarded at the state fair.

Ordinal

Ranking is a summarization method for which type of data?

Ordinal

Ranking is associated with _____ data.

Ordinal

Transactions categorized as the date of sales or returns are examples of ______ data types

Ordinal

Benford's law might be used as part of which component of the AMPS model?

Perform the Analysis

What is the third step in the AMPS model?

Perform the Analysis

According to the AMPS model, the next step after master the data is to _____.

Perform the analysis

_______ allow for reorganization and summarization of certain data using crosstabulations without changing the underlying spreadsheet.

PivotTables

_____ are(is) a tool that allows reorganization and summarization of certain data using cross-tabulations.

Pivottabes

A(n) _____ is a tool that allows reorganization and summarization of certain data using crosstabulations without changing the underlying spreadsheet.

Pivottable

_____ are (is) a tool that does not change the underlying data.

Pivottables

_____ are one of the best methods for summarizing many types of raw data in Excel.

Pivottables

_____ help run summary statistics quickly and provide the flexibility to explore data and interact with it based on the results through analysis without modifying the data.

Pivottables

_________ help run summary statistics quickly and provide the flexibility to explore data and interact with it based on the results through analysis without modifying the data.

Pivottables

_____ data creates a stream of data from every transaction that occurs.

Point-of-sale transaction

_____ is a universal database language that can be used to create, update, and delete records and tables in relational databases.

SQL

Ranking used as a means of summarizing ordinal data refers to a position on a

Scale

The _____ keeps a repository of financial statement information at its EDGAR website.

Securities and Exchange Commission (SEC)

Which of the following is not a required section in a SEC 10-K filing?

Selected Operational Data Correct Financial statements and supplemental data Risk Factors Selected financial data

Use of a dashboard to track relevant outcomes would be consistent with which component of the AMPS model?

Share the Story

The "S" in the AMPS model stands for _____.

Share the story

Pivottables would be considered to be a component of which of the following tools needed by accountants?

Spreadsheets

_____ data determines the cost of production for one unit of production.

Standard cost

_____ are the party most likely to use the point-of-sale data of its retail customers.

Suppliers or Vendors

______ are the party most likely to use the point-of-sale data of its retail customers.

Suppliers or Vendors

______numbers are a macroeconomic measure of labor availability.

Unemployment or Employment

_______ data tends to be text data without internal organization.

Unstructured

The easiest way to extract data in Excel is by _____.

Using a query

___ analysis is used in managerial accounting to explain why the actual product cost is different from the standard cost.

Variance

Standard costs monitored and recalculated on a continuous basis exhibit high ____.

Velocity

In SQL, the __________ clause acts like a filter.

WHERE

What type of question is used in determining how to maximize revenues if there is a trade war with China?

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

What is the abbreviation of the computer-based standard used to define and exchange financial information between disclosing companies and financial statement users?

XBRL

The most appropriate data type for whether or not a product is eligible for Amazon prime shipping would be the use of __________.

Y/N Flag

The ____ details information on the transaction and payment history in a financial reporting system.

accounts receivable subledger

Financial _________ prepare research reports talking about company prospects by synthesizing financial statements, listening to conference calls and talk to managers of the company.

analysts

The A in the AMPS model stands for ____.

ask the question

Data analytics is the process of evaluating data with the purpose of drawing ___________ to address all types of questions

conclusions

Since average customer rating is computed each time a product is displayed in Amazon, it is an example of a _____ variable.

calculated

Data regarding inventory being in stock is an example of _____ data.

categorical

The asset description from a fixed asset ledger is an example of ______ data.

categorical

While records are shown in each row of a database, fields (or variables) are shown in each ___ of a database.

column

Accounting data that is a faithful representation exhibiting ___ will include all monetary transactions and not miss any.

complete or completeness

Addressing the question, "Can our variance analysis help explain why the labor expenses increased over the past year?" would be an example of __________________analytics.

diagnostic

Testing of means of various groups (i.e. t-test, correlation, rank and percentile) are all used as part of ___ analytics.

diagnostic

The use of fuzzy lookup (or fuzzy matching) to find possible matches would be an example of ___ analytics

diagnostic

Uncovering patterns is an example of ___ analytics

diagnostic

A data _____ is a centralized repository of information about a set of data.

dictionary

The typical order for getting data ready for analysis is as follows:

extract the data, transform the data to make data usable and load the data in the analysis tool

In the ETL process, connecting to the database which has the data is included in the _____ step.

extraction

A ______ resource management system is an information system for managing all interactions with current and potential employees.

human

Detailed transactions are recorded at a company using _______ entries.

journal

Mastering the Data, as part of the AMPS model, includes extract, transform and ____.

load

One of the components of the analytics mindset is to extract, transform and ________ relevant data

load

The final step of the ETL process is to _____ the data in the appropriate analysis program.

load

Part of "________ the data" is to address accounting questions considering both accounting and non-accounting sources of data.

mastering or master

The question "What is the chance a company will go bankrupt?" is an example of _____ analytics.

predictive

The question "Will it happen in the future?" is an example of _________ analytics.

predictive

Addressing the question, "Should the company make its products or outsource to other manufacturers?" is an example of _____ analytics.

prescriptive

Addressing the question, "What should we do based on what we expect will happen?" is an example of _________ analytics.

prescriptive

Optimization would be a tool used as part of ___________.

prescriptive analytics

A ____ is an official statement to the media from the company about a specific matter.

press release

The use of relational databases makes ___ internal controls easier to enforce.

preventive

A ___ key is a field that functions as a unique identifier in a relational database.

primary

To link tables, the foreign key of one table will be the ___ key of another table.

primary

A ___ distribution is a statistical property that describes the possible values of random variables and the likelihood that a random variable will be within a given range.

probability

Data analytics is the ___________________ of evaluating data with the purpose of drawing conclusions to address all types of questions.

process

Stock prices are readily available for any _______ traded firm.

publicly

There are 2.5 _____ bytes of data created every day.

quintillion

As a measure of spread, the difference between the maximum and minimum values of a variable of interest is called its ___.

range

Ordinal data is summarized by counting and grouping, proportions and _______

ranking

There are three primary methods to summarize ordinal data: counting and grouping, proportion and __________.

ranking

Sales figures would be considered to be examples of __________ data.

ratio

The average time outstanding for a company's accounts receivable is an example of which type of data?

ratio data

The height of each basketball player on a team is an example of which type of data?

ratio data

The data dictionary contains a separate _____ for each field (or variable).

record

While fields (or variables) are shown in each column of a database, _______ are shown in each row of a database.

record or records

If the p-value of the statistical test <= alpha, the researcher will ___ the null hypothesis.

reject

Data without internal organization or structure that has tags explaining what the data represents is called ______.

semi-structured data

In string, short text, or alphanumeric data type, the data can be made up of ______.

several different data types

In a data dictionary, product NAME is an example of the _____ data type.

short text

In a data dictionary, transaction type, whether it be the sale of a product or return of the product, is an example of the _____ data type.

short text

If p-value of a statistical test is 0.09 and a 95% confidence interval, you

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

The most common measures of ___are the standard deviation and the variance.

spread or variability

An annual report would be an example of a _______ visualization

static

An annual report would be an example of a ________ visualization.

static

Whereas a parameter is a characteristic of a population, a ___ is a characteristic of a sample.

statistic

The inventory _____ details information on the inventory held by the company.

subledger

A histogram is used to understand:

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

One type of data analysis performed on conference calls is textual analysis to evaluate the _________ of management regarding the future potential of the company.

tone

Conference call transcripts are generally considered to be ____ data.

unstructured

Press releases represent _____ data.

unstructured

Facebook, Twitter and Instagram posts would generally be considered to be __________.

unstructured data

SQL is especially useful when the raw data is too large for Excel. We use it to select the precise ___ and rows needed to answer the data analysis problem.

variables, columns, or column

One of the four V's describing Big Data that notes that some data will be structured and other data is unstructured would be _____.

variety

One of the four V's describing Big Data that notes that some data may not be cleaned would be _____.

veracity

Tableau will usually default to showing data in a ___ format.

visual

There are four basic tools accountants need to perform data analytics, including spreadsheets, queries, scripting and _____.

visualizations