ACCT 490 Exam 2

Statistic

Whereas a parameter is a characteristic of a population, a _____ is a characteristic of a sample

Statement of stockholders equity

Which financial statement reveals the changes in retained earnings

Balance Sheet

Which financial statement reveals the resources available for management to utilize

Deciles

Which measure would help us evaluate what happens in the highest and lowest 10% of the data

Return on equity

Which ratio includes a component to evaluate financial leverage

Descriptive analytics

Which type of analytics generally would go first when addressing in accounting issue

Why did it happen

Which type of question does diagnostic analysis address

Will it happen in the future

Which type of question does predictive analysis address

Grocery stores

Which would have a higher expected asset turnover for a dollar of assets and then the others

Jewelry

Which would have a higher expected profit margin for a dollar of sales than the others

Descriptive

Counts, totals, sums, averages, and subtitles are considered to be summarization tools used primarily in _____ analytics

Descriptive

Ratio analysis is considered a summarization tool used primarily in _____ analytics

Efficiency

Ratio analysis typically includes an evaluation of liquidity, solvency, profitability, and blank for a company

Record keeping

Segregation of duties suggests separating the tasks of custody, authorization, and blank

Diagnostic

Uncovering patterns Is an example of _____ analytics

Performing drill down analytics

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

Pivot tables

Using _____ for cross tabulations to view transactions from a different perspective is an example of performing drill down analytics (a category of diagnostic analytics)

Summarized

Using generally excepted accounting principles as a baseline, thousands, millions or billions of transactions are blank as financial statements to explain what happened during the relevant accounting period

Descriptive

We define blank statistics as brief summary's or factoids of the data said that provide a representation of that data as a whole

Prescriptive

What if sensitivity analysis is an example of _____ analytics

Time series

What kind of analytics is generally used to forecast future sales earnings and cash flow's from operating activities

Descriptive analytics

What type of analytics address is the question what happened

Predictive analytics

What type of analytics will address the question of whether a company will go bankrupt

Diagnostic analytics

What type of analytics would include Benford's law to assess whether fraud has occurred

Descriptive analytics

What type of analytics would primarily summarize fax and compute sums averages counts etc.

Prescriptive analytics

What type of analytics would primarily use what if analysis, scenario manager, and goal seek analysis

1 to 30 days

In which of the buckets would you expect the greatest amount of aged receivables to be

Pivot table

A Pivot shart is a visualization of the summarization from a blank

Sample

A _____ T test is it statistical test used to compare the means of two sets of data observations

Probability

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

Pivot chart; pivot table

A blank is a graphical depiction of a blank, which re-organize and summarizes certain data using cross tabulations without changing the underlying spreadsheet

Population

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

Bar

A pivot chart (such as a blank chart) could be used to illustrate the various aged receivables

Credit

Accounts receivable aging is an example of descriptive analysis of the company's blank sales

Buckets

Accounts receivable aging puts outstanding accounts receivable in monthly blank for further analysis

Diagnostic

After contemplating the results of descriptive analytics, the next step is often to determine why it happened using blank analytics

Predictive

After seeing a graph of pass sales performance, it may be easier to forecast future performance as part of blank analytics

Range

As a measure of spread, the difference between maximum and minimum values of a variable of interest is called it's _____

Percentage

As a part of horizontal analysis, the dollar increase and blank change in financial statements line items from one period To the next

Vertical

Blank analysis express his financial information in relation to a relevant figure or base

Horizontal

Blank analysis provides comparative changes about various financial statement line items overtime

Ratio

Blank analysis typically includes the evaluation of liquidity, solvency, profitability, and efficiency for a company

Medians

Blank are most useful as a measure of central tendency when there are extreme, or skewed observations

Counts

Blank are the number of occurrences of a certain data item or event

Means

Blank, medians and modes are all measures of central tendency

Diagnostic

Burgstahler and dichev find a potential anomaly around zero when graphing the return on market value of stockholders equity. After this descriptive analysis, they are most likely to perform blank analysis

Time series

Comparing the current performance of a company to it's past performance is called blank

Medians

Descriptive analytic measures of variability include all except which of the following

First

Descriptive analytics is often the blank step in performing the various types of analysis

Burgstahler and Dichev

Descriptive analytics of a return on market equity performed by researchers, blank, provide examples of a possible anomaly right around zero that requires further analysis

Variability

Descriptive statistics generally are classified as measures of central tendency or measures of blank

Quartile

Divisions of data observations into four defined intervals based on data values as a way of comparing the overall data set is known as blank

Descriptive

Financial statements contain many of the counts, totals, Sums, averages, subtotals, minimums and maximums that are needed as part of blank analytics

Economy

For possible comparison groups useful in descriptive analytics, include the firms own prior performance, it's main competitors, it's industry or the blank as a whole

Reject

If the P value of the statistical test is less than or equal to alpha the researcher will blank the no hypothesis

Null

If the statistical test shows that the P value is greater than alpha, the researcher will fail to reject the blank hypothesis

Sample

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

Prescriptive

If we wanted to know what level of sales would be needed to break even given the current economic environment, we would call that blank analytics

Total assets

In vertical analysis, the relevant base for account receivable would be which one of the following

Sales revenue

In vertical analysis, the relevant base for interest expense would be which one of the following

Total assets

In vertical analysis, the relevant pace for long-term debt is which of the following

Testing

Internal controls blank is used to assess unusual accounting activity that might give rise to errors or fraud

Prescriptive analytics

Optimization would be a tool used as part of blank

Constraints

Predictive analytics is performed to identify the best possible options given _____ or changing conditions

Deviation

Standard blank is this summary measure that shows the extent of variability for the sample

True

T or F Department stores have faster asset turnover than airline companies

False

T or F Descriptive analytics our analytics to characterize, summarize, and organize features and properties of the data to facilitate understanding

True

T or F auditors are increasingly able to consider data from the full population of transactions rather than just a sample

True

T or F prescriptive analytics is the ability to anticipate alternative scenarios

Graphs

Tables and blank are useful tools to help perform descriptive analytics

Diagnostic

Testing means of various groups are used as part of blank analytics

Filing

The 10 K blank has information beyond the annual report such as management compensation, board compensation and board member biographies

Disaggregate

The Dupont ratio is used to summarize and blank company performance

Return on equity

The Dupont ratio is used to summarize and disaggregate the blank ratio

Alternative

The _____ hypothesis is the case management theorizes and or believes is true

Adjusted R-squared

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

One

The adjusted r- squared ranges from a value of zero to blank

Normal

The bell shaped probability distribution that is symmetric about its mean is called a _____ distribution

Asset Turnover

The best measure for evaluating firm efficiency and handling and using assets would be blank

Maximum or minimum

The best way to analyze the extreme values in the sample would be to consider the blank

Standard deviation

The best way to analyze the variability in the sample would be to consider the blank

Null

The blank hypothesis assumes the hypothesized relationship does not exist

Forecast

The blank sheet is available in the Excel data Analysis tool pack to help with predictive analytics

Footnotes

The blank to the financial statements describe the inventory method chosen

Profit margin X asset turnover X financial leverage

The calculation for a return on equity using dupont analysis would be as follows

Midpoint

The median is the _____ of the data in a sorted array

Spread

The most common measures of _____ are the standard deviation and the variance

Less

The older the accounts receivable, the blank likely it will be that they will ultimately be collected

Total revenues

The relevant base for the vertical analysis for cost of good sold his

Total revenues

The relevant base for the vertical analysis for cost of good sold is blank

Mean

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

Diagnostic

The use of fuzzy look up or fuzzy matching to find possible matches would be an example of blank analytics

(new - old) / old

To compute the percentage change in a horizontal analysis, the computation is

Sums

Totals, sub totals, and blank are all examples of other summary measures of data

Predictive

_____ analytics is associated with forecasting a future event

Descriptive

_____ analytics is associated with understanding what is happening

Benford's Law

_____ is most directly associated with helping to find anomalies and outliers

Hypothesis

_____ testing allows one to statistically test and assertion

Variance

______ analysis is used in managerial accounting to explain why the actual product cost is different than the standard cost

Regression

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