Test Bank For Data Analytics For Accounting 1st Edition By Richardson Questions With Marking Scheme

Chapter 1 Data Analytics in Accounting and Business 1) Data analytics is the process of evaluating data with the purpose of drawing conclusions to address business questions. Answer: TRUE Difficulty: 1 Easy Topic: Define Data Analytics Learning Objective: 01-01 Define Data Analytics. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 2) The process of data analytics aims to transform raw information into data to create value. Answer: FALSE Difficulty: 1 Easy Topic: Define Data Analytics Learning Objective: 01-01 Define Data Analytics. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 3) Data analytics has the potential to transform the manner in which companies run their businesses; however, it is not practical in the near future. Answer: FALSE Difficulty: 1 Easy Topic: How Data Analytics Affects Business Learning Objective: 01-02 Understand why Data Analytics matters to business. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 4) Auditors can use social media to hear what customers are saying about a company and compare this to inventory obsolescence and other estimates. Answer: TRUE Difficulty: 2 Medium Topic: Financial Reporting Learning Objective: 01-03 Explain why Data Analytics matters to accountants. Bloom's: Understand AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 5) Data analytics allows auditors to glean insights that are beneficial to the client, without breaching independence. Answer: TRUE Difficulty: 2 Medium Topic: Auditing Learning Objective: 01-03 Explain why Data Analytics matters to accountants. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 6) The predictive analytics is an important aspect of data analytics for auditors, but is not applicable for tax accountants. Answer: FALSE Difficulty: 1 Easy Topic: Tax Learning Objective: 01-03 Explain why Data Analytics matters to accountants. Bloom's: Understand AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 7) The I in IMPACT Cycle represents Identify the Question. Answer: TRUE Difficulty: 2 Medium Topic: The Data Analytics Process Using the Impact Cycle Learning Objective: 01-04 Describe the Data Analytics Process Using the IMPACT Cycle. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 8) The M in IMPACT Cycle represents Master the Data. Answer: TRUE Difficulty: 2 Medium Topic: The Data Analytics Process Using the Impact Cycle Learning Objective: 01-04 Describe the Data Analytics Process Using the IMPACT Cycle. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 9) The P in IMPACT Cycle represents Predict the Results. Answer: FALSE Difficulty: 2 Medium Topic: The Data Analytics Process Using the Impact Cycle Learning Objective: 01-04 Describe the Data Analytics Process Using the IMPACT Cycle. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 10) The A in IMPACT Cycle represents Analyze the Data. Answer: FALSE Difficulty: 2 Medium Topic: The Data Analytics Process Using the Impact Cycle Learning Objective: 01-04 Describe the Data Analytics Process Using the IMPACT Cycle. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 11) The C in IMPACT Cycle represents Continuously Track. Answer: FALSE Difficulty: 2 Medium Topic: The Data Analytics Process Using the Impact Cycle Learning Objective: 01-04 Describe the Data Analytics Process Using the IMPACT Cycle. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 12) The T in IMPACT Cycle represents Track Outcomes. Answer: TRUE Difficulty: 2 Medium Topic: The Data Analytics Process Using the Impact Cycle Learning Objective: 01-04 Describe the Data Analytics Process Using the IMPACT Cycle. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 13) Data normalization can reduce data redundancy and improve data integrity. Answer: TRUE Difficulty: 1 Easy Topic: The Data Analytics Process Using the Impact Cycle Learning Objective: 01-04 Describe the Data Analytics Process Using the IMPACT Cycle. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 14) The IMPACT cycle is iterative, as insights are gained, outcomes are tracked, and new questions are identified. Answer: TRUE Difficulty: 1 Easy Topic: The Data Analytics Process Using the Impact Cycle Learning Objective: 01-04 Describe the Data Analytics Process Using the IMPACT Cycle. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 15) Data analytics professionals estimate that they spend between 25 percent and 70 percent of their time cleaning data so it can be analyzed. Answer: FALSE Difficulty: 1 Easy Topic: Data-Analytic Skills Needed by Analytic-Minded Accountants Learning Objective: 01-05 Describe the Skills Needed by Accountants. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 16) Data analysis through data manipulation is performing basic analysis to understand the quality of the underlying data and its ability to address the business question. Answer: FALSE Difficulty: 2 Medium Topic: Data-Analytic Skills Needed by Analytic-Minded Accountants Learning Objective: 01-05 Describe the Skills Needed by Accountants. Bloom's: Remember AACSB: Reflective Thinking AICPA: BB Industry; FN Decision Making 17) To fbe fproficient fin fdata fanalysis, faccountants fneed fto fbecome fdata fscientists. Answer: f FALSE fDifficulty: f1 fEasy