Page |1
Solutions Manual
for
Data Analytics for Accounting (2025 Release)
End-of-Chapter Solutions, Lab Exercises & Data Files Included
By
Vernon J. Richardson
Ryan A. Teeter
Katie L. Terrell
ISBN: 9781266079214
TABLE OF CONTENTS
Chapter 1: Data Analytics for Accounting and Identifying the Questions
Chapter 2: Mastering the Data
, Page |2
Chapter 3: Performing the Test Plan and Analyzing the Results
Chapter 4: Communicating Results and Visualizations
Chapter 5: The Modern Accounting Environment
Chapter 6: Audit Data Analytics
Chapter 7: Managerial Analytics
Chapter 8: Financial Statement Analytics
Chapter 9: Tax Analytics
Chapter 10: Project Chapter (Basic)
Chapter 11: Project Chapter (Advanced): Analyzing Dillard’s Data to Predict Sales Returns
CHAPTER 1: DATA ANALYTICS FOR ACCOUNTING AND IDENTIFYING THE QUESTIONS
Solutions to Multiple Choice Questions
1. (LO 1-1) Big data is often described by the four Vs, or
a. volume, velocity, veracity, and variability.
b. volume, velocity, veracity, and variety.
c. volume, volatility, veracity, and variability.
d. variability, velocity, veracity, and variety.
Answer: b
2. (LO 1-4) Which data approach attempts to assign each unit in a population into a small set of
classes (or groups) where the unit best fits?
a. Regression
b. Similarity matching
c. Co-occurrence grouping
d. Classification
Answer: d
3. (LO 1-4) Which data approach attempts to identify similar individuals based on data known
about them?
a. Classification
b. Regression
c. Similarity matching
d. Data reduction
Answer: c
, Page |3
4. (LO 1-4) Which data approach attempts to predict connections between two data items?
a. Profiling
b. Classification
c. Link prediction
d. Regression
Answer: c
5. (LO 1-6) Which of these terms is defined as being a central repository of descriptions for all
of the data attributes of the dataset?
a. Big data
b. Data warehouse
c. Data dictionary
d. Data analytics
Answer: c
6. (LO 1-5) Which of these skills for the analytic-minded accountant would involve
comprehending the process needed to clean and prepare the data before analysis?
a. Data analysis through data manipulation
b. Descriptive data analysis
c. Data scrubbing and data preparation
d. Data visualization and data reporting
Answer: c
7. (LO 1-5) In which areas were skills not emphasized for analytic-minded accountants?
a. Data quality
b. Descriptive data analysis
c. Data visualization and data reporting
d. Data and systems analysis and design
Answer: d
8. (LO 1-4) The IMPACT cycle includes all of the following steps except:
a. perform test plan.
b. visualize the data.
c. master the data.
d. track outcomes.
Answer: b
, Page |4
9. (LO 1-4) The IMPACT cycle specifically includes all of the following steps except:
a. data preparation.
b. communicate insights.
c. address and refine results.
d. perform test plan.
Answer: a
10. (LO 1-1) According to predictions, by the year 2027, the volume of data created, captured,
copied, and consumed worldwide will be how much?
a. 258 zettabytes
b. 258 petabytes
c. 258 exabytes
d. 258 yottabytes
Answer: a
11. (LO 1-7) Prompt engineering in a generative AI model, can most appropriately be compared
to which step of the IMPACT model?
a. Identify the question
b. Master the data
c. Track outcomes
d. Communicate insights
Answer: a
12. (LO 1-7) What relies on algorithms to create new content, such as text, images, audio, and
video?
a. Data analytics
b. Machine learning
c. Prompt engineering
d. Generative artificial intelligence
Answer: d
Solutions to Discussion and Analysis Questions
1. The accounting function is one of being an information provider to the extent that data is
available to address accounting questions, be they tax, managerial, audit or financial questions.
With such rich available data, and software tools to prepare and analyze the data, data analytics
will continue to be an important tool for accountants to use.
Solutions Manual
for
Data Analytics for Accounting (2025 Release)
End-of-Chapter Solutions, Lab Exercises & Data Files Included
By
Vernon J. Richardson
Ryan A. Teeter
Katie L. Terrell
ISBN: 9781266079214
TABLE OF CONTENTS
Chapter 1: Data Analytics for Accounting and Identifying the Questions
Chapter 2: Mastering the Data
, Page |2
Chapter 3: Performing the Test Plan and Analyzing the Results
Chapter 4: Communicating Results and Visualizations
Chapter 5: The Modern Accounting Environment
Chapter 6: Audit Data Analytics
Chapter 7: Managerial Analytics
Chapter 8: Financial Statement Analytics
Chapter 9: Tax Analytics
Chapter 10: Project Chapter (Basic)
Chapter 11: Project Chapter (Advanced): Analyzing Dillard’s Data to Predict Sales Returns
CHAPTER 1: DATA ANALYTICS FOR ACCOUNTING AND IDENTIFYING THE QUESTIONS
Solutions to Multiple Choice Questions
1. (LO 1-1) Big data is often described by the four Vs, or
a. volume, velocity, veracity, and variability.
b. volume, velocity, veracity, and variety.
c. volume, volatility, veracity, and variability.
d. variability, velocity, veracity, and variety.
Answer: b
2. (LO 1-4) Which data approach attempts to assign each unit in a population into a small set of
classes (or groups) where the unit best fits?
a. Regression
b. Similarity matching
c. Co-occurrence grouping
d. Classification
Answer: d
3. (LO 1-4) Which data approach attempts to identify similar individuals based on data known
about them?
a. Classification
b. Regression
c. Similarity matching
d. Data reduction
Answer: c
, Page |3
4. (LO 1-4) Which data approach attempts to predict connections between two data items?
a. Profiling
b. Classification
c. Link prediction
d. Regression
Answer: c
5. (LO 1-6) Which of these terms is defined as being a central repository of descriptions for all
of the data attributes of the dataset?
a. Big data
b. Data warehouse
c. Data dictionary
d. Data analytics
Answer: c
6. (LO 1-5) Which of these skills for the analytic-minded accountant would involve
comprehending the process needed to clean and prepare the data before analysis?
a. Data analysis through data manipulation
b. Descriptive data analysis
c. Data scrubbing and data preparation
d. Data visualization and data reporting
Answer: c
7. (LO 1-5) In which areas were skills not emphasized for analytic-minded accountants?
a. Data quality
b. Descriptive data analysis
c. Data visualization and data reporting
d. Data and systems analysis and design
Answer: d
8. (LO 1-4) The IMPACT cycle includes all of the following steps except:
a. perform test plan.
b. visualize the data.
c. master the data.
d. track outcomes.
Answer: b
, Page |4
9. (LO 1-4) The IMPACT cycle specifically includes all of the following steps except:
a. data preparation.
b. communicate insights.
c. address and refine results.
d. perform test plan.
Answer: a
10. (LO 1-1) According to predictions, by the year 2027, the volume of data created, captured,
copied, and consumed worldwide will be how much?
a. 258 zettabytes
b. 258 petabytes
c. 258 exabytes
d. 258 yottabytes
Answer: a
11. (LO 1-7) Prompt engineering in a generative AI model, can most appropriately be compared
to which step of the IMPACT model?
a. Identify the question
b. Master the data
c. Track outcomes
d. Communicate insights
Answer: a
12. (LO 1-7) What relies on algorithms to create new content, such as text, images, audio, and
video?
a. Data analytics
b. Machine learning
c. Prompt engineering
d. Generative artificial intelligence
Answer: d
Solutions to Discussion and Analysis Questions
1. The accounting function is one of being an information provider to the extent that data is
available to address accounting questions, be they tax, managerial, audit or financial questions.
With such rich available data, and software tools to prepare and analyze the data, data analytics
will continue to be an important tool for accountants to use.
