ACCT 3130 CHAPTER 1 EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026
Data analytics is the process of evaluating data with the purpose of drawing conclusions to address
business questions - Answers True
The process of data analytics aims to transform raw information into data to create value - Answers
False
Data analytics has the potential to transform the manner in which companies run their businesses,
however it is not practical in the near future - Answers False
Auditors can use social media to hear what customers are saying about a company and compare this
to inventory obsolescence and other estimates - Answers True
Data analytics allows auditors to glean insights that are beneficial to the client, without breeching
independence - Answers True
The predictive analytics is an important aspect of data analytics for auditors, but is not applicable for
tax accountants - Answers False
The I in IMPACT Cycle represents Identify the question - Answers True
The M in IMPACT Cycle represents Master the Data - Answers True
The P in IMPACT Cycle represents Predict the Results - Answers False
The A in IMPACT Cycle represents Analyze the Data - Answers False
The C in IMPACT Cycle represents Continuously Track - Answers False
The T in IMPACT Cycle represents Track Outcomes - Answers True
Data normalization can reduce data redundancy and improve data integrity - Answers True
The IMPACT cycle is iterative, as insights are gained, outcomes are tracked, and new questions are
identified - Answers True
Data analytics professionals estimate that they spend between 25 percent and 70 percent of their
time cleaning data so it can be analyzed - Answers False
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 - Answers False
To be proficient in data analysis, accountants need to become data scientists - Answers False
By developing an analytics mindset, accountants will be able to recognize when and how data
analytics can address business questions - Answers True
While it is important for accountants to clearly articulate the business problem, drawing appropriate
conclusions, based on the data, should be left to statisticians - Answers False
Analytic-minded accountants should report results of analysis in an accessible way to each varied
decision maker and their specific needs - Answers True
With a goal to give organizations the information they need to make sound and timely business
decisions, data analytics often involves all of the following except:
A) Technologies
B) Statistics
C) growth
D) databases - Answers C
Patterns discovered from ___________ enable businesses to identify opportunities and risks and
better plan for __________
A) past archives; the future
B) current data; the future
C) current data; today
D) past archives; today - Answers A
Which of the following best describes the data analytics skill of descriptive data analysis:
A) recognize what is meant by data quality, be it completeness, reliability or validity
B) perform basic analysis to understand the quality of the underlying data and its ability to address
the business question
C) demonstrate ability to sort, rearrange, merge, and reconfigure data in a manner that allows
enhanced analysis
D) comprehend the process needed to clean and prepare the data before analysis - Answers B
Which of the following best describes the data analytics skill of data quality:
A) recognize what is meant by data quality, be it completeness, reliability or validity
B) perform basic analysis to understand the quality of the underlying data and its ability to address
the business question
, C) demonstrate ability to sort, rearrange, merge, and reconfigure data in a manner that allows
enhanced analysis
D) comprehend the process needed to clean and prepare the data before analysis - Answers A
Which of the following best describes the data analytics skill of data analysis through data
manipulation:
A) recognize what is meant by data quality, be it completeness, reliability or validity
B) perform basic analysis to understand the quality of the underlying data and its ability to address
the business question
C) demonstrate ability to sort, rearrange, merge, and reconfigure data in a manner that allows
enhanced analysis
D) comprehend the process needed to clean and prepare the data before analysis - Answers C
Which of the following best describes the data analytics skill of data scrubbing and data preparation:
A) recognize what is meant by data quality, be it completeness, reliability or validity
B) perform basic analysis to understand the quality of the underlying data and its ability to address
the business question
C) demonstrate ability to sort, rearrange, merge and reconfigure data in a manner that allows
enhanced analysis
D) comprehend the process needed to clean and prepare the data before analysis - Answers D
Which of the following best describes the data analytics skill of developing an analytics mindset:
A) recognize when and how data analytics can address business questions
B) perform basic analysis to understand the quality of the underlying data and its ability to address
the business question
C) recognize what is meant by data quality, be it completeness, reliability or validity
D) comprehend the process needed to clean and prepare the data before analysis - Answers A
Which of the following best describes the data analytics skill of data visualization and data reporting:
A) recognize when and how data analytics can address business questions
B) perform basic analysis to understand the quality of the underlying data and its ability to address
the business question
C) recognize what is meant by data quality, be it completeness, reliability or validity
D) report results of analysis in an accessible way to each varied decision maker and their specific
needs - Answers B
Which of the following best describes the data analytics skill of defining and addressing problems
through statistical data analysis:
A) recognize what is meant by data quality, be it completeness, reliability or validity
B) perform basic analysis to understand the quality of the underlying data and its ability to address
the business question
C) demonstrate ability to sort, rearrange, merge and reconfigure data in a manner that allows
enhanced analysis
D) identify and implement an approach that will use statistical data analysis to draw conclusions and
make recommendations on a timely basis - Answers D
While accountants don't need to become data scientists, they must know how to do the following
except:
A) Clearly articulate the business problem the company is facing
B) Communicate with the data scientists about specific data needs and understand the underlying
quality of the data
C) Build a data repository
D) Comprehend the process needed to clean and prepare the data before analysis - Answers C
Which approach to data analytics attempts to estimate or predict, for each unit, the numerical value
of some variable using some type of statistical model?
A) Similarity matching.
B) Classification.
C) Data reduction.
D) Regression. - Answers D
Which approach to data analytics attempts to assign each unit (or individual) in a population into a
few categories?
A) Similarity matching.
B) Classification.
Data analytics is the process of evaluating data with the purpose of drawing conclusions to address
business questions - Answers True
The process of data analytics aims to transform raw information into data to create value - Answers
False
Data analytics has the potential to transform the manner in which companies run their businesses,
however it is not practical in the near future - Answers False
Auditors can use social media to hear what customers are saying about a company and compare this
to inventory obsolescence and other estimates - Answers True
Data analytics allows auditors to glean insights that are beneficial to the client, without breeching
independence - Answers True
The predictive analytics is an important aspect of data analytics for auditors, but is not applicable for
tax accountants - Answers False
The I in IMPACT Cycle represents Identify the question - Answers True
The M in IMPACT Cycle represents Master the Data - Answers True
The P in IMPACT Cycle represents Predict the Results - Answers False
The A in IMPACT Cycle represents Analyze the Data - Answers False
The C in IMPACT Cycle represents Continuously Track - Answers False
The T in IMPACT Cycle represents Track Outcomes - Answers True
Data normalization can reduce data redundancy and improve data integrity - Answers True
The IMPACT cycle is iterative, as insights are gained, outcomes are tracked, and new questions are
identified - Answers True
Data analytics professionals estimate that they spend between 25 percent and 70 percent of their
time cleaning data so it can be analyzed - Answers False
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 - Answers False
To be proficient in data analysis, accountants need to become data scientists - Answers False
By developing an analytics mindset, accountants will be able to recognize when and how data
analytics can address business questions - Answers True
While it is important for accountants to clearly articulate the business problem, drawing appropriate
conclusions, based on the data, should be left to statisticians - Answers False
Analytic-minded accountants should report results of analysis in an accessible way to each varied
decision maker and their specific needs - Answers True
With a goal to give organizations the information they need to make sound and timely business
decisions, data analytics often involves all of the following except:
A) Technologies
B) Statistics
C) growth
D) databases - Answers C
Patterns discovered from ___________ enable businesses to identify opportunities and risks and
better plan for __________
A) past archives; the future
B) current data; the future
C) current data; today
D) past archives; today - Answers A
Which of the following best describes the data analytics skill of descriptive data analysis:
A) recognize what is meant by data quality, be it completeness, reliability or validity
B) perform basic analysis to understand the quality of the underlying data and its ability to address
the business question
C) demonstrate ability to sort, rearrange, merge, and reconfigure data in a manner that allows
enhanced analysis
D) comprehend the process needed to clean and prepare the data before analysis - Answers B
Which of the following best describes the data analytics skill of data quality:
A) recognize what is meant by data quality, be it completeness, reliability or validity
B) perform basic analysis to understand the quality of the underlying data and its ability to address
the business question
, C) demonstrate ability to sort, rearrange, merge, and reconfigure data in a manner that allows
enhanced analysis
D) comprehend the process needed to clean and prepare the data before analysis - Answers A
Which of the following best describes the data analytics skill of data analysis through data
manipulation:
A) recognize what is meant by data quality, be it completeness, reliability or validity
B) perform basic analysis to understand the quality of the underlying data and its ability to address
the business question
C) demonstrate ability to sort, rearrange, merge, and reconfigure data in a manner that allows
enhanced analysis
D) comprehend the process needed to clean and prepare the data before analysis - Answers C
Which of the following best describes the data analytics skill of data scrubbing and data preparation:
A) recognize what is meant by data quality, be it completeness, reliability or validity
B) perform basic analysis to understand the quality of the underlying data and its ability to address
the business question
C) demonstrate ability to sort, rearrange, merge and reconfigure data in a manner that allows
enhanced analysis
D) comprehend the process needed to clean and prepare the data before analysis - Answers D
Which of the following best describes the data analytics skill of developing an analytics mindset:
A) recognize when and how data analytics can address business questions
B) perform basic analysis to understand the quality of the underlying data and its ability to address
the business question
C) recognize what is meant by data quality, be it completeness, reliability or validity
D) comprehend the process needed to clean and prepare the data before analysis - Answers A
Which of the following best describes the data analytics skill of data visualization and data reporting:
A) recognize when and how data analytics can address business questions
B) perform basic analysis to understand the quality of the underlying data and its ability to address
the business question
C) recognize what is meant by data quality, be it completeness, reliability or validity
D) report results of analysis in an accessible way to each varied decision maker and their specific
needs - Answers B
Which of the following best describes the data analytics skill of defining and addressing problems
through statistical data analysis:
A) recognize what is meant by data quality, be it completeness, reliability or validity
B) perform basic analysis to understand the quality of the underlying data and its ability to address
the business question
C) demonstrate ability to sort, rearrange, merge and reconfigure data in a manner that allows
enhanced analysis
D) identify and implement an approach that will use statistical data analysis to draw conclusions and
make recommendations on a timely basis - Answers D
While accountants don't need to become data scientists, they must know how to do the following
except:
A) Clearly articulate the business problem the company is facing
B) Communicate with the data scientists about specific data needs and understand the underlying
quality of the data
C) Build a data repository
D) Comprehend the process needed to clean and prepare the data before analysis - Answers C
Which approach to data analytics attempts to estimate or predict, for each unit, the numerical value
of some variable using some type of statistical model?
A) Similarity matching.
B) Classification.
C) Data reduction.
D) Regression. - Answers D
Which approach to data analytics attempts to assign each unit (or individual) in a population into a
few categories?
A) Similarity matching.
B) Classification.
