ACCT 3130 EXAM QUESTIONS WITH VERIFIED SOLUTIONS LATEST UPDATE 2026
Volume, velocity, veracity, and variety - Answers Big Data is often described by the four Vs:
Volume - Answers Size of the dataset
Velocity - Answers the speed of the data processing
Variety - Answers number of types of data
veracity - Answers the underlying quality of the data
structured data - Answers data that adheres to a predefined data model in a tabular format, data in a
nice table
Unstructured data - Answers Data that does not adhere to a predefined data format
Ex: pictures, videos on youtube, tweets
Classification - Answers Data that does not adhere to a predefined data format
Ex: pictures, videos on youtube, tweets
Regression - Answers A data approach used to predict a specific dependent variable value based on
independent variable inputs using a statistical model
Similarity Matching - Answers An attempt to identify similar individuals based on known data about
them
Clustering - Answers An attempt to divide individuals (like customers) into groups (or clusters) in a
useful or meaningful way
difference between classification and clustering - Answers Classification you start with categories and
then you classify each individual data point into those categories. In clustering you start with the
individuals and you are trying to find clusters depending on the individuals characteristics
Co-occurrence grouping - Answers An attempt to discover associations between individuals based on
transactions involving them
Profiling - Answers An attempt to characterize the "typical" behavior of an individual, group, or
population by generating summary statics about the data (because you want to identify the
anomalies in the data)
Link prediction - Answers An attempt to predict connections between two data items
Data reduction - Answers A data approach that reduces the amount of information that needs to be
considered to focus on the most critical items. It does this by taking a large set of data and reducing it
with a smaller set that has the vast majority of the critical information of the largest set.
similarity matching - Answers Which data approach attempts to identify similar individuals based on
data known about them?
link protection - Answers Which data approach attempts to predict connections between two data
items?
data dictionary - Answers Which of these terms is defined as being a central repository of
descriptions for all of the data attributes of the dataset?
c - Answers Which skills were not emphasized that analytic-minded accountants should have?
a) Developed an analytics mindset
b) Data scrubbing and data preparation
c) Classification of test approaches
d) Statistical data analysis competency
d - Answers 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
b - Answers The IMPACT cycle includes all except the following steps:
a) Perform test plan
b) Visualize the data
c) Master the data
d) Track outcomes
a - Answers The IMPACT cycle specifically includes all except the following steps:
a) Data preparation
b) Communicate insights
c) Address and refine results
d) Perform test plan
, Identify the question - Answers I in IMPACT stands for
master the data - Answers M in IMPACT stands for
perform the test plan - Answers P in IMPACT stands for
address the final results - Answers A in IMPACT stands for
communicate the insights, communicate results - Answers C in IMPACT stands for
Track outcomes - Answers T in IMPACT stands for
zettabytes - Answers By the year 2024, the volume of data created, captured, copied, and consumed
worldwide will be 149 _________
Accountants engage in valuation, stewardship, and exchange guidance. Identify underperforming
sectors, and find ways to increase their profitability or cut them to improve profitability. Use data
analytics to perform all of these things - Answers The opening article "Accountants to Rely More on
Big Data in 2020" suggested that Data Analytics would be increasingly implementing Big Data in their
business process. Why is that? How can data analytics help accountants do their jobs?
It's a process for which we evaluate data to come to a conclusion. We want to make a practical
decision. Characteristics of current students and see where they're from and do extra marketing to
recruit students in that area. - Answers Define data analytics and explain how a university might use
its techniques to recruit and attract potential students
Give you a demographic of customers that will use your product.
Ex: farms can test different fertilizers and see what performs the best - Answers give a specific
example of how data analytics creates value for businesses.
During an audit we have limited resources. We often engage in data reduction to focus on big ticket
items that affect financial statements the most. - Answers Give a specific example of how data
analytics creates value for auditing?
Visualizations can help us aggregate important information for decision makers or can disaggregate it
based on specific information. Predict tax liabilities, estimate tax consequences, and other future tax
information. - Answers How might data analytics be used in financial reporting? And how might it be
used in doing tax planning?
Management accounting gathers data and analyze it in terms of the business and are essentially data
analysts. - Answers How is the role of management accounting similar to the role of the data
analysts?
IMPACT cycle is a cycle. Your answer might lead to a second question and then cycle repeats. -
Answers Describe the IMPACT cycle. Why does its order of the processes and its recursive nature
make sense?
You need to know the data inside and out, what data is reliable, data descriptions, data dictionary.
You want to make sure the data available will help you answer the question. - Answers What is
included in mastering the data as part of the IMPACT cycle described in the chapter?
Link prediction - Answers What data approach mentioned in the chapter might be used by facebook
to find friends?
Auditors have limited resources, time, and energy. Need to focus on important data that impact the
material the most. - Answers Auditors will frequently use the data reduction approach when
considering potentially risky transactions. Provide an example of why focusing on a portion of the
total number of transactions might be important for auditors to assess risk.
Regression analysis - Answers Which data approach might be used to assess the appropriate level of
the allowance for doubtful accounts?
High debt to income ratio, the more likely it is that the borrower will not repay the loan and then the
bank would decline the loan. Borrowers with lower credit scores are less likely to repay the loan so
they won't loan money to risky credit scores. - Answers Why might the debt to income attribute
included in the declined loans dataset considered in the chapter to be a predictor of declined loans?
How about the credit (risk) score?
dependent - Answers Independent variables are used to predict ____________ variables
Size of the loan, Annual income, Get information on previous loan payments - Answers To address
the question "Will I receive a loan from LendingClub? We had available data to assess the relationship
among 1) the debt-to-income ratios and number of rejected loans, 2) the length of employment and
number of rejected loans, and 3) the credit score and number of rejected loans. What additional data
would you recommend to further assess whether a loan would be offered? Why would they be
helpful?
classification - Answers Predict which firms will go bankrupt and which firms will not go bankrupt
Volume, velocity, veracity, and variety - Answers Big Data is often described by the four Vs:
Volume - Answers Size of the dataset
Velocity - Answers the speed of the data processing
Variety - Answers number of types of data
veracity - Answers the underlying quality of the data
structured data - Answers data that adheres to a predefined data model in a tabular format, data in a
nice table
Unstructured data - Answers Data that does not adhere to a predefined data format
Ex: pictures, videos on youtube, tweets
Classification - Answers Data that does not adhere to a predefined data format
Ex: pictures, videos on youtube, tweets
Regression - Answers A data approach used to predict a specific dependent variable value based on
independent variable inputs using a statistical model
Similarity Matching - Answers An attempt to identify similar individuals based on known data about
them
Clustering - Answers An attempt to divide individuals (like customers) into groups (or clusters) in a
useful or meaningful way
difference between classification and clustering - Answers Classification you start with categories and
then you classify each individual data point into those categories. In clustering you start with the
individuals and you are trying to find clusters depending on the individuals characteristics
Co-occurrence grouping - Answers An attempt to discover associations between individuals based on
transactions involving them
Profiling - Answers An attempt to characterize the "typical" behavior of an individual, group, or
population by generating summary statics about the data (because you want to identify the
anomalies in the data)
Link prediction - Answers An attempt to predict connections between two data items
Data reduction - Answers A data approach that reduces the amount of information that needs to be
considered to focus on the most critical items. It does this by taking a large set of data and reducing it
with a smaller set that has the vast majority of the critical information of the largest set.
similarity matching - Answers Which data approach attempts to identify similar individuals based on
data known about them?
link protection - Answers Which data approach attempts to predict connections between two data
items?
data dictionary - Answers Which of these terms is defined as being a central repository of
descriptions for all of the data attributes of the dataset?
c - Answers Which skills were not emphasized that analytic-minded accountants should have?
a) Developed an analytics mindset
b) Data scrubbing and data preparation
c) Classification of test approaches
d) Statistical data analysis competency
d - Answers 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
b - Answers The IMPACT cycle includes all except the following steps:
a) Perform test plan
b) Visualize the data
c) Master the data
d) Track outcomes
a - Answers The IMPACT cycle specifically includes all except the following steps:
a) Data preparation
b) Communicate insights
c) Address and refine results
d) Perform test plan
, Identify the question - Answers I in IMPACT stands for
master the data - Answers M in IMPACT stands for
perform the test plan - Answers P in IMPACT stands for
address the final results - Answers A in IMPACT stands for
communicate the insights, communicate results - Answers C in IMPACT stands for
Track outcomes - Answers T in IMPACT stands for
zettabytes - Answers By the year 2024, the volume of data created, captured, copied, and consumed
worldwide will be 149 _________
Accountants engage in valuation, stewardship, and exchange guidance. Identify underperforming
sectors, and find ways to increase their profitability or cut them to improve profitability. Use data
analytics to perform all of these things - Answers The opening article "Accountants to Rely More on
Big Data in 2020" suggested that Data Analytics would be increasingly implementing Big Data in their
business process. Why is that? How can data analytics help accountants do their jobs?
It's a process for which we evaluate data to come to a conclusion. We want to make a practical
decision. Characteristics of current students and see where they're from and do extra marketing to
recruit students in that area. - Answers Define data analytics and explain how a university might use
its techniques to recruit and attract potential students
Give you a demographic of customers that will use your product.
Ex: farms can test different fertilizers and see what performs the best - Answers give a specific
example of how data analytics creates value for businesses.
During an audit we have limited resources. We often engage in data reduction to focus on big ticket
items that affect financial statements the most. - Answers Give a specific example of how data
analytics creates value for auditing?
Visualizations can help us aggregate important information for decision makers or can disaggregate it
based on specific information. Predict tax liabilities, estimate tax consequences, and other future tax
information. - Answers How might data analytics be used in financial reporting? And how might it be
used in doing tax planning?
Management accounting gathers data and analyze it in terms of the business and are essentially data
analysts. - Answers How is the role of management accounting similar to the role of the data
analysts?
IMPACT cycle is a cycle. Your answer might lead to a second question and then cycle repeats. -
Answers Describe the IMPACT cycle. Why does its order of the processes and its recursive nature
make sense?
You need to know the data inside and out, what data is reliable, data descriptions, data dictionary.
You want to make sure the data available will help you answer the question. - Answers What is
included in mastering the data as part of the IMPACT cycle described in the chapter?
Link prediction - Answers What data approach mentioned in the chapter might be used by facebook
to find friends?
Auditors have limited resources, time, and energy. Need to focus on important data that impact the
material the most. - Answers Auditors will frequently use the data reduction approach when
considering potentially risky transactions. Provide an example of why focusing on a portion of the
total number of transactions might be important for auditors to assess risk.
Regression analysis - Answers Which data approach might be used to assess the appropriate level of
the allowance for doubtful accounts?
High debt to income ratio, the more likely it is that the borrower will not repay the loan and then the
bank would decline the loan. Borrowers with lower credit scores are less likely to repay the loan so
they won't loan money to risky credit scores. - Answers Why might the debt to income attribute
included in the declined loans dataset considered in the chapter to be a predictor of declined loans?
How about the credit (risk) score?
dependent - Answers Independent variables are used to predict ____________ variables
Size of the loan, Annual income, Get information on previous loan payments - Answers To address
the question "Will I receive a loan from LendingClub? We had available data to assess the relationship
among 1) the debt-to-income ratios and number of rejected loans, 2) the length of employment and
number of rejected loans, and 3) the credit score and number of rejected loans. What additional data
would you recommend to further assess whether a loan would be offered? Why would they be
helpful?
classification - Answers Predict which firms will go bankrupt and which firms will not go bankrupt
