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Accounting, 1e Dzuranin
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,Data and Analytics in Accounting, 1e (Dzuranin)
Chapter 1 Data and Analytics in the Accounting Profession
1) One key feature of self-service business intelligence (SSBI) software is that
A) it is easy to use.
B) it costs less to implement.
C) it connects to multiple data sources.
D) it provides dashboarding capabilities.
Answer: A
Explanation: There are two key features of SSBI software: it provides extended data processing
capabilities for preparing data, analyzing data, and reporting data analysis results; and it is easy
to use.
Diff: 1
LO: 1-1
Bloom: C
Min.: 1
AACSB: Analytic
AICPA: FC: Measurement, Analysis, and Interpretation
2) Alteryx is an example of SSBI software that can
A) replace Excel since it can provide more complex functions.
B) replace a database since it can store transactional data.
C) replace the data warehouse.
D) be used to clean data by removing null values or removing leading or trailing spaces.
Answer: D
Explanation: There are two key features of SSBI software: it provides extended data processing
capabilities for preparing data, analyzing data, and reporting data analysis results; and it is easy
to use.
Diff: 1
LO: 1-1
Bloom: C
Min.: 1
AACSB: Analytic
AICPA: FC: Measurement, Analysis, and Interpretation
1
,3) How has data analytics changed the audit profession?
A) The cost of audit engagements has increased due to the growing data volume that needs to be
validated.
B) The cost of audit engagements has decreased since the data that is received from clients are
more trustworthy.
C) An auditor can now analyze the entire population of audit-relevant data for exceptions or
outliers.
D) There is a greater assurance that financial statements do not have material misstatement since
the data is more timely and complete.
Answer: C
Explanation: Self-service business intelligence tools has empowered accountants to use data
and analytics to provide value-added services to their clients and employers.
Diff: 2
LO: 1-1
Bloom: AP
Min.: 1
AACSB: Analytic
AICPA: FC: Measurement, Analysis, and Interpretation
4) Data analytics is
A) the process of analyzing raw data to answer questions or provide insights.
B) the process of storing relevant raw data so that data can be analyzed.
C) the process of cleaning data so that data can be more trustworthy.
D) the process of using machine learning and predictive modeling.
Answer: A
Explanation: Data analytics is the process of analyzing raw data to answer questions or provide
insights.
Diff: 1
LO: 1-1
Bloom: C
Min.: 1
AACSB: Analytic
AICPA: FC: Measurement, Analysis, and Interpretation
2
,5) Robotic process automation (RPA) software is being used to
A) build artificial intelligence models to eliminate manual audit tasks.
B) analyze auditing data and performing substantive tests.
C) audit sample-based testing so that auditors can focus on analysis and provide valuable
insights.
D) automate manual tasks so that auditors can focus on more strategic tasks.
Answer: D
Explanation: RPA can be used to perform routine financial accounting functions such as
recording journal entries, creating trial balances, doing preliminary account analyses, and
creating financial statements to let accountants spend more time analyzing data for insights.
Diff: 1
LO: 1-1
Bloom: C
Min.: 1
AACSB: Analytic
AICPA: FC: Measurement, Analysis, and Interpretation
6) Robotic process automation (RPA)software can be used by financial accountants
A) to perform routine financial accounting functions such as recording journal entries and
creating trial balances.
B) to perform non-routine financial accounting functions such as analyzing potential mergers and
acquisitions.
C) to perform routine financial accounting functions such as determining revenue recognition on
complex construction projects.
D) to make predictions within financial capital markets.
Answer: A
Explanation: RPA can be used to perform routine financial accounting functions such as
recording journal entries, creating trial balances, doing preliminary account analyses, and
creating financial statements to let accountants spend more time analyzing data for insights.
Diff: 2
LO: 1-1
Bloom: AP
Min.: 1
AACSB: Analytic
AICPA: FC: Measurement, Analysis, and Interpretation
3
,7) Robotic process automation (RPA) software can be used by management accountants
A) to create automatic financial performance reports for department managers.
B) to evaluate return on investments on capital projects.
C) to evaluate strategic sourcing opportunities with vendors.
D) to identify the cost drivers for activity-based costing models.
Answer: A
Explanation: RPA can be used to perform routine financial accounting functions such as
recording journal entries, creating trial balances, doing preliminary account analyses, and
creating financial statements to let accountants spend more time analyzing data for insights.
Diff: 2
LO: 1-1
Bloom: AP
Min.: 1
AACSB: Analytic
AICPA: FC: Measurement, Analysis, and Interpretation
8) Robotic process automation software (RPA) can be used by tax accountants
A) to analyze potential saving opportunities for the client.
B) to extract data from the client's financial statements and automatically populate the data into
the tax preparation software.
C) to assess the client's residency for tax purposes.
D) to respond to IRS inquiries.
Answer: B
Explanation: RPA can be used to perform routine financial accounting functions such as
recording journal entries, creating trial balances, doing preliminary account analyses, and
creating financial statements to let accountants spend more time analyzing data for insights.
Diff: 2
LO: 1-1
Bloom: AP
Min.: 1
AACSB: Analytic
AICPA: FC: Measurement, Analysis, and Interpretation
4
,9) With SSBI software, management accountants can use data to
A) automate non-routine tasks.
B) identify and manage risks.
C) store transactional data in a central repository.
D) None of the answer choices are correct.
Answer: B
Explanation: With SSBI software, management accountants can more easily use data to help:
identify and manage risks; improve budgeting and forecasting by incorporating more data;
automate internal reporting; identify operational improvements; and create dashboards of key
performance indicators (KPI).
Diff: 2
LO: 1-1
Bloom: AP
Min.: 1
AACSB: Analytic
AICPA: FC: Measurement, Analysis, and Interpretation
10) The stages in the data analysis process are
A) Analyze, Report, and Reflection.
B) Strategize, Plan, and Analyze.
C) Plan, Analyze, and Report
D) Plan, Report, and Reflection.
Answer: C
Explanation: The data analysis process is comprised of three equally important stages: Plan,
Analyze, and Report.
Diff: 1
LO: 1-2
Bloom: C
Min.: 1
AACSB: Analytic
AICPA: FC: Measurement, Analysis, and Interpretation
11) In the Planning stage of the data analysis process, the Planning stage involves
A) identifying the problem, selecting the data sources, and creating an implementation plan.
B) selecting the data, evaluating alternatives, and creating a strategy to perform the analysis.
C) identifying the motivation, determining the objective, and creating a strategy to perform the
analysis.
D) exploring the data, preparing the data, and building information models.
Answer: C
Explanation: Planning includes identifying the motivation for the analysis, determining the
objective and questions to answer, and devising a strategy to perform the analysis.
Diff: 1
LO: 1-2
Bloom: C
Min.: 1
AACSB: Analytic
AICPA: FC: Measurement, Analysis, and Interpretation
5
,12) In a data analysis process, motivation
A) is the reason the analysis is being performed or why we are doing the analysis.
B) is the project's goals.
C) is the desired outcome of the analysis.
D) is the objective of the analysis.
Answer: A
Explanation: Motivation is the reason the analysis is being performed.
Diff: 1
LO: 1-2
Bloom: C
Min.: 1
AACSB: Analytic
AICPA: FC: Measurement, Analysis, and Interpretation
13) You are a management accountant within the finance department. An example of an external
motivation in a data analysis project is
A) when your manager asks you to analyze variances between budgeted and actual values for the
last fiscal year.
B) an analysis of vendor performance so that strategic vendors can be selected to improve the
supply chain.
C) an analysis of accounts receivables to determine allowance of doubtful accounts.
D) when the marketing department requests for an analysis of sales projections for all sales
channels.
Answer: D
Explanation: External motivation: The project originates from a request or requirement by
another party, such as external stakeholders like investors, creditors, supply chain partners,
industry regulators, or government agencies.
Diff: 2
LO: 1-2
Bloom: AP
Min.: 1
AACSB: Analytic
AICPA: FC: Measurement, Analysis, and Interpretation
6
,14) You are an internal auditor within the internal auditing department. An example of an
internal motivation in a data analysis project is
A) when your manager asks you to analyze the compliance of segregation of duties for cash
deposits.
B) when the external auditor requests an analysis of inventory balances at all warehouse
locations.
C) when the creditor requests a report on the cash flow activity through the year.
D) when the marketing department requests for an analysis of sales projections for all sales
channels.
Answer: A
Explanation: Internal motivation is when the project is motivated by a desire to better serve a
client, better understand phenomena to gain business intelligence, or perform job responsibilities.
Diff: 2
LO: 1-2
Bloom: AP
Min.: 1
AACSB: Analytic
AICPA: FC: Measurement, Analysis, and Interpretation
15) In a data analysis process, the objective
A) is why we are doing the analysis.
B) is the project's goals.
C) is the desired outcome of the analysis.
D) is the reason the analysis is being performed.
Answer: B
Explanation: The objective is the goal of the project. To identify the objective, form specific
questions to guide the analysis.
Diff: 1
LO: 1-2
Bloom: C
Min.: 1
AACSB: Analytic
AICPA: FC: Measurement, Analysis, and Interpretation
7
, 16) When designing a strategy within a data analysis process, the two parts of strategy are to
A) determine what data is necessary to answer questions and decide the type of analysis is
appropriate.
B) determine what data is necessary to generate the desired outcome and decide what type of
analysis is appropriate.
C) determine what data is necessary to answer questions and decide which stakeholders should
be involved in the analysis.
D) determine what data is reliable for the analysis and decide which stakeholders should be
involved in the analysis.
Answer: A
Explanation: There are two aspects to strategy–a data strategy and an analysis strategy.
Diff: 2
LO: 1-2
Bloom: C
Min.: 1
AACSB: Analytic
AICPA: FC: Measurement, Analysis, and Interpretation
17) A descriptive analysis
A) assesses what is happening currently and in the past.
B) identifies a problem to understand why an outcome occurred.
C) predicts what might happen in the future.
D) helps determine what should happen to meet goals or objectives.
Answer: A
Explanation: Descriptive analytics are used to understand what is currently happening or has
happened in the past.
Diff: 2
LO: 1-2
Bloom: C
Min.: 1
AACSB: Analytic
AICPA: FC: Measurement, Analysis, and Interpretation
18) A diagnostic analysis
A) assesses what is happening currently and in the past.
B) identifies a problem to understand why an outcome occurred.
C) predicts what might happen in the future.
D) helps determine what should happen to meet goals or objectives.
Answer: B
Explanation: Diagnostic analytics help reveal why something has happened.
Diff: 2
LO: 1-2
Bloom: C
Min.: 1
AACSB: Analytic
AICPA: FC: Measurement, Analysis, and Interpretation
8
Accounting, 1e Dzuranin
Hello all ,
We have all what you need with best price
Our email :
Our website :
testbanks-store.com
,Data and Analytics in Accounting, 1e (Dzuranin)
Chapter 1 Data and Analytics in the Accounting Profession
1) One key feature of self-service business intelligence (SSBI) software is that
A) it is easy to use.
B) it costs less to implement.
C) it connects to multiple data sources.
D) it provides dashboarding capabilities.
Answer: A
Explanation: There are two key features of SSBI software: it provides extended data processing
capabilities for preparing data, analyzing data, and reporting data analysis results; and it is easy
to use.
Diff: 1
LO: 1-1
Bloom: C
Min.: 1
AACSB: Analytic
AICPA: FC: Measurement, Analysis, and Interpretation
2) Alteryx is an example of SSBI software that can
A) replace Excel since it can provide more complex functions.
B) replace a database since it can store transactional data.
C) replace the data warehouse.
D) be used to clean data by removing null values or removing leading or trailing spaces.
Answer: D
Explanation: There are two key features of SSBI software: it provides extended data processing
capabilities for preparing data, analyzing data, and reporting data analysis results; and it is easy
to use.
Diff: 1
LO: 1-1
Bloom: C
Min.: 1
AACSB: Analytic
AICPA: FC: Measurement, Analysis, and Interpretation
1
,3) How has data analytics changed the audit profession?
A) The cost of audit engagements has increased due to the growing data volume that needs to be
validated.
B) The cost of audit engagements has decreased since the data that is received from clients are
more trustworthy.
C) An auditor can now analyze the entire population of audit-relevant data for exceptions or
outliers.
D) There is a greater assurance that financial statements do not have material misstatement since
the data is more timely and complete.
Answer: C
Explanation: Self-service business intelligence tools has empowered accountants to use data
and analytics to provide value-added services to their clients and employers.
Diff: 2
LO: 1-1
Bloom: AP
Min.: 1
AACSB: Analytic
AICPA: FC: Measurement, Analysis, and Interpretation
4) Data analytics is
A) the process of analyzing raw data to answer questions or provide insights.
B) the process of storing relevant raw data so that data can be analyzed.
C) the process of cleaning data so that data can be more trustworthy.
D) the process of using machine learning and predictive modeling.
Answer: A
Explanation: Data analytics is the process of analyzing raw data to answer questions or provide
insights.
Diff: 1
LO: 1-1
Bloom: C
Min.: 1
AACSB: Analytic
AICPA: FC: Measurement, Analysis, and Interpretation
2
,5) Robotic process automation (RPA) software is being used to
A) build artificial intelligence models to eliminate manual audit tasks.
B) analyze auditing data and performing substantive tests.
C) audit sample-based testing so that auditors can focus on analysis and provide valuable
insights.
D) automate manual tasks so that auditors can focus on more strategic tasks.
Answer: D
Explanation: RPA can be used to perform routine financial accounting functions such as
recording journal entries, creating trial balances, doing preliminary account analyses, and
creating financial statements to let accountants spend more time analyzing data for insights.
Diff: 1
LO: 1-1
Bloom: C
Min.: 1
AACSB: Analytic
AICPA: FC: Measurement, Analysis, and Interpretation
6) Robotic process automation (RPA)software can be used by financial accountants
A) to perform routine financial accounting functions such as recording journal entries and
creating trial balances.
B) to perform non-routine financial accounting functions such as analyzing potential mergers and
acquisitions.
C) to perform routine financial accounting functions such as determining revenue recognition on
complex construction projects.
D) to make predictions within financial capital markets.
Answer: A
Explanation: RPA can be used to perform routine financial accounting functions such as
recording journal entries, creating trial balances, doing preliminary account analyses, and
creating financial statements to let accountants spend more time analyzing data for insights.
Diff: 2
LO: 1-1
Bloom: AP
Min.: 1
AACSB: Analytic
AICPA: FC: Measurement, Analysis, and Interpretation
3
,7) Robotic process automation (RPA) software can be used by management accountants
A) to create automatic financial performance reports for department managers.
B) to evaluate return on investments on capital projects.
C) to evaluate strategic sourcing opportunities with vendors.
D) to identify the cost drivers for activity-based costing models.
Answer: A
Explanation: RPA can be used to perform routine financial accounting functions such as
recording journal entries, creating trial balances, doing preliminary account analyses, and
creating financial statements to let accountants spend more time analyzing data for insights.
Diff: 2
LO: 1-1
Bloom: AP
Min.: 1
AACSB: Analytic
AICPA: FC: Measurement, Analysis, and Interpretation
8) Robotic process automation software (RPA) can be used by tax accountants
A) to analyze potential saving opportunities for the client.
B) to extract data from the client's financial statements and automatically populate the data into
the tax preparation software.
C) to assess the client's residency for tax purposes.
D) to respond to IRS inquiries.
Answer: B
Explanation: RPA can be used to perform routine financial accounting functions such as
recording journal entries, creating trial balances, doing preliminary account analyses, and
creating financial statements to let accountants spend more time analyzing data for insights.
Diff: 2
LO: 1-1
Bloom: AP
Min.: 1
AACSB: Analytic
AICPA: FC: Measurement, Analysis, and Interpretation
4
,9) With SSBI software, management accountants can use data to
A) automate non-routine tasks.
B) identify and manage risks.
C) store transactional data in a central repository.
D) None of the answer choices are correct.
Answer: B
Explanation: With SSBI software, management accountants can more easily use data to help:
identify and manage risks; improve budgeting and forecasting by incorporating more data;
automate internal reporting; identify operational improvements; and create dashboards of key
performance indicators (KPI).
Diff: 2
LO: 1-1
Bloom: AP
Min.: 1
AACSB: Analytic
AICPA: FC: Measurement, Analysis, and Interpretation
10) The stages in the data analysis process are
A) Analyze, Report, and Reflection.
B) Strategize, Plan, and Analyze.
C) Plan, Analyze, and Report
D) Plan, Report, and Reflection.
Answer: C
Explanation: The data analysis process is comprised of three equally important stages: Plan,
Analyze, and Report.
Diff: 1
LO: 1-2
Bloom: C
Min.: 1
AACSB: Analytic
AICPA: FC: Measurement, Analysis, and Interpretation
11) In the Planning stage of the data analysis process, the Planning stage involves
A) identifying the problem, selecting the data sources, and creating an implementation plan.
B) selecting the data, evaluating alternatives, and creating a strategy to perform the analysis.
C) identifying the motivation, determining the objective, and creating a strategy to perform the
analysis.
D) exploring the data, preparing the data, and building information models.
Answer: C
Explanation: Planning includes identifying the motivation for the analysis, determining the
objective and questions to answer, and devising a strategy to perform the analysis.
Diff: 1
LO: 1-2
Bloom: C
Min.: 1
AACSB: Analytic
AICPA: FC: Measurement, Analysis, and Interpretation
5
,12) In a data analysis process, motivation
A) is the reason the analysis is being performed or why we are doing the analysis.
B) is the project's goals.
C) is the desired outcome of the analysis.
D) is the objective of the analysis.
Answer: A
Explanation: Motivation is the reason the analysis is being performed.
Diff: 1
LO: 1-2
Bloom: C
Min.: 1
AACSB: Analytic
AICPA: FC: Measurement, Analysis, and Interpretation
13) You are a management accountant within the finance department. An example of an external
motivation in a data analysis project is
A) when your manager asks you to analyze variances between budgeted and actual values for the
last fiscal year.
B) an analysis of vendor performance so that strategic vendors can be selected to improve the
supply chain.
C) an analysis of accounts receivables to determine allowance of doubtful accounts.
D) when the marketing department requests for an analysis of sales projections for all sales
channels.
Answer: D
Explanation: External motivation: The project originates from a request or requirement by
another party, such as external stakeholders like investors, creditors, supply chain partners,
industry regulators, or government agencies.
Diff: 2
LO: 1-2
Bloom: AP
Min.: 1
AACSB: Analytic
AICPA: FC: Measurement, Analysis, and Interpretation
6
,14) You are an internal auditor within the internal auditing department. An example of an
internal motivation in a data analysis project is
A) when your manager asks you to analyze the compliance of segregation of duties for cash
deposits.
B) when the external auditor requests an analysis of inventory balances at all warehouse
locations.
C) when the creditor requests a report on the cash flow activity through the year.
D) when the marketing department requests for an analysis of sales projections for all sales
channels.
Answer: A
Explanation: Internal motivation is when the project is motivated by a desire to better serve a
client, better understand phenomena to gain business intelligence, or perform job responsibilities.
Diff: 2
LO: 1-2
Bloom: AP
Min.: 1
AACSB: Analytic
AICPA: FC: Measurement, Analysis, and Interpretation
15) In a data analysis process, the objective
A) is why we are doing the analysis.
B) is the project's goals.
C) is the desired outcome of the analysis.
D) is the reason the analysis is being performed.
Answer: B
Explanation: The objective is the goal of the project. To identify the objective, form specific
questions to guide the analysis.
Diff: 1
LO: 1-2
Bloom: C
Min.: 1
AACSB: Analytic
AICPA: FC: Measurement, Analysis, and Interpretation
7
, 16) When designing a strategy within a data analysis process, the two parts of strategy are to
A) determine what data is necessary to answer questions and decide the type of analysis is
appropriate.
B) determine what data is necessary to generate the desired outcome and decide what type of
analysis is appropriate.
C) determine what data is necessary to answer questions and decide which stakeholders should
be involved in the analysis.
D) determine what data is reliable for the analysis and decide which stakeholders should be
involved in the analysis.
Answer: A
Explanation: There are two aspects to strategy–a data strategy and an analysis strategy.
Diff: 2
LO: 1-2
Bloom: C
Min.: 1
AACSB: Analytic
AICPA: FC: Measurement, Analysis, and Interpretation
17) A descriptive analysis
A) assesses what is happening currently and in the past.
B) identifies a problem to understand why an outcome occurred.
C) predicts what might happen in the future.
D) helps determine what should happen to meet goals or objectives.
Answer: A
Explanation: Descriptive analytics are used to understand what is currently happening or has
happened in the past.
Diff: 2
LO: 1-2
Bloom: C
Min.: 1
AACSB: Analytic
AICPA: FC: Measurement, Analysis, and Interpretation
18) A diagnostic analysis
A) assesses what is happening currently and in the past.
B) identifies a problem to understand why an outcome occurred.
C) predicts what might happen in the future.
D) helps determine what should happen to meet goals or objectives.
Answer: B
Explanation: Diagnostic analytics help reveal why something has happened.
Diff: 2
LO: 1-2
Bloom: C
Min.: 1
AACSB: Analytic
AICPA: FC: Measurement, Analysis, and Interpretation
8
