ACCESS Test Bank for Introduction to Data Analytics for Accounting 2nd
Edition Richardson
Richardson, Terrell, Teeter – Introduction to Data Analytics for Accounting, 2nd Edition – Chapter 1
Chapter 1 End-of-Chapter Assignment Solutions
Multiple Choice Questions
1. (LO 1-2) Which is the lowest level of critical thinking skills in Bloom’s Taxonomy?
a. Create
b. Remember
c. Apply
d. Analyze
2. (LO 1-2) Which is the highest level of critical thinking skills in Bloom’s Taxonomy?
a. Create
b. Apply
c. Analyze
d. Understand
3. (LO 1-2) Which is the appropriate ordering of critical thinking skills in Bloom’s
Taxonomy, where the “>” symbol means higher order skills?
a. Remember > Apply
b. Apply > Analyze
c. Analyze > Evaluate
d. Create > Analyze
4. (LO 1-3) Which step of the AMPS model most appropriately addresses the axiom,
“Your data won’t speak unless you ask it the right data analytics questions”?
a. Ask the Question
b. Master the Data
c. Perform the Analysis
d. Share the Story
5. (LO 1-3) Which step of the AMPS model most appropriately addresses the question
of the best way to communicate data analytics findings with a decision maker?
a. Ask the Question
b. Master the Data
c. Perform the Analysis
d. Share the Story
6. (LO 1-3) What type of question is predicting whether a company will go bankrupt in
the coming two years?
a. What happened? What is happening?
b. Why did it happen? What are the root causes of past results?
c. Will it happen in the future? What is the probability something will
happen? Is it forecastable?
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
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,ACCESS Test Bank for Introduction to Data Analytics for Accounting 2nd
Edition Richardson
Richardson, Terrell, Teeter – Introduction to Data Analytics for Accounting, 2nd Edition – Chapter 1
d. What should we do based on what we expect will happen? How do we
optimize our performance based on potential constraints?”
7. (LO 1-3) What type of question is choosing to take certain tax deductions based on
the way managers believe tax legislation will change in the near future?
a. What happened? What is happening?
b. Why did it happen? What are the root causes of past results?
c. Will it happen in the future? What is the probability something will happen?
Is it forecastable?
d. What should we do based on what we expect will happen? How do we
optimize our performance based on potential constraints?”
8. (LO 1-3) What type of question is finding the detail to more clearly understand why
net income is decreasing when revenues are increasing?
a. What happened? What is happening?
b. Why did it happen? What are the root causes of past results?
c. Will it happen in the future? What is the probability something will happen?
Is it forecastable?
d. What should we do based on what we expect will happen? How do we
optimize our performance based on potential constraints?”
9. (LO 1-4) What visualization type is most appropriate for evaluating the relationships
between values?
a. Bar chart
b. Pie chart
c. Histogram
d. Scatterplot
10. (LO 1-5) Which of the following software tools specialize in data visualizations?
a. SPSS and Power Query
b. Alteryx and Tableau Prep
c. Power BI and Tableau
d. R and Python
Discussion Questions
1. (LO 1-1) The computer is better at automated, repetitive tasks since it can
be programmed. The computer is also not subject to fatigue and can
process massive amounts of data easier than a human can. Most of the
value-added tasks and higher order thinking skills, such as analyzing,
evaluating and creating, are performed better by human accountants
because they are not easily programmed by a set of fixed rules. The ability
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
1-2
mynursytest.store
, ACCESS Test Bank for Introduction to Data Analytics for Accounting 2nd
Edition Richardson
Richardson, Terrell, Teeter – Introduction to Data Analytics for Accounting, 2nd Edition – Chapter 1
to recognize tradeoffs, evaluating alternatives, and evaluating ad hoc facts
are all better performed by humans.
2. (LO 1-2) The skills taught in the introduction to financial accounting were
the lower order thinking skills (noted in Bloom’s Taxonomy) such as
remembering, understanding and applying. Application of journal entries,
computing trial balances, recording transactions, bank reconciliation, etc.
are all examples of lower order skills.
3. (LO 1-3) Accountants understand the tradeoffs between relevant data and
reliable data (such as that data which might exhibit more representational
faithfulness).
Accountants also understand the tradeoffs between unstructured and
structured data, data internal or external to the company, and even the
potential cost of acquiring and processing the data as compared to the
potential value provided by use of the data.
4. (LO 1-3) Mastering the data includes accessing, cleaning, and transforming
the data to prepare the data for analysis.
5. (LO 1-3) Data analytics might be viewed as successively peeling the layer of
an onion. By peeling the first layer of the onion, you now are able to see the
next layer and evaluate it and remove it to get to the third layer, etc. Often
times, the AMPS model must be performed multiple times, refining the
question (Ask the Question), possibly considering different types of data
(Master the Data), performing additional analysis (Perform the Analysis) and
retelling the story in each iteration (Sharing the Story) before the
issue/problem/challenge can be finally addressed with some confidence.
6. (LO 1-3) Descriptive analysis reports what happened. Generally, evaluating
the revenues and earnings performance starts with descriptive analysis and
continues with diagnostic analysis to understand “Why it happened?”.
7. (LO 1-4, LO 1-5) Data acquisition and preparation software tools like SQL
and Alteryx work to get the data ready for analysis. Data visualization
software tools work to both analyze data (as part of "Perform the Analysis"
in the AMPS model) and to communicate results (as part of "Share the
Story" in the AMPS model).
Brief Exercises
1. (LO1-1, LO1-2): Match the data analytics term to its data analytics definition:
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
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Edition Richardson
Richardson, Terrell, Teeter – Introduction to Data Analytics for Accounting, 2nd Edition – Chapter 1
Chapter 1 End-of-Chapter Assignment Solutions
Multiple Choice Questions
1. (LO 1-2) Which is the lowest level of critical thinking skills in Bloom’s Taxonomy?
a. Create
b. Remember
c. Apply
d. Analyze
2. (LO 1-2) Which is the highest level of critical thinking skills in Bloom’s Taxonomy?
a. Create
b. Apply
c. Analyze
d. Understand
3. (LO 1-2) Which is the appropriate ordering of critical thinking skills in Bloom’s
Taxonomy, where the “>” symbol means higher order skills?
a. Remember > Apply
b. Apply > Analyze
c. Analyze > Evaluate
d. Create > Analyze
4. (LO 1-3) Which step of the AMPS model most appropriately addresses the axiom,
“Your data won’t speak unless you ask it the right data analytics questions”?
a. Ask the Question
b. Master the Data
c. Perform the Analysis
d. Share the Story
5. (LO 1-3) Which step of the AMPS model most appropriately addresses the question
of the best way to communicate data analytics findings with a decision maker?
a. Ask the Question
b. Master the Data
c. Perform the Analysis
d. Share the Story
6. (LO 1-3) What type of question is predicting whether a company will go bankrupt in
the coming two years?
a. What happened? What is happening?
b. Why did it happen? What are the root causes of past results?
c. Will it happen in the future? What is the probability something will
happen? Is it forecastable?
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
1-1
mynursytest.store
,ACCESS Test Bank for Introduction to Data Analytics for Accounting 2nd
Edition Richardson
Richardson, Terrell, Teeter – Introduction to Data Analytics for Accounting, 2nd Edition – Chapter 1
d. What should we do based on what we expect will happen? How do we
optimize our performance based on potential constraints?”
7. (LO 1-3) What type of question is choosing to take certain tax deductions based on
the way managers believe tax legislation will change in the near future?
a. What happened? What is happening?
b. Why did it happen? What are the root causes of past results?
c. Will it happen in the future? What is the probability something will happen?
Is it forecastable?
d. What should we do based on what we expect will happen? How do we
optimize our performance based on potential constraints?”
8. (LO 1-3) What type of question is finding the detail to more clearly understand why
net income is decreasing when revenues are increasing?
a. What happened? What is happening?
b. Why did it happen? What are the root causes of past results?
c. Will it happen in the future? What is the probability something will happen?
Is it forecastable?
d. What should we do based on what we expect will happen? How do we
optimize our performance based on potential constraints?”
9. (LO 1-4) What visualization type is most appropriate for evaluating the relationships
between values?
a. Bar chart
b. Pie chart
c. Histogram
d. Scatterplot
10. (LO 1-5) Which of the following software tools specialize in data visualizations?
a. SPSS and Power Query
b. Alteryx and Tableau Prep
c. Power BI and Tableau
d. R and Python
Discussion Questions
1. (LO 1-1) The computer is better at automated, repetitive tasks since it can
be programmed. The computer is also not subject to fatigue and can
process massive amounts of data easier than a human can. Most of the
value-added tasks and higher order thinking skills, such as analyzing,
evaluating and creating, are performed better by human accountants
because they are not easily programmed by a set of fixed rules. The ability
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
1-2
mynursytest.store
, ACCESS Test Bank for Introduction to Data Analytics for Accounting 2nd
Edition Richardson
Richardson, Terrell, Teeter – Introduction to Data Analytics for Accounting, 2nd Edition – Chapter 1
to recognize tradeoffs, evaluating alternatives, and evaluating ad hoc facts
are all better performed by humans.
2. (LO 1-2) The skills taught in the introduction to financial accounting were
the lower order thinking skills (noted in Bloom’s Taxonomy) such as
remembering, understanding and applying. Application of journal entries,
computing trial balances, recording transactions, bank reconciliation, etc.
are all examples of lower order skills.
3. (LO 1-3) Accountants understand the tradeoffs between relevant data and
reliable data (such as that data which might exhibit more representational
faithfulness).
Accountants also understand the tradeoffs between unstructured and
structured data, data internal or external to the company, and even the
potential cost of acquiring and processing the data as compared to the
potential value provided by use of the data.
4. (LO 1-3) Mastering the data includes accessing, cleaning, and transforming
the data to prepare the data for analysis.
5. (LO 1-3) Data analytics might be viewed as successively peeling the layer of
an onion. By peeling the first layer of the onion, you now are able to see the
next layer and evaluate it and remove it to get to the third layer, etc. Often
times, the AMPS model must be performed multiple times, refining the
question (Ask the Question), possibly considering different types of data
(Master the Data), performing additional analysis (Perform the Analysis) and
retelling the story in each iteration (Sharing the Story) before the
issue/problem/challenge can be finally addressed with some confidence.
6. (LO 1-3) Descriptive analysis reports what happened. Generally, evaluating
the revenues and earnings performance starts with descriptive analysis and
continues with diagnostic analysis to understand “Why it happened?”.
7. (LO 1-4, LO 1-5) Data acquisition and preparation software tools like SQL
and Alteryx work to get the data ready for analysis. Data visualization
software tools work to both analyze data (as part of "Perform the Analysis"
in the AMPS model) and to communicate results (as part of "Share the
Story" in the AMPS model).
Brief Exercises
1. (LO1-1, LO1-2): Match the data analytics term to its data analytics definition:
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