Data Analytics for Accounting Test Bank &
Solutions Manual with Lab Exercises
The Data Analytics Process - answers 1. Data Analytics
2.Intro to Accounting Data
3.Types of Data
4.Preparing Data for Analysis
5.Types and Tools of Data Analytics
6.Descriptive Analytics
7.Diagnostic Analytics
8.Predictive Analytics
9.Prescriptive Analytics
10.Share the Story
11.Putting it All Together
2.5 Quintillion bytes of data are created every day, - answers and that number
continues to grow with no sign of slowing down.
The data that now floods the Internet every second is equivalent to - answers the data
stored on the entire Internet 20 years ago.
The abundance of data can be helpful in addressing company questions, problem, and
challenges to the extent that - answers accountants can harness and analyze the
available data.
The increasing amount of data may cause - answers information overload and hinder
the work of the accountant.
How to deal with automation: - answers While computers increasingly collect the data,
they do not have the accounting expertise that accountants provide.
Data Analytics is one way for accountants to develop and exhibit this needed expertise.
Data is not the answer. It may help answer question, but that data is a tool of the
analyst.
Bloom's Taxonomy - answers 1. Remember
2. Understand
3. Apply
4. Analyze
5. Evaluate
6. Create
,The basic academia accounting curriculum most directly addresses to the three lowest
levels of Bloom's taxonomy. - answers Remember, Understand, and Apply.
Data analytics moved us into the higher order thinking skills. - answers Accountants
simply cannot analyze, evaluate, and create if they do not already have the basic
accounting knowledge and understanding required by the lower level skills.
The AMPS Model: - answers 1. Ask the Question
2. Master the Data
3. Perform the Analysis
4. Share the Story
Ask the Question - answers Your Data Won't Speak Unless You Ask It The Right Data
Analytics Questions"
-Diagnostic Analytics
-Predictive Analytics
-Prescriptive Analytics
Diagnostic Analytics - answers Why did it happen? What are the root causes of past
results?
Predictive Analytics - answers Will it happen in the future? What is the probability
something will happen? Is it forecastable?
Prescriptive Analytics - answers What should we do, based on what we expect will
happen? How do we optimize our performance based on potential constraints?
Master the Data - answers Can the data answer/address the question?
Does the data exhibit data integrity (accurate, valid and consistent)?
Cost of Acquiring vs. Benefit of Using the Data
Type of Data: Categorical vs. Numerical
Does the data exhibit data integrity (accurate, valid and consistent)? - answers Does the
data have errors?
Is data missing?
Is the data biased?
Cost of Acquiring vs. Benefit of Using the Data - answers Who owns the data?
Is the data hard to access?
Type of Data: Categorical vs. Numerical - answers What type of analysis does the data
allow us to do?
, Perform the Analysis - answers A histogram or a scatterplot might be used to help
evaluate journal entries that are excessively big or excessively small (or negative) with
the testing of internal controls.
Regression analysis might be used to evaluate cost behavior by segregating total costs
into fixed and variable cost components.
An internal rate of return or net present value analysis might be used to evaluate capital
investments made by the firm, or equity investments made by a
potential investor.
Benford's Law analytics might be used to find and evaluate unusual and potentially
fraudulent transactions.
A What-If/Goal Seek analysis might be used to perform an analysis of how changing
costs and other factors affect the breakeven level for a new product.
Share the Story - answers What is the best way to communicate what we've found in
our data analysis?
-Static Visualizations
-Dynamic Visualizations
Static Visualizations - answers Reports
Graphs
Tables
Dynamic Visualizations - answers Dashboards
What Tools do Accountants Need? - answers 1. Spreadsheets
2. Queries
3. Scripting
4. Visualizations
Spreadsheets - answers Using Excel or other program as tools for analytics that
accountants will perform:
Basic formula and functions
References - how to connect other data in the spreadsheet
Macros - how to automate processes that are repetitive
PivotTables - often a very functional tool for many types of summarizations and also
serves as a way to help organize the data
Solutions Manual with Lab Exercises
The Data Analytics Process - answers 1. Data Analytics
2.Intro to Accounting Data
3.Types of Data
4.Preparing Data for Analysis
5.Types and Tools of Data Analytics
6.Descriptive Analytics
7.Diagnostic Analytics
8.Predictive Analytics
9.Prescriptive Analytics
10.Share the Story
11.Putting it All Together
2.5 Quintillion bytes of data are created every day, - answers and that number
continues to grow with no sign of slowing down.
The data that now floods the Internet every second is equivalent to - answers the data
stored on the entire Internet 20 years ago.
The abundance of data can be helpful in addressing company questions, problem, and
challenges to the extent that - answers accountants can harness and analyze the
available data.
The increasing amount of data may cause - answers information overload and hinder
the work of the accountant.
How to deal with automation: - answers While computers increasingly collect the data,
they do not have the accounting expertise that accountants provide.
Data Analytics is one way for accountants to develop and exhibit this needed expertise.
Data is not the answer. It may help answer question, but that data is a tool of the
analyst.
Bloom's Taxonomy - answers 1. Remember
2. Understand
3. Apply
4. Analyze
5. Evaluate
6. Create
,The basic academia accounting curriculum most directly addresses to the three lowest
levels of Bloom's taxonomy. - answers Remember, Understand, and Apply.
Data analytics moved us into the higher order thinking skills. - answers Accountants
simply cannot analyze, evaluate, and create if they do not already have the basic
accounting knowledge and understanding required by the lower level skills.
The AMPS Model: - answers 1. Ask the Question
2. Master the Data
3. Perform the Analysis
4. Share the Story
Ask the Question - answers Your Data Won't Speak Unless You Ask It The Right Data
Analytics Questions"
-Diagnostic Analytics
-Predictive Analytics
-Prescriptive Analytics
Diagnostic Analytics - answers Why did it happen? What are the root causes of past
results?
Predictive Analytics - answers Will it happen in the future? What is the probability
something will happen? Is it forecastable?
Prescriptive Analytics - answers What should we do, based on what we expect will
happen? How do we optimize our performance based on potential constraints?
Master the Data - answers Can the data answer/address the question?
Does the data exhibit data integrity (accurate, valid and consistent)?
Cost of Acquiring vs. Benefit of Using the Data
Type of Data: Categorical vs. Numerical
Does the data exhibit data integrity (accurate, valid and consistent)? - answers Does the
data have errors?
Is data missing?
Is the data biased?
Cost of Acquiring vs. Benefit of Using the Data - answers Who owns the data?
Is the data hard to access?
Type of Data: Categorical vs. Numerical - answers What type of analysis does the data
allow us to do?
, Perform the Analysis - answers A histogram or a scatterplot might be used to help
evaluate journal entries that are excessively big or excessively small (or negative) with
the testing of internal controls.
Regression analysis might be used to evaluate cost behavior by segregating total costs
into fixed and variable cost components.
An internal rate of return or net present value analysis might be used to evaluate capital
investments made by the firm, or equity investments made by a
potential investor.
Benford's Law analytics might be used to find and evaluate unusual and potentially
fraudulent transactions.
A What-If/Goal Seek analysis might be used to perform an analysis of how changing
costs and other factors affect the breakeven level for a new product.
Share the Story - answers What is the best way to communicate what we've found in
our data analysis?
-Static Visualizations
-Dynamic Visualizations
Static Visualizations - answers Reports
Graphs
Tables
Dynamic Visualizations - answers Dashboards
What Tools do Accountants Need? - answers 1. Spreadsheets
2. Queries
3. Scripting
4. Visualizations
Spreadsheets - answers Using Excel or other program as tools for analytics that
accountants will perform:
Basic formula and functions
References - how to connect other data in the spreadsheet
Macros - how to automate processes that are repetitive
PivotTables - often a very functional tool for many types of summarizations and also
serves as a way to help organize the data
