TEST BANK FOR
Data Analytics for Accounting, 3rd Edition by Vernon Richardson, Teeter
Answers Included ✅
M
Chapter 01 3e
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) Data analytics is the process of evaluating data with the purpose of drawing conclusions
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to address business questions.
⊚ true
⊚ false
ES
2) The process of data analytics aims to transform raw information into data to create value.
⊚ true
⊚ false
3) Data analytics has the potential to transform the manner in which companies run their
SI
businesses, however it is not practical in the near future.
⊚ true
⊚ false
VE
4) Auditors can use social media to hear what customers are saying about a company and
compare this to inventory obsolescence and other estimates.
⊚ true
⊚ false
G
5) Data analytics allows auditors to glean insights that are beneficial to the client, without
breeching independence.
R
⊚ true
⊚ false
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6) The predictive analytics is an important aspect of data analytics for auditors, but is not
applicable for tax accountants.
⊚ true
⊚ false
ES
7) The I in IMPACT Cycle represents Identify the Question.
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⊚ true
⊚ false
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8) The M in IMPACT Cycle represents Master the Data.
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⊚ true
⊚ false
9) The P in IMPACT Cycle represents Predict the Results.
⊚ true
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⊚ false
10) The A in IMPACT Cycle represents Analyze the Data.
⊚ true
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⊚ false
11) The C in IMPACT Cycle represents Continuously Track.
VE
⊚ true
⊚ false
12) The T in IMPACT Cycle represents Track Outcomes.
⊚ true
G
⊚ false
R
13) The IMPACT cycle is iterative, as insights are gained, outcomes are tracked, and new
questions are identified.
⊚ true
AD
⊚ false
14) 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.
⊚ true
ES
⊚ false
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M
15) To be proficient in data analysis, accountants need to become data scientists.
⊚ true
⊚ false
PR
16) By developing an analytics mindset, accountants will be able to recognize when and how
data analytics can address business questions.
⊚ true
⊚ false
ES
17) While it is important for accountants to clearly articulate the business problem, drawing
appropriate conclusions, based on the data, should be left to statisticians.
⊚ true
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⊚ false
18) Analytic-minded accountants should report results of analysis in an accessible way to
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each varied decision maker and their specific needs.
⊚ true
⊚ false
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
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answers the question.
19) 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:
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A) technologies.
B) statistics.
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C) strategies.
D) databases.
20) Patterns discovered from blank enable businesses to identify opportunities
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and risks and better plan for blank.
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A) past archives; the future
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B) current data; the future
C) current data; today
D) past archives; today
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21) Which of the following best describes the goal of descriptive data analysis:
A) recognize what is meant by data quality, be it completeness, reliability or validity
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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
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22) Which of the following Microsoft software tool specializes in data joining?
VE
A) Excel
B) Power Query
C) Power BI
D) Power Automate
G
23) Which of the following Microsoft software tools specializes in creating dashboards?
R
A) Excel
B) Power Query
AD
C) Power BI
D) Power Automate
24) Which of the following Tableau software tools specializes in data transformation?
ES
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