Test Bank Fol For Introduction to Data Analytics for Accounting 2nd Edition By Vernon Richardson

Test Bank For Introduction to Data Analytics for Accounting 2nd Edition By Vernon Richardson Answers are at the End of Each Chapter Chapter 1 Student name:__________ 1) "Create" is the highest skill in Bloom's Taxonomy. ⊚ true ⊚ false

2) "Understand" is the lowest skill in Bloom's Taxonomy. ⊚ true ⊚ false

3) "Remember" is a higher skill than "Understand" in Bloom's Taxonomy. ⊚ true ⊚ false

4) "Ask the Right Question" is one of the desired skills for accounting professionals, consistent

with EY's "The Analytics Mindset". ⊚ true ⊚ false

5) "Communicate results with management" is one of the desired skills for accounting

professionals, consistent with EY's "The Analytics Mindset". ⊚ true ⊚ false

6) "Extract, Transform and Load Relevant Data" is one of the desired skills for accounting

professionals, consistent with EY's "The Analytics Mindset". ⊚ true ⊚ false

7) Of the options listed below, which is the lowest level of thinking skills in Bloom's

Taxonomy?

A) Create B) Understand C) Apply D) Analyze

8) Of the options listed below, which is the highest level of thinking skills in Bloom's

Taxonomy?

A) Evaluate B) Apply C) Analyze D) Understand

9) Which is the appropriate ordering of thinking skills in Bloom's Taxonomy, where the ">"

symbol means higher order skills?

A) Evaluate > Apply B) Remember > Understand C) Apply > Analyze D) Analyze > Evaluate

10) Which component of the AMPS model would usually involve creating a pivottable?

A) Ask the Question B) Master the Data C) Perform the Analysis D) Share the Story

11) Which component of the AMPS model most appropriately addresses the skill mentioned by

EY's analytics mindset of "extract, transform and load relevant data"?

A) Ask the Question B) Master the Data C) Perform the Analysis D) Share the Story

12) Use of a dashboard to track relevant outcomes would be consistent with which component of

the AMPS model?

A) Ask the Question B) Master the Data C) Perform the Analysis D) Share the Story

13) A visualization may be used to help with which component of the AMPS model?

A) Ask the Question B) Master the Data C) Perform the Analysis D) Share the Story

14) Benford's law might be used as part of which component of the AMPS model?

A) Ask the Question B) Master the Data C) Perform the Analysis D) Share the Story

15) What type of question(s) works to explain "Why did overall tax increase even though net

income did not?"

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?

16) What type of question is used in finding the level of sales needed to break even?

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?

17) What type of question is used in learning how much the company paid in interest expenses

last year?

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? What should we do based on what we expect will happen? How do we optimize our performance based on potential constraints?

18) What type of question is predicting whether borrowers will be able to repay their loans?

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?

19) What type of question is used in determining how to maximize revenues if there is a trade

war with China?

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?

20) The accuracy, validity and consistency of data used and stored over time is called A) data veracity.

B) data integrity.

C) data quality.

D) truthful data.

21) Dashboards showing current company performance are usually associated with A) dynamic updating.

B) static updating.

C) opportunist updating.

D) monthly.

22) What may hinder the work of the accountant due to receiving too much information?

A) Information availability B) Information accessibility C) Information deficits D) Information overload

23) Over the past two years alone, what percent of the data in the world has been generated?

A) 50 percent B) 90 percent C) 75 percent D) 80 percent

24) According to the textbook, the job of the accountant is continuing to change from that of data

collection to data A) analyst.

B) scientist.

C) interpreter.

D) curator.

25) What serves as a graphical summary of various measures tracked by a company?

A) trackboard B) graphical interface C) dashboard D) web page

26) According to EY's Analytics Mindset, accounting professionals need to be able to: A) program their accounting analysis.

B) interpret and share the results with shareholders.

C) ask questions answerable with data.

D) reduce the available data to a manageable level.

27) According to EY's Analytics Mindset, accounting professionals need to be able to: A) program their accounting analysis.

B) produce visualizations for stakeholders.

C) ask the right questions.

D) reduce the available data to a manageable level.

28) The third step of the AMPS model is A) master the data.

B) perform the data testing.

C) perform the analysis.

D) pick appropriate data.

29) As accountants of the future require higher levels of critical thinking and reasoning skills

than what was previously required for accountants, which levels of critical thinking skills as outlined by Bloom’s Taxonomy should accountants need to focus?

A) Remember, Understand, Apply B) Create, Evaluate, and Analyze C) Remember, Create, and Apply D) Curiosity, Evaluate, Understand

30) The AMPS model is A) linear insofar that there is a one-way progression from A->M->P->S. B) cyclical insofar that the model allows more refined questions.

C) random and since each component is equal, these can be done in any sequence.

D) exponential since each component is the product of prior components.

31) Which common visualization type would be used to compare values?

A) Pie chart B) Bar chart C) Line Graph D) Scatterplot

32) Which common visualization type would be used to evaluate the composition of values?

A) Pie chart B) Bar chart C) Line Graph D) Scatterplot

33) A line graph would be used for which visualization purpose?

A) Comparison of values B) Distribution of values C) Trends of values over time D) Relationships between values

34) A scatterplot would be used for which visualization purpose?

A) Comparison of values B) Distribution of values C) Composition of values D) Relationships between values

35) Which step of the AMPS model is emphasized by the use of Power BI? A) Ask the Question B) Master the Data C) Perform the Analysis D) Share the Story

36) Which step of the AMPS model is emphasized by the use of Alteryx?

A) Ask the Question B) Share the Story C) Perform the Analysis D) Master the Data

37) Which data analysis specialty task is emphasized by the use of the Tableau software tool?

A) Data Visualization B) Data Analysis C) Data Acquisition D) Data Preparation

38) Which software tool would be considered to be a data acquisition and preparation tool, a data

analysis tool and a data visualization tool?

A) Alteryx B) Python C) SQL D) Excel

39) Based on Lab 1-1 Excel Journal Entries to Trial Balance, using the Exhibit below, determine

the appropriate debit balance of Accounts Receivable after the Calculated Balances computes the net debit balance.

A) B) C) D)

$46,200 debit $24,000 debit $22,200 debit $22,200 credit

40) Based on Lab 1-2 Excel Calculating Depreciation Using Excel Functions, and using the

exhibit below, if the SLN Excel command =SLN(Cost, Salvage, Life), what is the appropriate formula for cell F4?

A) B) C) D)

=SLN(D4,E4,B4) =SLN(D4,E4,B1) =SLN(D4,E4,A4) =SLN(B4,E4,D4)

41) Based on Lab 1-3 Excel Creating a Mortgage Amortization Schedule, and the figure below, if

the mortgage is being paid over 15 years (or 180 months) instead of 30 years (or 360 months), will the monthly payment be higher or lower?

A) higher B) lower C) cannot be determined

42) Based on Lab 1-3 Excel Creating a Mortgage Amortization Schedule, and the figure below, if

the mortgage is being paid over 15 years (or 180 months) instead of 30 years (or 360 months), will the total interest over the life of the loan be higher or lower?

A) higher B) lower C) cannot be determined

Answer Key Test name: chapter 1 1) TRUE 2) FALSE 3) FALSE 4) TRUE 5) TRUE 6) TRUE 7) B 8) A 9) A 10) C 11) B 12) D 13) D 14) C 15) B 16) D 17) A 18) C 19) D 20) B 21) A 22) D 23) B 24) A 25) C 26) B 27) C 28) C 29) B 30) B 31) B 32) A 33) C 34) D 35) D 36) D 37) A

38) D 39) C 40) A 41) A 42) B

Student name:__________ 43) Financial statements would generally be considered to be unstructured data. ⊚ true ⊚ false

44) Social media would generally be considered to be unstructured data. ⊚ true ⊚ false

45) There is more social media data than financial statement data available. ⊚ true ⊚ false

46) Estimates suggest that approximately 80 percent of enterprise data is structured. ⊚ true ⊚ false

47) Data with greater veracity is often more impactful, carrying more weight in analysis than

data with lesser veracity in addressing accounting questions. ⊚ true ⊚ false

48) Managerial accounting systems generally compare budgeted performance to actual

performance. ⊚ true ⊚ false

49) Managerial accounting systems do not have the requirement that the cost of acquiring data be

less than the value of the data. ⊚ true ⊚ false

50) Human resource management system (HRMS) is an information system for managing all

interactions with current and potential employees. ⊚ true ⊚ false

51) Economic data and analysis reports do not help accountants make better, more accurate

budgets and forecasts of earnings. ⊚ true ⊚ false

52) An earnings call is a conference call between company management (like a CEO and CFO),

analysts, investors, and the media to discuss earnings and other financial results that generally precede the call. ⊚ true ⊚ false

53) According to the AMPS model, the analyst should know the question they are trying to

address before considering and accessing available data. ⊚ true ⊚ false

54) What would be most likely to be disclosed in an 8-K filing to the SEC? A) Company Statement of Cash Flows B) Naming of a new CFO C) Management discussion and analysis D) Overview of a company’s main risks

55) What encapsulates the technologies, systems, practices, methodologies, databases, statistics

and applications used to analyze diverse accounting and non-accounting data to give organizations the information they need to make sound and timely business decisions?

A) The AMPS Model B) Accounting Data Analytics C) The Role of the Accounting Analyst D) Mastering the Data

56) Which system would be used to track annual performance of each employee?

A) Human Resource Management System B) Customer Relationship Management System C) Supply Chain System D) Financial Reporting System

57) What can be used to help evaluate the supply of the product available?

A) Product reviews B) Inventory cost C) Structured data D) Supply chain data

58) Whereas Instagram pictures would generally be considered to unstructured data, which of the

following would generally be considered to be structured data?

A) product reviews B) twitter feed C) financial statements D) geographic images

59) Highlighting the difference between the data which comes from blogs and pictures as

compared to financial data would be examples of which aspect of Big Data?

A) Volume B) Veracity C) Velocity D) Variety

60) In the United Kingdom (UK), financial statements for publicly traded firms are issued twice

annually. In the United States (US), financial statements for publicly traded firms are issued quarterly. The difference in timing would address which aspect of Big Data?

A) Volume B) Veracity C) Velocity D) Variety

61) The SEC form which reports quarterly financial statements is called form: A) 10-K. B) 10-Q. C) 8-K. D) S-1.

62) What document represents an interactive question-and-answer session between investors,

analysts, other interested shareholders and management?

A) The management discussion and analysis as part of the 10-K B) Conference call transcripts C) Press releases D) SEC form 8-K

63) What is the computer standard allows an easy, automated exchange between a financial

statement repository and a financial statement user?

A) XBRL B) EDGAR C) Excel D) Google financials

64) If a dataset has a lot of missing data would most directly concern which aspect of Big Data?

A) Volume B) Veracity C) Velocity D) Variety

65) The Four V’s associated with big data include all except which of the following?

A) Volume B) Veracity C) Velocity D) Variability

66) Which of the following summarizes all of the journal entries which forms the basis for the

financial statements?

A) sales journal B) general ledger C) special journal D) general journal

67) The detailed records of the manufacturing equipment used by the company would be

included in: A) an accounts receivable ledger.

B) a fixed asset ledger.

C) a equipment ledger.

D) a general ledger.

68) Which type of ledger details information on specific accounts with common characteristics?

A) detailed B) general C) specialized D) subsidiary

69) Which of the following are not one of the five required sections in a form 10-K? A) Risk Factors B) Management’s Discussion and Analysis C) Forecast of Future Performance D) Financial Statements and Supplemental Data

70) Which of the following is not one of the five required forms required by the SEC? A) M-1 B) 10-Q C) S-1 D) 8-K

71) Which required section in a form 10-K is likely to represent unstructured data?

A) Risk Factors B) Management’s Discussion and Analysis C) Selected Financial Data D) Financial Statements and Supplemental Data

72) EDGAR, the SEC repository of SEC forms, stands for: A) Electronic Data Gathering, Analysis Repository system.

B) Electronic Data Gathering and Archive Retrieval system.

C) Electronic Data Gathering, Analysis and Retrieval system.

D) Electronic Data Gathering, Analysis Resource system.

73) Managerial accounting systems generally include budgets which require a forecast of: A) sales.

B) earnings.

C) personnel hiring plans.

D) cash.

74) Tyson Chicken monitors the standard cost of a pound of chicken on a continuous basis,

incorporating the latest data into their costing. The frequency of updating the costs would address which aspect of Big Data?

A) Volume B) Veracity C) Velocity D) Variety

75) Managerial accounting explicitly tracks all of the following costs, except: A) direct labor.

B) direct materials.

C) taxes.

D) overhead.

76) Which of the following systems includes information on active and inactive vendors and the

orders made to date?

A) Customer relationship management system B) Supply chain system C) Human resource system D) Data support system

77) Tax information at the company level comes primarily from the company’s: A) cost accounting system.

B) financial reporting system.

C) tax reporting system.

D) asset reporting system.

78) Economic data includes all of the following, except: A) Gross domestic product B) Unemployment statistics C) Consumer price index D) Budget data

79) Data without internal organization or structure that has tags explaining what the data

represents is called: A) semi-structured data.

B) structured data.

C) unstructured data.

D) big data.

80) Which term refers to a required annual submission to the Securities and Exchange

Commission reporting a company’s financial performance?

A) 10-K B) 10-Q C) 8-K D) S-1

81) Which term refers to a required quarterly submission to the Securities and Exchange

Commission reporting a company’s financial performance?

A) 10-K B) 10-Q C) 8-K D) S-1

82) Companies keep track of their depreciable tangible assets using the: A) fixed asset subsidiary ledger.

B) tangible asset subsidiary ledger.

C) current asset subsidiary ledger.

D) noncurrent asset subsidiary ledger.

83) What type of accounting is used internally by the CEO, CFO, controller, budget officers,

etc.?

A) B) C) D)

Financial accounting External accounting Internal accounting Management accounting

84) An information system for managing all interactions with current and potential employees is

called: A) B) C) D)

an employee management system. a human resource management system. a staff management reporting system. a management information system.

85) Who often prepares research reports talking about company prospects by synthesizing

financial statements, listening to conference calls, and talking to managers of the company and to its competitors?

A) Investors B) Financial analysts C) Auditors D) Regulators

86) Within an Excel PivotTable, which settings determine whether the PivotTable will report

counts, sums or averages?

A) statistics B) value field C) descriptive D) summary

87) The supply chain system contains data on the current and previous: A) customers.

B) employees.

C) vendors.

D) investors.

88) According to the text, PWC, a Big 4 accounting firm, asks its auditors to develop all of the

following skills except the ability to: A) research and identify anomalies and risk factors in underlying data B) mine new sources of data C) process-mine using new data analysis techniques and algorithms D) identify questions that will impact accounting estimates

89) Veracity evaluates whether the data is accurate (and clean), worthy of trust and: A) truthful.

B) relevant.

C) reliable.

D) timely.

90) Of the data items listed below, which has the highest velocity?

A) Financial statements B) Stock prices C) Worker productivity measures D) Daily weather updates

91) According to Eric Schmidt, CEO of Google says, How many days does it take to create as

much information as we did from the dawn of civilization up until 2003?

A) two B) three C) six D) nine

92) Each of the following is potentially a company subledger except: A) inventory subledger B) fixed asset subledger C) receivables subledger D) employee subledger

93) When the source data used to create an Excel PivotTable change, the PivotTable will update: A) automatically.

B) only after the file is saved.

C) only when the PivotTable is "refreshed".

D) never, any change requires a new PivotTable.

94) Examples of personally identifiable information includes all but which of the following?

A) Birthdate B) Social security number C) Job title.

D) Credit card information.

95) Which of the following is considered personally identifiable information?

A) Highest level of education B) Business phone number C) Personal phone number D) Workplace

96) Based on Lab 2-1 Excel Accounts Receivable by Customer, and the exhibit below, if we

replaced “Sum of Invoice Amount” with “Count of Invoice Amount” in the Σ Values field, what would we see in the PivotTable?

A) B) C) D)

The count of customers in the dataset The sum of invoices for each customer A count of invoices for each customer The count of invoices by due date

97) Based on Lab 2-2 Inventory Management by Customer Profitability, and the output from

Power BI below, which customer was the most profitable (highest gross margin) for the company?

A) B) C) D)

2100 2044 2047 2087

98) Based on Lab 2-3 Tableau: Inventory Management by SKU Profitability and the output

from Tableau below, what is the gross margin percentage of FRT-BAN SKU?

A) B) C) D)

41% 39% 38% 40%

Answer Key Test name: chapter 2 1) FALSE 2) TRUE 3) TRUE 4) FALSE 5) TRUE 6) TRUE 7) FALSE 8) TRUE 9) FALSE 10) TRUE 11) TRUE 12) B 13) B 14) A 15) D 16) C 17) D 18) C 19) B 20) B 21) A 22) B 23) D 24) B 25) B 26) D 27) C 28) A 29) B 30) C 31) A 32) C 33) C 34) B 35) B 36) D 37) A

38) A 39) B 40) A 41) D 42) B 43) B 44) B 45) C 46) D 47) A 48) B 49) A 50) D 51) C 52) C 53) C 54) C 55) C 56) C

Student name:__________ 99) Nominal data is numerical data that cannot be ranked. ⊚ true ⊚ false

100)

A data map is a centralized repository of information about data containing a separate record for each field/variable in the database. ⊚ true ⊚ false

101)

The dollar amounts included in the financial statements would be examples of ratio data. ⊚ true ⊚ false

102)

With four possible audit opinion outcomes (e.g., unqualified, qualified, disclaimer, or adverse), the audit opinion would be considered categorical (as opposed to numerical). ⊚ true ⊚ false

103)

Ordinal data ranks or orders numerical data. ⊚ true ⊚ false

104)

Ratio data has an absolute zero. ⊚ true ⊚ false

105)

Interval data does not have a meaningful zero. ⊚ true ⊚ false

106)

The most appropriate data type for the customer rating for an Amazon product would be a ranked value. ⊚ true ⊚ false

107)

Whether a product is in stock could either be recorded in a database with a categorical (Y/N flag) or report number on hand as a numerical value. ⊚ true ⊚ false

108)

The terms data catalog and data dictionary are not related to each other. ⊚ true ⊚ false

109)

While proportion is an effective method for summarizing many different data types, it is the most sophisticated way to summarize which following data type?

A) numerical B) interval C) ratio D) categorical

110)

Which data type would financial statement data generally be considered to be?

A) structured data B) interval data C) unstructured data D) ratio data

111)

Which data type would noting first, second, and third place awards be considered to be?

A) ratio B) ordinal C) numerical D) interval

112)

Which data type would Sales figures be considered to be?

A) interval B) ratio C) ordinal D) categorical

113)

Which data type would Facebook, Twitter and Instagram post data generally be considered to be?

A) structured data B) unstructured data C) numerical data D) ordinal data

114)

If there are 60 return transactions and 150 sales transactions in a month, what is the proportion of return transactions to all monthly transactions?

A) =60/210 B) =60/150 C) =210/60 D) =150/60

115)

If there are 6 transactions on 11/1, 3 transactions on 11/2 and 10 transactions on 11/3, what is the proportion of the 11/1 transactions to the total transactions that occur during the first three days of November?

A) =19/6 B) =6/13 C) =6/19 D) =6/6

116)

Which data type would Transaction_ID be considered to be?

A) ratio data B) categorical data C) ranked data D) ordinal data

Why is the term “net book value” in the fixed asset ledger considered to be useful to the preparer and the user?

A) It tells the accountant the amount the asset could be sold at today B) It tells the accountant how much was originally paid for the fixed asset C) It tells the accountant the depreciation period the assets will be depreciated over D) It tells the accountant the remaining value of the fixed asset as it is the difference between historical cost and total depreciation to date

117)

118)

Ranking is a summarization method for which type of data?

A) Nominal B) Ordinal C) Ratio D) Both Categorical and Numerical

119)

What is the term for data about the data?

A) A data dictionary B) A data map C) A data atlas D) A data summary

120)

There are four primary methods to summarize numerical data; three are counting and grouping, proportion, and summing. What is the fourth method?

A) ranking B) plotting C) averaging D) charting

121)

There are three primary methods to summarize ordinal data; two are counting and grouping and proportion. What is the third method?

A) plotting B) charting C) ranking D) averaging

122)

There are two primary methods to summarize nominal data; one is counting and grouping. What is the second method??

A) ranking B) charting C) averaging D) proportion

123)

Which numerical data type has an absolute zero?

A) Interval B) Ratio C) Nominal D) Ordinal

124)

Which data type has a meaningful distance between data points?

A) Interval B) Categorical C) Nominal D) Ordinal

125)

Since audit reports come in four types, including an unqualified, qualified, disclaimer, or adverse report, they would be considered which type of data?

A) categorical B) numerical C) ratio D) interval

126)

Which type of data would letter grades (A, B, C, D, or F) be considered to be?

A) numerical B) ordinal C) ratio D) interval

127)

Which of the following would be considered an example of structured data?

A) blogs B) pictures C) social media D) product reviews

128)

Which of the following would be considered an example of unstructured data?

A) names and addresses B) pictures C) financial statements D) Excel spreadsheets

129)

Which type of data would purchase and returns be considered to be?

A) categorical B) ordinal C) nominal D) interval

130)

Which of the following would be considered the most appropriate data type for whether or not a product is eligible for Amazon prime shipping?

A) Y/N Flag B) short text C) number D) currency

131)

Which of the following would be a calculated variable from other data?

A) Product availability B) Coupon availability C) Product sales price D) Average customer rating

132)

Which of the following would not be a calculated variable from other data?

A) Number of products available B) Coupon availability C) Ranking of sales of one product compared to other products D) Average customer rating

133)

In a fixed asset ledger, the asset ID and description represent which type of data?

A) categorical data B) numerical data C) unstructured data D) discretionary data

134)

In a fixed asset ledger, the net book value of a fixed asset would be a calculated field equal to the original cost less which of the following?

A) beginning depreciation B) accumulated depreciation C) ending depreciation D) current period depreciation

135)

Earnings per share would be considered to be which type of data?

A) ordinal B) nominal C) interval D) ratio

136)

Since AssetID is a number identifying assets in a fixed asset ledger, it would be considered to be which type of data?

A) numerical data B) categorical data C) ratio data D) ordinal data

137)

Proportion is calculated by taking the number of observations in a category and dividing that number by which of the following?

A) The top category of observations B) 10% of the observations C) The grand total of observations D) A random sample of observations

138)

What is the data type for Invoice Number considered to be?

A) categorical data B) nominal data C) ratio data D) ordinal data

139)

How are Invoice Numbers most meaningfully summarized?

A) Sum B) Count C) Average D) Standard Deviation

140)

What type of data would measuring transaction amounts for revenues and expenses be considered to be?

A) nominal data B) numerical data C) categorical data D) ordinal data

Data with an equal and definitive interval between each data point and absolute “zero” in the point of origin measuring transactions amounts for revenues and expenses would be considered which type of data?

A) ratio data B) counting data C) categorical data D) ordinal data

141)

142)

When working with an Excel PivotTable, if you drag a numerical field to the Values section, what aggregate measure will be the default display?

A) SUM B) AVERAGE C) COUNT D) PROPORTION

143)

When working with an Excel PivotTable, if you drag a categorical field to the Values section, what aggregate measure will be the default display?

A) COUNT B) SUM C) AVERAGE D) PROPORTION

144)

Based on Lab 3-1 Excel: Identify and Work with Different Data Types, and the exhibit below, which of the following measures would not appear in the status bar (marked with the number 2 in the screenshot) when selecting the collection of dates marked with the number 1?

A) B) C) D)

Count Sum Average Proportion

145)

Based on Lab 3-1 Excel: Identify and Work with Different Data Types, and the exhibit below, which of the following measures would appear in the status bar (marked with the number 2 in the screenshot) when selecting the collection of product descriptions marked with the number 1?

A) B) C) D)

Count Sum Average Proportion

146)

Based on Lab 3-1 Tableau: Identify and Work with Different Data Types, what data type is described by the area referred to as dimensions?

A) B) C) D)

Numerical Quantitative Categorical Ratio

147)

Based on Lab 3-1 Tableau: Identify and Work with Different Data Types, what data type is described by the area referred to as measures?

A) B) C) D)

148)

Numerical Qualitative Categorical Ordinal

Based on Lab 3-2 Excel: Visualize Different Data Types, which attribute type is geographic data considered?

A) Measure B) Quantitative C) Dimension D) Ratio

Answer Key Test name: chapter 3 1) FALSE 2) FALSE 3) TRUE 4) TRUE 5) FALSE 6) TRUE 7) TRUE 8) TRUE 9) TRUE 10) FALSE 11) D 12) A 13) B 14) B 15) B 16) A 17) C 18) B 19) D 20) B 21) A 22) C 23) C 24) D 25) B 26) A 27) A 28) B 29) D 30) B 31) C 32) A 33) D 34) B 35) A 36) B 37) D

38) B 39) C 40) B 41) B 42) B 43) A 44) A 45) A 46) C 47) C 48) C 49) A 50) C

Student name:__________ 149)

Tableau’s biggest advantage over Excel is its specific emphasis on data visualization. ⊚ true ⊚ false

150)

It is possible to input raw data within Tableau. ⊚ true ⊚ false

151)

Primary keys are required in every relational database table. ⊚ true ⊚ false

152)

Foreign keys are required in every relational database table. ⊚ true ⊚ false

153)

The main reason for using Excel is for data storage. ⊚ true ⊚ false

154)

One of the primary internal control benefits of storing data in a relational database is increased redundancy cuts down on errors. ⊚ true ⊚ false

155)

One of the internal control benefits of storing data in a relational database is multiple versions of entries may repeat customer details, thus cutting down on errors. ⊚ true ⊚ false

156)

The transformation step is necessary when your data isn’t formatted in the manner it needs to be for analysis. ⊚ true ⊚ false

157)

Preventive internal controls are harder to enforce in a relational database than in Excel. ⊚ true ⊚ false

158)

Version control reduces the possibility of having more than one version of the data on different computers. ⊚ true ⊚ false

159)

Excel is generally regarded to be more secure than databases because users can add passwords to worksheets and workbooks. ⊚ true ⊚ false

160)

Querying data in Excel to build a connection in a database creates a dynamic connection that does not need to be refreshed. ⊚ true ⊚ false

161)

If asset ID number is a unique identifier for the fixed asset ledger, it would be considered to be which of the following?

A) primary key B) foreign key C) unique key D) credible key

162)

When accessing data, which of the following applications requires that you connect to a(n) external datasource?

A) Excel B) Tableau C) Access D) Query

163)

Tableau shows you are importing a numerical variable by showing which of the following icons?

A) graphical B) Abc C) bar chart D) #

164)

Tableau shows you are importing a geographical variable by showing which of the following icons?

A) numerical B) Abc C) globe D) #

165)

What does ETL stand for?

A) extract, transform, load B) extract, translate, load C) extract, translate, link D) examine, translate, load

166)

Which of the following is the most common type of database model?

A) hierarchical B) network C) relational D) star schema

167)

SQL stands for ______.

A) structured query language B) standard query language C) structured query links D) standard query links

168)

In SQL, which clause identifies the columns that you would like to extract?

A) FROM B) SELECT C) WHERE D) EXTRACT

169)

In SQL, which clause identifies the tables that store the data that you would like to extract?

A) FROM B) SELECT C) TABLE D) EXTRACT

170)

In SQL, which of the following does the command SELECT * denote?

A) query all columns B) summarize some columns C) query some columns D) return every column

171)

In SQL, which of the following clauses acts like a filter?

A) EXTRACT B) SELECT C) TABLE D) WHERE

172)

Internal control benefits of storing data in relational databases include all except for which of the following?

A) Reduced redundancy cuts down on errors.

B) Physical security of the data is enhanced.

C) Version control.

D) Increased repetition for more accuracy.

173)

Which of the following JOIN types allows you to SELECT data from more than one table, as long as those two tables are related and have matches between both tables.

A) INNER B) OUTER C) INTERNAL D) EXTERNAL

174)

Which of the following terms represents the type of diagram that is a graphical representation of an information system, illustrating relationships among people, objects, places, and events within that system to allow you to SELECT data from more than one table, as long as those two tables are related?

A) data flow diagram B) relational C) entity-relationship (ER) D) database

175)

Which of the following represents the type of attribute that corresponds to a unique instance of what is being described in a table?

A) attribute B) field C) data point D) record

176)

Which of the following corresponds to a column that contains descriptive information?

A) primary key B) field C) data point D) record

177)

Which of the following corresponds to data organized into sets of columns and rows?

A) table B) field C) data point D) record

178)

Which of the following describes a column (or group of columns) that exist to create relationships between two tables, linking to the primary key in another table?

A) primary key B) foreign link C) foreign key D) primary link

179)

Which of the following describes a column in a relational table/database that serves as a unique identifier?

A) primary key B) foreign identifier C) foreign key D) primary identifier

180)

Structured set of data allowing access by many potential users is described by which of the following?

A) Excel spreadsheet B) database C) data file D) data cache

181)

Which of the following choices defines truth in data, or how the data presents the truth of the underlying transactions, transactions, or events?

A) Relevant data B) Reliable data C) Data quality D) Data integrity

182)

In a table of a relational database, which of the following terms describe an item that corresponds to rows?

A) attributes B) variables C) records D) transactions

183)

All of the information regarding one patient (name, address, patient information, etc.) would be held in which of the following?

A) field B) record C) attribute D) aspect

184)

Which of the flowing would describe where the name of each patient at a doctor’s office is held in a database?

A) field B) record C) data item D) row

185)

Of the various characteristics of data, which of the flowing can be damaged if different versions of the data are stored on the users’ desktop computers or laptops rather than analyzing data through a live connection to the database?

A) velocity B) integrity C) correctness D) breadth

186)

Which of the following communicates the same pieces of information (which tables are in the database, which fields are in each table, and how each table is related through primary key/foreign key placement) as a data dictionary, but in visual form?

A) data flow diagram B) relational database diagram C) database diagram D) relationship database diagram

187)

To faithfully represent what occurs, accounting information needs to be all except for which of the following?

A) complete B) free from error C) neutral D) timely

188)

Which of the following are benefits of storing data in a relational database?

A) Security around data entry and table access can aid in creating and enforcing data entry internal controls B) Ability to store more data C) Easier access by all database users D) Important data is stored in more than one database

189)

The typical order for getting data ready for analysis is as follows: A) transform the data to make data usable, extract the data, and load the data in the analysis tool B) load the data in the analysis tool, extract the data, and transform the data to make data usable C) extract the data, load the data in the analysis tool and transform the data to make the data usable D) extract the data, transform the data to make data usable and load the data in the analysis tool

190)

Which of the following terms communicate which tables are in the relational database, which fields are in the table, and how each table is related through primary key/foreign key placement.

A) relational database data dictionary B) relational database diagram C) relational database atlas D) relational database data map

191)

To access data through a query in Excel, you would click on the following to access a database.

A) New Query > Data > From Database B) Data > From Database C) Data > From Database > New Query D) Data > New Query > From Database

192)

When the source data used to create an Excel PivotTable change, the PivotTable will automatically update when which of the following scenarios is met?

A) automatically B) only after the file is saved C) only when the PivotTable is “refreshed” D) never, any change requires a new PivotTable

193)

While Excel defaults to showing the data in a tabular format, Tableau defaults to showing the data in which of the following formats?

A) statistical format B) database format C) visual format D) analytical format

194)

The functionality of Excel connections can enable you to do all except for which of the following?

A) create queries to form direct connections to a database B) import data from another Excel workbook C) create dynamic connections D) create static connections that must be refreshed when the source data changes

195)

Based on Lab 4-1 Excel: Working with Data in Ranges and Tables, which of the following is an advantage of working with data in a table instead of a range in Excel?

A) You can only reference cells in tables B) You can automatically create a Total Row at the bottom of a table, not a range C) You can only create functions and formulas in a table D) The function VLOOKUP only works in a table, not a range

196)

Based on Lab 4-2 Excel: Linking Two Tables Using VLOOKUP for State Tax Rates, you learned about two different types of functions in the VLOOKUP, True or False. Which of the following describes the accurate difference between a True and a False VLOOKUP? A) TRUE requires an exact match B) FALSE requires an exact match C) There is no difference between the type of match in a VLOOKUP based on using TRUE or FALSE D) TRUE will match with any column, FALSE will only match with the specified column

197)

Based on Lab 4-4: Linking Tables with a Model, you were provided the following ER Diagram to determine how the Products and Sales_Transactions tables are related:

A) B) C) D)

Products.Product_Code relates to Sales_Transactions.Sales_Order_ID Sales_Transactions.Customer_ID relates to Customers.Customer_ID Products.Product_Description relates to Products.Product_Code Products.Product_Code relates to Sales_Transactions.Product_Code

Answer Key Test name: chapter 4 1) TRUE 2) FALSE 3) TRUE 4) FALSE 5) FALSE 6) FALSE 7) FALSE 8) TRUE 9) FALSE 10) TRUE 11) FALSE 12) FALSE 13) A 14) B 15) D 16) C 17) A 18) C 19) A 20) B 21) A 22) D 23) D 24) D 25) A 26) C 27) D 28) B 29) A 30) C 31) A 32) B 33) D 34) C 35) B 36) A 37) B

38) B 39) D 40) A 41) D 42) A 43) D 44) C 45) C 46) C 47) B 48) B 49) D

Student name:__________ 198)

Diagnostic Analytics emphasizes “What happened?”. ⊚ true ⊚ false

199)

Descriptive Analytics emphasizes “Why something happened?”. ⊚ true ⊚ false

200)

Predictive Analytics emphasizes “Will something happen in the future?”. ⊚ true ⊚ false

201)

"What should we do based on what we expect will happen?" is investigated using Prescriptive Analytics. ⊚ true ⊚ false

202)

An adjusted R-squared value of 0 represents no ability of the model to explain the dependent variable. ⊚ true ⊚ false

203)

Classification is most closely associated with diagnostic analytics. ⊚ true ⊚ false

204)

Optimization is most closely associated with prescriptive analytics. ⊚ true ⊚ false

205)

Compilation of the financial statements would be a form of predictive analytics? ⊚ true ⊚ false

206)

What is the second step in the AMPS model?

A) Master the Data B) Manipulate the Data C) Maintain the Data D) Mine the Data

207)

Which type of question does prescriptive analytics address?

A) What happened?

B) What should we do based on what we expect will happen?

C) Why did it happen?

D) Will it happen in the future?

208)

Which type of question does descriptive analytics address?

A) What happened?

B) What should we do based on what we expect will happen?

C) Why did it happen?

D) Will it happen in the future?

209)

Which type of question does diagnostic analytics address?

A) What happened?

B) What should we do based on what we expect will happen?

C) Why did it happen?

D) Will it happen in the future?

210)

What type of analytics addresses questions of “Why did it happen?”?

A) Descriptive analytics B) Diagnostic analytics C) Predictive analytics D) Prescriptive analytics

211)

What type of analytics would predict if a company is expected to go bankrupt?

A) Descriptive analytics B) Diagnostic analytics C) Predictive analytics D) Prescriptive analytics

212)

If we wanted to know what level of sales was achieved last quarter at a competitor company, we would perform: A) descriptive analytics B) diagnostic analytics C) predictive analytics D) prescriptive analytics

213)

What type of analytics would investigate performance different than was expected, such anomalies/outliers?

A) Descriptive analytics B) Diagnostic analytics C) Predictive analytics D) Prescriptive analytics

214)

What type of analytics would primarily use analytics to separate, or classify, a sample into two or more groups or classes?

A) Descriptive analytics B) Diagnostic analytics C) Predictive analytics D) Prescriptive analytics

215)

What type of analytics would include a classification analysis to assess whether the bank should extend a loan?

A) Descriptive analytics B) Diagnostic analytics C) Predictive analytics D) Prescriptive analytics

216)

What kind of analytics tool or technique is generally used to perform diagnostic analytics?

A) Variance analysis B) Vertical analysis C) Time series D) Regression

217)

Which analytics tool or technique is generally used in descriptive analytics?

A) Time series B) Classification C) Variance analysis D) Horizontal analytics

218)

Which type of analysis is generally associated with predictive analytics?

A) What-if scenario B) Fuzzy matching C) Times series D) Means, modes, medians, and counts

219)

A z-score tells us how many of these, a data point (or observation), xi, is from its population mean, μ.

A) standard deviations B) units C) standard errors D) increments

220)

Which distribution is a probability distribution with a low mean and highly skewed to the right?

A) Normal distribution B) Poisson distribution C) Level distribution D) Uniform distribution

221)

If p-value of a statistical test > alpha threshold, you A) should reject the alternate hypothesis (i.e., significant result).

B) should fail to reject the null hypothesis (i.e., not significant result).

C) accept the null hypothesis.

D) have insufficient evidence to either reject or fail to reject the alternate hypothesis.

222)

If p-value of a statistical test is 0.04 and alpha is 0.10, you A) should reject the null hypothesis (i.e., significant result).

B) should fail to reject the null hypothesis (i.e., not significant result).

C) accept the alternate hypothesis.

D) have insufficient evidence to either reject or fail to reject the null hypothesis.

223)

If p-value of a statistical test is 0.09 and is evaluated with a 90% confidence interval, you A) should reject the null hypothesis (i.e., significant result).

B) should fail to reject the null hypothesis (i.e., not significant result).

C) accept the alternate hypothesis.

D) have insufficient evidence to either reject or fail to reject the null hypothesis.

224)

If p-value of a statistical test is 0.09 and a 95% confidence interval, you A) should reject the null hypothesis (i.e., significant result).

B) should fail to reject the null hypothesis (i.e., not significant result).

C) accept the alternate hypothesis.

D) have insufficient evidence to either reject or fail to reject the null hypothesis.

225)

If we run a regression where y (bankruptcy) = f (factors potentially predicting bankruptcy), what is the dependent variable?

A) Factors potentially predicting bankruptcy B) Bankruptcy C) There are no dependent variables D) Cannot be determined

226)

If we run a regression where y (bankruptcy) = f (factors potentially predicting bankruptcy), what is the independent variable?

A) Factors potentially predicting bankruptcy B) Bankruptcy C) There are no dependent variables D) Cannot be determined

227)

According to the normal distribution, what percentage of the data would fit within 2 standard deviations of the mean?

A) 68 B) 99 C) 95 D) 99.7

228)

According to the normal distribution, what percentage of the data would fit within 1 standard deviations of the mean.

A) 68 B) 99 C) 95 D) 99.7

229)

Albert Einstein’s intelligence quotient (IQ) was reported to be 160. If the population mean IQ is 100 and the standard deviation is 15, what is the z-score associated with Albert Einstein’s IQ? A) 160 B) 4 C) 10.666 D) 100

230)

If an accounts payable transaction has a z-score of 3, with a mean of $20,000 and a standard deviation of $5,000, what is the amount of the transaction?

A) $20,000 B) $15,000 C) $25,000 D) $35,000

231)

The distribution of hearts within a fair deck of cards would follow the A) normal distribution.

B) poisson distribution.

C) level distribution.

D) uniform distribution.

232)

If the hypothesized relationship is assumed to not exist, this would be an example of: A) alternative hypothesis.

B) correct hypothesis.

C) null hypothesis.

D) incorrect hypothesis.

233)

What type of hypothesis is a hypothesis used in hypothesis testing that is opposite of the null hypothesis, or a potential result that the analyst may expect?

A) Alternative hypothesis B) Truthful hypothesis C) Null hypothesis D) Incomplete hypothesis

234)

The probability that a population parameter will fall between two set values is called a A) parameter B) confidence interval C) sample D) descriptive statistics

235)

Which of the following is a characteristic of a population?

A) parameter B) normal distribution C) sample D) descriptive statistics

236)

A statistic is a characteristic of a: A) parameter.

B) population.

C) sample.

D) correlation.

237)

A histogram is used to understand: A) the basic statistics, including the mean, standard deviation, minimums, and maximums of a data set.

B) the frequency of the data using a display of rectangles with area proportional to the underlying frequency of the data.

C) the relation between specific dependent variable values and independent variable input(s).

D) the probability of a statistical difference in means between either two independent samples or a paired sample through time.

238)

A regression is used to understand: A) the basic statistics, including the mean, standard deviation, minimums, and maximums of a data set.

B) the frequency of the data using a display of rectangles with area proportional to the underlying frequency of the data.

C) the relation between specific dependent variable values and independent variable inputs.

D) the probability of a statistical difference in means between either two independent samples or a paired sample through time.

239)

A t-test is used to understand: A) the basic statistics, including the mean, standard deviation, minimums, and maximums of a data set.

B) the frequency of the data using a display of rectangles with area proportional to the underlying frequency of the data.

C) the relation between specific dependent variable values and independent variable inputs.

D) the probability of a statistical difference in means between either two independent samples or a paired sample through time.

240)

A correlation is used to understand: A) the probability of a difference in means between either two independent samples or a paired sample through time.

B) the basic statistics, including the mean, standard deviation, minimums, and maximums of a data set.

C) the frequency of the data using a display of rectangles with area proportional to the underlying frequency of the data.

D) the extent to which variables are related to each other.

241)

What tool or technique is used to quantitatively analyze the relationship between and among multiple variables?

A) Cross-tabulations B) Time series C) Histograms D) Descriptive statistics

242)

A sample is a subset of members selected to represent the: A) distribution.

B) population.

C) phenomenon of interest.

D) testing of the hypothesis.

243)

Which type of analytics will summarize how much the company paid in federal taxes last year?

A) Descriptive analytics B) Diagnostic analytics C) Predictive analytics D) Prescriptive analytics

244)

Which type of analytics will work to explain why the average effective tax rate changed?

A) Descriptive analytics B) Diagnostic analytics C) Predictive analytics D) Prescriptive analytics

245)

Which type of analytics will provide insight on whether the company should rent or own its headquarters?

A) Descriptive analytics B) Diagnostic analytics C) Predictive analytics D) Prescriptive analytics

246)

Which type of analytics will forecast sales?

A) Descriptive analytics B) Diagnostic analytics C) Predictive analytics D) Prescriptive analytics

247)

Diagnostic analytics would be more likely to use these tools in its analysis than other types of analytics?

A) Totals, sums, averages, and subtotals B) Fuzzy matching, Benford’s law, variance analysis C) Forecasting tools, regression, and classification D) Goal-seek analysis, what-if analysis

248)

Predictive analytics would be more likely to use these tools in its analysis than other types of analytics?

A) Totals, sums, averages, and subtotals B) Fuzzy matching, Benford’s law, variance analysis C) Forecasting tools, regression, and classification D) Goal-seek analysis, what-if analysis

249)

Prescriptive analytics would be more likely to use these tools in its analysis than other types of analytics?

A) Totals, sums, averages, and subtotals B) Fuzzy matching, Benford’s law, variance analysis C) Forecasting tools, regression, and classification D) Goal-seek analysis, what-if analysis

250)

Descriptive analytics would be more likely to use these tools in its analysis than other types of analytics?

A) Totals, sums, averages, and subtotals B) Fuzzy matching, Benford’s law, variance analysis C) Forecasting tools, regression, and classification D) Goal-seek analysis, what-if analysis

251)

What is the third step in the AMPS model?

A) Predict the Outcome B) Prescriptive Analysis C) Perform the Analysis D) Predictive Analysis

252)

What is the final step in the AMPS model?

A) Share the Findings.

B) Sharpen the Story.

C) Share the Results.

D) Share the Story.

253)

In the AMPS model, what step immediately precedes Performing the Analysis?

A) Master the Data B) Mine the Data C) Ask the Question D) Share the Story

254)

Which type of analytics would encompass compiling the financial statements?

A) Descriptive analytics B) Diagnostic analytics C) Predictive analytics D) Prescriptive analytics

255)

What type of analytics would encompass creating Key Performance Indicators (KPI’s) from the information reported in financial statements?

A) Descriptive analytics B) Diagnostic analytics C) Predictive analytics D) Prescriptive analytics

256)

To run a regression in Excel, you must use A) the Excel’s Regress() function B) the Data Analysis Toolpak C) the Data Analysis function D) the regression menu item

257)

To run descriptive statistics in Excel, you must use A) the Excel’s Describe() function B) the Data Analysis Toolpak C) the Data Analysis function D) the describe data menu item

258)

Based on Lab 5-1 Descriptive Statistics for the Retail Industry, and the histogram reporting Return on Assets for the retail industry below, which bucket has the highest frequency?

A) B) C) D)

Positive (0.02, 0.08) Negative (−0.04, 0.02)

259)

Based on Lab 5-2 Excel Using Conditional Formatting to Perform Bank Reconciliations and the figure below highlighting items that were different in the two lists of cash expenditures, why is Check 1767 flagged in both lists?

A) B) C) D)

Outstanding check Error in recording Insufficient funds Outstanding deposit

Answer Key Test name: chapter 5 1) FALSE 2) FALSE 3) TRUE 4) TRUE 5) TRUE 6) FALSE 7) TRUE 8) FALSE 9) A 10) B 11) A 12) C 13) B 14) C 15) A 16) B 17) C 18) C 19) A 20) D 21) C 22) A 23) B 24) B 25) A 26) A 27) B 28) B 29) A 30) C 31) A 32) B 33) D 34) D 35) C 36) A 37) B

38) A 39) C 40) B 41) C 42) D 43) D 44) A 45) B 46) A 47) B 48) D 49) C 50) B 51) C 52) D 53) A 54) C 55) D 56) A 57) A 58) B 59) B 60) B 61) B 62) B

Student name:__________ 260)

Diagnostic analytics emphasizes “What happened?”. ⊚ true ⊚ false

261)

Department stores have faster asset turnover than airline companies. ⊚ true ⊚ false

262)

Jewelry stores have smaller profit margins than grocery stores. ⊚ true ⊚ false

263)

Descriptive analysis is always the last type of data analytics performed. ⊚ true ⊚ false

264)

If you have minimums and maximums that are far away (several standard deviations away from the mean) from the rest of the data observations, medians would be the best measure of central tendency? ⊚ true ⊚ false

265)

A company’s descriptive statistics are appropriately compared to either 1) the economy as a whole, 2) the company’s respective industry, 3) competitors and 4) the company’s own prior performance. ⊚ true ⊚ false

266)

267)

Descriptive analytics address the question, “Why it happened?”. ⊚ true ⊚ false

Descriptive analytics are analytics that characterize, summarize, and organize features and properties of the data to facilitate understanding. ⊚ true ⊚ false

268)

Financial statements already contain many of the counts, totals, sums, averages, subtotals, minimums, and maximums that are needed as part of accounting descriptive analytics. ⊚ true ⊚ false

269)

Dupont analysis allows an analysis of profit margins, asset turnover and liquidity. ⊚ true ⊚ false

270)

To compute the percentage change in a horizontal analysis from last year to this year, the computation will be: A) (Current Year − Last Year)/Last Year.

B) (Last Year − Current Year)/Last Year.

C) (Last Year − Current Year)/Current Year.

D) (Current Year − Last Year)/Current Year.

271)

272)

In vertical analysis, the relevant base for cost of goods sold is which of the following?

A) Sales revenue B) Total assets C) Total stockholders’ equity D) Total credit sales

All other things equal, in which of the following buckets would you expect the least amount of aged receivables to be?

A) 31–60 days B) 61–90 days C) 1–30 days D) 91–120 days

273)

Which would have a higher expected profit margin (per dollar of sales) than the others?

A) Real estate B) Shaving cream C) Bananas D) Ice cream

274)

In vertical analysis, the relevant base for long-term debt is which of the following?

A) Sales revenue B) Total assets C) Total equity D) Total liabilities

275)

The calculation for return on equity using Dupont Analysis is: A) Profit margin x Asset turnover x Financial leverage B) Profit margin x Asset turnover C) Asset turnover x Financial leverage D) Gross profit margin x Asset turnover x Financial leverage

276)

Which ratio does not include a component to evaluate financial leverage?

A) Return on assets B) Return on equity C) Return on sales D) Return on investment

277)

Which measure would help us evaluate what happens in the highest and lowest 20 percent of the data?

A) Quintiles B) Quartiles C) Average D) Deciles

278)

While a PivotTable in Excel reorganizes and summarizes certain data using crosstabulations without changing the underlying spreadsheet (or data), what provides a graphical depiction of those cross-tabulations.

A) pie chart B) pivot chart C) bar chart D) line graph

279)

Which type of analytics generally would go first when addressing an accounting issue?

A) Predictive analytics B) Prescriptive analytics C) Diagnostic analytics D) Descriptive analytics

280)

Of the following measures, the best measure for evaluating firm efficiency in handling and using assets is: A) asset turnover.

B) return on assets.

C) profit margin.

D) return on equity.

281)

282)

The shorter the amount of time that accounts receivable has been outstanding: A) the more likely that they will be collected.

B) means the customer simply forgot to pay.

C) the less likely that they will be collected.

D) has no difference on the likelihood that they will be collected.

Of the following measures, the best way to analyze the extreme values in the sample is to consider the: A) mean.

B) maximum or minimum.

C) mode.

D) standard deviation.

283)

Of the following measures, the best way to analyze the variability in the sample is to consider the: A) mean.

B) maximum or minimum.

C) mode.

D) standard deviation.

284)

Which of the following provides details on the accounting policies chosen?

A) management discussion and analysis section B) footnotes C) analyst report D) financial statements

285)

Which of the following reveals the detailed company cash inflows and cash outflows during the year?

A) statement of cash flows B) footnotes C) balance sheet D) statement of cash inflows and outflows

286)

287)

Descriptive analytic measures of variability include all except which of the following?

A) Minimums B) Maximums C) Standard Deviation D) Medians

Descriptive analytic measures of central tendency include all except which of the following?

A) Counts B) Means C) Medians D) Modes

288)

The process of using prescriptive quantitative analytic measures of financial statements to help evaluate liquidity, solvency, profitability and efficiency is called: A) vertical analysis.

B) horizontal analysis.

C) ratio analysis.

D) pivottables.

289)

Which of the following expresses financial information in relation to some relevant figure or base?

A) Vertical analysis B) Horizontal analysis C) Ratio analysis D) Pivottables

290)

Which of the following provides comparative changes about various line items of each financial statement over time?

A) Vertical analysis B) Horizontal analysis C) Percentage change D) A pivottable

291)

Which of the following explains the extent to which a data item gains or loses magnitude or value?

A) Vertical analysis B) Horizontal analysis C) Percentage change D) A pivottable

292)

Which of the following are brief, generally small, visuals that fit within one cell in Excel that visually depict what happened in the cells next to it?

A) Small graphics B) Sparklines C) Pivot charts D) Analytic charts

293)

Which of the following is a display of rectangles with area proportional to the underlying frequency of the data?

A) histogram B) frequency diagram C) line chart D) pie chart

294)

Accountants generally use which of the following to assess the ultimate collectability of accounts receivables and estimate the allowance for doubtful accounts?

A) customer credit scores B) aging receivables analysis C) analysis of receivables by customer size D) customer profitability

295)

Which of the following explains the changes in retained earnings from net income or losses and any (cash) dividends paid to investors?

A) Statement of cash flows B) Balance sheet C) Income statement D) Statement of stockholders’ equity

296)

Descriptive analytics are characterized by: A) summarization of the relevant data.

B) uncovering patterns of the relevant data.

C) what-if scenarios of the relevant data.

D) cash flow analysis of the relevant data.

297)

Descriptive analytics is part of which component of the AMPS model?

A) Ask the Question B) Perform the Analysis C) Share the Story D) Master the Data

298)

Comparing the extent of long-term debt to a company’s equity is an example of: A) Vertical analysis B) Horizontal analysis C) Ratio analysis D) Pivottables

299)

An illustration of the total aged receivables in each 30-day bucket is an example of a: A) bar chart.

B) pivot chart.

C) line chart.

D) horizontal analysis.

300)

The calculation (New – Old)/Old would be used primarily in: A) DuPont analysis B) vertical analysis C) horizontal analysis D) ratio analysis

301)

A diagram showing interrelationships between two or more variables is called a: A) graph.

B) pivottable.

C) histogram.

D) variance analysis.

302)

An analysis which expresses financial information in relation to some relevant figure or base is called: A) DuPont analysis.

B) vertical analysis.

C) horizontal analysis.

D) ratio analysis.

303)

In addition to an aging analysis to establish an allowance for doubtful accounts, what type of system may be used to assess the ability of customers to pay outstanding receivables?

A) supply chain system B) credit analysis C) customer relationship management (CRM) D) customer diagnostic analytics

304)

Profit margin is computed as follows: A) Net profit (net income) / Sales B) Gross profit / Sales C) Net profit (net income) / Assets D) Gross profit / Assets

305)

Asset turnover is computed as follows: A) Sales / Assets B) Assets / Sales C) Net profit (net income) / Assets D) Gross profit / Assets

306)

If the profit margin is 0.1142, asset turnover is 0.5619 and financial leverage is 1.2937, what is the return on asset (ROA)?

A) 0.0830 B) 0.0642 C) 0.1142 D) 0.7269

307)

If the profit margin is 0.1142, asset turnover is 0.5619 and financial leverage is 1.2937, what is the return on equity (ROE)?

A) 0.0830 B) 0.0642 C) 0.1142 D) 0.7269

308)

If the profit margin is 0.2158, asset turnover is 0.5389 and financial leverage is 1.2047, what is the return on asset?

A) 0.1401 B) 0.6492 C) 0.1163 D) 0.5389

309)

If the profit margin is 0.2158, asset turnover is 0.5389 and financial leverage is 1.2047, what is the return on equity?

A) 0.1401 B) 0.6492 C) 0.1163 D) 0.5389

310)

What type of analytics are often the first type of analytics performed that leads to other types of analytics for further investigation?

A) Descriptive B) Diagnostic C) Predictive D) Prescriptive

311)

Descriptive analytics of a return on market equity performed by which researchers provide examples of a possible anomaly right around zero that may require further analysis?

A) Burgstahler and Dichev B) Deutch and Sensenbrenner C) Davis and Castro D) Buck and Jordan

312)

Summarizing data to understand what has happened is what type of analytics?

A) Descriptive analytics B) Diagnostic analytics C) Predictive analytics D) Prescriptive analytics

313)

314)

The Dupont Analysis measures which of these performance categories?

A) Profitability, Liquidity, and Solvency B) Profitability, Activity, and Solvency C) Activity, Liquidity, and Solvency D) Activity, Liquidity, and Profitability

If the profit margin is 0.0891, asset turnover is 0.4732 and financial leverage is 1.1957, what is the return on equity?

A) 0.0504 B) 0.0421 C) 0.5658 D) 0.5623

315)

Based on Lab 6-1 Excel Accounts Receivable Aging, and the exhibit below, how many Accounts Receivable buckets will this grouping of the pivottable create?

A) B) C) D)

6 5 30 180

316)

Based on Lab 6-2 Excel Horizontal Analysis of Financial Performance (with Sparklines) and the figure below, what is the Excel formula to determine the 34.7% (in cell E6) percentage change in product sales from 2020 to 2021?

A) B) C) D)

=B6/D6 =D6/B6 =D6/C6 =B6/C6

317)

Based on Lab 6-3 Excel Vertical Analysis of Financial Performance (with Sparklines) What is the Excel formula to determine the 5.66% cost of services as a percent of net sales in 2021 in cell E10?

A) B) C) D)

=C10/C7 =C10/C8 =C10/B7 =B10/B7

318)

Based on Lab 6-4 Excel DuPont Analysis of Financial Performance, using the results of the analysis performed in the figure below, which company consistently has greater asset turnover and financial leverage, Hershey (HSY) or J.M. Smucker (SJM)?

A) J.M. Smucker (SJM) B) Hershey (HSY)

Answer Key Test name: chapter 6 1) FALSE 2) TRUE 3) FALSE 4) FALSE 5) TRUE 6) TRUE 7) FALSE 8) TRUE 9) TRUE 10) FALSE 11) A 12) A 13) D 14) A 15) B 16) A 17) A 18) A 19) B 20) D 21) A 22) A 23) B 24) D 25) B 26) A 27) D 28) A 29) C 30) A 31) B 32) C 33) B 34) A 35) B 36) D 37) A

38) B 39) C 40) A 41) C 42) A 43) B 44) C 45) A 46) A 47) B 48) A 49) C 50) A 51) A 52) A 53) A 54) B 55) A 56) A 57) B 58) B 59) B

Student name:__________ 319)

Standard cost is an estimated, or expected cost of producing a good or service used in management accounting. ⊚ true ⊚ false

According to Benford’s law, numbers with the first digit “4” are more likely than those with first digit “3”. ⊚ true ⊚ false

320)

321)

According to the textbook, U.S. businesses will lose 7 percent, on average, of their gross revenues to fraud, with projected losses of about $7 billion. ⊚ true ⊚ false

322)

Analysis regarding the most profitable customer is an example of diagnostic analytics. ⊚ true ⊚ false

323)

If the data analyst hypothesizes that grocery sales are higher when payment is made using credit cards compared to cash payment, the null hypothesis would likely state that grocery sales are lower when payment is made using credit cards compared to cash payment. ⊚ true ⊚ false

The saying “Half the money I spend on advertising is wasted; the trouble is I don’t know which half”, illustrates the problem with knowing precisely how much value accrues from advertising expenses to sales or the value of the firm. ⊚ true ⊚ false

324)

A realistic expectation an accountant may hold is that “Most accounting transactions are made and recorded during normal work hours and normal workdays”. ⊚ true ⊚ false

325)

326)

A realistic expectation an accountant could hold is that each transaction (e.g., cash receipt or cash disbursement) is independent of (not identical to) any other similar transaction. ⊚ true ⊚ false

327)

A realistic expectation an accountant could hold is that each transaction is recorded consistent with generally accepted accounting principles (GAAP). ⊚ true ⊚ false

328)

A realistic expectation an accountant could hold is that addresses of the company vendors are not similar to that of the company employees. ⊚ true ⊚ false

329)

Diagnostic analytics is performed to investigate the underlying reasons for past results that cannot be answered by simply looking at the descriptive data. ⊚ true ⊚ false

330)

According to Benford’s law, what is the expectation for the percentage of times that the first digit of a number is the number “1”?

A) 15.12% B) 24.58% C) 35.80% D) 30.10%

331)

What is an example of a cash reconciling item for an item recorded by the bank but not yet recorded in the general ledger?

A) Interest earned on notes held by the bank B) Outstanding deposits C) Outstanding checks D) There are no items recorded by the bank but not recorded in the general ledger.

332)

Which cash reconciling item could potentially affect either the bank statement balance and the general ledger balance?

A) Recording error B) Interest earned on notes held by the bank C) Outstanding deposit D) NSF checks

333)

Which of the following can potentially find a transaction that is recorded twice?

A) Fuzzy matching B) Test of duplicates C) Benford’s law D) Sequence check

334)

The appropriate test to compare one sample to another sample to see if one is greater than another in some way is called: A) regression.

B) a two-sample t-test of a difference in means.

C) a one-sample t-test of a difference in means.

D) a chi-squared test of a difference in means.

335)

What diagnostic analytics technique is used to help find customers that might have a similar address or name as employees?

A) Duplicate testing B) Sequence check C) Benford’s law D) Fuzzy matching

336)

In fuzzy matching, if the tolerance for a match is set to 0%, what is the likely consequence for finding potential matches?

A) Too many potential matches B) Only exactly matches, no potential matches C) Good mix between exact and potential matches D) Too few potential matches

337)

In fuzzy matching, if the tolerance for a match is set to 100%, what is the likely consequence for finding potential matches?

A) Too many potential matches B) Only exact matches, no potential matches C) Good mix between exact and potential matches D) Too few potential matches

338)

Management accounting uses variance analysis to explain what and why something happened in the cost of producing products. It is done by comparing actual outcomes to expected, or standard, costs. What is the expectation when the usage of raw materials unexpectedly decreases below the standard quantity used?

A) Unfavorable price variance B) Favorable price variance C) Unfavorable quantity variance D) Favorable quantity variance

339)

Management accounting uses variance analysis to explain what and why something happened in the cost of producing products. It is done by comparing actual outcomes to expected, or standard, costs. What is the expectation when the price of raw materials unexpectedly decreases below the standard price?

A) Unfavorable price variance B) Favorable price variance C) Unfavorable quantity variance D) Favorable quantity variance

340)

Where would the company likely get data evaluating the customer with the highest dollar amount of orders in the past month?

A) Customer relationship management system B) Accounting system C) Human resources system D) Supply chain system

341)

According to Benford’s law, which one of these first digits have a lower probability of occurrence than the first digit “5”?

A) 3 B) 2 C) 4 D) 9

342)

While Benford’s Law mainly applies to the first digit of a number, it can also be applied

to: A) B) C) D)

The second through fourth digits The first two digits The last two digits All of the answers are correct.

343)

Analytics of the inventory item that produces the most profit is an example of the diagnostic analytics of: A) performing drill-down detailed analytics.

B) determining relations/patterns/linkages between variables through statistical analysis.

C) identifying anomalies/outliers.

D) performing descriptive analytics.

344)

Evaluating the relationship between R&D expenditures and net income is an example of the diagnostic analytics of: A) performing drill-down detailed analytics.

B) determining relations/patterns/linkages between variables through statistical analysis.

C) identifying anomalies/outliers.

D) performing descriptive analytics.

345)

Performing a bank reconciliation is example of the diagnostic analytics of: A) performing drill-down detailed analytics.

B) determining relations/patterns/linkages between variables through statistical analysis.

C) identifying anomalies/outliers.

D) performing descriptive analytics.

346)

What is an observation that lies outside its expected distribution?

A) Outlier B) Unexpected observation C) Fuzzy matching D) Management by exception

347)

Diagnostic analytics addresses which of the following questions?

A) What happened?

B) Why did it happen?

C) Will it happen in the future?

D) Based on what we expect will happen, how do we optimize?

348)

Diagnostic analysis includes all of the possible types of analytics except for which of the following?

A) Identifying anomalies and outliers B) Performing drill-down detailed analytics C) Performing marginal analysis D) Performing statistical analysis

349)

Internal controls testing is an example of what type of data analytics?

A) Identifying anomalies and outliers B) Finding previously unknown linkages, patterns, or relationships between variables C) Performing marginal analysis D) Performing descriptive analytics

350)

Testing for duplicate transactions is an example of what type of diagnostic analytics?

A) Identifying anomalies and outliers B) Finding previously unknown linkages, patterns, or relationships between variables C) Performing marginal analysis D) Performing descriptive analytics

351)

Testing using fuzzy matching is an example of which type of diagnostic analytics?

A) Identifying anomalies and outliers B) Finding previously unknown linkages, patterns, or relationships between variables C) Performing marginal analysis D) Performing descriptive analytics

352)

Analyzing the sales journal to find the most profitable product sold is an example of what type of diagnostic analytics?

A) Identifying anomalies and outliers B) Finding previously unknown linkages, patterns, or relationships between variables C) Performing marginal analysis D) Performing descriptive analytics

353)

Analyzing relationships between vendors and A/P clerks to find potentially fraudulent relationships is an example of what type of diagnostic analytics?

A) Identifying anomalies and outliers B) Finding previously unknown linkages, patterns, or relationships between variables C) Performing marginal analysis D) Performing descriptive analytics

354)

355)

Benford’s law follows the distribution: A) log10(1 + (1/ d)), where d is each digit 1, 2, and so on B) log10(d + (1/ d)), where d is each digit 1, 2, and so on C) ln10(1 + (1/ d)), where d is each digit 1, 2, and so on D) ln10(d + (1/ d)), where d is each digit 1, 2, and so on

Commitment to prior investments escalates and makes it harder to abandon prior investments even if it may not make rational sense is called: A) cost abandonment fallacy.

B) sunk cost fallacy.

C) commitment cost fallacy.

D) committed cost fallacy.

356)

The test to see if the key number field in a record is in correct ascending or descending order is called: A) an order check.

B) a sequence check.

C) a compliance check.

D) a sort check.

357)

If the data analyst hypothesizes that grocery sales are higher on Sunday than on other days, the null hypothesis would likely state that: A) Grocery sales are lower or no different on Sunday than on other days.

B) Grocery sales are higher on Sunday than on other days.

C) Grocery sales are higher or no different on Sunday than on other days.

D) Grocery sales are lower on Sunday than on other days.

358)

If we are running a regression to analyze the question if advertising expenses are related to sales revenue outcomes, what would be the independent variable?

A) sales revenue B) advertising expenses C) cost of goods sold D) operating expenses

359)

360)

Segregation of duties suggests separating all of the following from each other except: A) Custody of assets B) Authorization of the use of the assets C) Recordkeeping D) Use of the assets

In a bank reconciliation, outstanding checks are recorded by the company, but not yet by the: A) bank.

B) vendor.

C) employee.

D) supplier.

361)

In a bank reconciliation, NSF checks are recorded by the bank, but not yet by the: A) company.

B) shareholder.

C) vendor.

D) customer.

If the p-value of the chi-square test is smaller than the α (alpha) threshold, we could conclude that the observed relationship is: A) greater than that expected from Benford’s law.

B) smaller than that expected from Benford’s law.

C) different than that expected from Benford’s law.

D) not different than that expected from Benford’s law.

362)

363)

The practice of bringing specific issues to the attention of management if they depart from expectation is called A) anomaly.

B) management by exception.

C) outlier.

D) fuzzy matching.

364)

The practice of identifying the difference between a budget amount and actual performance is called: A) anomaly analysis.

B) outlier analysis.

C) variance analysis.

D) management by exception.

365)

Diagnostic analytics is broken down into all except for which of the following broad categories?

A) Identifying anomalies and outliers B) Performing drill-down detailed analytics C) Performing statistical analyses D) Performing descriptive analytics

366)

What diagnostic analytics technique looks for underlying patterns in the data by examining the data at a more detailed level in order to examine potential correlations?

A) Fuzzy matching B) Drill-down detailed analytics C) Summarizing data D) Descriptive analytics

367)

368)

The importance of understanding the root cause of an outlier is to A) identify potentially fraudulent activity.

B) help management understand favorable variances.

C) help management understand unfavorable variances.

D) All of the items listed.

Management accounting uses variance analysis to explain what and why something happened in the cost of producing products. It is done by comparing actual outcomes to expected, or standard, costs. What is the expectation when unplanned overtime is required to complete the job?

A) Unfavorable labor rate variance B) Favorable labor rate variance C) Unfavorable price variance D) Favorable price variance

369)

This question is based on Lab 7-1 Excel Test of Separation of Duties. In the pivottable exhibit below, the rows represent the initials of the accountants who entered the transactions as journal entries, and the columns represent the initials of management who approved the transactions.

Given the expectation of separation of duties that those who approve the transaction do not also enter the transaction, how many transactions appear to violate the separation of duties?

A) 30 B) 1 C) 19 D) 23 E) 30

370)

This question is based on Lab 7-2 Excel Days of the Week Journal Transactions. In the pivottable exhibit below, there is a report on the number of journal entries by day of the week.

Given the concern of transactions occurring on the weekends, how many transactions occur on the weekends that might require additional investigation?

A) 19 B) 7 C) 53 D) 12

371)

Based on Lab 7-3 Excel Using the MATCH() Function to Perform Bank Reconciliations. The exhibit below reports the results of match() function.

Why does Interest Earned in the bank column show an #N/A reporting no match with the company’s general ledger transactions?

A) Interest Earned has been recorded by the bank but not by the company B) Interest Earned has been recorded by the company but not by the bank C) Interest Earned has been recorded by both the bank and the company D) Interested Earned has not been recorded by the bank or the company

372)

The exhibit below is similar to Lab 7-4 Excel Benford’s Law. The chi-square test regarding Benford’s law has a p-value of 0.0000000019.

Given the p-value of the chi-square test, what does say about the hypothesis of the distribution of first digits?

A) The actual distribution of first digits is different from the expectations given by Benford’s law.

B) The expected distribution of first digits is different from the actual distribution given

by Benford’s law.

C) The actual distribution of first digits is not different from the expectations given by Benford’s Law. D) The expected distribution of first digits is not different from the actual distribution given by Benford’s law.

373)

Based on Lab 7-5 Excel Fuzzy Matching and Fake Employees/Vendors and the exhibit below, what is the number of cases where fuzzy matching reveals greater than 60% similarity between the client’s and the employee’s address?

A) B) C) D)

4 0 3 9

374)

Based on Lab 7-6 Excel Sequence Check: Identifying Missing Checks and the exhibit below, how many checks are missing between check 1399 and check 1419?

A) B) C) D)

7 6 0 8

375)

Based on Lab 7-8 Excel Looking for Fraud by Examining Relationships within a Data File: Accounts Payable Clerks and Company Vendors, and the exhibit below, how many vendor’s payments are processed by any individual AP (accounts payable) Clerk more than 50% of the time, that might require further investigation?

A) B) C) D)

5 6 4 8

376)

Based on Lab 7-9 Excel Evaluating the Relationship between Sales and Advertising Expense and the regression results noted below where sales is the dependent variable and advertising is the independent variable, what is the expected payoff for every dollar of advertising expenses?

A) B) C) D)

Every dollar invested in advertising expenses is associated with $3.67 in sales.

Every dollar invested in advertising expenses is associated with $3.67 in net income.

Every dollar invested in advertising expenses is associated with $0.99 in sales.

Every dollar invested in advertising expenses is associated with $0.99 in net income.

Answer Key Test name: chapter 7 1) TRUE 2) FALSE 3) FALSE 4) TRUE 5) TRUE 6) TRUE 7) TRUE 8) TRUE 9) TRUE 10) TRUE 11) TRUE 12) D 13) A 14) A 15) B 16) B 17) D 18) A 19) B 20) D 21) B 22) A 23) D 24) D 25) A 26) B 27) C 28) A 29) B 30) C 31) A 32) A 33) A 34) B 35) B 36) A 37) B

38) B 39) A 40) B 41) D 42) A 43) A 44) C 45) B 46) C 47) D 48) B 49) D 50) A 51) B 52) A 53) A 54) A 55) A 56) A 57) A 58) A

Student name:__________ 377)

We would expect a positive relationship (+) between loan acceptance and the debt-toincome ratio. ⊚ true ⊚ false

378)

We would expect a positive (+) relationship between loan acceptance and employment length. ⊚ true ⊚ false

379)

We would expect that sales forecasts would be more accurate than forecasts of operating income. ⊚ true ⊚ false

380)

The higher the expected risk, the lower the expected return. ⊚ true ⊚ false

381)

A good first step in a bankruptcy prediction is to know how many companies go bankrupt each year (as a percentage of total firms) to understand how prevalent bankruptcy is as a whole. ⊚ true ⊚ false

382)

Predicting whether financial statements are fraudulent or not is an example of classification. ⊚ true ⊚ false

383)

Predicting whether it will rain tomorrow or next week is more deterministic than reporting the rain that happened yesterday. ⊚ true ⊚ false

384)

The balance in the cash account is deterministic as compared to being probabilistic. ⊚ true ⊚ false

385)

Predicting the possible existence of fraud is a classification predictive analysis. ⊚ true ⊚ false

386)

Increase in receivables as compared to last period is a factor predicting financial statement fraud (consistent with Beneish). ⊚ true ⊚ false

387)

Which predictive analytics technique would be used to predict whether a firm is likely to have a material misstatement in the coming year?

A) Regression B) Classification C) Benford’s law D) Monetary unit sampling

388)

Which predictive analytics technique would be used to predict the interest rate given from a lender (bank) to a borrower?

A) Regression B) Cross-tabulation C) Looking for anomalies and outliers D) Time-series analysis

389)

According to Altman’s Z, the greater amount of long-term profitability generally leads to: A) greater risk of bankruptcy.

B) lower risk of bankruptcy.

C) no effect on the risk of bankruptcy.

390)

If a company has an Altman Z-score of 1.7, the company would be classified in the: A) distress zone, or at significant risk of bankruptcy.

B) gray zone, or at risk of bankruptcy.

C) safe zone, not currently at risk of bankruptcy.

D) green zone, no risk of bankruptcy.

391)

If a company has an Altman Z-score of 3.1, the company would be classified in the: A) distress zone, or at significant risk of bankruptcy.

B) gray zone, or at risk of bankruptcy.

C) safe zone, not currently at risk of bankruptcy.

D) green zone, no risk of bankruptcy.

392)

According to the text, GAAP does not prefer which type of accounting since it is inferior at forecasting future performance?

A) Cash basis B) Accrual basis

393)

Which is more persistent in predicting future amounts of the variable based on current amounts of that same variable?

A) Sales B) Cash flows from investment activities C) Operating income D) Cash flows from financing activities

394)

The persistence of operating income as compared to cash flows from operations is consistent with GAAP requiring the use of: A) cash-basis accounting for financial reporting purposes.

B) accrual-basis accounting for financial reporting purposes.

C) tax-basis accounting for financial reporting purposes.

D) cost-basis accounting for financial reporting purposes.

395)

Predicting which companies are likely to have misstated financial statements is an example of the predictive analytics technique of: A) classification.

B) prediction.

C) regression.

D) time series analysis.

396)

All of the following are factors used by Altman’s Z in predicting bankruptcy except: A) Working capital/Total assets B) Market value of stockholders’ equity/Book value of total debt owed C) Retained Earnings/Total assets D) Income/Total equity

397)

According to Beneish, which of the following factors are predictive of financial statement fraud?

A) Sales/Total assets.

B) Decrease in sales growth in the current period.

C) Increase in selling, general and administrative expenses.

D) Decline in gross margin as a percent of sales.

398)

According to Beneish, which of the following factors are predictive of financial statement fraud?

A) Increase in sales growth in current period B) Sales/Total assets C) Market value of stockholders’ equity/Book value of total debt owed D) Net Income/Total equity

399)

Forecasting sales for budget purposes is an example of which type of predictive analytics?

A) Time series B) Regression C) Classification D) Fuzzy Matching

400)

The ability of a computer to automatically learn without being explicitly programmed to do so is called: A) machine learning.

B) automated task repetition.

C) robotic process automation.

D) predictive automation.

401)

Classification analysis to decide on whether to grant a loan to a potential borrower is most important for: A) lenders.

B) auditors.

C) audit regulators.

D) investors.

402)

The probability of some event occurring based on some historical average is called: A) base rates.

B) historical rate.

C) sample average.

D) classification.

403)

Using past performance of a single variable to predict future performance of a single variable is called: A) regression.

B) classification.

C) time series.

D) forecasting.

What would be the dependent variable in a regression determining “How are firm costs dependent on the level of production?” at a decking company?

A) Total production costs B) Board feet C) Type of board manufactured D) Total production revenue

404)

What would be a possible independent variable in a regression determining “How do lenders set interest rates paid by borrowers?” at a lender?

A) Interest rate charged/paid to borrower B) Borrower credit history C) Borrower salary D) Borrower debt

405)

406)

What is the term for the repeatability of the financial statement variables (e.g., earnings, sales, cash flows) over time?

A) Persistence B) Durability C) Continuity D) Repetitive Nature

407)

What would be the best possible independent variable in a regression determining Sales next period, Salest+1?

A) Salest+1 B) Salest C) Salest−1 D) Salest−2

408)

What is the term for the ability of a computer (or machine) to automatically learn on its own without being explicitly programmed to do so?

A) Robotic process automation B) Machine learning C) Automated learning D) Computerized learning

409)

What is the name of a statistic that evaluates a customer’s creditworthiness and ability to repay a loan?

A) Credit score B) Customer score C) Going concern D) Loan repayment score

410)

An assessment by the auditor if the company has the resources needed to operate for the foreseeable future is called: A) bankruptcy assessment.

B) going concern.

C) customer assessment.

D) creditworthy.

411)

Predicting whether a company will need to restate its financial statements is an example

of: A) B) C) D)

classification. regression. time series. fuzzy matching.

412)

Forecasting earnings is an example of which type of predictive analytics?

A) Classification B) Regression C) Time series D) Variance analysis

413)

Estimating the appropriate cost driver as part of activity-based costing is an example of which type of predictive analytics?

A) Classification B) Regression C) Time series D) Variance analysis

414)

What provides less deterministic output and more probabilistic models judging the likelihood (probability) of a future event or outcome occurring?

A) Prescriptive analytics B) Machine learning C) Descriptive analytics D) Diagnostic analytics

415)

416)

Deception that is intended to result in financial gain is called A) fraud.

B) errors.

C) going concern.

D) bankruptcy.

What is the term for the situation when the prediction places too little weight on the base rates of the past and instead uses different or new, recently received information?

A) Base rates B) Historical rate fallacy C) Base rate fallacy D) Historical rate

417)

According to Altman, the firms in which zone are at risk of bankruptcy, but are not at significant risk?

A) Distress zone B) Gray zone C) Safe zone D) Green zone

418)

According to the text, in 1997 Apple Computer was in the which zone for risk of bankruptcy?

A) Distress zone B) Gray zone C) Safe zone D) Green zone

419)

Which of the following is a predictive analytics technique used to estimate a specific dependent variable outcome based on independent variable inputs?

A) Classification B) Regression C) Times series D) Variance analysis

420)

Bank savings accounts will have very low risk because they are generally insured by the government; however, which type of investment will have a much higher risk and, thus, a much higher expected return?

A) Treasury bonds B) Stocks C) Treasury bills D) Fixed annuities

421)

Predictive analytics is useful for which type of analytics technique?

A) Summarizing data B) Finding anomalies and outliers C) Uncovering patterns D) Regression analysis

422)

Which type of analysis would predictive analytics not be useful?

A) Classification B) Finding anomalies and outliers C) Regression D) Time series analysis

423)

Cost drivers can be best identified by which of the following?

A) Intuition or gut instinct B) Finding anomalies and outliers C) Regression D) Time Series analysis

What would be the independent variable in a regression determining “How are firm overhead costs dependent on the time for production?” at a manufacturing company?

A) Indirect material costs B) Direct material costs C) Machine hours D) Overhead costs

424)

425)

When using regression analysis, the relationship between two variables matters when you are trying to understand: A) how an independent variable impacts a dependent variable.

B) how a dependent variable impacts an independent variable.

C) how future values are based on past values of the same variable.

D) how estimated trends from the past may continue into the future.

426)

Regression analysis can be used to help confidently identify: A) which factors matter the most.

B) which factors can be ignored.

C) how factors influence each other.

D) which factors matter most, can be ignored and how the factors influence each other.

427)

What is used as a statistical test in predictive analytics to evaluate what might happen in the future based on prior evidence?

A) Correlation test B) Descriptive statistics C) Hypothesis test D) Time series analysis

428)

An analyst thinks that if customers use a credit card (instead of cash), they will spend more at their grocery store. How would the analyst test this assumption (or theory)?

A) Regression analysis B) What-if testing C) Hypothesis testing D) Prescriptive analytics

429)

Based on Lab 8-3 Excel Estimating Cost Behavior Using Regression Analysis, given the regression results, predicting total costs, which variables would be considered to be significant predictors of total costs?

A) B) C) D)

Production and Busy Production Busy Season Cannot be determined

430)

Based on Lab 8-6 Excel Forecasting Future Performance (Sales and Earnings for IBM and Microsoft) and the Exhibit below, what is the red line above the forecast of IBM sales called?

A) B) C) D)

Lower Confidence Bound Upper Confidence Bound Optimistic Sales Expected Sales

431)

Based on Lab 8-1 Excel Predicting Bankruptcy Using Altman’s Z and the Exhibit below detailing the five factors, what is the Excel formula for computing Altman’s Z?

A) B) C) D)

=(1.4*M2)+(1.2*N2)+(3.1*O2)+(1.6*P2)+(Q2*1) =(1.2*M2)+(1.4*N2)+(3.3*O2)+(0.6*P2)+(Q2*1) =(1*M2)+(1*N2)+(1*O2)+(1*P2)+(Q2*1) =(1*M2)+(2*N2)+(3*O2)+(4*P2)+(Q2*5)

432)

Based on Lab 8-2 Excel Classifying Loan Acceptance Using Lending Club Data and the regression results below predicting loan acceptance, how is longer employment length (Emp Length) associated with loan acceptance?

A) B) C) D)

The lower the length of employment, the greater the chance of loan acceptance The greater the length of employment, the greater the chance of loan acceptance The length of employment is not associated with loan acceptance The relationship between length of employment and loan acceptance cannot be determined.

433)

Based on Lab 8-4 Excel Estimating Activity-Based Costing Drivers Using Regression Analysis and the regression results below predicting total overhead costs, which cost drivers are associated with total overhead costs?

A) B) C) D)

Miles per Delivery, Time per Delivery and Weight per Delivery Miles per Delivery and Time per Delivery Time per Delivery and Weight per Delivery Miles per Delivery

Answer Key Test name: chapter 8 1) FALSE 2) TRUE 3) TRUE 4) FALSE 5) TRUE 6) TRUE 7) FALSE 8) TRUE 9) TRUE 10) TRUE 11) B 12) A 13) B 14) A 15) C 16) A 17) A 18) B 19) A 20) D 21) D 22) A 23) A 24) A 25) A 26) A 27) C 28) A 29) B 30) A 31) B 32) B 33) A 34) B 35) A 36) C 37) B

38) A 39) A 40) C 41) B 42) B 43) B 44) B 45) D 46) B 47) C 48) C 49) A 50) D 51) C 52) C 53) B 54) B 55) B 56) B 57) B

Student name:__________ 434)

An accounting rate of return is the percentage of return expected on an asset compared to the initial investment cost. ⊚ true ⊚ false

435)

436)

A complete payment made all at one time, is called an annuity. ⊚ true ⊚ false

Using three different possible interest rates to evaluate their possible impact on the outcomes of investments is called sensitivity analysis. ⊚ true ⊚ false

437)

Future modelling is a representation of the financial outcomes resulting from a decision or future event. ⊚ true ⊚ false

438)

The process of changing the values in various input cells to see how they might affect the output is called foregone costs. ⊚ true ⊚ false

439)

Prescriptive analytics will optimize the decisions based on the forecast of the future. ⊚ true ⊚ false

440)

Prescriptive analytics will often build upon descriptive, diagnostic, or predictive analytics. ⊚ true ⊚ false

441)

Whether the investment returns arrive in year 1 versus year 2 will not make a difference on the calculation of net present value. ⊚ true ⊚ false

442)

Whether the investment returns arrive in year 1 versus year 2 will make a difference on the calculation of internal rate of return. ⊚ true ⊚ false

443)

This is the correct calculation of net present value a new piece of equipment that is expected to cost $200,000 at the time of purchase (Year 0) and returns $150,000 per year for three years, and a cost of capital of 10%.

Year 0 Year 1 Year 2 Year 3

Present value Present value Present value Present value

= = = =

−$200,000 ÷ (1.100) $150,000 ÷ (1.101) $150,000 ÷ (1.102) $150,000 ÷ (1.103)

= = = =

Sum of present values, or NPV

−$ 200,000 $ 136,364 $ 123,967 $ 112,697 $ 173,028

⊚ true ⊚ false

444)

A series (such as monthly or annually) of fixed payments is called a(n) A) annuity.

B) lump-sum payment.

C) sunk costs.

D) capital payment.

445)

The interest rate calculated to the point where the present value of cash inflows is equal to the present value of cash outflows is called A) net present value.

B) internal rate of return.

C) capital budgeting.

D) marginal analysis.

446)

Scenario analysis is A) an analysis of future events performed by assessing the probability of those events and the potential outcomes.

B) the evaluation of the outcomes based on uncertainty regarding the inputs.

C) the evaluation of the change in profit associated with the cost or benefit of the next unit.

D) analysis performed to investigate the underlying cause.

447)

What type of analytics identifies the best possible option given constraints or changing conditions?

A) Predictive B) Descriptive C) Prescriptive D) Forecasting

448)

Prescriptive analytics helps identify the best decision based on constraints or changing A) opportunities.

B) forecasts.

C) challenges.

D) conditions.

449)

An objective of financial accounting is to help investors and other users in assessing the amounts, A) timing, and risk of future cash flows.

B) totals, and timing of future cash flows.

C) timing, and uncertainty of future cash flows.

D) totals, and risk of future cash flows.

450)

Cisco, a provider of modems and routers has decided it is more profitable to outsource its production than to make it themselves. To decide this, they have performed A) sensitivity analysis.

B) make-or-buy analysis.

C) scenario analysis.

D) financial modelling.

451)

What is the term for the interest rate that makes the present value of cash inflows just equal to the present value of cash outflows?

A) net present value B) internal rate of return C) capital budget D) marginal analysis

452)

The decision of which major expenditures and projects a company will invest in is traditionally called A) cash flow analysis B) net present value analysis C) internal rate of return D) capital budgeting

453)

What is the internal rate of return for a $33,000 investment (−$33,000 at year zero) and cash inflows of $10,000 per year for years 1 through 4?

A) 8.16% B) 21.21% C) 7.18% D) 2.39%

454)

What is the net present value for a $33,000 investment (−$33,000 at year zero) and cash inflows of $10,000 per year for years 1 through 4, using a 4% discount rate?

A) $3,172.07 B) −$3,172.07 C) $1,312.66 D) −$1,411.54

455)

What is the Excel formula to compute the internal rate of return for a $32,000 investment and cash inflows of $10,000 per year for years 1 through 4?

A) =IRR(33000,−10000,−10000,−10000,−10000) B) =IRR(−33000,10000,10000,10000,10000) C) =IRR(−10000,−10000,−10000,−10000,−33000) D) =IRR(10000,10000,10000,10000,−33000)

456)

What is the Excel formula to compute the net present value for an initial $53,000 investment and cash inflows of $17,000 per year for years 1 through 4 with a 10% cost of capital?

A) =NPV(0.1,53000,−17000,−17000,−17000,−17000) B) =NPV(0.1,17000,17000,17000,17000,−53000) C) =NPV(−53000,17000,17000,17000,17000) D) =NPV(0.1,−53000,17000,17000,17000,17000)

457)

In make-or-buy analysis, which of the following is not a key input to the decision?

A) avoidable fixed costs B) avoidable variable costs C) cost by the contract manufacturer D) the sales price of the product being manufactured

458)

All other things being equal, we would not choose the investment with which of the following?

A) Lowest accounting rate of return B) Highest accounting rate of return C) Most reasonable accounting rate of return D) An accounting rate of return greater than the expected rate of return

459)

The point at which it no longer matters which alternative is chosen since the outcome is the same under either alternative is called the A) tipping point.

B) point of indifference.

C) decision point.

D) point of equality.

460)

The technique used in management accounting to determine the change in profit associated with the cost or benefit of the next (or the marginal) unit is called A) scenario analysis.

B) goal-seek analysis.

C) marginal analysis.

D) predictive analytics.

461)

An example of goal-seek analysis is determining A) the amount of sales to break even.

B) the accounting rate of return.

C) the net present value.

D) the internal rate of return.

462)

What is the term for the cost of available funds for a company, which acts as a hurdle rate that the company must overcome to create value?

A) The cost of capital B) The required rate of return C) The internal rate of return D) The cost of funding

463)

Which component of the AMPS model does prescriptive analytics fall under?

A) Ask the Question B) Master the Data C) Perform the Analysis D) Share the Story

464)

Determining the best course of action under nine possible tax rate scenarios is an example

of: A) B) C) D)

465)

marginal analysis scenario analysis sensitivity analysis goal-seek analysis

All of the following are types of prescriptive analytics except: A) What-if analysis B) Times series analysis C) Sensitivity analysis D) Goal-seek analysis

466)

All of the following are types of prescriptive analytics except: A) Goal-seek analysis B) Regression analysis C) Marginal analysis D) Cash flow analysis

467)

What is the internal rate of return for a $55,000 investment (−$55,000 in year zero) and cash inflows of $20,000 per year for years 1 through 4?

A) 16.88% B) −16.88% C) 45.4% D) −45.4%

468)

What is the net present value for a $55,000 investment (−$55,000 in year zero) and cash inflows of $20,000 per year for years 1 through 4, using a 4% discount rate?

A) $16,921.06 B) $25,000 C) −$25,000 D) −$16,921.06

469)

The Excel formula to compute the net present value of cash flows for a $55,000 investment (−$55,000 at year zero) and cash inflows of $20,000 per year for years 1 through 4, using a 4% discount rate is: A) =NPV(0.04,−55000,20000,20000,20000,20000) B) =NPV(−55000,20000,20000,20000,20000,0.04) C) =NPV(0.04, 55000,−20000,−20000,−20000,−20000) D) =NPV(55000,−20000,−20000,−20000,−20000,0.04)

470)

Calculate the annual car payment for a car loan of $20,000 at 5% interest rate over five years.

A) $4,619.50 B) $4,000 C) $4,520 D) $419.32

471)

The Excel formula to compute the annual payment for a car loan of $30,000 at 5% interest rate over five years is: A) =PMT(5,0.05,30000) B) =PMT(30000,0.05,5) C) =PMT(0.05,60,30000) D) =PMT(0.05,5,30000)

472)

Marginal analysis does what with respect to sunk costs (past spending that cannot be recovered).

A) Incorporates sunk costs in the analysis B) Ignores sunk costs in the analysis C) Requires sunk costs in the analysis D) Analyzes sunk costs in the analysis

473)

Determining the maximum mortgage loan you can afford given your income is an example of A) scenario analysis.

B) goal-seek analysis.

C) marginal analysis.

D) cash flow analysis.

474)

Which of the following does not incorporate the time value of money in its analysis?

A) Net present value B) Internal rate of return C) Accounting rate of return D) Present value of cash outflows

475)

Which of the following incorporates the time value of money in its analysis?

A) Payback period B) Return on assets C) Internal rate of return D) Accounting rate of return

476)

Changes in consumer preferences, tax laws, interest rates, levels of risk, exchange rates, demand for employees and their expertise, etc. are all conditions a company regularly face.

Predicting and addressing these changing conditions requires what kind of analytics?

A) Descriptive B) Diagnostic C) Predictive D) Prescriptive

477)

Prescriptive analytics may use which of the following techniques to help perform the analysis?

A) uncovering patterns B) finding outliers C) regression D) sensitivity analysis

478)

479)

Goal seek analysis uses the desired output to find the A) expected input.

B) desired input.

C) required input.

D) best alternative output.

In any Excel functions that use rate (e.g. PMT, IRR, NPV), the correct way to enter a monthly rate when the annual interest rate is 4 percent is: A) 0.04.

B) 0.04 ÷ 12.

C) 4.

D) 4 ÷ 12.

480)

In any Excel functions that uses NPER for term, (e.g. PMT functions is =PMT(rate,NPER,FV,PV), the correct way to enter a 30 year term to compute monthly payments is A) 30.

B) 30 × 12.

C) (30 ÷ 12) ÷ 365.

D) (30 ÷ 12) × 365.

481)

482)

Optimization is A) a prescriptive analytics technique used to find the best feasible solution.

B) the evaluation of the outcomes based on uncertainty regarding the inputs.

C) the evaluation of the change in profit associated with the cost or benefit of the next unit.

D) analysis performed to investigate the underlying cause.

Working to find the product mix which maximizes profits subject to constraints is an example of which prescriptive analytics technique?

A) optimization B) scenario analysis C) sensitivity analysis D) cash flow analysis

483)

Based on Lab 9-2 Excel Evaluating Investments Using NPV and given the results below, which investment should the company make if they use NPV to evaluate expected performance of each investment?

A) B) C) D)

Investment 2 Investment 1 Investment 4 Investment 3

484)

Based on Lab 9-4 Excel Evaluating Investments Using IRR, and given the results below, which investment should the company make if they use IRR to evaluate expected performance of each investment?

A) B) C) D)

Investment 2 Investment 1 Investment 3 Investment 4

485)

Based on Lab 9-7 Excel What-if Solver/Breakeven/Goal Seek, for January which cell will be changed to get a value of zero net income (or breakeven)?

A) B) C) D)

Cell B9 Cell B3 Cell B7 Cell B8

486)

Based on Lab 9-9 Excel What-if Scenario/Tax Rates and the figure below, what is the expected dollar impact of the new tax rates if income decreases by 7% and the tax rate is 5%?

A) B) C) D)

($8,505) ($117,450) ($134,460) ($565,110)

Answer Key Test name: chapter 9 1) TRUE 2) FALSE 3) TRUE 4) FALSE 5) FALSE 6) TRUE 7) TRUE 8) FALSE 9) TRUE 10) TRUE 11) A 12) B 13) A 14) C 15) D 16) C 17) B 18) B 19) D 20) A 21) A 22) B 23) D 24) D 25) A 26) B 27) C 28) A 29) A 30) C 31) B 32) B 33) B 34) A 35) A 36) A 37) A

38) D 39) B 40) B 41) C 42) C 43) D 44) D 45) C 46) B 47) B 48) A 49) A 50) B 51) B 52) B 53) B

Student name:__________ 487)

The horizontal axis of a graph or chart is typically used for values. ⊚ true ⊚ false

488)

The data series is the underlying data populating the data visualization. ⊚ true ⊚ false

489)

Charts in Excel default to sorting in the order of the data presented in the spreadsheet. ⊚ true ⊚ false

490)

Dashboards typically have filters available, so decision makers can easily inspect a particular time period, category, product, or geographic area. ⊚ true ⊚ false

491)

The vertical axis in a histogram is usually associated with the count of observations in each particular bin. ⊚ true ⊚ false

492)

Charts are more effective than graphs when there are multiple bits of information to communicate. ⊚ true ⊚ false

493)

Within Excel, PivotCharts are usually generated from underlying PivotTables. ⊚ true ⊚ false

494)

Unlike histograms, box plots pack a lot of descriptive/diagnostic statistics into one graph. ⊚ true ⊚ false

495)

Pie charts are rarely preferred if there are more than six categories (or “slices” of pie). ⊚ true ⊚ false

496)

PivotCharts are dynamic so once the source data is changed the PivotChart will automatically update. ⊚ true ⊚ false

497)

What are the increments of the scale listed on the vertical axis of a chart/graph is called?

A) tick marks B) data series C) data points D) markers

498)

Which of the following represents the easiest way to change the order in a chart?

A) chart options B) underlying spreadsheet C) chart itself D) slicer

499)

What are the individual data observations in a data series called?

A) tick marks B) data series C) data points D) markers

500)

In a data visualization, what does the vertical axis typically show?

A) values B) labels C) categories D) titles

501)

Which of the following can be useful for showing proportion and visualizing categorical data?

A) Bar charts B) Line charts C) Pie charts D) Histograms

502)

When visualizing data for which the trend is the most important item to communicate, which is the most preferred chart?

A) Bar chart B) Line chart C) Pie chart D) Table

503)

Ratio data should be visualized with which of the following as the starting point, especially in a bar chart?

A) zero B) the minimum value C) the maximum value D) the median

504)

Which of the following potential observations are scatter plots used to exhibit?

A) trends B) correlation C) co-occurrences D) statistical inferences

505)

Pie charts, bar charts and histograms are generally associated with which type of analytics?

A) predictive B) prescriptive C) diagnostic D) descriptive

506)

An observation, or data point that is expected on a box plot will typically appear where?

A) Outside the maximum or minimum value within the expected range B) Inside the maximum or minimum value within the expected range C) Above the maximum value within the expected range D) Below the minimum value within the expected range

507)

Which of the following is the most effective way to show sensitivity analysis?

A) table B) scatter chart C) line chart D) bar chart

508)

Inventory costs are most likely to be shown as which type of data?

A) ordinal data B) interval data C) ratio data D) nominal data

509)

Aged receivables in a pivot chart is actually a modified version of which of the following?

A) histogram B) box plot C) scatter plot D) bar chart

510)

Visualizations are primarily part of which component of the AMPS model?

A) Share the Story B) Ask the Question C) Master the Data D) Perform the Analysis

511)

Regardless of the type of data in a chart, it should be in which order, based on the following choices?

A) chronological B) alphabetical C) logical D) ascending

512)

Displaying net income over the past 10 years should be shown in which order, based on the following choices?

A) chronological B) alphabetical C) logical D) ascending

513)

Line charts are used to provide data: A) Chronologically with the overall trend rather than specific data points B) Chronologically with specific data points instead of the overall trend C) Categorically with the overall trend rather than specific data points D) Categorically with specific data points instead of the overall trend

514)

In order to change a PivotChart in Excel, you must first change which of the following?

A) the source data B) the source data and refresh the PivotChart C) right click the PivotChart to edit D) do nothing. PivotCharts are dynamic so once the source data is changed it automatically updates

515)

Which of the following is typically excluded in an executive report?

A) Executive summary B) Summary of the results C) Brief recommendation D) These are all included in an executive report.

516)

Which of the following is a tool that can be added to a PivotChart in Excel to make it easier for an end-user to filter the data?

A) cutter B) slicer C) calculated field D) sparkline

517)

What type(s) of analytics are useful when Sharing the Story in the AMPS model?

A) Predictive analytics only B) Prescriptive analytics only C) Both predictive and prescriptive analytics D) Descriptive, diagnostic, predictive, and prescriptive analytics

518)

Which of the following is not a benefit of using a dashboard to display your data over using only one chart?

A) Dashboards provide multiple perspectives about the data at once, which can facilitate decision-making B) Dashboards allow the datasets across visualizations to be easily customized with slicers and filters C) Dashboards can present multiple pieces of information at once regarding time period, category, product, or geographic area, for example D) Dashboards require the user to focus on only one chart, keeping distractions away

519)

What of the following choices represent two methods for visualizing prescriptive statistics?

A) Histograms and Pie Charts B) Bar Charts and Line Charts C) Dashboards and Histograms D) Sensitivity Analysis and Breakeven Analysis

520)

521)

Which of the following is typically excluded in an executive summary?

A) Statement of the problem B) Summary of the results C) Brief recommendation D) Pertinent data outputs

Based on Lab 10-1 Excel: Create a Dashboard Using PivotTables and Slicers, what is the step to take to ensure that all of the tables are available to select in the PivotTable?

A) Insert PivotTable > Use an External Data Source B) Insert PivotTable > OK C) Insert PivotTable > Existing Worksheet D) Insert PivotTable > Add this data to the Data Model

522)

Based on Lab 10-1 Excel: Create a Dashboard Using PivotTables and Slicers, once the data is loaded into the PivotTable, how do you switch from the default view of the table you selected to viewing each table in the workbook?

A) Each B) Active C) Existing D) All

523)

Based on Lab 10-2 Tableau: Create a Dashboard, in Sheet 3 you worked with a Dual Line Chart to calculate Sales by Day. Tableau defaulted to returning discrete data for the Date attribute you selected. What did you need to change the Sales_Order_Date field to in order to view the correct line chart?

A) Keep it as continuous B) Change it to Date C) Change it to Month D) Change it to Continuous

Answer Key Test name: chapter 10 1) FALSE 2) TRUE 3) TRUE 4) TRUE 5) TRUE 6) FALSE 7) TRUE 8) TRUE 9) TRUE 10) FALSE 11) A 12) B 13) C 14) A 15) C 16) B 17) A 18) B 19) D 20) B 21) A 22) C 23) A 24) A 25) C 26) A 27) A 28) B 29) D 30) B 31) D 32) D 33) D 34) D 35) D 36) D 37) D

Student name:__________ 524)

Financial statement analysis uses various tools and techniques to examine, compare and evaluate the financial statements of a firm for decision-making purposes. ⊚ true ⊚ false

525)

Customers use financial statement analysis to determine if they will be paid for the products or services they provide. ⊚ true ⊚ false

526)

Seeking Alpha, Lexis/Nexis and/or the company website contains transcripts of conference (earnings) calls. ⊚ true ⊚ false

527)

Using a company’s past performance as a benchmark for the company’s current performance is an appropriate diagnostic analytics technique. ⊚ true ⊚ false

528)

Creating and analyzing common-size financial statements are similar to horizontal analysis. ⊚ true ⊚ false

529)

An analyst is using regression analysis to determine the relationship between an investment in advertising expenditures and subsequent sales. Advertising expenditures is the dependent variable and net sales is the independent variable. ⊚ true ⊚ false

530)

A detailed description of accounting principles and methods employed by the company are included in the A) Footnotes B) Financial statements C) Analyst reports D) XBRL

531)

The data source of summarized data, including stock returns, risk measures, economic performance data, commodities prices, insider and institutional holdings, debt ratios is available at A) Company investor relations website B) Bloomberg, S&P Compustat, Industry reports C) Financial statements D) XBRL

532)

Which descriptive analytics technique would be used to address the question, how many customers does a company serve?

A) Counts B) Totals, sums, averages, subtotals C) Minimums, maximums, medians, standard deviations D) Graphs, histograms

533)

Which descriptive analytics technique would be used to address the question: Did the amount of interest expense as a percentage of sales increase in the past year?

A) Percentage increases B) Totals, sums, averages, subtotals C) Minimums, maximums, medians, standard deviations D) Graphs, histograms

534)

Which of the following is a liquidity ratio?

A) Return on equity B) Debt-to-equity ratio C) Profit margin D) Inventory turnover ratio

535)

Which of the following is a solvency ratio?

A) Acid-test ratio B) Current ratio C) Profit margin D) Times interest earned ratio

536)

Which of the following is a profitability ratio?

A) Acid-test ratio B) Current ratio C) Profit margin D) Times interest earned ratio

537)

Which of the following would be a potential entity comparison to understand Tesla’s current-year performance?

A) Compare current year Tesla performance to prior year Tesla performance B) Compare current year Tesla performance to current year Rivian or Ford performance C) Compare current year Tesla performance to current year overall auto industry performance D) Compare current year Tesla performance to current year overall S&P 500 (stock market) performance

538)

Which is the appropriate base for common-size income statement line items?

A) Total assets B) Cost of goods sold C) Net income D) Total (or net) sales

539)

Which is the appropriate base for common-size balance sheet line items?

A) Total liabilities B) Stockholders’ Equity C) Total (or net) sales D) Total assets

540)

An analyst is using regression analysis to determine the relationship between an investment in research and development expenditures and subsequent net income. What is the dependent variable?

A) Net income B) R&D expenditures C) Capital expenditures D) Advertising expenditures

541)

A company’s factory incurs fire damage and is no longer able to manufacture its products until the factory is rebuilt. What type of analytics would the company perform to determine the amount of sales and income they would have had if there had been no fire?

A) Descriptive analytics B) Predictive analytics C) Diagnostic analytics D) Exploratory analytics

542)

A company’s factory incurs fire damage and is no longer able to manufacture its products until the factory is rebuilt. What is the process called when a company works to determine the amount of sales and income they would have had if there had been no fire?

A) Prescriptive analytics B) Time series analysis C) Expected Fire losses D) Business interruption losses

543)

What happens to Bank of America’s profits if the interest rates change in the future from three to four percent? This question is an example of what type of analytics?

A) Descriptive analytics B) Diagnostic analytics C) Predictive analytics D) Prescriptive analytics

544)

What happens to Bank of America’s profits if the interest rates change in the future from three to four percent? This is an example of what type of analysis?

A) Marginal (incremental) analysis B) Cash-flow analysis C) Goal-seek analysis D) Sensitivity analysis

545)

How would you value Chipotle’s stock using forecasted sales and earnings?

A) Marginal (incremental) analysis B) Scenario analysis C) Goal-seek analysis D) Cash-flow analysis

546)

Evaluating the value of a stock price of a company based on the value of its closest competitors or industry is know as: A) common-size financial statements B) comparative ratio analysis C) relative market valuation D) cash-flow analysis

547)

Which of the following is not a common basic valuation metric used in relative market valuation to value a company’s stock?

A) P/C (price-to-cash) ratio B) P/S (price-to-sales) ratio C) P/B (price-to-book value) ratio D) P/E (price-to-earnings) ratio

548)

Using analyst forecasts to project future earnings to value a company stock is known as: A) discounted cash flow analysis valuation B) residual income valuation C) cash flow projection D) analyst forecast valuation

549)

In which component of the AMPS model does sensitivity analysis fit?

A) Ask the Question B) Master the Data C) Perform the Analysis D) Share the Story

550)

Using a visualization to communicate the results of cash flow analysis is an example of which component of the AMPS model?

A) Ask the Question B) Master the Data C) Perform the Analysis D) Share the Story

551)

Using common-size financial statements to compare and contrast financial performance with other companies performance is an example of: A) descriptive analytics B) prescriptive analytics C) predictive analytics D) diagnostic analytics

552)

What data does XBRL represent?

A) Analyst forecasts of future earnings B) Open, free global standard for exchanging financial information C) Data source of vendor contact information D) Data source of all shareholder contacts

553)

What data does EDGAR represent?

A) Analyst forecasts of future earnings B) A repository of all required financial disclosures to the Securities and Exchange Commission C) A data source of vendor contact information D) A data source of all shareholder contacts

554)

Which single independent variable has the highest adjusted R-squared when explaining the market value of equity?

A) Net income B) Operating cash flows C) Accruals D) Sales

555)

Which type of ratio is return on assets?

A) Profitability B) Solvency C) Liquidity D) Activity

556)

Based on Lab 12-1 Excel: Descriptive Analytics: Ratio Analysis, given the results of the ratio analysis given 2021 financials, which company would be more likely to be able pay its short-term obligations?

Source: Ford and General Motors 2021 Financial Statements A) Ford B) General Motors

557)

Based on Lab 12-4 Excel: Predictive Analytics: Net Income, Cash Flows, and Market Value Prediction, given these regression results, which variables, cash flows from operating activities (oancf) and/or accruals, are significant predictors of the market value of equity?

A) B) C) D)

Operating cash flows (oancf) Accruals and operating cash flows (oancf) Accruals Neither variable is a significant predictor of market value

558)

Based on Lab 12-5 Excel: Predictive Analytics: Amounts, Timing, and Uncertainty of Future Cash Flows: Business Interruption Loss, what is the non-discounted sum of business interruption loss if one customer is lost?

A) B) C) D)

559)

$695,272 $800,000 $400,000 $1,200,000

Based on Lab 12-2 Excel: Diagnostic Analytics: Common-Size Financial Statements.

Using the following common-size income statement, why does Bank of America have a such a small cost of goods sold?

560)

Based on Lab 12-6 Excel: Prescriptive Analytics: Relative Market Valuation. Using the figure as a guide, explain what is happening in this figure to value Walmart stock using relative market valuation (with Walmart data as of 1/31/2022).

561)

Based on Lab 12-7 Excel: Valuing a Company Using Yahoo! Analysts’ Forecasts/Sensitivity Analysis, explain what is happening in this graphic to value Alphabet (Google) stock based on analyst forecasts.

Answer Key Test name: chapter 12 1) TRUE 2) FALSE 3) TRUE 4) TRUE 5) FALSE 6) FALSE 7) A 8) B 9) A 10) A 11) D 12) D 13) C 14) B 15) D 16) D 17) A 18) B 19) D 20) D 21) D 22) D 23) C 24) A 25) A 26) C 27) D 28) D 29) B 30) B 31) A 32) A 33) B 34) B 35) B 36) Essay 37) Essay

38) Essay

Student name:__________ 562)

Marginal/Incremental analysis is an example of a predictive analytics technique. ⊚ true ⊚ false

563)

A financial reporting system is a system designed to aggregate, monitor, and report to management about revenues, costs, and profitability to formulate job and process costing data, budget information, and standard costing data and allocate overhead. ⊚ true ⊚ false

564)

Optimization models emphasize the best decision in the presence of changing conditions. ⊚ true ⊚ false

565)

A common constraint of an optimization is to maximize its profits by its product mix is the amount of resources available to produce or offer its products. ⊚ true ⊚ false

An analysis of the question “Why is the profit margin higher in Canada than in Japan?” is an example of: A) descriptive analytics.

B) diagnostic analytics.

C) predictive analytics.

D) prescriptive analytics.

566)

567)

Which descriptive analytics technique would address the question: How much did Job #507 cost to produce?

A) Counts B) Totals, sums, averages, subtotals C) Minimums, maximums, medians, standard deviation D) Ratio analysis

568)

Which descriptive analytics technique would address the question: Which products were the least profitable for the company?

A) Counts B) Totals, sums, averages, subtotals C) Minimums, maximums, medians, standard deviation D) Ratio analysis

569)

As inputs into the cost accounting system, direct labor and indirect labor would come from which system?

A) Enterprise B) Customer relationship management system C) Human resource management system D) Manufacturing

570)

As inputs into the cost accounting system, detailed revenue information would come from which system?

A) Management information system B) Customer relationship management system C) Human resource management system D) Manufacturing system

571)

The assessment regarding the investment in big projects and their ultimate payoff is traditionally called: A) cash flow analysis.

B) net present value analysis.

C) what-if analysis.

D) capital budgeting.

572)

If a company is trying to maximize its profits by its product pricing, what is a common constraint of the optimization?

A) Maximize profits associated B) The price of its products C) Price elasticity of demand D) The quantity of each product sold

573)

Determining the cost behavior (fixed vs. variable vs. mixed costs) is an example of which analytics technique?

A) Finding anomalies and outliers B) Drill-down analysis C) Regression D) Goal-seek analysis

574)

Variance analysis is an example of which analytics technique?

A) Finding anomalies and outliers B) Drill-down analysis C) Classification D) Goal-seek analysis

575)

Forecasting product demand exclusively using past product demand is an example of which analytics technique?

A) Time series B) Regression C) Classification D) Sensitivity analysis

576)

Forecasting product demand exclusively using multiple possible predictive factors is an example of which analytics technique?

A) Time series B) Regression C) Classification D) Sensitivity analysis

577)

Which prescriptive analytics technique predicts how changing one input will affect an outcome variable?

A) cash-flow analysis B) sensitivity analysis C) marginal analysis D) goal-seek analysis

578)

A visualization using a line graph that shows forecasts relative to past performance are examples of: A) prescriptive analytics B) descriptive analytics C) diagnostic analytics D) predictive analytics

579)

This exhibit provides an example of a sensitivity analysis that might be performed by management accountants, evaluating the changing profitability based on two important inputs, the variable cost per unit and the number of units sold.

To perform sensitivity analysis, the analysis varies the variable cost per unit from $4 to $40 (as shown in the columns) and the number of units sold from 50 to 550 (as shown in the rows). The colored columns are the total profits based on the changing input parameters.

When combined with conditional formatting, the estimated profitability can be evaluated.

All other things equal, as variable cost increases, what happens to the estimated profitability?

A) Estimated profitability does not change B) Estimated profitability increases C) The change in estimated profitability can not be determined D) Estimated profitability decreases

580)

This exhibit provides an example of a sensitivity analysis that might be performed by management accountants, evaluating the changing profitability based on two important inputs, the level of total fixed costs, and the sales price.

To perform sensitivity analysis, the analysis varies the sales price from $35 to $53 (as shown in the columns) and the fixed costs from $500 to $3,000 (as shown in the rows). The colored columns are the total profits based on the changing input parameters. When combined with conditional formatting, the estimated profitability can be evaluated.

All other things equal, as fixed costs decreases, what happens to the estimated profitability?

A) Estimated profitability does not change B) Estimated profitability decreases C) The change in estimated profitability can not be determined D) Estimated profitability increases

581)

This exhibit provides an example of a sensitivity analysis that might be performed by management accountants, evaluating the changing profitability based on two important inputs, the level of total fixed costs, and the sales price.

To perform sensitivity analysis, the analysis varies the sales price from $35 to $53 (as shown in the columns) and the fixed costs from $500 to $3,000 (as shown in the rows). The colored columns are the total profits based on the changing input parameters. When combined with conditional formatting, the estimated profitability can be evaluated.

Which is more impactful on profitability, a $4 increase in sales price per unit or a $500 decrease in total fixed costs?

A) A $4 increase in sales price per unit B) A $500 decrease in total fixed costs

582)

This exhibit provides an example of a sensitivity analysis that might be performed by management accountants, evaluating the changing profitability based on two important inputs, the level of total fixed costs, and the sales price.

To perform sensitivity analysis, the analysis varies the sales price from $35 to $53 (as shown in the columns) and the fixed costs from $500 to $3,000 (as shown in the rows). The colored columns are the total profits based on the changing input parameters. When combined with conditional formatting, the estimated profitability can be evaluated.

All other things equal, a $6 increase in sales price per unit is associated with how big of a change in estimated profitability?

A) A $1,800 increase in estimated profitability B) A $1,200 decrease in estimated profitability C) A $1,200 increase in estimated profitability D) A $600 increase in estimated profitability

583)

This exhibit provides an example of a sensitivity analysis that might be performed by management accountants, evaluating the changing profitability based on two important inputs, the level of total fixed costs, and the sales price.

To perform sensitivity analysis, the analysis varies the sales price from $35 to $53 (as shown in the columns) and the fixed costs from $500 to $3,000 (as shown in the rows). The colored columns are the total profits based on the changing input parameters. When combined with conditional formatting, the estimated profitability can be evaluated.

What would you call this type of visualization?

A) Heat Map B) Rainbow Map C) Conditional Highlighting D) Horizontal Analysis

584)

Which diagnostic analytics technique is used by management accounting to assess why amount spent on factory labor is different than the amount expected (or budgeted)?

A) Benford’s Law B) Duplicate transactions C) Variance analysis D) Internal controls testing

585)

Describe the role of a managerial accountant.

586)

What are some questions associated with management accounting that might be addressed with analytics?

587)

Explain sensitivity analysis. Why is a management accountant interested in the change in the output if the input changes?

588)

Based on Lab 13-1 Excel Descriptive Analytics: Evaluating Inventory Using Inventory Turnover and Waste, how is inventory turnover calculated?

A) Sales divided by Average Inventory B) Average Inventory divided by Sales C) Cost of Sales divided by Average Inventory D) Average Inventory divided by Cost of Sales

589)

Based on Lab 13-2 Excel Diagnostic Analytics: Variance Calculation and Conditional Formatting, what Excel formula is used to calculate materials price formula in cell E16 as shown below?

A) = G11 − D11 B) = J11 − G11 C) = E16 + H16 D) = G8 × G9

590)

Based on Lab 13-3 Excel Forecasting Product Demand Using Time Series Analysis and the figure below, what is the name for the line below the bolded orange line called?

A) B) C) D)

Forecasted performance Pessimistic forecast Lower confidence bound Minimum forecast

591)

Based on Lab 13-6 Excel Forecasting Product Demand Using Regression Analysis and the regression results shown below, what percent of the variability in product demand is explained by GDP, Weather, and Holiday?

A) B) C) D)

2.16% 78.05% 89.1% 4.28%

592)

Based on Lab 13-8 Excel Prescriptive Analytics: Optimizing Price and the figure below, what is the constraint?

A) B) C) D)

Changing Variable Costs Price Elasticity of Demand Changing Price Changing Product Sales

Answer Key Test name: chapter 13 1) FALSE 2) FALSE 3) FALSE 4) TRUE 5) B 6) B 7) C 8) C 9) B 10) D 11) C 12) B 13) A 14) A 15) B 16) B 17) B 18) D 19) D 20) A 21) A 22) A 23) C 24) Essay 25) Essay 26) Essay 27) C 28) A 29) C 30) B 31) B