Test Bank For Data Analytics for Accounting, 3rd Edition Richardson Chapter 1-9 ISBN: 9781260837834 Latest 2025/2026

Content Preview

Test Bank For Data Analytics for Accounting, 3rd Edition Richardson Chapter 1-9 Answers are at the End of Each Chapter Chapter 01: Student name:__________ 1) Data analytics is the process of evaluating data with the purpose of drawing conclusions to address business questions. ⊚ true ⊚ false 2) The process of data analytics aims to transform raw information into data to create value. ⊚ true ⊚ false 3) Data analytics has the potential to transform the manner in which companies run their businesses, however it is not practical in the near future. ⊚ true ⊚ false 4) Auditors can use social media to hear what customers are saying about a company and compare this to inventory obsolescence and other estimates. ⊚ true ⊚ false 5) Data analytics allows auditors to glean insights that are beneficial to the client, without breeching independence. ⊚ true ⊚ false 6) The predictive analytics is an important aspect of data analytics for auditors, but is not applicable for tax accountants. ⊚ true ⊚ false 7) The I in IMPACT Cycle represents Identify the Question. ⊚ true ⊚ false 8) The M in IMPACT Cycle represents Master the Data. ⊚ true ⊚ false 9) The P in IMPACT Cycle represents Predict the Results. ⊚ true ⊚ false 10) The A in IMPACT Cycle represents Analyze the Data. ⊚ true ⊚ false 11) The C in IMPACT Cycle represents Continuously Track. ⊚ true ⊚ false 12) The T in IMPACT Cycle represents Track Outcomes. ⊚ true ⊚ false 13) The IMPACT cycle is iterative, as insights are gained, outcomes are tracked, and new questions are identified. ⊚ true ⊚ false 14) Data analysis through data manipulation is performing basic analysis to understand the quality of the underlying data and its ability to address the business question. ⊚ true ⊚ false 15) To be proficient in data analysis, accountants need to become data scientists. ⊚ true ⊚ false 16) By developing an analytics mindset, accountants will be able to recognize when and how data analytics can address business questions. ⊚ true ⊚ false 17) While it is important for accountants to clearly articulate the business problem, drawing appropriate conclusions, based on the data, should be left to statisticians. ⊚ true ⊚ false 18) Analytic-minded accountants should report results of analysis in an accessible way to each varied decision maker and their specific needs. ⊚ true ⊚ false 19) With a goal to give organizations the information they need to make sound and timely business decisions, data analytics often involves all of the following except: A) technologies. B) statistics. C) strategies. D) databases. 20) Patterns discovered from __________ enable businesses to identify opportunities and risks and better plan for __________. A) past archives; the future B) current data; the future C) current data; today D) past archives; today 21) Which of the following best describes the goal of descriptive data analysis: A) recognize what is meant by data quality, be it completeness, reliability or validity B) perform basic analysis to understand the quality of the underlying data and its ability to address the business question C) demonstrate ability to sort, rearrange, merge, and reconfigure data in a manner that allows enhanced analysis D) comprehend the process needed to clean and prepare the data before analysis 22) Which of the following Microsoft software tool specializes in data joining? A) Excel B) Power Query C) Power BI D) Power Automate 23) Which of the following Microsoft software tools specializes in creating dashboards? A) Excel B) Power Query C) Power BI D) Power Automate