Chapter 2; Intro to Acct data

Question 1

What are the 4 Vs of Big Data?

Answer 1

• Volume
• Variety
• Veracity
• Velocity

Question 2

Explain the 3 structure varieties of big data:

Answer 2

Structured

• Highly Organized (fits into table)
• Financial statements

Semistructured

• No internal structure, but comes with identifiers
• XBRL

Unstructured

• No internal structure
• Social media posts

Question 3

Veracity is the truthfulness and trustfulness that big data carries,

What determines veractiy?

Answer 3

Whether data is fact or estimate

Cash on hand vs allowance for doubtful accounts

The accuracy of data

Errors and fraud exist

Question 4

What is the difference between:

• General Ledger
• Subsidiary Ledger

Answer 4

General Ledger

Summarizes all account balances

Subsidiar Ledger

Detailed information on specific accounts

Question 5

What are some examples of subsidiary ledgers?

Answer 5

Fixes Assets Subledger

Receivables Subledger

Inventory Subledger

Question 6

Companies are required to file a 10-K with the SEC.

What 5 sections are required on this form?

Answer 6

Business - How the company makes money

Risk factors - Any significant risk the company faces now or could face in future

Financial data

Management discussion and analysis

Financial Statements

Question 7

What are these two forms that must be filed with SEC?

• 8-K
• 10-Q

Answer 7

8-K

Notify investors of important events (Officers leaving, mergers)

10-Q

Similar to 10-K, but less detailed, and filed quarterly

Question 8

What is XBRL?

Answer 8

Extensible Business Reporting Language

Standard code language used for reporting financials to SEC

Each number is “tagged” with explanation of what number represents