EXAM 1 Flashcards
CH 1 (1.1-11.4)
1.1 How are Data and Analytics Transforming the Accounting Profession?
Performing data analytics includes 1) id___ both the 2) d___a necessary for the 3) an___ and the 4) ap____ analysis 5) m___
1) identifying
2) data
3) analysis.
4) appropriate
5) method
The profession is experiencing the following changes:
-Efficiency from automation of routine accounting tasks
-journal entries
-financial reporting
-Professional examinations include topic of data and analytics
-Enhanced insight and analysis
Define Data
1) r___ figures and 2) f__
1) raw
2) facts
Technology helps convert that data to i_____
information
Define Information
1) k___ gained from data that’s 2) re____ for 3) an___ purposes
1) knowledge
2) relevant
3) analysis
Example of technology converting data to information
EX. A sales transaction
Sales transaction data will include the 1) d__ sold, the 2) pr___ purchased, 3) q___ sold, and 4) p___ for each sale.
-information is the total sales by product, which can then be used for analysis and decision making
1) date
2) product
3) quantity
4) price
Define Data Analytics
the process of analyzing 1) r___ d__ to answer 2) ___ or provide 3) in___ts
1) raw data
2) questions
3) insights
Define self-service business intelligence (SSBI) software
1) e__to use, 2) ac___ software that can 3) p__ data, 4) an__ data, and 5) re___ re___
it’s increase use of 6) d___ and a____
1) easy
2) accessible
3) prepare
4) analyze
5) report results
6) data and analytics
What are the 2 key features of self-service business intelligence (SSBI) software?
-It provides 1) ex___ data processing capabilities for 2) pr____ data, 3) an___ data, and 4) re___ data an__ results
-It is 5) __ to use. No 6) d___e in computer science is required!
1) extended
2) preparing
3) analyzing
4) reporting data analysis
5) easy
6) degree
Define null value
indicates an un___ or m___ value
not the same as ___
unknown or missing
not the same as zero
Analytics and Auditing
-Audits have expanded beyond sample-based testing to include analyses of 1) en___ po____ of audit-relevant data.
-Auditors can review 2) e____ data sets to identify all 3) ex____, an____s, and out__
-Data driven audits 4) r__ the time the client spends gathering 5) i____ for the auditor and allows more 6) ___ for the analysis, making audits a 7) b___ experience for everyone involved.
1) entire population
2) entire
3) exceptions, anomalies, and outliers.
4) reduce
5) information
6) time
7) better
Analytics and Auditing
Both 1) i___ and e___ auditors use 2) an__ to perform 3) ___ assessment and substantive 4) pr____
1) internal and external
2) analytics
3) risk
4) procedures
Analytics and Auditing
Risk assessment helps the auditor quickly identify the accounts that appear to have a 1) h___ risk of misstatement, so they can 2) in___ further.
1) higher
2) investigate
Audit and Analytics
In addition to risk assessment, auditors can use data analytics to perform 1) su___ an___ pro___ that 2) su___t the assertion that the financial 3) rec___ of an entity are 4) co___, v____, and ac___
1) substantive analytical procedures
2) support
3) records
4) complete, valid, and accurate
Define Data Visualization
the 1) gra___ re___ of 2) in__ and d___
1) graphical representation
2) information and data
SSBI software lets financial accountants perform 1) an____and create financial 2) d___ to support 3) d___n-m____
1) analytics
2) dashboards
3) decision-making
Define Dashboard
graphical 1) us___ int____ that shows 2) k___ pe____ indicators for an organization
1) user interface
2) key performance
This dashboard brings together analyses of different elements of the financial statements. Users can quickly see key performance indicators that provide insight into overall business performance.
The dashboard information can be viewed by year, quarter, or month using the tabs across the top.
- The dashboard information can be viewed by year, quarter, or month using the tabs across the top.
-The top row is a snapshot of how revenue, expenses, liabilities, assets, gross profit, and cash compare to goals.
-The visualizations in the dashboard provide an analysis of revenue and expenses, total assets and total liabilities, and a visualization that allows the user to choose an account to view compared to the prior year.
-The table in the top left of the dashboard provides the top expenses incurred by the company
Frequently used in business, 1) da___ are a useful 1.1) to___ to 2) com____ key 3) in___ to everyone who 4) n___ it.
1) dashboards
1.1) tool
2) communicate
3) information
4) needs
While financial accountants analyze financial statements for 1) ex___ reporting, managerial accountants deal with 2) in___ reporting and 3) pe___ analysis
1) external
2) internal
3) performance
Analytics in Managerial Accounting
With SSBI software, management accountants can more easily use data to help 1) id___ and manage 2) r___, improve 3) bud___ and for___ (by using more ___ ), and automate 4) in___ reporting.
SSBI software can also help identify operational 5) im___ and create 6) da___ of 7) k___ pe____ in____ (KPI)
1) identify
2) risks
3) budgeting and forecasting (by using more data)
4) internal
5) improvements
6) dashboards
7) key performance indicators
The top visualization in the dashboard is called a highlight table. The colors are on a scale from light to dark. Darker colors indicate higher sales and lighter colors indicate lower sales. User can quickly locate high performing and low performing products. For example, the darkest color is technology sales in 2021 in the month of November.
The bottom visualization in the dashboard provides both sales and profit margin information by product and subcategory. The colored dots represent individual sales to customers by total amount. The color of the dots indicates the profit ratio on each sale. The color scale of profit ratio ranges from negative 50 percent (dark red) and positive profit ratios up to 50 percent (dark black).
_______________________________________
This product dashboard provides management with 1) r__ ___me updates of sales and 2) p___ information, enabling management to identify and respond to possible 3) is___ quickly.
For example, customers with negative profit ratios can be investigated immediately.
1) real time
2) profit
3) issues
Analytics in Tax Accounting
Data analytics can analyze the tax efficiency of 1) bu___units, identify tax 2) op___, and aid in evaluating 3) g__ opportunities
1) business
2) opportunities
3) global
Analytics in Tax Accounting
-Data analytics is used to help with tax 1) co___
-2) au___ of data gathering for tax compliance can help 3) sp__the process, leaving the tax accountant with more 4) t___ to do tax 5) an__ and p___g
-tax 6) da___s can help organizations monitor real time tax positions
1) compliance
2) automation
3) speed
4) time
5) analysis and planning
6) dashboards
1.2 What are the Stages of the Data AnalysisProcess?
What are the 3 stages of the data analysis process?
- P
- A
- R
- Plan
- Analyze
- Report
Data Analysis Process
Following a data analysis process helps 1) a___that data 2) an___ are performed 3) ef___ and e_____y.
1) assure
2) analyses
3) efficiently and effectively
Data Analysis Process; Stage 1: Plan
this includes
-identifying the 1) m____ n for the analysis,
-determining the 2) o___ and 3) q____ to answer
-devising a 4) st___ to 5) p___ the analysis.
1) motivation
2) objective
3) questions
4) strategy
5) perform
What are the 3 parts for Stage 1: Plan (data analysis process)
-understand the 1) mo___: understand the 2) re___ for the data analysis
-determine the 3) ob___: articulate the 4) go___/obj___, and develop a 5) sp___ q___(s)
-6) d___ the data and analysis 7) st___: 8) i___ the necessary data and analysis 9) me___to answer 10) qu___
1) motivation
2) reason
3) objective
4) goal/objective
5) specific questions
6) design
7) strategy
8) identify
9) method
10) questions
Define Motivation
the 1) r___n or stimulus for 2) pe___g data analysis
1) reason
2) performing
Data Analysis Process; Stage 1: Plan Understand Motivation
it is 1) ___ we are doing the analysis. The “why” behind a project can vary from taking advantage of opportunities to solving problems, and its source can be 2) ex___l or i___
1) why
2) external or internal
Data Analysis Process; Stage 1: Plan Understand Motivation
External motivation: The project originates from a request or requirement by 1) a___ party, such as 2) ex___ sta_____s. These external stakeholders could be investors, creditors, supply chain partners, industry regulators, or government agencies. Another example of external motivation is when someone 3) int____ to the organization, but on a 4) d____t team, assigns the project.
Internal motivation: The project is motivated by a desire to 5) b___ serve a client, better 6) un____ phenomena to 7) ___ business intelligence, or to perform job 8) res____. Projects are motivated internally when the incremental information gained is believed to outweigh 9) po___ costs involved with performing the data analyses.
1) another
2) external stakeholders
3) internal
4) different
5) better
6) understand
7) gain
8) responsibilities
9) potential
Define Objective
the projects g___
goal
Data Analysis Process; Stage 1: Plan Determine the Objective
A clear objective 1) na___s the analysis’ 2) f___, and 3) s___ questions that guide the analysis can be developed based on it.
1) narrows
2) focus
3) specific
Data Analysis Process; Stage 1: Plan
Design the Data and Analysis Strategy
-Developing a strategy for the project is the final step in the planning stage
There are 2 aspects to this:
-determining the data necessary to 1) an__ q____
-deciding what 2) t___ of analysis is 3) ap___ considering both the data and those questions.
1) answer questions
2) type
Data Analysis Process; Stage 1: Plan
Design the Data and Analysis Strategy
Designing a strategy for the data involves identifying the 1) sp____ d___ needed and 2) kn____how to 3) ac___ it.
There are 2 categories of data. What are they ?
1) specific data
2) knowing
3) access
the 2 categories are internal and external data
Data Analysis Process; Stage 1: Plan
Design the Data and Analysis Strategy
Internal data are found 1) w____ the organization. This includes 2) tra___ data, gen___ le__ data, sa___ data, cus____ data, v____ data, internal do___, and internal e___
External data are acquired from 3) o___the organization. Data like this might come from 4) ____ media, we____, we____r data, go___ data, and m__s.
1) within
2) transaction data, general ledger data, sales data, customer data, vendor data, internal documents, and internal email.
3) outside
4) social media, websites, weather data, government data, and maps.
What are the 4 types of Data Analytics?
- D
- Di
- Pr
- Pr___e
- Descriptive
- Diagnostic
- Predictive
- Prescriptive
Out of the 4 types of Data Analytics, which is the most common and easily understood analytics?
Descriptive
Define Descriptive Analytics
designed to 1) un____d what is 2) cu___ happening or what has happened in the 3) p___
1) understand
2) currently
3) past
4 types of Data Analytics: Descriptive Analytics
They are the 1) ___ analytics performed to help understand 2) d____
3) S___, co___, av__, m___n, st___d dev___, and pr____ s are examples.
1) first
2) data
3) Sum, count, average, median, standard deviation, and proportions
Define Diagnostic Analytics
designed to understand 1) ___ something happened
1) why
4 types of Data Analytics: Diagnostic Analytics
The information gained from descriptive analytics about what happened lets us drill down further to understand 0) w___. The results of these analyses inform 1) d___n-m___ about actions in the 2) f___
Examples include 3) an__y and o___ detection, tr___ analysis, and p___n recognition.
0) why
1) decision-making
2) future
3) anomaly and outlier detection, trend analysis, and pattern recognition.
Define Predictive Analytics
helps understand what is likely to happen in the ____
future.
4 types of Data Analytics: Predictive Analytics
Predictive analytics use 1) d__a, st____l algorithms, and machine l____g to identify the likelihood of 2) f____ outcomes based on 3) hi____ data.
The goal is to use what is 4) k___n about the 5) p___ to make a 6) b____r assessment of what 7) m___ happen in the future.
8) For____, reg____ analysis, and ti__-s___ ies analysis are a few examples.
1) data, statistical algorithms, and machine learning
2) future
3) historical
4) known
5) past
6) better
7) might
8) Forecasting, regression analysis, and time-series analysis
Define Prescriptive Analytics
determines the 1) b___ co____ of action to achieve a 2) g___l in a 3) sp___ sc___
1) best source
2) goal
3) specific scenario
4 types of Data Analytics: Prescriptive Analytics
These analyses go beyond descriptive and predictive analyses by recommending 1) __ or m___ po____ courses of action.
Prescriptive analytics include 2) op____on and w___-___ analyses
1) one or more possible
2) optimization and what-if analyses
Data Analysis Process; Stage 2: Analyze
This stage includes data 1) pr___ , 2) bu____ inf___ m___, and 3) e___g the data
1) preparation
2) building information models
3) exploring the data
Data Analysis Process; Stage 2: Analyze
Prepare Data
Good quality data result in good quality analyses, so preparing the data for analysis is a critical step in this stage. This process is often referred to as e___ t-tr___m-l___ (ETL).
extract-transform-load (ETL).
Data Analysis Process; Stage 2: Analyze
Prepare Data
What are the 3 things to prepare data?
-E___
-Tr__
-Lo___
-Extracting
-Transform
-Loading
Data Analysis Process; Stage 2: Analyze
Prepare Data
-Extracting is the process by which data are 1) ret___ from a source. This could be downloading an Excel file or extracting data from a database or a data warehouse.
-Transforming the data occurs when data are 2) cl___, re___d, and/or int___d with other data prior to using it for analysis.
-Loading is the process of 3) imp___ transformed data into the 4) s____ u___ed to perform analyses. There are many types of analysis software available, including Excel, Power BI, and Tableau.
1) retrieved
2) cleaned, restructured, and/or integrated
3) importing
4) software used
Define Data Profiling
The first step is determining if data needs to be 1) c___. The process of 2) re___ the data for 3) pos___ is___ is called data profiling
1) cleaned
2) reviewing
3) possible issues
Data Analysis Process; Stage 2: Analyze
Prepare Data
To verify all the data have been extracted, you can compare the row counts of the data extracted to the total number of rows that should be in the data. To ensure that the data were transferred correctly, compare the amounts transferred to control amounts
Data Analysis Process; Stage 2: Analyze
Build Information Models
Information modeling is the creation of information needed for 1) an___ pur____, starting fromthe data 2) co___d.
Examples are calculations such as 3) ___t income, ___ margin, total a____ , or even br___ -even point in sales dollars.
1) analysis purposes
2) collected
3) net income, profit margin, total assets, or even break-even point in sales dollars.
Data Analysis Process; Stage 2: Analyze
Explore Data
The core goal of data analysis is to 1) e____ data to 2) id___ pat___, tre__, or u__ observations.
Exploring data lets us 3) di___r, qu___, and inv___ data relationships to successfully execute data analysis 4) obj____
1) explore
2) Identify patterns, trends, or unusual
3) discover, question, and investigate data relationships
4) objectives
Data Analysis Process; Stage 3: Report
The goal of this stage is to determine if the analyses 1) m___t the project’s 2) o____and then to 3) sh___ the results.
4) I____ the analyses and 5) com___ the results is a crucial stage–an amazing analysis that 6) d__ ___ meet the project’s objectives is 7) u____.
Moreover, if the results are not communicated effectively, then the analyses and recommendations 8) c___ be acted on.
1) met
2) objectives
3) share
4) interpreting
5) communicating
6) does not
7) useless
8) cannot
Data Analysis Process; Stage 3: Report
Interpret Results
Data analysis interpretation is the process of 1) re___ analyses to be sure they make 2) s___ based on the project’s 3) o__ and that the results are 4) va___ and re___
Does the analysis 5) m___ the objective?
1) reviewing
2) sense
3) objective
4) valid and reliable
5) meet
Data Analysis Process; Stage 3: Report
Communicate Results
The results of a data analysis project can be communicated 1) o___, with vis___ or in w___.
Typically, data analysis communication will include data 2) vi__
1) orally, with visuals, or in writing.
2) visualizations
What’s the acronym to remember the Data Analysis Process?
MOSAIC
Motivation
Objective
Strategy
Analysis
Interpret
Communicate
MOS - Stage 1: Plan
A - Stage 2: Analyze
IC - Stage 3: Report
1.3 What is a Data Analytics Mindset?
Define Data Analytics Mindset
the 1) pr____ h___ of 2) cri___ th___ through the 3) pl___ an___, and r__ng of data analysis results 4) ____ making and communicating a professional 5) c___ or d__
1) professional habit
2) critically thinking
3) planning, analysis, and reporting
4) before
5) choice or decision
Individuals with a data analytics mindset are 1) in____.
They always ask 2) “____” when interpreting 3) r____, they are 4) o__to learning new 5). te____, and they evaluate their own 6) th____.
How can you develop a data analytics mindset? Focus on developing 7) __ such as critical thinking, data literacy, technological agility, and communication skills.
1) inquisitive
2) why
3) results
4) open
5) technologies
6) thinking
7) skills
What are 4 skills you need to have a Data Analytics Mindset?
- C____ T____
- D___ Li___
- T_____l Agility
- Co____ skills
- Critical Thinking
- Data. Literacy
- Technological Agility
- Communication skills
Define Critical Thinking
1) di___ re____ used to 2) in_____ un____, and e____e an event, op____, or an i___
1) disciplined reasoning
2) investigate, understand, and evaluate an event, opportunity, or an issue
Define Reasoning
the 1) ____ process of 2) l____forming 3) c____s, ju____, or in____ from facts.
1) human
2) logically
3) conclusions, judgments, or inferences
Critical Thinking
Not only do employers want critical thinkers, but professional certification exams such as the CPA exam and the CMA exam also include assessment questions that test critical thinking skills.
Critical thinking is the 1) ___ of a data analytics mindset and should be integrated throughout the data analysis process
1) foundation
Define Data Literacy
ability to 2) u___ and co___ data
2) understand and communicate
Define Technological Agility
An 1) a____ of the latest 2) tec___ dev___ and a 3) w____ to work with new 4) ___ls
1) awareness
3) technological
3) willingness
4) tools
Technology Skills
We can become technologically agile by learning new technology and developing the skills that help us to do so.
In fact, being comfortable learning new technology leads to more agility. This “learn to learn” mindset is what employers are looking for in new employees.
1.4 How is a Data Analytics Mindset Applied?
What are the 6 elements of critical thinking?
- S___
- P____e
- Alt____s
- Ri___
- Kno___
- Se___-ref____
What’s the acronym ?
- Stakeholders
- Purpose
- Alternatives
- Risks
- Knowledge
- Self-reflection
SPARKS
The 6 elements of critical thinking
Keep in mind that these elements are not sequential, rather they are 1) re____
In other words, the order in which you consider the elements is 2) ___ as important as 3) co___ t___ through them
1) recursive
2) not as
3) continually thinking
The 6 elements of critical thinking: Understand the Stakeholders
Define Stakeholders
individuals or groups with an 1) i____ in the outcome of a data analysis project
Stakeholders can be
2) ___ or ____. to an organization
1) interest
2) internal or external
Define internal stakeholders
individuals or groups involved in a 1) b___ operations. They include an organization’s 2) ____s and em___
1) businesses
2) managers and employees
Define external stakeholders
individuals or groups 1) ___ the company.
Examples include investors and creditors, regulators, organizational partners (clients or customers, suppliers, outsource partners, and donors), and community leaders and members
1) outside
The 6 elements of critical thinking: Understand the Stakeholders
Overall, understanding the stakeholders helps us to better 1) un___ the 2) i____ of the analysis and can 3) g___ our choice of 4) d___ and analysis 5) m___.
1) understand
2) impact
3) guide
4) data
5) methods
The 6 elements of critical thinking: Identify the Purpose
Knowing the reason for data analyses and articulating specific questions maintains 1) f___ on the data and analyses steps that will achieve 2) o___
The importance of identifying specific questions was covered with the discussion of data analysis objectives. Here, the emphasis is on repeatedly returning to those questions to keep the analysis on3) ___
1) focus
2) objectives
3) track
The 6 elements of critical thinking: Consider Alternatives
Performing data analyses involves many choices–which questions to evaluate, what data are needed, which method to use, and how to best communicate the results. How should we consider these alternatives?
First, 1) id___y the available 2) c___, rank them, then choose the 3) h___ ranked option.
As with all business decisions, weighing the 4) c___ of performing the analysis against its expected 5) be___ is good practice.
While we should only perform analyses where the 6) b___ exceed the cost, the costs and benefits of performing an analysis 7). c___ always be quantified. In these cases, think critically about the 8) ch___s and select the option that 9) __t supports the purpose.
1) identify
2) choice
3) highest
4) cost
5) benefits
6) benefits
7) cannot
8) choices
9) best
The 6 elements of critical thinking: Consider Alternatives
To select the best data for the analysis, 1) ra___ the data by their 2) r____ and availability.
Data that are both relevant and available will rank 3) hi____ than data that are relevant but 4) ___t available or data that are 5) ir__
1) rank
2) relevance
3) higher
4) not
5) irrelvant
The 6 elements of critical thinking: Consider Alternatives
The methods of analysis that are most relevant for this question are 1) d____e and d____ methods.
1) descriptive and diagnostic
The 6 elements of critical thinking: Assess Risks
There are many risks to consider when performing data analyses, and it’s important to examine 1) a__ as____ of the analysis to identify them. This begins with the data and extends to 2) p___l bi___s, including our own, that may be held by the stakeholders
1) all aspects
2) potential biases
What are the 4 types of risks?
- D___
- A___
- As___
- B__
- Data
- Analysis
- Assumptions
- Biases
Ch 2 (2.1-2.3)
Define BIT
b___ digit (___ or __)
-l____t level
binary digit (0 or 1)
-lowest level
There is a symbol for a key next to the AssetTagID attribute in the first table and the CategoryID in the second table. This symbol identifies the primary key
Define Primary Key
A 1) un___ v__ for each data 2) r__ in a database table
1) unique value
2) row
Define foreign key
A 1) co___ in a table that is a 2) pri___ k___ in another table.
1) column
2) primary key
What are the 4 types of joins?
Inner
Left
Right
Full
Define Inner join
-selects all 1) r___s from 2) b__. tables with 3) m____ values
-the results will 3) __t have 4) n___ values in any key column
1) rows
2) both
3) matching
4) not
5) null
Define Left join
-returns 0) __ records from the 1) ___t table and the 2) m__records from the 3) r__table
-there could be 4) n___ values if there’s 5) __o matching value in the right table to a left table record
0) all
1) left
2) matching
3) right
4) null
5) no
Define Right join
-returns all the records from the 1) r__ table and the matched records from the 2) l__ table
-could return 3)__l values if there’s 4) _t a matching value in the left side to the record in the right table
1) right
2) left
3) null
4) not
Data sets are either 1) sym____ or a___al in shape
In a symmetrical distribution, the mean, median, and mode are 2) ___l and the data distribution to the right of the mean mirrors the data to the left of the mean.
A symmetrical distribution will look like a 3) b__ c___ in a graph
1) symmetrical or asymmetrical
2) equal
3) bell curve
Skewness
Distributions that tail off to the right of the mean are considered 1) p__ skewed
1) positively
Define Skewness
Distributions that tail to the left of the mean are 1) ne___ skewed
1) negatively
A correlation can be n___, p___e, or __ro
negative, positive, or zero
