Data Analytics For Accounting
19th Edition
ISBN: 9781260375190
Author: RICHARDSON, Vernon J., Teeter, Ryan, Terrell, Katie
Publisher: Mcgraw-hill Education,
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Question
Chapter 1, Problem 6MCQ
To determine
Identify the appropriate answer for the given statement from the given choices.
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Which of the following is true about designing an accounting−based performance measure?
A. Management's beliefs are not required during the analyses.
B. The issues considered in each step are independent.
C. The decisions made in steps are followed in a hierarchical order.
D. Behavioral criteria are important when evaluating the steps
Accountants at an organization that uses an ERP system speak in terms of "data flows" between modules. Justify the accountants' inaccuracy, and suggest a more appropriate word for them to use.
Data flows are a word accountants use to describe how information moves between modules in an ERP system. Justify the inaccuracy of the accountants and provide a better term for them to utilize.
Chapter 1 Solutions
Data Analytics For Accounting
Ch. 1 - Prob. 1MCQCh. 1 - Prob. 2MCQCh. 1 - Prob. 3MCQCh. 1 - Prob. 4MCQCh. 1 - Prob. 5MCQCh. 1 - Prob. 6MCQCh. 1 - Prob. 7MCQCh. 1 - Prob. 8MCQCh. 1 - Prob. 9MCQCh. 1 - Prob. 10MCQ
Ch. 1 - Prob. 1DQCh. 1 - Give an example of how Data Analytics creates...Ch. 1 - Prob. 3DQCh. 1 - Prob. 4DQCh. 1 - Prob. 5DQCh. 1 - Prob. 6DQCh. 1 - Prob. 7DQCh. 1 - Prob. 8DQCh. 1 - Prob. 9DQCh. 1 - Prob. 10DQCh. 1 - Prob. 11DQCh. 1 - Prob. 12DQCh. 1 - To address the question Will I receive a loan from...Ch. 1 - Download and consider the data dictionary file...Ch. 1 - Download and consider the rejected loans dataset...Ch. 1 - Prob. 3PCh. 1 - Prob. 4PCh. 1 - Consider the 2013 declined loan data from...Ch. 1 - Consider the 2013 declined loan data from...
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Similar questions
Which of the following statements regarding the balanced scorecard is not correct? a. It seeks to address the problems associated with traditional financial measures used to assess performance. b. The notion of value chain analysis plays a major role in the drawing up of a balanced scorecard. c. It relies on the perception of the users with regard to service provided. d. It is directly derived from scientific management theories.
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While business decisions should be data-driven and usually involve consideration of quantitative financial information, that doesn't mean that qualitative information is not important as well. The goal of management accounting is to provide relevant information for decision-making. Qualitative considerations require subjective judgement and need multiple opinions. List and discuss 4 examples of such qualitative considerations for both decisions to accept or reject a special order and make or buy decisions.
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Which of the following sets of application characteristics of an accounting application might influence the selection of data entry devices and media for a computerized accounting system?a. Timing of feedback needs relative to input, need for documentation of an activity, and the necessity for reliability and accuracy.b. Cost considerations, volume of input, complexity of activity, and liquidity of assets involved. c. Need for documentation, necessity for accuracy and reliability, volume of output, and cost considerations. d. Relevancy of data, volume of input, cost considerations, volume of output, and timing of feedback needs relative to input. e. Type of file used, reliability of manufacturer’s service, volume of output, and cost considerations.
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Accountants are counted on to provide management with analyzing data to determine best and worst-case scenarios. As future planning becomes more complex, these what-if analyses can increase in complexity and usefulness. Identify and discuss at least three types of what-if analyses that an accountant should be able to perform to measure a firm’s performance over a period
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The two primary qualities that make accounting information useful for decision making are:
comparability and consistency.
materiality and timeliness.
relevance and reliability.
reliability and comparability.
Information is neutral if it:
provides benefits which are at least equal to the costs of its preparation.
can be compared with similar information about an enterprise at other points in time.
would have no impact on a decision maker.
d. is free from bias toward a predetermined result.
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Preparing performance reports that contain data only about items that a specific manager controls is an example of which of the following?
A. Financial reporting
B. Learning and innovation
C. Management by exception
D. Responsibility accounting
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The audit team is currently debating whether they should be using static or dynamic reports. Which phase are they most likely in?
a. Perform the Analysis
b. Master the Data
c. Share the story
d. Ask the Question
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Which of the following statements regarding the balanced scorecard is not correct?a. It seeks to address the problems associated with traditional financial measures used to assess performance.b. The notion of value chain analysis plays a major role in the drawing up of a balanced scorecard.c. It relies on the perception of the users with regard to service provided.d. It is directly derived from scientific management theories.
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How can an auditor use the following topic in his future work?
Apply key data wrangling best practices to real-world structured and unstructured data
Employ data wrangling principles using current industry tools and statistical programming languages, to develop and implement data transformation functions and models
Apply data operations processes to develop automated, repeatable solutions that address business goals
Communicate the opportunities for data transformation needs and solutions to address dynamic organizational data challenges
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What type of analytics would encompass creating Key Performance Indicators (KPI’s) from the information reported in financial statements?
Multiple Choice
Diagnostic analytics
Predictive analytics
Descriptive analytics
Prescriptive analytics
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Historically, performance measurement systems have been based on accounting or other quantitative numbers. One issue is that some accounting numbers can be affected by the actions of managers, and this may result in distorted performance results. A well-designed performance measurement system should eliminate these potential conflicts, as much as possible.
There is a way to prevent these issues associated with using accounting measures as performance measures through use of nonaccounting measures in conjunction with accounting-based measures to help mitigate the problems of using accounting-based measures alone.
Most performance measurement systems today use a combination of accounting-based measures and non-accounting-based measures, short-term or long-term indicators, or quantitative and qualitative components.
True / False
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The qualitative characteristics that make accounting information useful for decision-making purposes are as follows.
Relevance
Neutrality
Verifiability
Faithful representation
Completeness
Understandability
Predictive value
Timeliness
Comparability
Confirmatory value
Materiality
Free from error
Instructions
Identify the appropriate qualitative characteristic(s) to be used given the information provided below.
a. Qualitative characteristic being employed when companies in the same industry are using the same accounting principles.
b. Quality of information that confirms users’ earlier expectations.
c. Imperative for providing comparisons of a company from period to period.
d. Ignores the economic consequences of a standard or rule.
e. Requires a high degree of consensus among individuals on a given measurement.
f. Predictive value is an ingredient of this fundamental quality of information.
g. Four qualitative characteristics that are…
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