Data Storage And Analysis Test Bank Chapter 5

Accounting Information Systems, 1e (Savage)

Chapter 5 Data Storage and Analysis

1) Unique careers are available to accounting professionals with an interest in data including

A) financial crime investigators.

B) auditors.

C) tax preparation specialists.

D) All of these answer choices are correct

Diff: 1

Learning Objective: 5.1 Chapter Preview

Section Reference: What is Data?

AACSB: Analytic

Bloom's: Knowledge

AICPA: AC: Technology and Tools

2) Data consists of ________ about a person or object collected for reference or analysis.

A) grade point average

B) facts and statistics

C) height and weight

D) age and profession

Diff: 2

Learning Objective: 5.1 Differentiate between data elements and data types

Section Reference: What is Data?

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

3) For accounting purposes, a system comprises how many data elements?

A) Five

B) Four

C) Six

D) Seven

Diff: 1

Learning Objective: 5.1 Differentiate between data elements and data types

Section Reference: What is Data? / Data Elements

AACSB: Analytic

Bloom's: Knowledge

AICPA: AC: Technology and Tools

4) Which is one of the six data elements that comprise an IT system?

A) Server

B) File

C) Computer

D) Entity

Diff: 1

Learning Objective: 5.1 Differentiate between data elements and data types

Section Reference: What is Data? / Data Elements

AACSB: Analytic

Bloom's: Knowledge

AICPA: AC: Technology and Tools

5) Databases are composed of

A) tables.

B) files.

C) attributes.

D) bits.

Diff: 1

Learning Objective: 5.1 Differentiate between data elements and data types

Section Reference: What is Data? / Data Elements

AACSB: Analytic

Bloom's: Knowledge

AICPA: AC: Technology and Tools

6) Which of the following is TRUE of structured data?

A) Structured data is easily stored in tables.

B) Structured data is stored using more storage space.

C) Structured data doesn't fit into a traditional table.

D) Structured data is difficult to manage.

Diff: 1

Learning Objective: 5.1 Differentiate between data elements and data types

Section Reference: What is Data? / Data Types

AACSB: Analytic

Bloom's: Knowledge

AICPA: AC: Technology and Tools

7) An example of unstructured data is

A) addresses.

B) last names.

C) PDF files.

D) telephone numbers.

Diff: 1

Learning Objective: 5.1 Differentiate between data elements and data types

Section Reference: What is Data? / Data Types

AACSB: Analytic

Bloom's: Knowledge

AICPA: AC: Technology and Tools

8) How are meta tags used to identify unstructured data?

A) Meta tags are used as the primary key.

B) Meta tags are key words that help describe the content.

C) Meta tags are used as foreign keys.

D) Meta tags represent tables in the database.

Diff: 2

Learning Objective: 5.1 Differentiate between data elements and data types

Section Reference: What is Data? / Data Types

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

9) What is an example of Web 2.0?

A) Social media websites

B) Podcasts

C) User created wiki

D) All of these answer choices are correct.

Diff: 1

Learning Objective: 5.1 Differentiate between data elements and data types

Section Reference: What is Data? / Web 2.0

AACSB: Analytic

Bloom's: Knowledge

AICPA: AC: Technology and Tools

10) Choose an example of unstructured data from the list below.

A) Sales order transaction

B) Social media post

C) Credit card payment

D) Employee record

Diff: 2

Learning Objective: 5.1 Differentiate between data elements and data types

Section Reference: What is Data? / Web 2.0

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

11) Most business decisions are based on only ________ of the company's available data.

A) 10%

B) 20%

C) 30%

D) 40%

Diff: 1

Learning Objective: 5.1 Differentiate between data elements and data types

Section Reference: What is Data? / Web 2.0

AACSB: Analytic

Bloom's: Knowledge

AICPA: AC: Technology and Tools

12) Choose examples of Web 2.0 from the list below.

A) SAP S/4 Hana and Oracle Database

B) Oracle Database and Microsoft SQL*Server

C) Facebook and Podcasts

D) Microsoft SQL*Server and Podcasts

Diff: 2

Learning Objective: 5.1 Differentiate between data elements and data types

Section Reference: What is Data? / Web 2.0

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

13) Choose from the following list the best definition of byte.

A) A binary digit; the individual 1 or 0 that is seen in binary code

B) A group of bits, usually in clusters of eight, that represent alphabetic and numeric characters or symbols

C) A group of related fields that describe an individual instance of an entity

D) A group of records for one specific entity

Diff: 2

Learning Objective: 5.1 Differentiate between data elements and data types

Section Reference: Data Elements

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

14) Choose the term that best describes static data?

A) Static data may change after it is recorded.

B) Static data is very difficult to record.

C) Static data does not change once it is created.

D) Static data is like a website.

Diff: 2

Learning Objective: 5.1 Differentiate between data elements and data types

Section Reference: What is Data? / Data that Changes

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

15) Choose the term that best describes dynamic data.

A) Dynamic data may change after it is recorded.

B) Dynamic data is very difficult to record.

C) Dynamic data does not change once it is created.

D) Dynamic data is like a book.

Diff: 2

Learning Objective: 5.1 Differentiate between data elements and data types

Section Reference: What is Data? / Data that Changes

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

16) A Field is a group of

A) files.

B) bytes.

C) bits.

D) records.

Diff: 1

Learning Objective: 5.1 Differentiate between data elements and data types

Section Reference: Data Elements

AACSB: Analytic

Bloom's: Knowledge

AICPA: AC: Technology and Tools

17) A Record is a group of

A) files.

B) bytes.

C) bits.

D) fields.

Diff: 1

Learning Objective: 5.1 Differentiate between data elements and data types

Section Reference: Data Elements

AACSB: Analytic

Bloom's: Knowledge

AICPA: AC: Technology and Tools

18) A File is a group of

A) records.

B) bytes.

C) bits.

D) fields.

Diff: 1

Learning Objective: 5.1 Differentiate between data elements and data types

Section Reference: Data Elements

AACSB: Analytic

Bloom's: Knowledge

AICPA: AC: Technology and Tools

19) Choose the best example of unstructured data from the following list.

A) Class Grades

B) Customer Names

C) Photographs

D) Telephone Numbers

Diff: 2

Learning Objective: 5.1 Differentiate between data elements and data types

Section Reference: Data Types

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

20) Choose the best example of structured data from the following list.

A) Emails

B) Customer Names

C) Photographs

D) Videos

Diff: 2

Learning Objective: 5.1 Differentiate between data elements and data types

Section Reference: Data Types

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

21) What led to the increase of unstructured data?

A) The use of static data

B) The birth of Web 2.0

C) The use of dynamic data

D) The use of databases

Diff: 2

Learning Objective: 5.1 Differentiate between data elements and data types

Section Reference: Data Types

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

22) All information and instructions (recall that software is a set of instructions that tells hardware what to do) are executed on a computer in

A) binary code.

B) SQL.

C) HTML.

D) JavaScript.

Diff: 1

Learning Objective: 5.1 Differentiate between data elements and data types

Section Reference: Introduction

AACSB: Analytic

Bloom's: Knowledge

AICPA: AC: Technology and Tools

23) Choose the best description of a database.

A) A database is several interconnected computers, machines, or operations.

B) A database is software that acts as a bridge to applications.

C) A database is a set of logically related files containing an organized collection of data that is accessible for fast searching and retrieval.

D) A database is a program or group of programs designed for end-users.

Diff: 2

Learning Objective: 5.2 Explain how data is stored

Section Reference: How is Data Stored? / Introduction to Databases

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

24) Choose the most common type of database that you are likely to encounter.

A) Hierarchical

B) Relational

C) Cloud

D) Object Oriented

Diff: 2

Learning Objective: 5.2 Explain how data is stored

Section Reference: How is Data Stored? / Introduction to Databases

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

25) Choose the term that best describes a Database Management System (DBMS).

A) A DBMS is a logical diagram of a database's structure and organization.

B) A DBMS is a request for data that is stored within a database.

C) A DBMS is a system that manages a database and retrieves data for a user.

D) A DBMS is the capability of the database to manage increasing demands.

Diff: 2

Learning Objective: 5.2 Explain how data is stored

Section Reference: How is Data Stored? / Introduction to Databases

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

26) Choose the term that best describes queries.

A) Queries are a logical diagram of a database's structure and organization.

B) Queries are requests for data that is stored within a database.

C) Queries are a system that manages a database.

D) Queries are the capability of the database to manage increasing demands.

Diff: 2

Learning Objective: 5.2 Explain how data is stored

Section Reference: How is Data Stored? / Introduction to Databases

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

27) Choose the term that best describes a schema.

A) A schema is a logical diagram of a database's structure and organization.

B) A schema is a request for data that is stored within a database.

C) A schema is a system that manages a database.

D) A schema is the capability of the database to manage increasing demands.

Diff: 2

Learning Objective: 5.2 Explain how data is stored

Section Reference: How is Data Stored? / Introduction to Databases

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

28) Choose the term that best describes database scalability.

A) Database scalability is the capability of the database to handle fewer tables.

B) Database scalability is the capability of the database to produce fewer errors.

C) Database scalability is the capability of the database to manage increasing demands.

D) Database scalability is the capability of the database to log more system messages.

Diff: 2

Learning Objective: 5.2 Explain how data is stored

Section Reference: How is Data Stored? / Introduction to Databases

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

29) How can a database be scaled vertically?

A) A database can be scaled vertically by removing capacity from the existing machine.

B) A database can be scaled vertically by consolidating the database onto a single machine.

C) A database can be scaled vertically by adding more capacity to the existing machine.

D) A database can be scaled vertically by spreading the database across multiple machines that work together to manage the database.

Diff: 3

Learning Objective: 5.2 Explain how data is stored

Section Reference: How is Data Stored? / Introduction to Databases

AACSB: Analytic

Bloom's: Synthesis

AICPA: AC: Technology and Tools

30) How can a database be scaled horizontally?

A) A database can be scaled horizontally by removing capacity from the existing machine.

B) A database can be scaled horizontally by consolidating the database onto a single machine.

C) A database can be scaled horizontally by adding more capacity to the existing machine.

D) A database can be scaled horizontally by spreading the database across multiple machines that all work together to manage the database.

Diff: 3

Learning Objective: 5.2 Explain how data is stored

Section Reference: How is Data Stored? / Introduction to Databases

AACSB: Analytic

Bloom's: Synthesis

AICPA: AC: Technology and Tools

31) Choose the term that best describes a production database.

A) A database used for collecting project data

B) A database that is connected to an information system used for business process transactions

C) A database that collects test transactions for analysis

D) A database that is connected to a census data collection system

Diff: 2

Learning Objective: 5.2 Explain how data is stored

Section Reference: How is Data Stored? / Introduction to Databases

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

32) Choose the two types of data stores that you are most likely to encounter in your career.

A) Databases and data warehouses

B) Databases and data lakes

C) Data lakes and data warehouses

D) Databases and data mines

Diff: 2

Learning Objective: 5.2 Explain how data is stored

Section Reference: How is Data Stored? / Types of Data Storage

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

33) Why don't users running complex queries typically use a production database?

A) A complex query would run too fast in the production database.

B) A complex query run against the production database would likely speed it up.

C) A complex query run against the production database would likely slow it down.

D) A complex query run against the production database would return incomplete results.

Diff: 2

Learning Objective: 5.2 Explain how data is stored

Section Reference: How is Data Stored? / Types of Data Storage

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

34) What is one of the key benefits of a data lake?

A) Easy to implement

B) Structured data

C) Cost-effective

D) Easy to use

Diff: 2

Learning Objective: 5.2 Explain how data is stored

Section Reference: How is Data Stored? / Types of Data Storage

AACSB: Analytic

Bloom's: Analysis

AICPA: AC: Technology and Tools

35) Data warehouses are designed specifically for

A) speed.

B) all of the data in a company.

C) reporting and data analysis.

D) storage.

Diff: 1

Learning Objective: 5.2 Explain how data is stored

Section Reference: How is Data Stored? / Types of Data Storage

AACSB: Analytic

Bloom's: Knowledge

AICPA: AC: Technology and Tools

36) Users who access data in a data lake need to know what they are looking for and how to transform it into a useable format. For this reason, data lakes require someone with a deep technical knowledge of data like a

A) data scientist.

B) user.

C) programmer.

D) system administrator.

Diff: 1

Learning Objective: 5.2 Explain how data is stored

Section Reference: How is Data Stored? / Types of Data Storage

AACSB: Analytic

Bloom's: Knowledge

AICPA: AC: Technology and Tools

37) Choose the term that best describes how Relational databases organize data.

A) Relational databases organize unstructured data in interrelated tables.

B) Relational databases organize structured data in interrelated tables.

C) Relational databases organize structured data in unrelated tables.

D) Relational databases organize unstructured data in unrelated tables.

Diff: 2

Learning Objective: 5.2 Explain how data is stored

Section Reference: Introduction to Databases

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

38) Data within Relational databases are stored in

A) bytes.

B) fields.

C) files.

D) tables.

Diff: 1

Learning Objective: 5.2 Explain how data is stored

Section Reference: Introduction to Databases

AACSB: Analytic

Bloom's: Knowledge

AICPA: AC: Technology and Tools

39) A Database Management System (DBMS) includes a user interface. Choose the best term to describe a user interface.

A) A user interface is a screen where a user logs in and interacts with the computer system.

B) A user interface is a program that loads data into the databases.

C) A user interface is a screen where a user can monitor database performance.

D) A user interface is a program for optimizing database performance.

Diff: 2

Learning Objective: 5.2 Explain how data is stored

Section Reference: Introduction to Databases

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

40) Choose one of the commonly used database querying languages.

A) SDL

B) SQL

C) DML

D) DDL

Diff: 2

Learning Objective: 5.2 Explain how data is stored

Section Reference: Introduction to Databases

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

41) ________ databases are the backbone of a company's operations.

A) Sandbox

B) Test

C) Production

D) Development

Diff: 2

Learning Objective: 5.2 Explain how data is stored

Section Reference: Introduction to Databases

AACSB: Analytic

Bloom's: Analysis

AICPA: AC: Technology and Tools

42) Data in its raw format, before it is cleaned, aggregated, or filtered, is stored in a

A) data lake.

B) data warehouse.

C) production database.

D) test database.

Diff: 1

Learning Objective: 5.2 Explain how data is stored

Section Reference: Types of Data Storage

AACSB: Analytic

Bloom's: Knowledge

AICPA: AC: Technology and Tools

43) Large companies implement data lakes to store all of their data. Therefore, data lakes use a(n) ________ structure.

A) fixed

B) agile

C) anchored

D) nimble

Diff: 1

Learning Objective: 5.2 Explain how data is stored

Section Reference: Types of Data Storage

AACSB: Analytic

Bloom's: Knowledge

AICPA: AC: Technology and Tools

44) Data lake implementation is an enterprise-wide initiative. Companies often set up dedicated teams for these implementations and the project can take

A) months.

B) weeks.

C) years.

D) days.

Diff: 2

Learning Objective: 5.2 Explain how data is stored

Section Reference: Types of Data Storage

AACSB: Analytic

Bloom's: Analysis

AICPA: AC: Technology and Tools

45) What is a subset of a data warehouse that is designed for a specific business function?

A) A database

B) A data pond

C) A data lake

D) A data mart

Diff: 1

Learning Objective: 5.2 Explain how data is stored

Section Reference: Types of Data Storage

AACSB: Analytic

Bloom's: Knowledge

AICPA: AC: Technology and Tools

46) Choose the types of data stored in a data lake.

A) Structured and unstructured data from across the company

B) Historical data in a structured format

C) Unstructured data from a customer

D) Structured data from a vendor

Diff: 2

Learning Objective: 5.2 Explain how data is stored

Section Reference: Types of Data Storage

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

47) Which of the following is one of the five characteristics of big data?

A) Vacancy

B) Variety

C) Vastness

D) Vitality

Diff: 1

Learning Objective: 5.3 Summarize the five characteristics of big data

Section Reference: What Makes Data "Big Data"?

AACSB: Analytic

Bloom's: Knowledge

AICPA: AC: Technology and Tools

48) Apply your knowledge of the five characteristics of big data and choose the term below that best defines the velocity of data.

A) Velocity is the diversity of data created or collected.

B) Velocity is the accuracy and truthfulness of the data.

C) Velocity is the quantity and scale of data generated.

D) Velocity is the speed at which data is generated.

Diff: 2

Learning Objective: 5.3 Summarize the five characteristics of big data

Section Reference: What Makes Data "Big Data"?

AACSB: Communication

Bloom's: Application

AICPA: AC: Technology and Tools

49) Choose the term that best describes the variety of data.

A) Variety is the diversity of data created or collected.

B) Variety is the accuracy and truthfulness of the data.

C) Variety is the quantity and scale of data generated.

D) Variety is the speed at which data is generated.

Diff: 2

Learning Objective: 5.3 Summarize the five characteristics of big data

Section Reference: What Makes Data "Big Data"?

AACSB: Communication

Bloom's: Application

AICPA: AC: Technology and Tools

50) Choose the term that best describes the veracity of data?

A) Veracity is the diversity of data created or collected.

B) Veracity is the accuracy and truthfulness of the data.

C) Veracity is the quantity and scale of data generated.

D) Veracity is the speed at which data is generated.

Diff: 2

Learning Objective: 5.3 Summarize the five characteristics of big data

Section Reference: What Makes Data "Big Data"?

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

51) Apply your knowledge of the five characteristics of big data and choose the term below that best defines the volume of data.

A) Volume is the diversity of data created or collected.

B) Volume is the accuracy and truthfulness of the data.

C) Volume is the quantity and scale of data generated.

D) Volume is the speed at which data is generated.

Diff: 2

Learning Objective: 5.3 Summarize the five characteristics of big data

Section Reference: What Makes Data "Big Data"?

AACSB: Communication

Bloom's: Application

AICPA: AC: Technology and Tools

52) Choose the name that best describes extremely large and complex data sets that can be analyzed using recent technological innovations to reveal patterns and associations.

A) Production databases

B) Test databases

C) Big data

D) Data lakes

Diff: 2

Learning Objective: 5.3 Summarize the five characteristics of big data

Section Reference: What Makes Data "Big Data"?

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

53) A typical text message is less than one

A) terabyte.

B) gigabyte.

C) megabyte.

D) kilobyte.

Diff: 2

Learning Objective: 5.3 Summarize the five characteristics of big data

Section Reference: Volume

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

54) Most emails allow up to 25 ________ of attached files.

A) Megabytes

B) Kilobytes

C) Gigabytes

D) Terabytes

Diff: 2

Learning Objective: 5.3 Summarize the five characteristics of big data

Section Reference: Volume

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

55) Choose from the following list the best definition of confirmation bias.

A) Asking advice from a cross sample of people

B) Asking advice only from people who share our world view

C) Asking advice only from people who don't share our world view

D) Asking advice from everyone

Diff: 2

Learning Objective: 5.3 Summarize the five characteristics of big data

Section Reference: Veracity

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

56) Choose the term that best defines the value of data.

A) Value is the diversity of the data.

B) Value is the accuracy and truthfulness of the data.

C) Value is the quantity and scale of data generated.

D) Value is the usefulness of the data.

Diff: 2

Learning Objective: 5.3 Summarize the five characteristics of big data

Section Reference: Value

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

57) Choose from the following list one of the five characteristics of big data.

A) Vastness

B) Vital

C) Vanity

D) Value

Diff: 2

Learning Objective: 5.3 Summarize the five characteristics of big data

Section Reference: Value

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

58) Choose from the following list one of the five characteristics of big data.

A) Vastness

B) Velocity

C) Vital

D) Vanity

Diff: 2

Learning Objective: 5.3 Summarize the five characteristics of big data

Section Reference: Velocity

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

59) Data analytics has transformed the accounting profession. Employers are willing to make the technological investment but struggle to find accounting professionals who have the necessary technical skills. Data analytics can help accounting professionals

A) work faster and better at higher cost.

B) work slower and better at lower cost.

C) work faster and better at lower cost.

D) work slower and better at higher cost.

Diff: 1

Learning Objective: 5.4 Apply data analytics to accounting problems

Section Reference: How Do Accounting Professionals Use Data?

AACSB: Analytic

Bloom's: Comprehension

AICPA: AC: Technology and Tools

60) Historically, audit testing relied on population sampling. Due to the manual process of testing, auditors were unable to test entire populations. Auditors instead

A) selected random samples.

B) selected the entire population.

C) selected roughly 100 samples.

D) selected the first 50 samples.

Diff: 2

Learning Objective: 5.4 Apply data analytics to accounting problems

Section Reference: How Do Accounting Professionals Use Data? / Audit and Compliance

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

61) Choose the name of Ernest & Young's audit data analytics system from the following list.

A) Radon

B) Helix

C) Square

D) Triangle

Diff: 2

Learning Objective: 5.4 Apply data analytics to accounting problems

Section Reference: How Do Accounting Professionals Use Data? / Audit and Compliance

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

62) Choose from the following list the appropriate area in which financial accountants focus.

A) Performance measurement and analysis

B) Collecting and paying sales taxes

C) Ensuring compliance with regulatory requirements

D) Auditing transactions

Diff: 2

Learning Objective: 5.4 Apply data analytics to accounting problems

Section Reference: How Do Accounting Professionals Use Data? / Financial Accounting

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

63) Choose from the following list the appropriate area in which management accountants focus.

A) Preparing and analyzing financial statements

B) Managing financial accounting information systems

C) Performance measurement and analysis

D) Advising business leaders on best practices and regulatory requirements

Diff: 2

Learning Objective: 5.4 Apply data analytics to accounting problems

Section Reference: How Do Accounting Professionals Use Data? / Managerial Accounting

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

64) Choose from the following list the appropriate area in which tax accountants focus.

A) Managing financial accounting information systems

B) Cost management and reporting

C) Ensuring compliance with regulatory requirements

D) Collecting and paying sales taxes

Diff: 2

Learning Objective: 5.4 Apply data analytics to accounting problems

Section Reference: How Do Accounting Professionals Use Data? / Tax Accounting

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

65) Choose the term that best defines a tax data hub.

A) A website for getting answers to tax-related questions

B) A specialized database designed to provide a centralized store of tax-related data

C) A portal to provide centralized access to tax-related data

D) A client-server based system for preparing taxes

Diff: 2

Learning Objective: 5.4 Apply data analytics to accounting problems

Section Reference: How Do Accounting Professionals Use Data? / Tax Accounting

AACSB: Communication

Bloom's: Application

AICPA: AC: Technology and Tools

66) Why should accountants understand the difference between structured and unstructured data?

A) Structured data is difficult to collect and unstructured data is easy of collect.

B) Structured and unstructured data may be used by accountants to support decision making and analysis.

C) Unstructured data is often represented with pictures.

D) Structured data contains all the data of an organization.

Diff: 2

Learning Objective: 5.1 Differentiate between data elements and data types

Section Reference: What is Data? / Data Types

AACSB: Analytic

Bloom's: Analysis

AICPA: AC: Technology and Tools

67) Choose which of the 5Vs of big data is most important for accounting professionals.

A) Value

B) Veracity

C) Volume

D) Velocity

Diff: 2

Learning Objective: 5.3 Summarize the five characteristics of big data

Section Reference: What Makes Data "Big Data"?

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

68) Arrange the hierarchy of data elements in their correct order.

A) Databases, Fields, Files, Bytes, Bits and Records

B) Bytes, Bits, Records, Fields, Files and Databases

C) Records, Files, Databases, Bits, Bytes and Fields

D) Databases, Files, Records, Fields, Bytes and Bits

Diff: 3

Learning Objective: 5.1 Differentiate between data elements and data types

Section Reference: What is Data? / Data Elements

AACSB: Analytic

Bloom's: Synthesis

AICPA: AC: Technology and Tools

69) Choose from the following list for the best definition of data analytics.

A) Data Analytics is the process of transforming raw data into useful information.

B) Data Analytics is the process of transforming information into raw data.

C) Data Analytics is the process of transforming decisions into raw data.

D) Data Analytics is the process of transforming decisions into information.

Diff: 2

Learning Objective: 5.4 Apply data analytics to accounting problems

Section Reference: How Do Accounting Professionals Use Data?

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

70) Choose from the following list one of the four most widely accepted categories for data analysis.

A) Problematic Analytics

B) Predictive Analytics

C) Historical Analytics

D) Cursory Analytics

Diff: 2

Learning Objective: 5.4 Apply data analytics to accounting problems

Section Reference: How Do Accounting Professionals Use Data?

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

71) Choose from the following list of questions what Descriptive Analytics tell us?

A) What is happening?

B) Why did it happen?

C) What is likely to happen?

D) How should we act?

Diff: 2

Learning Objective: 5.4 Apply data analytics to accounting problems

Section Reference: How Do Accounting Professionals Use Data?

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

72) Choose from the following list of questions what Diagnostic Analytics tell us?

A) What is happening?

B) Why did it happen?

C) What is likely to happen?

D) How should we act?

Diff: 2

Learning Objective: 5.4 Apply data analytics to accounting problems

Section Reference: How Do Accounting Professionals Use Data?

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

73) Choose from the following list of questions what Predictive Analytics tell us?

A) What is happening?

B) Why did it happen?

C) What is likely to happen?

D) How should we act?

Diff: 2

Learning Objective: 5.4 Apply data analytics to accounting problems

Section Reference: How Do Accounting Professionals Use Data?

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

74) Choose from the following list of questions what Prescriptive Analytics tells us?

A) What is happening?

B) Why did it happen?

C) What is likely to happen?

D) How should we act?

Diff: 2

Learning Objective: 5.4 Apply data analytics to accounting problems

Section Reference: How Do Accounting Professionals Use Data?

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

75) Choose the best definition of a Dashboard.

A) Dashboards are interactive, real time reports.

B) Dashboards are static, batch reports.

C) Dashboards are theoretical, external reports.

D) Dashboards are static, internal questions.

Diff: 2

Learning Objective: 5.4 Apply data analytics to accounting problems

Section Reference: How Do Accounting Professionals Use Data?

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

76) Choose the best definition of Visualization.

A) Visualizations are verbal representations of information and data.

B) Visualizations are graphical representations of information and data.

C) Visualizations are graphical representations of questions asked.

D) Visualizations are the verbal representations of questions.

Diff: 2

Learning Objective: 5.4 Apply data analytics to accounting problems

Section Reference: How Do Accounting Professionals Use Data?

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

77) Some of the most valued data analytic skillsets, employers look for, in accounting professionals include: Choose all that apply.

A) Knowledge of Word processing and email software tools

B) Creative thinking skills

C) Ability to use legacy tools, including Excel and Access

D) Understanding of historical facts

E) Understanding of basic data elements and structures

Diff: 2

Learning Objective: 5.4 Apply data analytics to accounting problems

Section Reference: How Do Accounting Professionals Use Data?

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

78) As accounting professionals, data analytics help us: Choose all that apply.

A) Generate lower profit margins

B) Work faster and better and at lower cost

C) Work faster and better and at higher cost

D) Get quicker access to information for more timely insights or decision-making

E) Get quicker access to data for less timely insights or decision-making

Diff: 2

Learning Objective: 5.4 Apply data analytics to accounting problems

Section Reference: How Do Accounting Professionals Use Data?

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

79) Choose from the following list of responsibilities for external auditors, internal auditors, and fraud examiners.

A) Advising business leaders on best practices and regulatory requirements

B) Dismissing risks, patterns and trends in processes and data

C) Performing audit tests to decrease assurance over selected data

D) Learning state-of-the-art practices to advise external clients

Diff: 2

Learning Objective: 5.4 Apply data analytics to accounting problems

Section Reference: Audit and Compliance

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

80) Choose from the following list of responsibilities for financial accountants.

A) Managing geographic information systems

B) Preparing and analyzing financial statements

C) Ignoring compliance with regulatory requirements

D) Preparing and analyzing game statistics

Diff: 2

Learning Objective: 5.4 Apply data analytics to accounting problems

Section Reference: Financial Accounting

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

81) Choose from the following list of responsibilities for management accountants.

A) Managing financial accounting information systems

B) Preparing and analyzing financial statements

C) Cost management and reporting

D) Attending to tax audit issues

Diff: 2

Learning Objective: 5.4 Apply data analytics to accounting problems

Section Reference: Managerial Accounting

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

82) Choose from the following list of responsibilities for tax accountants.

A) Managing financial accounting information systems

B) Preparing financial statements to minimize tax returns

C) Performance measurement and analysis

D) Attending to tax audit issues

Diff: 2

Learning Objective: 5.4 Apply data analytics to accounting problems

Section Reference: Tax Accounting

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

83) A financial accountant has been asked to predict future financial performance. Which category of data analysis would this type of work be categorized as?

A) Descriptive

B) Diagnostic

C) Predictive

D) Prescriptive

Diff: 2

Learning Objective: 5.4 Apply data analytics to accounting problems

Section Reference: Financial Accounting

AACSB: Analytic

Bloom's: Analysis

AICPA: AC: Technology and Tools

84) An internal auditor has been asked to calculate an allowance for doubtful accounts. Which category of data analysis would this type of work be categorized as?

A) Descriptive

B) Diagnostic

C) Predictive

D) Prescriptive

Diff: 2

Learning Objective: 5.4 Apply data analytics to accounting problems

Section Reference: Audit and Compliance

AACSB: Analytic

Bloom's: Analysis

AICPA: AC: Technology and Tools

85) If an analyst asks: "What is happening?", he or she is asking which category of data analysis?

A) Descriptive analytics

B) Diagnostic analytics

C) Predictive analytics

D) Prescriptive analytics

Diff: 2

Learning Objective: 5.4 Apply data analytics to accounting problems

Section Reference: Introduction

AACSB: Analytic

Bloom's: Analysis

AICPA: AC: Technology and Tools

86) If an analyst asks: "Why did it happen?", he or she is asking which category of data analysis?

A) Descriptive analytics

B) Diagnostic analytics

C) Predictive analytics

D) Prescriptive analytics

Diff: 2

Learning Objective: 5.4 Apply data analytics to accounting problems

Section Reference: Introduction

AACSB: Analytic

Bloom's: Analysis

AICPA: AC: Technology and Tools

87) If an analyst asks: "What is likely to happen?", he or she is asking which category of data analysis?

A) Descriptive analytics

B) Diagnostic analytics

C) Predictive analytics

D) Prescriptive analytics

Diff: 2

Learning Objective: 5.4 Apply data analytics to accounting problems

Section Reference: Introduction

AACSB: Analytic

Bloom's: Analysis

AICPA: AC: Technology and Tools

88) If an analyst asks: "How should we act?", he or she is asking which category of data analysis?

A) Descriptive analytics

B) Diagnostic analytics

C) Predictive analytics

D) Prescriptive analytics

Diff: 2

Learning Objective: 5.4 Apply data analytics to accounting problems

Section Reference: Introduction

AACSB: Analytic

Bloom's: Analysis

AICPA: AC: Technology and Tools

89) Analyze the differences between structured data and unstructured data. Give examples.

Diff: 2

Learning Objective: 5.1 Differentiate between data elements and data types

Section Reference: What is Data? / Data Types

AACSB: Analytic

Bloom's: Analysis

AICPA: AC: Technology and Tools

90) Compare and contrast structured and unstructured data.

Diff: 2

Learning Objective: 5.1 Differentiate between data elements and data types

Section Reference: Data Types

AACSB: Analytic

Bloom's: Analysis

AICPA: AC: Technology and Tools

91) Compare and contrast data lakes and data warehouses.

Diff: 3

Learning Objective: 5.2 Explain how data is stored

Section Reference: Types of Data Storage

AACSB: Analytic

Bloom's: Evaluation

AICPA: AC: Technology and Tools

92) How is data organized in a relational database?

Diff: 2

Learning Objective: 5.2 Explain how data is stored

Section Reference: Types of Data Storage

AACSB: Analytic

Bloom's: Analysis

AICPA: AC: Technology and Tools

93) Compare and contrast static and dynamic data.

Diff: 2

Learning Objective: 5.1 Differentiate between data elements and data types

Section Reference: Data that Changes

AACSB: Analytic

Bloom's: Analysis

AICPA: AC: Technology and Tools

94) Properly arrange the following data elements that comprise an IT system in their proper hierarchy from largest to smallest.

• Bits

• Files

• Records

• Bytes

• Fields

• Databases

• Databases

• Files

• Records

• Fields

• Bytes

• Bits

Diff: 3

Learning Objective: 5.1 Differentiate between data elements and data types

Section Reference: Data Elements

AACSB: Analytic

Bloom's: Synthesis

AICPA: AC: Technology and Tools

95) Describe the "value" characteristic of big data with respect to limited resources in a company.

Diff: 2

Learning Objective: 5.3 Summarize the five characteristics of big data

Section Reference: What Makes Data "Big Data"?

AACSB: Analytic

Bloom's: Application

AICPA: AC: Technology and Tools

96) Discuss the five characteristics of big data. Provide an example for each.

Diff: 2

Learning Objective: 5.3 Summarize the five characteristics of big data

Section Reference: All

AACSB: Analytic

Bloom's: Analysis

AICPA: AC: Technology and Tools

97) Matching: Match the term with the appropriate definition.

Diff: 3

Learning Objective: 5.4 Apply data analytics to accounting problems

Section Reference: How Do Accounting Professionals Use Data?

AACSB: Communication

Bloom's: Synthesis

AICPA: AC: Technology and Tools

98) Recent tax legislation has brought what changes for Tax Accountants?

Diff: 3

Learning Objective: 5.4 Apply data analytics to accounting problems

Section Reference: How Do Accounting Professionals Use Data? / Tax Accounting

AACSB: Analytic

Bloom's: Synthesis

AICPA: AC: Technology and Tools

99) Ezra, a recent accounting graduate with data analytics skills, was hired by Hometown Accounting. The owner of Hometown hired Ezra for his combination of accounting and data analytics skills expecting Ezra to help in the audit department. Hometown has not used data analytics in audits in the past but know that it can be of benefit. How can Ezra use data analytics to improve the manual audit process that Hometown is currently using, and what benefits will data analytics provide in the audit process?

Diff: 3

Learning Objective: 5.4 Apply data analytics to accounting problems

Section Reference: How Do Accounting Professionals Use Data?

AACSB: Analytic

Bloom's: Synthesis

AICPA: AC: Technology and Tools

100) Prepare a short narrative on how a system user can use captcha to give meaning to unstructured data.

Diff: 3

Learning Objective: 5.1 Differentiate between data elements and data types

Section Reference: What is Data? / Web 2.0

AACSB: Analytic

Bloom's: Synthesis

AICPA: AC: Technology and Tools

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