Question 1

Using past performance to predict future performance is called __________.

Accepted Answer

A)  regression 
B)  classification 
C)  time series 
D)  forecasting 
A)  regression 
B)  classification 
C)  time series 
D)  forecasting

Question 2

Deception that is intended to result in financial gain is called __________ .

Accepted Answer

A)  fraud 
B)  errors 
C)  going concern 
D)  bankruptcy 
A)  fraud 
B)  errors 
C)  going concern 
D)  bankruptcy

Question 3

The persistence of operating income as compared to cash flows from operations is consistent with GAAP requiring the use of __________ accounting for financial reporting purposes.

Accepted Answer

A)  cash-basis 
B)  accrual-basis 
C)  tax-basis 
D)  cost-basis 
A)  cash-basis 
B)  accrual-basis 
C)  tax-basis 
D)  cost-basis

Question 4

According to Beneish, which of the following factors are predictive of financial statement fraud?

Accepted Answer

A)  Increase in sales growth in current period 
B)  Sales/Total assets 
C)  Market value of stockholders' equity/Book value of total debt owed 
D)  Net Income/Total equity 
A)  Increase in sales growth in current period 
B)  Sales/Total assets 
C)  Market value of stockholders' equity/Book value of total debt owed 
D)  Net Income/Total equity

Question 5

If a company has an Altman Z-score of 1.7, the company would be classified in the __________.

Accepted Answer

A)  distress zone, or at significant risk of bankruptcy 
B)  gray zone, or at risk of bankruptcy 
C)  safe zone, not currently at risk of bankruptcy 
D)  green zone, no risk of bankruptcy 
A)  distress zone, or at significant risk of bankruptcy 
B)  gray zone, or at risk of bankruptcy 
C)  safe zone, not currently at risk of bankruptcy 
D)  green zone, no risk of bankruptcy

Question 6

Predicting which companies are likely to have misstated financial statements is an example of __________ in predictive analytics.

Accepted Answer

A)  classification 
B)  prediction 
C)  regression 
D)  time series analysis 
A)  classification 
B)  prediction 
C)  regression 
D)  time series analysis

Question 7

When using regression analysis, the relationship between two variables matters when you are trying to understand __________.

Accepted Answer

A)  how an independent variable impacts a dependent variable 
B)  how a dependent variable impacts an independent variable 
C)  how future values are based on past values of the same variable 
D)  how estimated trends from the past may continue into the future 
A)  how an independent variable impacts a dependent variable 
B)  how a dependent variable impacts an independent variable 
C)  how future values are based on past values of the same variable 
D)  how estimated trends from the past may continue into the future

Question 8

Increase in receivables as compared to last period is a factor predicting financial statement fraud.

Accepted Answer

A) True 
 B)False

Question 9

What would be the best possible independent variable in a regression determining Sales next period, Salest+1?

Accepted Answer

A)  Sales t+1 
B)  Sales t 
C)  Sales t-1 
D)  Sales t-2 
A)  Sales t+1 
B)  Sales t 
C)  Sales t-1 
D)  Sales t-2

Question 10

What would be the dependent variable in a regression determining "How are firm costs dependent on the level of production?" at a decking company?

Accepted Answer

A)  Total production costs 
B)  Board feet 
C)  Type of board manufactured 
D)  Total production revenue 
A)  Total production costs 
B)  Board feet 
C)  Type of board manufactured 
D)  Total production revenue

Using past performance to predict future performance is called __________.

Deception that is intended to result in financial gain is called __________ .

The persistence of operating income as compared to cash flows from operations is consistent with GAAP requiring the use of __________ accounting for financial reporting purposes.

According to Beneish, which of the following factors are predictive of financial statement fraud?

If a company has an Altman Z-score of 1.7, the company would be classified in the __________.

Predicting which companies are likely to have misstated financial statements is an example of __________ in predictive analytics.

When using regression analysis, the relationship between two variables matters when you are trying to understand __________.

Increase in receivables as compared to last period is a factor predicting financial statement fraud.

What would be the best possible independent variable in a regression determining Sales next period, Sales_t+1?

What would be the dependent variable in a regression determining "How are firm costs dependent on the level of production?" at a decking company?

Using Data Analytics to Ask and Answer Accounting Questions

Master the Data: an Introduction to Accounting Data

Accounting Data Data Types and How They Are Used

Master the Data: Preparing Data for Analysis

Perform the Analysis: Types and Tools of Data Analyses

Perform the Analysis: Descriptive Analyses

Perform the Analysis: Diagnostic Analyses

Perform the Analysis: Prescriptive Analytics

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Exam 8: Perform the Analysis: Predictive Analytics

Using past performance to predict future performance is called __________.

Deception that is intended to result in financial gain is called __________ .

The persistence of operating income as compared to cash flows from operations is consistent with GAAP requiring the use of __________ accounting for financial reporting purposes.

According to Beneish, which of the following factors are predictive of financial statement fraud?

If a company has an Altman Z-score of 1.7, the company would be classified in the __________.

Predicting which companies are likely to have misstated financial statements is an example of __________ in predictive analytics.

When using regression analysis, the relationship between two variables matters when you are trying to understand __________.

Increase in receivables as compared to last period is a factor predicting financial statement fraud.

What would be the best possible independent variable in a regression determining Sales next period, Salest+1?

What would be the dependent variable in a regression determining "How are firm costs dependent on the level of production?" at a decking company?

Using Data Analytics to Ask and Answer Accounting Questions

Master the Data: an Introduction to Accounting Data

Accounting Data Data Types and How They Are Used

Master the Data: Preparing Data for Analysis

Perform the Analysis: Types and Tools of Data Analyses

Perform the Analysis: Descriptive Analyses

Perform the Analysis: Diagnostic Analyses

Perform the Analysis: Prescriptive Analytics

Share the Story

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What would be the best possible independent variable in a regression determining Sales next period, Sales_t+1?