Question 1

Department stores have faster asset turnover than airline companies.

Accepted Answer

A) True 
 B)False  True

Question 2

In vertical analysis, the relevant base for cost of goods sold is which of the following?

Accepted Answer

A)  Sales revenue 
B)  Total assets 
C)  Total stockholders' equity 
D)  Total credit sales 
A)  Sales revenue 
B)  Total assets 
C)  Total stockholders' equity 
D)  Total credit sales A

Question 3

Descriptive quantitative analytic measures of financial statements to help evaluate liquidity, solvency, profitability and efficiency are called __________.

Accepted Answer

A)  vertical analysis 
B)  horizontal analysis 
C)  ratio analysis 
D)  pivottables 
A)  vertical analysis 
B)  horizontal analysis 
C)  ratio analysis 
D)  pivottables C

Question 4

If the profit margin is 0.1142, asset turnover is 0.5619 and financial leverage is 1.2937, what is the return on asset?

Accepted Answer

A)  0.0830 
B)  0.0642 
C)  0.1142 
D)  0.7269 
A)  0.0830 
B)  0.0642 
C)  0.1142 
D)  0.7269

Question 5

The __________ recent the accounts receivable (i.e., shorter amount of time it has been outstanding), the __________ likely it will be that they will ultimately be collected.

Accepted Answer

A)  more, more 
B)  less, more 
C)  more, less 
D)  more, equally 
A)  more, more 
B)  less, more 
C)  more, less 
D)  more, equally

Question 6

Accountants generally use __________ to assess the ultimate collectability of accounts receivables and estimate the allowance for doubtful accounts.

Accepted Answer

A)  customer credit scores 
B)  aging receivables analysis 
C)  analysis of receivables by customer size 
D)  customer profitability 
A)  customer credit scores 
B)  aging receivables analysis 
C)  analysis of receivables by customer size 
D)  customer profitability

Question 7

Which type of analytics generally would go first when addressing an accounting issue?

Accepted Answer

A)  Predictive analytics 
B)  Prescriptive analytics 
C)  Diagnostic analytics 
D)  Descriptive analytics 
A)  Predictive analytics 
B)  Prescriptive analytics 
C)  Diagnostic analytics 
D)  Descriptive analytics

Question 8

An illustration of the total aged receivables in each 30-day bucket is an example of a __________.

Accepted Answer

A)  histogram 
B)  pivot chart 
C)  line chart 
D)  horizontal analysis 
A)  histogram 
B)  pivot chart 
C)  line chart 
D)  horizontal analysis

Question 9

Descriptive analytics address the question, "Why it happened?".

Accepted Answer

A) True 
 B)False

Question 10

__________ analytics are often the first type of analytics performed that leads to other types of analytics for further investigation.

Accepted Answer

A)  Descriptive 
B)  Diagnostic 
C)  Predictive 
D)  Prescriptive 
A)  Descriptive 
B)  Diagnostic 
C)  Predictive 
D)  Prescriptive

Question 11

Jewelry stores have smaller profit margins than grocery stores.

Accepted Answer

A) True 
 B)False

Question 12

Which would have a higher expected profit margin (per dollar of sales) than the others?

Accepted Answer

A)  Real estate 
B)  Shaving cream 
C)  Bananas 
D)  Ice cream 
A)  Real estate 
B)  Shaving cream 
C)  Bananas 
D)  Ice cream

Question 13

__________ provides comparative changes about various line items of each financial statement over time.

Accepted Answer

A)  Vertical analysis 
B)  Horizontal analysis 
C)  Percentage change 
D)  A pivotable 
A)  Vertical analysis 
B)  Horizontal analysis 
C)  Percentage change 
D)  A pivotable

Question 14

A diagram showing interrelationships between two or more variables is called a __________.

Accepted Answer

A)  graph 
B)  pivottable 
C)  histogram 
D)  variance analysis 
A)  graph 
B)  pivottable 
C)  histogram 
D)  variance analysis

Question 15

Profit margin is computed as follows:

Accepted Answer

A)  Net profit (net income) / Sales 
B)  Gross profit / Sales 
C)  Net profit (net income) / Assets 
D)  Gross profit / Sales. 
A)  Net profit (net income) / Sales 
B)  Gross profit / Sales 
C)  Net profit (net income) / Assets 
D)  Gross profit / Sales.

Question 16

Of the following measures, the best way to analyze the extreme values in the sample is to consider the __________.

Accepted Answer

A)  mean 
B)  maximum or minimum 
C)  mode 
D)  standard deviation 
A)  mean 
B)  maximum or minimum 
C)  mode 
D)  standard deviation

Question 17

In addition to an aging analysis to establish an allowance for doubtful accounts, a __________ system may be used to assess the ability of customers to pay outstanding receivables.

Accepted Answer

A)  supply chain system 
B)  credit analysis 
C)  customer relationship management (CRM) 
D)  customer diagnostic analytics 
A)  supply chain system 
B)  credit analysis 
C)  customer relationship management (CRM) 
D)  customer diagnostic analytics

Question 18

Descriptive analysis is always the first type of data analytics performed.

Accepted Answer

A) True 
 B)False

Question 19

Diagnostic analytics emphasizes "What happened?".

Accepted Answer

A) True 
 B)False

Question 20

__________ expresses financial information in relation to some relevant figure or base.

Accepted Answer

A)  Vertical analysis 
B)  Horizontal analysis 
C)  Ratio analysis 
D)  Pivottables 
A)  Vertical analysis 
B)  Horizontal analysis 
C)  Ratio analysis 
D)  Pivottables

Department stores have faster asset turnover than airline companies.

In vertical analysis, the relevant base for cost of goods sold is which of the following?

Descriptive quantitative analytic measures of financial statements to help evaluate liquidity, solvency, profitability and efficiency are called __________.

If the profit margin is 0.1142, asset turnover is 0.5619 and financial leverage is 1.2937, what is the return on asset?

The recent the accounts receivable (i.e., shorter amount of time it has been outstanding), the likely it will be that they will ultimately be collected.

Accountants generally use __________ to assess the ultimate collectability of accounts receivables and estimate the allowance for doubtful accounts.

Which type of analytics generally would go first when addressing an accounting issue?

An illustration of the total aged receivables in each 30-day bucket is an example of a __________.

Descriptive analytics address the question, "Why it happened?".

__________ analytics are often the first type of analytics performed that leads to other types of analytics for further investigation.

Jewelry stores have smaller profit margins than grocery stores.

Which would have a higher expected profit margin (per dollar of sales) than the others?

__________ provides comparative changes about various line items of each financial statement over time.

A diagram showing interrelationships between two or more variables is called a __________.

Profit margin is computed as follows:

Of the following measures, the best way to analyze the extreme values in the sample is to consider the __________.

In addition to an aging analysis to establish an allowance for doubtful accounts, a __________ system may be used to assess the ability of customers to pay outstanding receivables.

Descriptive analysis is always the first type of data analytics performed.

Diagnostic analytics emphasizes "What happened?".

__________ expresses financial information in relation to some relevant figure or base.

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: Diagnostic Analyses

Perform the Analysis: Predictive Analytics

Perform the Analysis: Prescriptive Analytics

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Exam 6: Perform the Analysis: Descriptive Analyses

Department stores have faster asset turnover than airline companies.

In vertical analysis, the relevant base for cost of goods sold is which of the following?

Descriptive quantitative analytic measures of financial statements to help evaluate liquidity, solvency, profitability and efficiency are called __________.

If the profit margin is 0.1142, asset turnover is 0.5619 and financial leverage is 1.2937, what is the return on asset?

The __________ recent the accounts receivable (i.e., shorter amount of time it has been outstanding), the __________ likely it will be that they will ultimately be collected.

Accountants generally use __________ to assess the ultimate collectability of accounts receivables and estimate the allowance for doubtful accounts.

Which type of analytics generally would go first when addressing an accounting issue?

An illustration of the total aged receivables in each 30-day bucket is an example of a __________.

Descriptive analytics address the question, "Why it happened?".

__________ analytics are often the first type of analytics performed that leads to other types of analytics for further investigation.

Jewelry stores have smaller profit margins than grocery stores.

Which would have a higher expected profit margin (per dollar of sales) than the others?

__________ provides comparative changes about various line items of each financial statement over time.

A diagram showing interrelationships between two or more variables is called a __________.

Profit margin is computed as follows:

Of the following measures, the best way to analyze the extreme values in the sample is to consider the __________.

In addition to an aging analysis to establish an allowance for doubtful accounts, a __________ system may be used to assess the ability of customers to pay outstanding receivables.

Descriptive analysis is always the first type of data analytics performed.

Diagnostic analytics emphasizes "What happened?".

__________ expresses financial information in relation to some relevant figure or base.

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: Diagnostic Analyses

Perform the Analysis: Predictive Analytics

Perform the Analysis: Prescriptive Analytics

Share the Story

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The recent the accounts receivable (i.e., shorter amount of time it has been outstanding), the likely it will be that they will ultimately be collected.