Introduction to Data Analytics for Accounting 1st Edition by Vernon Richardson Solution manual

facts mean.
Understanding  Machine
2. (LO1-3): For each of the questions below, categorize them as one of the following
question types:
a. What happened? What is happening?
b. Why did it happen? What are the root causes of past results?
c. Will it happen in the future? What is the probability something will happen? Is it
forecastable?
d. What should we do, based on what we expect will happen? How do we optimize
our performance based on potential constraints?”
Data Analytics Question  Question Type
How much did we pay in federal taxes last
year?
a. What happened? What is happening?
If we have all 12/31 year-end audit
clients, how will we organize our audit
work in the new year?
d. What should we do, based on what
we expect will happen? How do we
optimize our performance based on
potential constraints?”
Can the IRS find those individuals or
corporations evading taxes using
predictive techniques?
c. Will it happen in the future? What is
the probability something will
happen? Is it forecastable?
Richardson, Terrell, Teeter – Introduction to Data Analytics for Accounting, 1 st Edition – Chapter 1
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Did the airline company’s on-time
departures improve this past month?
a. What happened? What is happening?
Can our variance analysis help explain
why the labor expenses increased over
the past year?
b. Why did it happen? What are the root
causes of past results?
3. (LO 1-3) For each of the questions below, categorize the appropriate statistical
technique that should be used to perform the analysis.
a. Regression analysis
b. Benford’s Law
c. What-if/Goal Seek
d. Histogram
e. PivotTable
Data Analytics Question  Statistical Technique
Finding the frequency of all transactions,
from the minimum to the maximum
d. Histogram
Looking for potentially fraudulent
transactions
b. Benford’s Law
Minimizing tax payment based on
expected changes in tax legislation
c. What-if/Goal Seek
Segregating Total Costs into Fixed and
Variable Cost Components
a. Regression analysis
Displaying total accounts receivable
balance by days overdue (aging)
e. PivotTable
4. (LO1-3): Which of the following components of the AMPS model would each data
analytics question be?
a. Ask the Question
b. Master the Data
c. Perform the Analysis
d. Share the Story
Data Analytics Question  Which component of the AMPS Model?
Richardson, Terrell, Teeter – Introduction to Data Analytics for Accounting, 1 st Edition – Chapter 1
Copyright © 2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
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Management wants answers on why
certain products are unprofitable
Ask the Question
The data has lots of missing data  Master the Data
Should we report this with a graph or in a
table?
Share the Story
The analysis was done using a sort
command
Perform the Analysis
The data comes from last year’s financial
statements
Master the Data
A dashboard is used to communicate the
results
Share the Story
Which audit tests were performed on the
data
Perform the Analysis
Richardson, Terrell, Teeter – Introduction to Data Analytics for Accounting, 1 st Edition – Chapter 1
Copyright © 2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
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Lab 1-1 Solution
Lab 1-1 Submission
Check to ensure that total debits equal total credits and complete the trial balance.
Lab 1-1 Multiple Choice Questions
1. What are the total credits for the final trial balance?
a. 297,927
b. 179,300
c. Cannot be calculated
2. What is used in Excel to compute total debits and total credits from the transactions?
a. SUM() function
b. Calculator
c. AVG() function
d. Pivot Table
Richardson, Terrell, Teeter – Introduction to Data Analytics for Accounting, 1 st Edition – Chapter 1
Copyright © 2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
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3. What is used in Excel to compute Net Debits and Net Credits?
a. Calculated Fields, Items and Sets
b. SUM() function
c. Calculator
d. AVG() function
4. Which asset, in the normal course of business, should not have a credit balance as