Sample Questions and Answers
What is accounting analytics primarily used for?
A) Preparing financial statements
B) Analyzing trends and patterns in financial data
C) Tax compliance
D) Budget approvals
Answer: B
Which tool is most commonly used in accounting analytics for data visualization?
A) Excel
B) Python
C) Tableau
D) SAP
Answer: C
Descriptive analytics in accounting focuses on:
A) Predicting future trends
B) Explaining historical data
C) Prescribing actionable insights
D) Automating processes
Answer: B
What is the key difference between structured and unstructured data?
A) Unstructured data is always numerical.
B) Structured data is organized and easily searchable.
C) Structured data cannot be analyzed.
D) Unstructured data is always smaller in size.
Answer: B
Which of the following is an example of a predictive analytics tool?
A) Excel
B) Machine Learning Algorithms
C) PowerPoint
D) ERP Software
Answer: B
What does “big data” in accounting analytics refer to?
A) Large volumes of data processed using traditional methods
B) Structured data only
C) Vast and complex datasets requiring advanced analytical tools
D) Data stored in Excel
Answer: C
Which term describes analytics that recommends actions based on data analysis?
A) Descriptive Analytics
B) Diagnostic Analytics
C) Predictive Analytics
D) Prescriptive Analytics
Answer: D
Accounting analytics can help detect fraud by:
A) Tracking tax filings
B) Identifying anomalies in financial data
C) Preparing financial budgets
D) Reducing data storage costs
Answer: B
Which programming language is widely used in accounting analytics for data analysis?
A) JavaScript
B) Python
C) HTML
D) CSS
Answer: B
Which type of analysis explores why something happened?
A) Descriptive Analytics
B) Diagnostic Analytics
C) Predictive Analytics
D) Prescriptive Analytics
Answer: B
In accounting analytics, what is a “dashboard”?
A) A type of database
B) A tool for visualizing key performance indicators
C) A predictive model
D) A data input system
Answer: B
Which of these is an example of unstructured data?
A) Balance sheets
B) Social media posts
C) Trial balances
D) Bank statements
Answer: B
Which of the following is NOT a step in the data analytics process?
A) Data collection
B) Data cleaning
C) Data visualization
D) Ignoring outliers
Answer: D
Which is an example of diagnostic analytics in accounting?
A) Identifying trends in monthly sales
B) Investigating the cause of revenue decline
C) Forecasting next quarter’s revenue
D) Providing recommendations for cost reductions
Answer: B
Which database system is commonly used in accounting analytics?
A) MySQL
B) Photoshop
C) QuickBooks
D) WordPress
Answer: A
The term “ETL” in data analytics stands for:
A) Extract, Transform, Load
B) Evaluate, Test, Learn
C) Enter, Track, Log
D) Edit, Transfer, Link
Answer: A
What is the primary goal of predictive analytics?
A) Automating financial reporting
B) Identifying patterns in past data
C) Forecasting future outcomes
D) Enhancing data security
Answer: C
Which technology is commonly used to handle big data in accounting analytics?
A) Blockchain
B) Hadoop
C) ERP Systems
D) Tableau
Answer: B
What is “data mining” in the context of accounting analytics?
A) A process to collect raw data
B) The extraction of useful patterns from large datasets
C) The visualization of data trends
D) An outdated accounting method
Answer: B
In accounting analytics, KPIs stand for:
A) Key Pattern Indicators
B) Key Performance Indicators
C) Known Performance Insights
D) Key Predictive Information
Answer: B
What type of analytics involves creating “what-if” scenarios?
A) Diagnostic Analytics
B) Descriptive Analytics
C) Predictive Analytics
D) Prescriptive Analytics
Answer: D
A heatmap is used in accounting analytics to:
A) Analyze geographical data
B) Highlight data patterns and variations visually
C) Represent numerical data in tabular form
D) Perform regression analysis
Answer: B
What is a common challenge in data cleaning?
A) Ensuring the data is stored securely
B) Identifying missing or duplicate data
C) Visualizing the data
D) Analyzing trends in the data
Answer: B
Cloud computing in accounting analytics allows:
A) Enhanced fraud detection
B) Real-time access to data and analytics tools
C) Automated tax filings
D) Creation of financial reports
Answer: B
Which statistical measure is often used in accounting analytics?
A) Mean and Median
B) HTML Tags
C) Blockchain Algorithms
D) Accounting Software
Answer: A
Which type of chart is best for showing trends over time?
A) Pie Chart
B) Bar Chart
C) Line Chart
D) Scatter Plot
Answer: C
What does a regression analysis help identify in accounting analytics?
A) Causes of data discrepancies
B) Relationships between variables
C) Patterns in unstructured data
D) Profit and loss statements
Answer: B
What is a common feature of business intelligence tools?
A) Automatic tax calculation
B) Data visualization and reporting
C) Data encryption
D) Fraud auditing
Answer: B
Which of the following is a benefit of accounting analytics?
A) Reduced need for human analysts
B) Improved decision-making through data insights
C) Elimination of manual audits
D) Simplified compliance with regulations
Answer: B
The term “data lake” refers to:
A) A large storage system for structured data
B) A repository for raw and unstructured data
C) A data visualization tool
D) A statistical modeling technique
Answer: B
What is the primary purpose of diagnostic analytics in accounting?
A) To explain past performance and trends
B) To automate financial reporting
C) To recommend solutions to financial problems
D) To predict future financial outcomes
Answer: A
Which of the following is an example of structured data in accounting analytics?
A) Social media comments
B) Journal entries in a ledger
C) Emails from customers
D) Scanned PDF invoices
Answer: B
What is the primary focus of prescriptive analytics?
A) Identifying anomalies in data
B) Providing actionable recommendations
C) Forecasting market trends
D) Aggregating financial data
Answer: B
Which of the following technologies is often used to improve the accuracy of predictive analytics?
A) Blockchain
B) Artificial Intelligence (AI)
C) Cloud Storage
D) ERP Systems
Answer: B
Which chart type is ideal for comparing proportions within a dataset?
A) Line Chart
B) Scatter Plot
C) Pie Chart
D) Histogram
Answer: C
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