Question: From Exhibit 7-5, choose 10 Marketing

> Why has most innovation in Data Analytics originated more in an internal audit than an external audit? Or if not, why not?

> The text mentions, “If your data analysis project is more declarative than exploratory, it is more likely that you will perform your data visualization to communicate results in Excel.” In your opinion, why is this true?

> Box and whisker plots (or box plots) are particularly adept at showing extreme observations and outliers. In what situations would it be important to communicate these data to a reader? Any particular accounts on the balance sheet or income statement?

> According to Exhibit 4-8, which is the best chart for showing a distribution of a single variable, like height? How about hair color? Major in college?

> Explain Exhibit 4-2 and why these four dimensions are helpful in describing information to be communicated? Exhibit 4-2 lists conceptual and data-driven as being on two ends of the continuum. Does that make sense, or can you think of a better way to orga

> How does fuzzy match work? Give an accounting situation where it might be most useful

> How is similarity matching different from clustering?

> How might classification be used in approving or denying a potential fraudulent credit card transaction?

> How might the data reduction approach be used in auditing?

> What is the difference between training data sets and test (or testing) data sets?

> The advantages of a relational database include limiting the amount of redundant data that are stored in a database. Why is this an important advantage? What can go wrong when redundant data are stored?

> What is the difference between a supervised and an unsupervised approach?

> Figures 3-1 through 3-4 suggest that volume and distance are the best predictors of “days to ship” for a wholesale company? Any other variables that would also be useful in predicting the number of “days to ship”?

> Compare and contrast the profiling data approach and the development of standard cost for a unit of production at a manufacturing company? Are they substantially the same or do they have differences?

> What is the purpose of a data dictionary? Identify four different attributes that could be stored in a data dictionary, and describe the purpose of each.

> Among the advantages of using a relational database is enforcing business rules. Based on your understanding of how the structure of a relational database helps prevent data redundancy and other advantages, how does the primary key/foreign key relationsh

> In the ETL process, one important step to process when transforming the data is to work with NULL, N/A, and zero values in the dataset. If you have a field of quantitative data (e.g., number of years each individual in the table has held a full-time job)

> The advantages of a relational database include integrating business processes. Why is it preferable to integrate business processes in one information system, rather than store different business process data in separate, isolated databases?

> Give an example of how Data Analytics creates value for accounting.

> Give an example of how Data Analytics creates value for businesses.

> What is the difference between a target and a class?

> Which attributes from the College Scorecard data would you need to compare cost of attendance across types of institutions (public, private non-profit, or private for-profit)??

> According to the text and your own experience, why is Tableau ideal for exploratory data analysis?

> To address the question “Will I receive a loan from LendingClub?” we had available data to assess the relationship among (1) the debt-to-income ratios and number of rejected loans, (2) the length of employment and number of rejected loans, and (3) the cr

> What would be the best chart to use to illustrate earnings per share for one company over the past five years?

> Based on the data from datavizcatalogue.com, how does a box and whisker plot show if the data are symmetrical?

> Based on the data from datavizcatalogue.com, what are some major flaws of using word clouds to communicate the frequency of words in a document?

> Based on the data from datavizcatalogue.com, a line graph is best at showing comparisons, relationships, compositions, or distributions? Name the best two.

> Using Figure 3-5 as a guide, what are three data approaches associated with the supervised approach?

> What data approach mentioned in the chapter might be used by Facebook to find friends?

> In the chapter, we mentioned eight different data approaches. Which data approach was used by Alibaba, as mentioned in the chapter-opening vignette?

> In the ETL process, if the analyst does not have the security permissions to access the data directly, then he or she will need to fill out a data request form. While this doesn’t necessarily require the analyst to know extraction techniques, why does th

> Why is identifying the question such a critical first step in the IMPACT process cycle?

> Using Figure 3-5 as a guide, what are three data approaches associated with the unsupervised approach?

> Why might the debt-to-income attribute included in the declined loans dataset considered in the chapter be a predictor of declined loans? How about the credit (risk) score?

> Download the rejected loans dataset of LendingClub data titled “RejectStatsA Ready” from the Connect website and do an Excel PivotTable by state; then figure out the number of rejected applications for the state of Arkansas. That is, count the loans by s

> Download and consider the rejected loans dataset of LendingClub data titled “RejectStatsA Ready.” Given the analysis performed in the chapter, what three items do you believe would be most useful in predicting loan acceptance or rejection? What additiona

> Download and consider the data dictionary file “LCDataDictionary,” specifically the LoanStats tab. This represents the data dictionary for the loans that were funded. Seeing all of the data attributes listed there, which attributes do you think might pre

> Go to Loughran and McDonald’s sentiment word lists at https://www3.nd.edu/~mcdonald/Word_Lists.html and download the Master Dictionary. These are what they’ve used to assess sentiment in financial statements and related financial reports. Give five words

> Go to Loughran and McDonald’s sentiment word lists at https://www3.nd.edu/~mcdonald/Word_Lists.html and download the Master Dictionary. These are what they’ve used to assess sentiment in financial statements and related financial reports. Give five word

> The preceding question asked you to figure out how the stock market responded to Amazon’s announcement that it would purchase Whole Foods. The question now is if the stock market for Amazon had higher trade volume on that day than the average of the mont

> You’re asked to figure out how the stock market responded to Amazon’s announcement on June 16, 2017, that it would purchase Whole Foods—arguably a transformational change for Amazon, Walmart, and the whole retail industry. Required: a. Go to finance.yaho

> We noted in the text that negative words in the financial dictionary include words like loss, claims, impairment, adverse, restructuring, and litigation. What are other negative words might you add to that list? What are your thoughts on positive words t

> Can you think of situations where sentiment analysis might be helpful to analyze press releases or earnings announcements? What additional information might it provide that is not directly in the overall announcement? Would it be useful to have sentiment

> Why is Order Fulfillment Cycle Time an appropriate KPI for a company like Wayfair (which sells furniture online)? How long does Wayfair think customers will be ready to wait if Amazon Prime promises items delivered to its customers in two business days?

> Which data approach might be used to assess the appropriate level of the allowance for doubtful accounts?

> If Time to Market is considered a key KPI for a company, what would be an appropriate benchmark? The industry’s Time to Market? The average Time to Market for the company for the past five years? The competitors’ Time to Market? a. How will you know if t

> If ROA is considered a key KPI for a company, what would be an appropriate benchmark? The industry’s ROA? The average ROA for the company for the past five years? The competitors’ ROA? a. How will you know if the company is making progress? b. How might

> How does Data Analytics help facilitate the use of the Balanced Scorecard and tracking KPIs? Does it make the data more timely? Are you able to access more information easier or faster, or what capabilities does it give?

> From Exhibit 7-5, choose 10 Employee Performance KPIs to answer the following three questions. This URL (https://www.linkedin.com/pulse/20130905053105-64875646-the- 75-kpis-every-manager-needs-to-know) provides links with background information for each

> From Exhibit 7-5, choose 5 Financial Performance KPIs to answer the following three questions. This URL (https://www.linkedin.com/pulse/20130905053105-64875646-the- 75-kpis-every-manager-needs-to-know) provides links with background information for each

> How do you think sentiment analysis of the 10-K might assess the level of bias (positive or negative) of the annual reports? If management is too positive about the results of the company, can that be viewed as being neutral or impartial?

> How artificial intelligence could be used to help with the evaluation of the estimate for the allowance for doubtful accounts? Could past allowances be tested for their predictive ability that might be able to help set allowances in the current period?

> Which distributions would you recommend be tested using Benford’s law? What would a Benford’s law evaluation of sales transaction amounts potentially show? What would a test of vendor numbers or employee numbers show? Anything different from a test of in

> In a certain company, one accountant records most of the adjusting journal entries at the end of the month. What type of analysis could be used to identify that this happens and the cumulative size of the transactions that the one accountant records? Is

> Auditors will frequently use the data reduction approach when considering potentially risky transactions. Provide an example of why focusing on a portion of the total number of transactions might be important for auditors to assess risk.

> Define Data Analytics and explain how a university might use its techniques to recruit and attract potential students.

> A number of business transactions carried out by Smalling Manufacturing Company are as follows. a. Borrowed money from a bank. b. Sold land for cash at a price equal to its cost. c. Paid a liability. d. Returned for credit some of the office equipmen

> Compute the missing amounts in the following table Assets Llabilities + Owners' Equity a. $635,000 $342,000 ? b. ? 562,500 $610,000 C. 307,500 ? 187,200

> Foster, Inc., purchased a truck by paying $5,000 and borrowing the remaining $30,000 required to complete the transaction. Briefly state how this transaction affects the company’s basic accounting equation.

> Walters Company purchased a piece of machinery on credit for $24,000. Briefly state the way this transaction affects the company’s basic accounting equation.

> Repeat Brief Exercise 2.8, except assume that rather than being a sole proprietorship or a partnership, Solway Company is organized as a corporation with capital stock of $48,000. How would the $60,000 of owners’ equity be presented in the company’s bala

> Solway Company is a sole proprietorship whose owner, Joe Solway, has an equity interest of $50,000. Had Solway been a partnership rather than a sole proprietorship, and the two equal partners were Joe and his brother Tom, how would the $50,000 owners’ eq

> Wilkes Company had the following transactions during the current year: Earned revenues of $100,000 and incurred expenses of $56,000, all in cash. Purchased a truck for $25,000. Sold land for $10,000. Borrowed $15,000 from a local bank. What was the total

> Wexler, Inc.’s income statement showed total expenses for the year to be $50,000. If the company’s revenues for the year were $135,000 and its year-end cash balance was $35,000, what was Wexler’s net income for the year?

> Wiley Company had total revenues of $360,000 for a recent month. During the month the company incurred operating expenses of $246,000 and purchased land for $66,000. Compute the amount of Wiley’s net income for the month.

> White Company’s assets total $780,000 and its owners’ equity consists of capital stock of $500,000 and retained earnings of $150,000. Does White Company have any outstanding liabilities and, if so, what is the total amount of its liabilities?

> Who are the sponsoring organizations of COSO, and what is COSO best known for doing?

> Bosh Company’s assets total $155,000 and its liabilities total $85,000. What is the amount of Bosh’s retained earnings if its capital stock amounts to $50,000?

> Spencer Software Company has assets of $1,020,000 and liabilities of $552,000. a. Prepare the owners’ equity section of the company’s balance sheet under each of the following independent assumptions: 1. The business is organized as a sole proprietorsh

> For each of the following categories, state concisely a transaction that will have the required effect on the elements of the accounting equation. a. Increase an asset and increase a liability. b. Decrease an asset and decrease a liability. c. Increas

> The following cases relate to the valuation of assets. Consider each case independently. a. World-Wide Travel Agency has office supplies costing $1,400 on hand at the balance sheet date. These supplies were purchased from a supplier that does not give

> The balance sheet items of Kiner Company as of December 31, current year, follow in random order. You are to prepare a balance sheet for the company, using a similar sequence for assets as illustrated in Exhibit 2–9. You must compute th

> The night manager of Willis Transportation Service, who had no accounting background, prepared the following balance sheet for the company at February 28, current year. The dollar amounts were taken directly from the company’s accountin

> Assets and liabilities are important elements of a company’s financial position. 1. Define assets. Give three examples of assets other than cash that might appear in the balance sheet of (1) American Airlines and (2) a professional sports team, such as

> The Walt Disney Company’s annual report for the year ended October 3, 2015, includes income statements for the years ending in 2013, 2014, and 2015. Net income for these three years is as follows (all in millions): $6,136 (2013), $7,501 (2014), and $8,38

> Locate the balance sheet, income statement, and statement of cash flows of Home Depot, Inc., in Appendix A of your text. Review those statements and then respond to the following for the year ended January 31, 2016 (fiscal year 2015). a. Did the company

> Prepare a two-column analysis that illustrates steps management might take to improve the appearance of its company’s financial statements. In the left column, briefly identify three steps that might be taken. In the right column, briefly describe for ea

> Shown in random order is a list of balance sheet items for Maple Valley Farms at September 30, current year. Instructions: a. Prepare a balance sheet by using these items and computing the amount for Retained Earnings. Use a sequence of assets similar

> On the basis of the information for Prestwick Company in Exercise 2.13, prepare a statement of cash flows in a form consistent with generally accepted accounting principles. You may assume all transactions were in cash and that the beginning cash balance

> An inexperienced accountant for Prestwick Company prepared the following income statement for the month of August, current year. Prepare a revised income statement in accordance with generally accepted accounting principles. PRESTWICK COMPANY AUGUS

> Jiminez, Inc., had the following transactions during the month of March, current year. Prepare an income statement based on this information, being careful to include only those items that should appear in that financial statement. 1. Cash received from

> During the month of October, current year, Weller Company had the following transactions. 1. Revenues of $14,400 were earned and received in cash. 2. Bank loans of $3,600 were paid off. 3. Equipment of $3,000 was purchased for cash. 4. Expenses of $9

> Professional judgment plays a major role in the practice of accounting. a. In general terms, explain why judgment enters into the accounting process. b. Identify at least three situations in which accountants must rely on their professional judgment, ra

> Explain whether each of the following balance sheet items increases, reduces, or has no direct effect on a company’s ability to pay its obligations as they come due. Explain your reasoning. a. Cash. b. Accounts Payable. c. Accounts Receivable. d. Capi

> Give an example of business transactions that would: a. Cause one asset to increase and another asset to decrease, with no effect on either liabilities or owners’ equity. b. Cause both total assets and liabilities to increase with no effect on owners’

> Can a business transaction cause one asset to increase without affecting any other asset, liability, or owners’ equity?

> Why is the going-concern assumption an important consideration in understanding financial statements?

> Why is the statement of financial position, or balance sheet, a logical place to begin a discussion of financial statements?

> The following list of balance sheet items are in random order for Alexander Farms, Inc., at September 30, current year. Instructions: a. Prepare a balance sheet by using these items and computing the amount for Retained Earnings. Use a sequence of a

> In general terms, what are revenues and expenses? How are they related in the determination of an enterprise’s net income or net loss?

> Why is a knowledge of accounting terms and concepts useful to persons other than professional accountants?

> What are the characteristics of a strong statement of cash flows?

> What is meant by the term adequate disclosure, and how do accountants fulfill this requirement in the preparation of financial statements?

> What is meant by the statement that the financial statements articulate?

> What are the three categories commonly found in a statement of cash flows, and what is included in each category?

> Moon Corporation and Star Corporation are in the same line of business and both were recently organized, so it may be assumed that the recorded costs for assets are close to current market values. The balance sheets for the two companies are as follows a

> This assignment introduces you to EDGAR, the Securities and Exchange Commission’s database of financial information about publicly owned companies. The SEC maintains EDGAR to increase the efficiency of financial reporting in the American economy and also

> The Public Company Accounting Oversight Board (PCAOB) is a direct outcome of the Sarbanes Oxley Act of 2002. This is considered one of the most significant pieces of legislation to have ever been enacted in terms of financial reporting in several decades

> You are employed by a business consulting firm as an information systems specialist. You have just begun an assignment with a startup company and are discussing with the owner her need for an accounting system. How would you respond to the following ques