Category 1
Which measure would help us evaluate what happens in the highest and lowest 10 percent of the data?
Deciles
Which type of analytics generally would go first when addressing an accounting issue?
Descriptive analytics
Which descriptive analytics tool would be utilized: Aged receivables can be determined using this tool by how old they are.
Pivottable
Which descriptive analytics term is being defined: Provides comparative changes about various line items of each financial statement over time.
Horizontal analysis
Which descriptive analytics tool would be utilized: Kmart’s performance is in the worst 10% of the companies covered in the dataset.
Deciles
The best way to analyze the extreme values in the sample would be to consider the _______.
maximum or minimum
The best measure for evaluating firm efficiency in handling and using assets would be _______.
asset turnover
Which would have a higher expected profit margin (per dollar of sales) than the others?
A. Shampoo
B. Clothing
C. Jewelry
D. Bananas
C. Jewelry
Which descriptive analytics tool would be utilized: The extent to which a data item gains or loses magnitude or value.
Percentage change
Which ratio includes a component to evaluate financial leverage?
Return on equity
The older the accounts receivable (i.e., longer amount of time it has been outstanding), the _______ likely it will be that they will ultimately be collected.
less
In vertical analysis, the relevant base for accounts receivable would be which of the following?
Total assets
Which descriptive analytics tool would be utilized: Amazon is in the top fourth of the data set.
Quartiles
Which descriptive analytics term is being defined: Expresses financial information in relation to some relevant figure, or base.
Vertical analysis
Which descriptive analytics tool would be utilized: There are an equal number of observations above and below this number.
Median
Which descriptive analytics term is being defined: Summarizes and disaggregates company performance into three ratios: profit margin, asset turnover, and financial leverage.
DuPont
A _______ is a graphical depiction of a _______, which reorganizes and summarizes certain data using cross-tabulations without changing the underlying spreadsheet (or data).
pivot chart; pivottable
Which descriptive analytics term is being defined: Brief summaries (or factoids) of a data set that provide a representation of the data set as a whole.
descriptive statistics
The best way to analyze the variability in the sample would be to consider the _______.
standard deviation
In which of the buckets would you expect the greatest amount of aged receivables to be?
A. 1-30 days
B. 91-120 days
C. 31-60 days
D. 61-90 days
A. 1-30 days
The calculation for return on equity using Dupont Analysis would be:
Profit margin × Asset turnover × Financial leverage
To compute the percentage change in a horizontal analysis, the computation is:
(New − Old)/Old
In vertical analysis, the relevant base for interest expense would be which of the following?
Sales revenue
Which would have a higher expected asset turnover (per dollar of assets) than the others?
A. Grocery stores
B. Airline transportation
C. Real estate
D. Jewelry
A. Grocery stores
Which descriptive analytics term is being defined: Display of rectangles with area proportional to the underlying frequency of the data.
Histogram