Quizlet- Chapter 7 PDF

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Handout: Chapter 7 Accounting & Business Intelligence + Chapter 7 Problems/Solutions Study online at quizlet.com/_36h4em 1.

3 Aspects to the Accounting System

1. Store accounting data 2. Analyze accounting data 3. Safeguard accounting data (STORE, ANALYZE, SAFEGUARD)

2.

Algorithm

a step-by-step solution to a problem

3.

Because of your background in accounting and IT, the vice president of sales and marketing asked you to create a digital dashboard for his sales managers. For his review, he would like you to send him a short email summarizing your ideas for the digital dashboard. Draft a short email to the vice president outlining your thoughts. Include the following: 1. What information and intelligence would you put on the digital dashboard for the sales managers?

In most cases a digital dashboard for monitoring sales is called a Sales Performance Dashboard. The following is a list of information and intelligence that could appear on a digital dashboard • Sales trend, revenue, average sales • Sales by dimensions such as sales by geography, customer, product, sales channel, adjustable date range • Sales analysis tool for analyzing sales data.

4.

Because of your stellar performance in your accounting information systems course, you have been called to the office of the university's controller. The controller tells you that the university's annual audit begins next month. The controller has heard from other universities that they experienced audit issues with numerous spreadsheets that did not have proper controls. The controller has asked you to complete an internship with his office. Your assignment would be to devise a plan to improve spreadsheet controls. What would you say in your executive summary to the controller?

In the solution section of your executive summary, include what is explained in the Shadow Data Global Spreadsheet Analysis section of this chapter. Explain the advantages of assigning a SSID to each spreadsheet, implementing a global identification system for shadow data stored in spreadsheets, and storing all spreadsheets on a dedicated university server.

5.

BLANK provides a framework for structuring and organizing the decisionmaking process

A. an integrated decision model

6.

BLANK provides an organization with insights to improve future business performance

D. predictive analysis

7.

Both accounting and IT report to the CFO of Lawrence Enterprises. The IT professionals have been lobbying him for a data warehouse to use for business intelligence. While the CFO can see the value of using business intelligence to improve decisions, he is not sure that it is warranted by the cost of the data warehouse. The accounting professionals are saying that it will put them over budget if they have to purchase a data warehouse. Why can't IT just use the operational database that was purchased last year? The CFO has called you in to act as a liaison between accounting and IT. He wants some straight answers from you: Does he need to invest in a data warehouse or not? Can the company just use the operational database for business intelligence? Draft a short email to the CFO with your response.

Your email should include: • Accounting and IT both should be involved in this project. This would prevent redundant requirements for data warehouse design and implementation. • Business intelligence can use an operational database but predictive modeling and data mining tools cannot be effectively implemented without access to historical data. • BI tools provide much faster reports when using a data warehouse. • In summary, using a data warehouse allows for better decision making.

8.

Business intelligence is used to

B. make better business decisions

9.

A business intelligence technique that uses mathematical algorithms to predict future trends is:

D. Predictive Modeling

10.

A business intelligence technique used on relatively unstructured data such as emails is called:

B. Text Mining

11.

A business intelligence technique used to search data stored in a data warehouse using mathematical algorithms to find patterns, trends and relationships among data is referred to as:

A. Data Mining

12.

A business intelligence technique used to search social networking sites for customers preferences would be referred to as:

C. Web Mining

13.

Business Intelligence Technologies

analysis tools under IT control used to extract and analyze data from operational databases and data warehouses

14.

Data Analysis

tools to analyze data to identify interrelationships and insights used to create intelligence for better business decisions and actions

15.

Data cubes allow

C. a multidimensional view of the data

16.

Data Extraction and Transfer

data extraction and transfer tools extract data storage in databases and transfer the data into data analysis tools Example: Open Database Connectivity (ODBC)

17.

Data, Info, Intelligence?

intelligence

A chart depicting sales of a specific item for specific regions and average income in those regions 18.

Data, Info, Intelligence?

Intelligence

A graph depicting sales in relation to customer age 19.

Data, Info, Intelligence?

information

A graph showing sales amounts for a specific year 20.

Data, Info, Intelligence?

Information

A graph showing the average price of a product in the market place 21.

Data, Info, Intelligence?

Intelligence

A pie chart showing sales in different regions 22.

Data, Info, Intelligence?

data

A table containing 100 names 23.

Data Storage

data from recurring operations, such as accounting, is stored in an operational database data from other sources and the operational database may be lauded into a data warehouse

24.

Data Storage, Data Extraction and Transfer, Data Analysis, Data Visualization?

Data analysis

Data mining 25.

Data Storage, Data Extraction and Transfer, Data Analysis, Data Visualization? Digital Dashboard

Data Visualization

26.

Data Storage, Data Extraction Data Analysis and Transfer, Data Analysis, Data Visualization? predictive modeling

27.

Data Storage, Data Extraction Data Extraction and Transfer and Transfer, Data Analysis, Data Visualization? Query

28.

Data Storage, Data Extraction Data Storage and Transfer, Data Analysis, Data Visualization? Relational Database

29.

Data Storage, Data Extraction Data Analysis and Transfer, Data Analysis, Data Visualization? Spreadsheet Financial Functions

30.

Data Storage, Data Extraction data storage and Transfer, Data Analysis, Data Visualization? Star data warehouse structure

31.

Data Visualization

tools used by intelligent systems to view the data in multi-dimensional perspectives Example: OLAP

32.

Decisions typically related to ongoing business activities are considered:

A. routine operating decisions

33.

Digital Dashboard

an interactive form that combines charts, graphs, figures, tables and data cubes

34.

Dimensional Database

contains one fact database table and one or more dimension database tables

35.

Discuss how centralizing the operational database and data warehouse improves the performance intelligence queries

if the enterprise data is not centralized, then intelligence queries should extract the necessary data from many stand-alone databases. This requires an unaccetable query-execution time, since these queries need to access different, unrelated databases. In some instances, when these stand-alone databases do not have the same database engines, the intelligence queries may not even execute

36.

Discuss the advantages of a dimensional database structure used for data warehouses.

A dimensional database has one fact table and two or more dimension (Dim) tables. The dimension tables in a star database are dimensions of the database, such as time dimension, product information, sales territory, currency, and so on. The dimensional database fact table and dimension tables contain data for specific intelligence. This makes them ready to use. The other advantage is that there are only two tables involved in any data extraction query. That is why BI queries execute much faster than those using relational databases.

37.

Discuss the advantages of using a decision model. How does it help standardize your accounting system? Why is it important to consider qualitative factors when making a decision?

Integrative decision model (IDM) can be implemented in a spreadsheet. Quantitative data needed for decision making can be extracted from the database by BI tools and stored in the quantitative section of the model. Because the IDM provides a standard method for quantitative qualitative analysis, then it could standardize decision making. The accounting system is standardized when the IDM is implemented into the accounting system. Quantitative data analysis doesn't always provide the best indicators for business decision making. For example, sometimes the social impact of a decision made based on just the numeric result could be very dire for the future enterprise sustainability.

38.

Discuss the role of accounting professionals in the development of business intelligence technologies.

Most BI technologies are developed to analyze the enterprise financial data and make intelligent decisions. Accounting professionals often better understand the requirements and needs for applications that have specific requirements unique to accounting and finance. IT professionals may not have the requisite accounting knowledge to develop a product that meets all the needs of the accounting professional

39.

Discuss the role of accounting professionals in the development of shadow data.

Spreadsheets are very popular among accountants because they provide a large number of spreadsheet analysis tools and these tools are easy to use. The end-user accountant can perform relatively complex data analysis from a desktop or laptop computer using spreadsheet analysis tools

40.

Discuss why running business intelligence queries using an operational database can be a slow process. Why is it faster to use BI technologies with a data warehouse?

Because of the structure of operational database (that is relational) a query may need to access many related tables to extract the required info. In a data warehouse, a query access only 2 tables to extract the required info for analysis

41.

Enterprise Intelligent System Components

- data storage - data extraction and transfer - data analysis - data visualization

42.

Immon recommends that each

43.

Integrative Decision Model (IDM)

a framework to structure the decision-making process and incorporate both quantitative and qualitative considerations in the decision

44.

Long-range, unstructured decisions with a high degree of ambiguity are called:

C. strategic decisions

45.

Macros

automatically perform a sequence of analysis tasks, step by step

46.

Open Database Connectivity (ODBC)

translates data analysis query commands into commands that are compatible with RDBMS commands to extract data from an operational database

D. spreadsheet in an organization be assigned to a unique identifier

47.

Operational Database vs. Data Warehouse (ON 1. Operational Database TEST) - stores data about business operations - prepared to support business function - has relational structure - suitable for organizing data based on business projects 2. Data Warehouse - stores all types of data - prepared for analysis - has star or snowflake structure - suitable for organizing data based on data analysis subjects

48.

Relational Database vs Data Warehouse (Definitions of both)

Relational Database Structure - a query might combine multiple tables to extract required data Data Warehouse Structure - query combines only 2 tables to extract required data

49.

Semistructured decisions that are typically short term in nature and impact one year or less are considered:

B. Tactical Decisions

50.

Shadow Data

data extracted from the operational database, often into spreadsheets that show the formal accounting system

51.

Shadow Data is:

D. B & C B. Data currently stored in the organization databases C. data collected from sources other than the organization databases

52.

Spreadsheet Identifier (SSID)

each spreadsheet is assigned a unique identifier

53.

Tactical decisions are

B. semi-structured

54.

(these types of questions are ON TEST) Data, Info, Intelligence?

data

Sequence of numbers stored in a table 55.

Total sales on the corporate annual income statement is

B. information (the collective = information) (individual data points = data) (relationships between things = intelligence)

56.

Two approaches to data analytics for business intelligence

1. Shadow Data 2. Business Intelligence Technologies

57.

What decisions could the digital dashboard help the sales managers make?

Some of the decisions could be removing one or more products from sales, increasing the advertisement effort in specific regions, and increasing sales promotions in some geographic areas.

58.

What does ODBC do?

D. provides the database reports

59.

What would be the source of your data for the On this digital dashboard, the operational database is used to show the live data digital dashboard? about sales. For the data analysis, it could use both the data warehouse and the operational database.

60.

Which of the following is true about shadow data?

A. shadow data is quick to implement NOT TRUE: - shadow data is used by a large number of users - shadow data is fully documented and supported by the IT department - shadow data is highly secure and protected...