Data Analytics for Accounting

Predicting the possible existence of fraud is a classification predictive analysis.

According to the text, __________ does not prefer __________-basis accounting since it is inferior at forecasting future performance.

According to Altman's Z, the __________ amount of long-term profitability generally leads to __________ risk of bankruptcy.

We would expect a positive (+) relationship between loan acceptance and employment length.

The balance in the cash account is deterministic as compared to being probabilistic.

Predicting whether financial statements are fraudulent or not is an example of classification.

All of the following are factors used by Altman's Z in predicting bankruptcy except:

Which predictive analytics technique would be used to predict whether a firm is likely to have a material misstatement in the coming year?

The higher the expected risk, the lower the expected return.

Which predictive analytics technique would be used to predict the interest rate given from a lender (bank) to a borrower?

Predicting whether it will rain tomorrow or next week is more deterministic than reporting the rain that happened yesterday.

A good first step in a bankruptcy prediction is to know how many companies go bankrupt each year (as a percentage of total firms) to understand how prevalent bankruptcy is as a whole.

If a company has an Altman Z-score of 1.7, the company would be classified in the __________.

If a company has an Altman Z-score of 3.1, the company would be classified in the __________.

The persistence of operating income as compared to cash flows from operations is consistent with GAAP requiring the use of __________ accounting for financial reporting purposes.

Increase in receivables as compared to last period is a factor predicting financial statement fraud.

Which is more persistent in predicting future amounts of the variable based on current amounts of that same variable?

Predicting which companies are likely to have misstated financial statements is an example of __________ in predictive analytics.

We would expect a positive relationship (+) between loan acceptance and the debt-to-income ratio.

We would expect that sales forecasts would be more accurate than forecasts of operating income.