Deck 10: Reporting Processes and Extensible Business Reporting Language XBRL

Question 1

Data warehouses that focus on facilitating managerial accounting needs and/or management by exception, can be called:
A. Financial Reporting Systems.
B. Data Mining.
C. Customer Relationship Management Systems.
D. Decision Support Systems.

Answer 1

Decision Support Systems.

Question 2

Data Mining uses which of the following approaches to analyze data and find new patterns and trends?
A. Data normalization.
B. Data scrubbing.
C. Decision Support Systems.
D. Sophisticated statistical techniques.

Answer 2

Sophisticated statistical techniques.

Question 3

The SEC's rule titled "Interactive Data to Improve Financial Reporting" resulted in which of the following?
A. XBRL International now creates yearly taxonomies for XBRL filing.
B. Publicly traded companies must now format their financial statements using XBRL.
C. U.S. banks must submit their quarterly "Report of Condition and Income" using XBRL.
D. Updated the XBRL specification to the most current version.

Answer 3

Publicly traded companies must now format their financial statements using XBRL.

Question 4

In addition to finding statistical correlations, proper application of Data Mining techniques should include which of the following?
A. Good use of the REA framework.
B. Professional judgment.
C. Use of the most current XBRL taxonomy.
D. Digital dashboards.

Question 5

When using a Data Mining approach for business analysis, it is important to remember which of the following?
A. All relationships between data items mean that one item has an impact on the other.
B. Data patterns and trends must be obvious before we can consider them in the business decision making process.
C. Relationships between data items do not necessarily mean that one causes the other.
D. Data mining should be performed in the operational system, not the data warehouse.

Question 6

Which of the following best describes the use of XBRL style sheets?
A. Style sheets determine which elements may be used when companies submit their XBRL filing.
B. Style sheets are another name for XBRL instance documents.
C. Style sheets allow for presentation of selected data from XBRL documents in a way that humans can read.
D. Style sheets determine the formatting of numbers and text in the XBRL taxonomy.

Question 7

Which of the following metrics would be least likely to show up on a Digital Dashboard?
A. Accumulated depreciation for the previous year.
B. Month-to-date sales.
C. Budget variances.
D. Number of accident-free days.

Question 8

Which of the following is often used as the main repository of a company's historical data (i.e., its corporate memory)?
A. The operational system.
B. The data warehouse.
C. The XBRL instance document.
D. Its digital dashboard.

Question 9

Before data from multiple sources can be loaded into the data warehouse, which of the following activities must be performed?
A. The company must obtain explicit permission from all public and private data sources before their data can be used in the data warehouse.
B. Operational system reports must be run, as the extraction process that loads the data warehouse usually deletes the data from the operational system.
C. Data inconsistencies must be removed so that the warehouse has homogeneous data for analysis and reporting purposes.
D. The operational system must create and file the appropriate XBRL instance document with the SEC.

Question 10

Which of the following best describes a reason that companies would want assurance on their XBRL filings?
A. Companies may begin to tag XBRL filings in more detail than is currently disclosed, introducing new information to investors.
B. The SEC requires assurance on XBRL filings.
C. XBRL International mandates assurance for all XBRL filings using current taxonomies.
D. Statement on Auditing Standards number 32 mandates assurance on XBRL filings.

Question 11

Which of the following metrics would be least likely to show up on a Digital Dashboard?
A. Accumulated depreciation for the previous year.
B. Month-to-date sales.
C. Budget variances.
D. Number of accident-free days.

Question 12

Business Intelligence is a technique that frequently makes use of all of the following except:
A. Spear Phishing.
B. Databases.
C. Web crawlers.
D. Data warehouses.