Data chapter 2

accounting data analytics

The technologies, systems, practices, methodologies, databases, statistics, and applications used to analyze diverse accounting and nonaccounting data to give organizations the information they need to make sound and timely business decisions.

Big Data

Datasets that are too large and complex for businesses’ existing systems (traditional capabilities) to capture, store, manage, and analyze.

Big Data is often described using the four V’s

volume, variety, velocity, and veracity

volume

The amount of data being collected.

variety

the form of data

structured data

Highly organized data that fits nicely in a table or in a database. An Excel spreadsheet, or a balance sheet or income statement, is a good example.

unstructured data

Data without internal organization (or structure).Blogs and social media and pictures posted in Instagram would both be examples of unstructured data.

semi-structured data

Data without internal organization or structure but that has tags explaining what the data represents.

velocity

The speed at which data is generated or data is analyzed.

Veracity

The underlying quality of the data, as to whether the data is true or accurate or clean and is worthy of trust.

Financial accounting data

Any information external decision makers, such as stockholders, banks, and suppliers, might use to help make decisions.

Financial statements

A collection of reports that communicate a company’s financial results, financial condition, financial health and its cash flows.

Securities and Exchange Commission (SEC)

U.S. government agency charged with protecting investors by requiring full and truthful financial disclosure by companies.

Special journal

An accounting journal where similar transactions can be recorded. For example, a sales journal records all sales for a company.

general ledger

Provides the current balance of all asset, liability, equity, revenue, and expense accounts, summarizing all of the company’s transactions.

subsidiary ledger

An accounting ledger that details information on specific accounts with common characteristics. Each subsidiary ledger is associated with one and only one general ledger (G/L) account.

fixed assets

Property, plant (factories, office buildings, stores), and equipment (vehicles, fork lifts, computers, machinery, power tools, technical apparatus).

10-K

annual submission required by the SEC

the 10-K has five required sections

Business, risk factors, selected financial data, management discussion and analysis, financial statements and supplemental data.

10-Q

A required quarterly (every 3 months) submission to the Securities and Exchange Commission reporting a company’s financial performance.

8-K

A required submission to the Securities and Exchange Commission that is used to notify investors of important events or announcements.

The 10-K, 10-Q, and 8- K are stored at

EDGAR

EDGAR

Electronic Data Gathering, Analysis, and Retrieval system.

earnings call

A conference call between company management (like a CEO and CFO), analysts, investors, and the media to discuss earnings and other financial results that generally precede the call.

XBRL (eXtensible Business Reporting Language)

The computer-based standard used to define and exchange financial information between disclosing companies (like Nike and Netflix) and financial statement users [like investors, regulators, lenders (banks and bondholders)] and other interested parties.

Supply chain data

represents the process of getting products from raw materials to production to distribution to the ultimate delivery of the final product to the customer.

customer relationship management (CRM) system

An information system for managing all interactions with current and potential customers..

human resource management system (HRMS)

An information system for managing all interactions with current and potential employees.