ACC 3202: Accounting Information Systems Final Review, Terminology

Excel

best at data analysis and exploring data; tool for creating Pivot tables, graphs, and performing statistical analysis

Tableau

best for data visualization; does not allow original data entry

Databases

most secure method of storing data

Relational database

efficient means of storing data in one place, in one table instead of multiple places

Tables

data organized into sets of columns (fields) and rows (records)

Fields

these are the columns that contain descriptive information about the observations in the table (including primary and foreign keys)

Records

these are the rows in a table; each row, or record, corresponds to a unique instance of what is being described in the table

Primary key

unique identifier in each table, Transaction_ID in Transaction Table; CustomerID in Customer Table

Foreign key

exist to create relationships or links between two tables

ER (Entity Relationship) Diagram

graphical representation of an information system, illustrating relationships among people, objects, places and events within that system

Descriptive analytics

What happened? What is happening?

Diagnostic analytics

Why did it happen? What are the root causes of past results?

Predictive analytics

Will it happen in the future? What is the probability something will happen? Is it foreseeable?

Prescriptive analytics

What should we do, based on what we expect will happen? How do we optimize our performance based on potential constraints?

Histogram or scatter plot

might be used to help evaluate journal entries that are excessively big or excessively small (or negative) with the testing of internal controls

Regression analysis

might be used to evaluate cost behavior by segregating total costs into fixed and variable cost components

Internal rate of return or net present value analysis

might be used to evaluate capital investments made by a potential investor

What-If Goal Seek Analysis

might be used to perform an analysis of how changing costs and other factors affect the breakeven level for a new product

Spreadsheets

using excel or other program as tools for analytics that accountants will perform

References

how to connect other data in the spreadsheet

Macros

how to automate processes that are repetitive

PivotTables

often a very functional tool for many types of summarizations and also serves as a way to help organize the data

Queries

used to access the data needed for analysis

Scripting

programs written to perform analytics to do repetitive tasks

Visualizations

used to communicate data to decision makers using Tableau, Power BI or other tools for communication

Standard cost data

allows variance analysis, comparing budget to actual

Point of sale transaction data

all information from sale

Potential cost drivers

allows evaluation of best way to allocate overhead

Supply chain data

system which tracks products from vendor to final customer

Customer relationship management system data

tracks everything about the customer (order, payment, preferences, etc)

Human resource management system data

system which tracks all information regarding employees (pay, hire date, benefits, applicants, retirees, etc)

Gross domestic product

as a measure of economy-wide performance

Unemployment numbers

as a measure of labor availability

Consumer price index

as a measure of inflation

Housing market starts and price levels

generally regarded as a key measure of economic status

Categorical

tend to be represented by words, such as categorizing a group of people by gender (male, female, nonbinary), or categorizing transaction types (sales versus returns)

Numerical

meaningful numbers, such as transaction amount, net income, age, or the score on an exam

Nominal data

categorical data that cannot be ranked

Ordinal Data

categorical data that allows/implies ranking and sorting

Interval data

an equal interval between each observation, so that not only does summing the data make sense, so does multiplication and other more complex numerical calculations

Ratio data

numerical data with an equal and definitive ratio between each data point and absolute "zero" (meaning absence of) in ratio data is the point of origin

Data dictionary

a centralized repository of information about data containing a separate record for each field/variable in the table/database; it is data about the data

Descriptive analytics

analytics performed which characterizes, summarizes, and organizes features and properties of the data to facilitate understanding

Counts

show how frequently an attempt occurs

Totals, sums, averages, subtotals

summarize measures of performance

Minimums, maximums, medians, standard deviations

summarize measures showing extreme values to help explain what happened

Vertical analytics, horizontal analytics

percentage change from one period to the next

Ratio analytics

return on assets, return on sales (profit margin), asset turnover ratios, debt-to-equity ratios: Calculate important financial ratios for comparison

Diagnostic analytics

analytics performed to investigate the underlying cause that cannot be answered by simply looking at the descriptive data but can be answered by various types of diagnostic analyses.

Identifying anomalies/outliers

often a first step in diagnostic analytics is to look for an identify unusual, unexpected results or transactions

Performing drill down analytics

look for patterns in the underlying data set by summarizing data at different levels and uncovering additional details to understand why something happened.

Determine relations/patterns/linkages between variables

find the extent to which there are patterns in the data, or data moves together

Variance analytics

(typically performed in management accounting), used to identify differences from expectations

Benford's law

used to identify fraud or irregular transactions

Drill downs and roll

ups - used to get detail when needed

Predictive analytics

analytics performed to provide foresight by identifying patterns in historical data and assessing likelihood or probability

Classification

a predictive analytics technique used to separate or classify a sample (or population) into two or more groups or classes

Regression

a predictive analytics technique used to predict a specific dependent variable outcome value based on independent variable inputs

Forecasting using time series analytics

a predictive analytics technique used to predict future values based on past values of the same variable

Prescriptive analytics

analytics performed which identifies best possible options given constraints or changing conditions

Sensitivity analytics

evaluation of outcomes based on uncertainty regarding the inputs

Marginal (or incremental) analytics

technique used to determine the change in profit associated typically with the cost or benefit of the next (or the marginal) unit

Goal Seek Analytics

a form of what-if analytics that tells us what will need to be done (or assumed) in order to reach a desired outcome, output or result

What-If Scenario Analytics

analytics of potential future events by considering potential outcomes

Population

a group of phenomenon having something in common