Chapter 09

Reporting Processes and eXtensible Business Reporting Language (XBRL)

True / False Questions

1. Data warehouses work together with operational systems to provide necessary insight, particularly
in the case of customer relationship management (CRM) and supply chain management (SCM)
systems.

True False

2. Data warehouses are often designed to facilitate decision making such as those often used in
managerial accounting and facilitate management by exception, such as variance reports, trend
reports, variance analysis reports, and reports that show actual performance are compared to
budgeted information.

True False

3. If data mining may finds a statistical correlation or relationship between two data items, then there
exists a plausible relationship between those two data items in the real world.

True False

4. XBRL is based on the XML language.

True False

9-1
Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
5. XBRL produces standardized reports and is not customizable.

True False

6. XBRL GL (also known as XBRL Global Ledger Taxonomy) serves as a means to facilitate efficient
communication within a firm.

True False

7. XBRL serves as a means to electronically communicate business information to facilitate business

reporting of financial and nonfinancial data to users. XBRL greatly enhances the speed and
accuracy of business reporting.

True False

8. XBRL instance documents describe each key data element (e.g., total assets, accounts, payable, net
income, etc.).

True False

9. XBRL allows highly disaggregated data so not only is it possible to know the level of sales, but it is
possible to know sales revenue in much more detail.

True False

10. Data warehouses gather information from external databases, but not from internal databases.

True False

11. XBRL style sheets take the instance documents and add presentation elements to make XBRL
filings readable by humans.

True False

9-2
Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
12. Bank loan officers and the IRS will likely have different XBRL style sheets for the various XBRL
filings.

True False

13. Since both are regulators, the SEC and the IRS will likely have similar XBRL style sheets for the
various XBRL filings.

True False

14. XBRL (eXtensible Business Reporting Language) is an open, global standard for exchanging
financial reporting information.

True False

15. Data Mining is a process of using sophisticated statistical techniques to extract and analyze data
from large databases to discern patterns and trends that were not previously known.

True False

16. XBRL Instance Documents define and describe each key data element (e.g., total assets, accounts,
payable, net income, etc.).

True False

Multiple Choice Questions

9-3
Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
17. Data mining is considered a technique of

A. Data Warehousing
B. Project Management
C. Data Martian
D. Business Intelligence

18. A data warehouse may include a:

A. XBRL style sheet

B. General Economic Information
C. Digital Dashboard
D. iPad Mini

19. Ford may use business intelligence to:

A. Track the cost of parts on its vehicles

B. Monitor the price of their pilots and flight attendants
C. Indicators of quality issues to pinpoint machinery failures in its assembly plants
D. As inputs for its tax reporting system

20. A collection of information gathered from an assortment of external and operational (i.e., internal)
databases to facilitate reporting for decision making and business analysis is called

A. Business intelligence
B. Data Warehouse
C. Digital Dashboard
D. XBRL

9-4
Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
21. The steps in business intelligence include:

A. Gather Information, Analyze Data for Patterns, Make Decision

B. Analyze Data for Patterns, Gather Information, Make Decision
C. Create Data Warehouse, Query Data Warehouse, Make Decision
D. Create Data Warehouse, Analyze Data for Patterns, Make Decision

22. Digital Dashboard tracks in a user-friendly way:

A. Airplane speed
B. Critical business failures
C. Critical business processes
D. Critical business projects

23. The first person to propose using XML be used as a means to electronically deliver financial
information was:

A. Albert Gore
B. Charles Hoffman
C. Manuel Sanchez
D. Kevin Kobelsky

24. XBRL GL, or XBRL Global Ledger Taxonomy, is different from XBRL US GAAP because it facilitates:

A. Efficient communication between the firm and financial analysts.

B. Efficient communication within a firm.
C. Efficient communication between the firm and its suppliers.
D. Efficient communication between the firm and its customers.

9-5
Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
25. The stated advantages of XBRL GL include:

A. Flexibility
B. Wide acceptance by the market
C. Scalability
D. Network Effects

26. XBRL assurance is generally expected to include:

A. The most current, standardized XBRL taxonomy is used.

B. The underlying financial and nonfinancial data that is used in XBRL tagging is reliable.
C. The XBRL tagging is accurate and complete.
D. The reports include all relevant financial and nonfinancial information.

27. XBRL stands for

A. eXtensible Business Reporting Language.

B. eXtensible Behavioral Reporting Language.
C. eXtensible Book Reporting Language.
D. eXtensible Basic Reporting Language.

28. XBRL does all of the following except:

A. Enhances speed and accuracy of business reporting.

B. Provides major benefits in the preparation, analysis and communication of business information.
C. Serves as a universal standard for financial reporting information in the individual investor
community.
D. Facilitates business reporting of financial and nonfinancial data.

9-6
Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
29. In February 2009, the _____________ passed the rule requiring all large domestic firms to begin
formatting their financial statements using XBRL.

A. Financial Accounting Standards Board

B. International Accounting Standards Board
C. American Institute of Certified Public Accountants
D. Securities and Exchange Commission

30. A document containing XBRL elements is called a:

A. XBRL Instance Document

B. XBRL Style Sheet
C. XBRL Report
D. XBRL Taxonomy

31. The process of using sophisticated statistical techniques to extract and analyze data from large
databases to discern patterns and trends that were not previously known is called:

A. Data Mart
B. Data Mining
C. Data Warehouse
D. Business Intelligence

32. The tool that defines and describes each key data element (e.g., total assets, accounts, payable, net
income, etc.) in XBRL is called _________

A. XBRL specification.
B. XBRL taxonomy.
C. XBRL style sheet.
D. XBRL instance document.

9-7
Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
33. A computer-based information system that facilitates business decision-making activities is called
a:

A. Data Warehouse
B. Digital Dashboard
C. Decision Support System
D. Data Mart

Essay Questions

34. Name three internal and three external databases that you think should be included in a data
warehouse for Ford, Chrysler or General Motors. Support your answer.

35. Name three internal and three external databases that you think should be included in a data
warehouse for Apple or Google. Support your answer.

9-8
Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
36. Name five items that you think would be included in a digital dashboard for your university. Why
are these critical business processes for them?

37. Name five items that you think would be included in a digital dashboard for an organization that
you are familiar with (church, sorority, local not-for-profit, etc.) Why are these critical business
processes for them?

38. Why would general economic information (GDP, interest rates, etc.) be included in a data
warehouse? Would they be more helpful for some companies than for others?

9-9
Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
39. How would Apple Computer use a data mart in its marketing area? How does that help designers
of the data warehouse know what to include?

40. Why would competitor information be included in a data warehouse? How would it be used?

41. Name five items that you think would be included in a digital dashboard for EBay. Why are these
critical business processes for them?

9-10
Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
42. Why is assurance needed on XBRL data? Why will financial analysts need assurance that the XBRL
data is correct? Support your answer.

43. Why would the company want XBRL assurance if the IRS or SEC were going to be using its data?

44. There is a different XBRL taxonomy for each country, including XBRL Australia, XBRL Canada, XBRL
Germany, XBRL Japan, XBRL-Netherlands, XBRL-US, and XBRL-UK. What would happen if there
were only one XBRL taxonomy for all countries?

9-11
Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
45. How would the XBRL style sheets be different for financial analysts as compared to the Internal
Revenue Service?

46. Why is XBRL needed in the financial community? In your opinion, why did the Securities and
Exchange Commission mandate its usage? What does it provide that was not available before
XBRL?

47. How would XBRL GL be used for internal uses such as management accounting?

9-12
Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
48. How would XBRL GL facilitate the SEC-required XBRL submission of a company's regulatory
filings?

49. Data mining is often used to find patterns in stock prices to assist technical financial stock market
analysts, or in commodities or currency trading. What are the benefits and concerns with using
data mining to find patterns in stock prices? What would you need to feel comfortable enough to
trade on these patterns?

50. Data warehouses often serve as the main repository of the firm's historical data, or in other words,
its corporate memory, and will often serve as an archive of past firm performance. Besides past
financial performance, what historical data would a firm like McDonald's be interested in archiving
in its data warehouse?

9-13
Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
 9-14
Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
 Chapter 09 Reporting Processes and eXtensible Business Reporting
Language (XBRL) Answer Key

True / False Questions

1. Data warehouses work together with operational systems to provide necessary insight,
particularly in the case of customer relationship management (CRM) and supply chain
management (SCM) systems.

TRUE

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-01 Explain how data warehouses are created and used.
Source: Original
Topic: Data Warehouse

2. Data warehouses are often designed to facilitate decision making such as those often used in
managerial accounting and facilitate management by exception, such as variance reports, trend
reports, variance analysis reports, and reports that show actual performance are compared to
budgeted information.

TRUE

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-01 Explain how data warehouses are created and used.
Source: Original
Topic: Data Warehouse

9-15
Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
3. If data mining may finds a statistical correlation or relationship between two data items, then
there exists a plausible relationship between those two data items in the real world.

FALSE

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-02 Describe the basic components of business intelligence and how they are utilized in a firm.
Source: Original
Topic: Business Intelligence

4. XBRL is based on the XML language.

TRUE

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-04 Explain how XBRL works and how it makes business reporting more efficient.
Source: Original
Topic: XBR

5. XBRL produces standardized reports and is not customizable.

FALSE

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-04 Explain how XBRL works and how it makes business reporting more efficient.
Source: Original
Topic: XBRL

9-16
Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
6. XBRL GL (also known as XBRL Global Ledger Taxonomy) serves as a means to facilitate efficient
communication within a firm.

TRUE

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-04 Explain how XBRL works and how it makes business reporting more efficient.
Source: Original
Topic: XBRL

7. XBRL serves as a means to electronically communicate business information to facilitate

business reporting of financial and nonfinancial data to users. XBRL greatly enhances the speed
and accuracy of business reporting.

TRUE

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-04 Explain how XBRL works and how it makes business reporting more efficient.
Source: Original
Topic: XBRL

8. XBRL instance documents describe each key data element (e.g., total assets, accounts, payable,
net income, etc.).

FALSE

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-04 Explain how XBRL works and how it makes business reporting more efficient.
Source: Original
Topic: XBRL

9-17
Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
9. XBRL allows highly disaggregated data so not only is it possible to know the level of sales, but it
is possible to know sales revenue in much more detail.

TRUE

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-04 Explain how XBRL works and how it makes business reporting more efficient.
Source: Original
Topic: XBRL

10. Data warehouses gather information from external databases, but not from internal databases.

FALSE

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-01 Explain how data warehouses are created and used.
Source: Original
Topic: Data Warehouse

11. XBRL style sheets take the instance documents and add presentation elements to make XBRL
filings readable by humans.

TRUE

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-04 Explain how XBRL works and how it makes business reporting more efficient.
Source: Original
Topic: XBRL

9-18
Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
12. Bank loan officers and the IRS will likely have different XBRL style sheets for the various XBRL
filings.

TRUE

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-04 Explain how XBRL works and how it makes business reporting more efficient.
Source: Original
Topic: XBRL

13. Since both are regulators, the SEC and the IRS will likely have similar XBRL style sheets for the
various XBRL filings.

FALSE

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-04 Explain how XBRL works and how it makes business reporting more efficient.
Source: Original
Topic: XBRL

14. XBRL (eXtensible Business Reporting Language) is an open, global standard for exchanging
financial reporting information.

TRUE

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-04 Explain how XBRL works and how it makes business reporting more efficient.
Source: Original
Topic: XBRL

9-19
Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
15. Data Mining is a process of using sophisticated statistical techniques to extract and analyze data
from large databases to discern patterns and trends that were not previously known.

TRUE

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-02 Describe the basic components of business intelligence and how they are utilized in a firm.
Source: Original
Topic: Business Intelligence

16. XBRL Instance Documents define and describe each key data element (e.g., total assets,
accounts, payable, net income, etc.).

FALSE

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-04 Explain how XBRL works and how it makes business reporting more efficient.
Source: Original
Topic: XBRL

Multiple Choice Questions

9-20
Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
17. Data mining is considered a technique of

A. Data Warehousing
B. Project Management
C. Data Martian
D. Business Intelligence

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 09-02 Describe the basic components of business intelligence and how they are utilized in a firm.
Source: Original
Topic: Data Mining

18. A data warehouse may include a:

A. XBRL style sheet

B. General Economic Information
C. Digital Dashboard
D. iPad Mini

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 09-01 Explain how data warehouses are created and used.
Source: Original
Topic: Data Warehouse

9-21
Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
19. Ford may use business intelligence to:

A. Track the cost of parts on its vehicles

B. Monitor the price of their pilots and flight attendants
C. Indicators of quality issues to pinpoint machinery failures in its assembly plants
D. As inputs for its tax reporting system

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 09-02 Describe the basic components of business intelligence and how they are utilized in a firm.
Source: Original
Topic: Business Intelligence

20. A collection of information gathered from an assortment of external and operational (i.e.,
internal) databases to facilitate reporting for decision making and business analysis is called

A. Business intelligence
B. Data Warehouse
C. Digital Dashboard
D. XBRL

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 09-01 Explain how data warehouses are created and used.
Source: Original
Topic: Data Warehouse

9-22
Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
21. The steps in business intelligence include:

A. Gather Information, Analyze Data for Patterns, Make Decision

B. Analyze Data for Patterns, Gather Information, Make Decision
C. Create Data Warehouse, Query Data Warehouse, Make Decision
D. Create Data Warehouse, Analyze Data for Patterns, Make Decision

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 09-02 Describe the basic components of business intelligence and how they are utilized in a firm.
Source: Original
Topic: Business Intelligence

22. Digital Dashboard tracks in a user-friendly way:

A. Airplane speed
B. Critical business failures
C. Critical business processes
D. Critical business projects

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 09-03 Describe how digital dashboards allow for continuous tracking of key metrics.
Source: Original
Topic: Digital Dashboards

9-23
Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
23. The first person to propose using XML be used as a means to electronically deliver financial
information was:

A. Albert Gore
B. Charles Hoffman
C. Manuel Sanchez
D. Kevin Kobelsky

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 09-04 Explain how XBRL works and how it makes business reporting more efficient.
Source: Original
Topic: XBRL

24. XBRL GL, or XBRL Global Ledger Taxonomy, is different from XBRL US GAAP because it
facilitates:

A. Efficient communication between the firm and financial analysts.

B. Efficient communication within a firm.
C. Efficient communication between the firm and its suppliers.
D. Efficient communication between the firm and its customers.

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 09-04 Explain how XBRL works and how it makes business reporting more efficient.
Source: Original
Topic: XBRL

9-24
Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
25. The stated advantages of XBRL GL include:

A. Flexibility
B. Wide acceptance by the market
C. Scalability
D. Network Effects

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 09-04 Explain how XBRL works and how it makes business reporting more efficient.
Source: Original
Topic: XBRL

26. XBRL assurance is generally expected to include:

A. The most current, standardized XBRL taxonomy is used.

B. The underlying financial and nonfinancial data that is used in XBRL tagging is reliable.
C. The XBRL tagging is accurate and complete.
D. The reports include all relevant financial and nonfinancial information.

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 09-04 Explain how XBRL works and how it makes business reporting more efficient.
Source: Original
Topic: XBRL

9-25
Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
27. XBRL stands for

A. eXtensible Business Reporting Language.

B. eXtensible Behavioral Reporting Language.
C. eXtensible Book Reporting Language.
D. eXtensible Basic Reporting Language.

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 09-04 Explain how XBRL works and how it makes business reporting more efficient.
Source: Original
Topic: XBRL

28. XBRL does all of the following except:

A. Enhances speed and accuracy of business reporting.

B. Provides major benefits in the preparation, analysis and communication of business
information.
C. Serves as a universal standard for financial reporting information in the individual investor
community.
D. Facilitates business reporting of financial and nonfinancial data.

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 09-04 Explain how XBRL works and how it makes business reporting more efficient.
Source: Original
Topic: XBRL

9-26
Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
29. In February 2009, the _____________ passed the rule requiring all large domestic firms to begin
formatting their financial statements using XBRL.

A. Financial Accounting Standards Board

B. International Accounting Standards Board
C. American Institute of Certified Public Accountants
D. Securities and Exchange Commission

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 09-04 Explain how XBRL works and how it makes business reporting more efficient.
Source: Original
Topic: XBRL

30. A document containing XBRL elements is called a:

A. XBRL Instance Document

B. XBRL Style Sheet
C. XBRL Report
D. XBRL Taxonomy

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 09-04 Explain how XBRL works and how it makes business reporting more efficient.
Source: Original
Topic: XBRL

9-27
Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
31. The process of using sophisticated statistical techniques to extract and analyze data from large
databases to discern patterns and trends that were not previously known is called:

A. Data Mart
B. Data Mining
C. Data Warehouse
D. Business Intelligence

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 09-02 Describe the basic components of business intelligence and how they are utilized in a firm.
Source: Original
Topic: Business Intelligence

32. The tool that defines and describes each key data element (e.g., total assets, accounts, payable,
net income, etc.) in XBRL is called _________

A. XBRL specification.
B. XBRL taxonomy.
C. XBRL style sheet.
D. XBRL instance document.

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 09-04 Explain how XBRL works and how it makes business reporting more efficient.
Source: Original
Topic: XBRL

9-28
Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
33. A computer-based information system that facilitates business decision-making activities is
called a:

A. Data Warehouse
B. Digital Dashboard
C. Decision Support System
D. Data Mart

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 09-03 Describe how digital dashboards allow for continuous tracking of key metrics.
Source: Original
Topic: Digital Dashboards

Essay Questions

34. Name three internal and three external databases that you think should be included in a data
warehouse for Ford, Chrysler or General Motors. Support your answer.

Answers will vary depending on the student knowledge of a car company, but could include
supplier info, financial statements and other financial reporting, general economics info, past
car buying behavior, buyer demographics, etc.

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 09-01 Explain how data warehouses are created and used.
Source: Original
Topic: Data Warehouse

9-29
Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
35. Name three internal and three external databases that you think should be included in a data
warehouse for Apple or Google. Support your answer.

Answers will vary depending on the student knowledge of Apple and Google, but could include
supplier info, financial statements and other financial reporting, general economics info, past
smartphone buying behavior, buyer demographics, advertising models, etc.

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 09-01 Explain how data warehouses are created and used.
Source: Original
Topic: Data Warehouse

36. Name five items that you think would be included in a digital dashboard for your university.
Why are these critical business processes for them?

Answers will vary depending on the student knowledge of the university. Universities always
seem interest in total student credit hours, retention rate, recruiting information, high school
GPA of incoming students, etc.

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 09-03 Describe how digital dashboards allow for continuous tracking of key metrics.
Source: Original
Topic: Digital Dashboards

9-30
Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
37. Name five items that you think would be included in a digital dashboard for an organization
that you are familiar with (church, sorority, local not-for-profit, etc.) Why are these critical
business processes for them?

Answers will vary depending on the student knowledge of the organization.

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 09-03 Describe how digital dashboards allow for continuous tracking of key metrics.
Source: Original
Topic: Digital Dashboards

38. Why would general economic information (GDP, interest rates, etc.) be included in a data
warehouse? Would they be more helpful for some companies than for others?

Answers will vary! All companies and their business models are affected by the general
economic performance. Some businesses do better in a poor economy, but the majority has
worse performance. Some are tightly correlated to the economy and others are not; therefore,
some companies will have more interest in general economic information in their data
warehouse than others.

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Analyze
Learning Objective: 09-03 Describe how digital dashboards allow for continuous tracking of key metrics.
Source: Original
Topic: Digital Dashboards

9-31
Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
39. How would Apple Computer use a data mart in its marketing area? How does that help
designers of the data warehouse know what to include?

Answers will vary! Designers of the data warehouse need to carefully query users of Apple's
data mart to see what information is needed and what information might potentially be useful
to know what to include.

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 09-01 Explain how data warehouses are created and used.
Source: Original
Topic: Data Warehouse

40. Why would competitor information be included in a data warehouse? How would it be used?

Answers will vary! Generally, companies generally cannot get too much information about their
competitors. Any prior trends or information that might be useful to predict competitor (and/or
industry) performance might be useful.

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 09-01 Explain how data warehouses are created and used.
Source: Original
Topic: Data Warehouse

9-32
Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
41. Name five items that you think would be included in a digital dashboard for EBay. Why are
these critical business processes for them?

Answers will vary! EBay might want to know that information that it's daily sales, the daily
average dollar amount of each sale, some measure of its product mix, the number of new
listings, referrals from its web site to other websites, etc. These all seem like critical data for its
object of selling products and scooping up margins.

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 09-03 Describe how digital dashboards allow for continuous tracking of key metrics.
Source: Original
Topic: Digital Dashboards

42. Why is assurance needed on XBRL data? Why will financial analysts need assurance that the
XBRL data is correct? Support your answer.

Answers will vary! A potential solution might include that since XBRL can be quickly edited,
changed and manipulated; it would be nice to have some assurances as to what standards were
followed and that the numbers that come out of the XBRL have assurances associated with
them.

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 09-03 Describe how digital dashboards allow for continuous tracking of key metrics.
Source: Original
Topic: Digital Dashboards

9-33
Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
43. Why would the company want XBRL assurance if the IRS or SEC were going to be using its
data?

Answers will vary! A potential solution might include why the company wants to ensure that its
information is getting to banks, shareholders, potential investors, financial analysts in a way that
provides assurance would be very useful to the company even if the IRS and SEC are using that
data.

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 09-03 Describe how digital dashboards allow for continuous tracking of key metrics.
Source: Original
Topic: Digital Dashboards

44. There is a different XBRL taxonomy for each country, including XBRL Australia, XBRL Canada,
XBRL Germany, XBRL Japan, XBRL-Netherlands, XBRL-US, and XBRL-UK. What would happen if
there were only one XBRL taxonomy for all countries?

Answers will vary! A potential solution might include a discussion of the differences in
accounting standards between countries and even that tagging/wording for a very similar
account might be quite different due to culture and language.

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 09-04 Explain how XBRL works and how it makes business reporting more efficient.
Source: Original
Topic: XBRL

9-34
Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
45. How would the XBRL style sheets be different for financial analysts as compared to the Internal
Revenue Service?

Answers will vary! A potential solution might include of the different roles of the IRS and
financial analysts. The IRS is primarily interested in whether firms are paying sufficient taxes.
Financial analysts are interested in earnings prediction and stock market valuation which often
requires very different information; hence, a very different style sheet.

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 09-04 Explain how XBRL works and how it makes business reporting more efficient.
Source: Original
Topic: XBRL

46. Why is XBRL needed in the financial community? In your opinion, why did the Securities and
Exchange Commission mandate its usage? What does it provide that was not available before
XBRL?

Answers will vary! A potential solution might include a discussion of the SEC and its role in
establishing a level playing field for all investors. It might also include a discussion of the
efficiencies gained by the SEC.

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 09-04 Explain how XBRL works and how it makes business reporting more efficient.
Source: Original
Topic: XBRL

9-35
Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
47. How would XBRL GL be used for internal uses such as management accounting?

Answers will vary! A potential answer might include a discussion of how XBRL GL might be used
to quickly and efficiently share financial and managerial information throughout the
organization.

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 09-03 Describe how digital dashboards allow for continuous tracking of key metrics.
Source: Original
Topic: Digital Dashboards

48. How would XBRL GL facilitate the SEC-required XBRL submission of a company's regulatory
filings?

Answers will vary! A potential answer might include a discussion of how XBRL GL might be used
to quickly and efficiently transmit information required by the SEC.

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 09-03 Describe how digital dashboards allow for continuous tracking of key metrics.
Source: Original
Topic: Digital Dashboards

9-36
Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
49. Data mining is often used to find patterns in stock prices to assist technical financial stock
market analysts, or in commodities or currency trading. What are the benefits and concerns
with using data mining to find patterns in stock prices? What would you need to feel
comfortable enough to trade on these patterns?

Answers will vary! A potential answer might include a discussion of the power of data mining in
finding patterns. However, to the extent that these patterns of past performance do not
correlate with future performance, an investor may not feel comfortable trading based on those
patterns.

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 09-03 Describe how digital dashboards allow for continuous tracking of key metrics.
Source: Original
Topic: Digital Dashboards

50. Data warehouses often serve as the main repository of the firm's historical data, or in other
words, its corporate memory, and will often serve as an archive of past firm performance.
Besides past financial performance, what historical data would a firm like McDonald's be
interested in archiving in its data warehouse?

Answers will vary! A potential answer might include discussion of how data warehouses might
detail past special promotions, special products, details on store locations that worked well,
customer demographics, customer eating palette information, employee incentive programs,
customer satisfaction, etc.

AACSB: Reflective Thinking

AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 09-03 Describe how digital dashboards allow for continuous tracking of key metrics.
Source: Original

9-37
Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
 Topic: Digital Dashboards

9-38
Copyright 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.