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CMA US Section F Part 1 QA

The document contains a series of questions and answers related to information systems in accounting, covering topics such as the purchasing and expenditures cycle, database definitions, and the revenue to cash cycle. It provides explanations for correct answers and clarifies misconceptions about various accounting processes and technologies. The content is structured as a study guide for individuals preparing for accounting certification exams.

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0% found this document useful (0 votes)

1K views53 pages

CMA US Section F Part 1 QA

Uploaded by

Karpagam Veera

We take content rights seriously. If you suspect this is your content, claim it here.

Available Formats

Download as PDF, TXT or read online on Scribd

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Hock 2020 Part 1

Section F - Technology and Analytics.

Answers
1. Question ID: HOCK CMA P1.F.1.b 05 (Topic: Information Systems)
Outputs of the purchasing and expenditures cycle in an accounting information system include all of
the following except:

 A. Discrepancy reports.
 B. Managing and controlling inventories.correct
 C. Cash requirements forecasts.
 D. Checks and/or payment advices.
Question was not answered
Correct Answer Explanation:
Managing and controlling inventories is part of the production cycle, not the purchasing and
expenditures cycle.
Explanation for Choice A:
This is one of the outputs of the purchasing and expenditures cycle.
Explanation for Choice C:
This is one of the outputs of the purchasing and expenditures cycle.
Explanation for Choice D:
This is one of the outputs of the purchasing and expenditures cycle.
2. Question ID: CIA 1194 3.38 (Topic: Information Systems)
An overall description of a database, including the names of data elements, their characteristics, and
their relationship to each other would be defined by using a

 A. Data command interpreter language.

 B. Data definition language.correct
 C. Data manipulation language.
 D. Data control language.
Question was not answered
Correct Answer Explanation:
The data definition language defines the database structure and content, especially the schema and
subschema descriptions, including the names of the data elements contained in the database and
their relationship to each other.
Explanation for Choice A:
Data command interpreter languages are symbolic character strings used to control the current state
of database management system operations.
Explanation for Choice C:
Data manipulation language provides application programs with a facility to interact with the
database to facilitate adding, changing, and deleting either data or data relationships.
Explanation for Choice D:

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. Data field.correct
 B. File.
 C. Database.
 D. Record.
Question was not answered
Correct Answer Explanation:
A data field is an item within a record. It is used to represent an individual attribute of an entity, such
as an address, phone number, or account number.
Explanation for Choice B:
A file is a logical collection of records. It is not the elementary unit of data storage used to represent
individual attributes of an entity.
Explanation for Choice C:
A database is a collection of tables, records within those tables, and fields within the records. It is not
the elementary unit of data storage used to represent individual attributes of an entity.
Explanation for Choice D:
A record is a group of fields related to the same item. It is not the elementary unit of data storage
used to represent individual attributes of an entity.
4. Question ID: HOCK CMA P1.F.1.b 04 (Topic: Information Systems)
Which of the following statements about the revenue to cash cycle in accounting information
systems is not true?

 A. The sale of a product should automatically adjust the inventory levels.

 B. The sale of a product should automatically increase the next raw materials order.correct
 C. Inputs to the revenue cycle can be made on a computer, tablet, or over the Internet.
 D. The system should automatically invoice customers when products are shipped.
Question was not answered
Correct Answer Explanation:
This is not a true statement. Managing raw materials is part of the production cycle; the sale of a
single product is not a factor in ordering raw materials.
Explanation for Choice A:
This is a true system.
Explanation for Choice C:
This is a true statement.

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. Payroll is not usually outsourced to a third party.

 B. Timecards may be created or entered electronically.correct
 C. The payroll journal entries should be manually entered by an accountant.
 D. Tax withholding forms should not be entered into the system because they contain sensitive
information.
Question was not answered
Correct Answer Explanation:
This is a true statement. Many timecard systems are now automated using technology such as RFID
badges and no longer have a physical paper trail.
Explanation for Choice A:
On the contrary, payroll is outsourced by many companies.
Explanation for Choice C:
One of the primary benefits of using an accounting information system is the automation of routine
tasks such as payroll journal entries.
Explanation for Choice D:
The data on tax withholding forms must be entered into the system in order for payroll to be
processed accurately.
6. Question ID: CIA 596 III.51 (Topic: Information Systems)
To properly control access to accounting database files, the database administrator should ensure
that database system features are in place to permit

 A. Updating from privileged utilities.

 B. Access only to authorized logical views.correct
 C. User updates of their access profiles.
 D. Read-only access to the database files.
Question was not answered
Correct Answer Explanation:
A logical view of data is how the data appears to be arranged, not how the data is physically
arranged and stored. Therefore, access to an accounting database is controlled by limiting the
access for each user, function or application to certain data, or logical views.
Explanation for Choice A:
Privileged utilities are utilities that have access to files because of their function as utilities. However,
they should not have access that permits them to update the data in the files.

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. Delays in production due to shortages of raw materials.

 B. Customers being charged the incorrect price when their custom backpack ships.
 C. Longer production times due to the number of customizable backpack options.correct
 D. Sales staff not being able to tell customers if their desired backpack is currently in stock.
Question was not answered
Correct Answer Explanation:
An ERP system by itself would not be able to improve the process of physically manufacturing the
backpacks.
Explanation for Choice A:
The ERP system would integrate the raw materials inventory and supply chain functions, allowing
the company to more accurately track their raw materials and re-order before they run out.
Explanation for Choice B:
With an ERP system, after production of each custom backpack it would be marked in the ERP
system as ready to ship and transferred to the shipping department. The ERP system would create
the packing slip for the shipping department to access and would charge the customer. The price
charged would be the price on the customer's order.
Explanation for Choice D:
Sales staff using the ERP system would have access to current inventory and would be able to tell
customers if a particular backpack is in stock.
8. Question ID: HOCK CMA P1.F.1.b 03 (Topic: Information Systems)
Which of the following statements about the output of an accounting information system
is not correct?

 A. Reports should follow the same format every time that they are run.
 B. Reports can be provided electronically or in hard copy.
 C. The reports from the system are used by internal and external decision-makers.correct

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. Centralized and integrated database of current and historical data about an organization.correct
 B. Database that is available on the Internet or provided by commercial information services.
 C. Database that supports a particular functional area in an organization.
 D. Collection of databases that are dispersed to corporate intranets, extranets, and the Internet.
Question was not answered
Correct Answer Explanation:
This is the definition of a data warehouse.
Explanation for Choice B:
A data warehouse would almost never be made available via the Internet because it contains vast
quantities of historical information about the company that should be kept private.
Explanation for Choice C:
A data warehouse contains historical information about the entire business and does not support
day-to-day transaction processing.
Explanation for Choice D:
This more closely matches the definition of a distributed database, not a data warehouse.
10. Question ID: ICMA 08.P2.185 (Topic: Information Systems)
Which one of the following is the most frequently used standard language for interacting with
relational databases?

 A. Groupware
 B. COBOL
 C. Visual Basic

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. The revenue to cash cycle

 B. The purchasing and expenditure cycle
 C. The financing cycle
 D. The production cyclecorrect
Question was not answered
Correct Answer Explanation:
Automated technology is used in the production cycle to reduce input errors and support fast and
accurate data collection for production.
Explanation for Choice A:
The process of selling goods might use some automated technologies, but this is not the best
answer.
Explanation for Choice B:
The process of purchasing might use some automated technologies, but this is not the best answer.
Explanation for Choice C:
There would be no need for such technologies in the financing cycle.
12. Question ID: HOCK CMA P1.F.1.b 09 (Topic: Information Systems)
Which of the following is not an output of a fixed asset management system?

 A. Repair and maintenance reports

 B. Fixed asset change formscorrect
 C. A depreciation register
 D. A report of each asset's location
Question was not answered

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. The vendor number in an accounts payable master file.correct

 B. The vendor number in a closed purchase order transaction file.
 C. All of the answers given.
 D. The vendor number in an open purchase order master file.
Question was not answered
Correct Answer Explanation:
The primary key is a unique field that serves as the main identifier for the record. In an accounts
payable master file, there would be only one record for each vendor. Thus, the vendor number would
be the unique field that would be used to identify each vendor record.
Explanation for Choice B:
In a closed purchase order file, there could be many individual records for one vendor number.
Therefore, the unique field that would identify an individual record in a closed purchase order file
would be the purchase order number.
Explanation for Choice C:
In purchase order files, there could be many individual records for one vendor number. Therefore,
the unique field that would identify an individual record in a purchase order file would be the
purchase order number and therefore the purchase order choices are not correct.
In an accounts payable master file, there would be only one record for each vendor. Thus, the
vendor number would be the unique field that would be used to identify each vendor record.
Explanation for Choice D:
In an open purchase order file, there could be many individual records for one vendor number.
Therefore, the unique field that would identify an individual record in an open purchase order file
would be the purchase order number.
14. Question ID: HOCK CMA P1.F.1.i 01 (Topic: Information Systems)
Which of the following best describes Enterprise Performance Management (EPM) software?

 A. EPM software operates independently of other accounting systems.

 B. EPM makes recommendations using artificial intelligence.
‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬
https://t.me/CMA_part1 https://t.me/CMA_part2
Hock 2020 Part 1
Section F - Technology and Analytics.
Answers
 C. EPM improves operational efficiency.
 D. EPM monitors organizational performance.correct
Question was not answered
Correct Answer Explanation:
Enterprise Performance Management (EPM) is a method of monitoring and managing the
performance of an organization in reaching its performance goals. It is the process of linking
strategies to plans and execution.
Explanation for Choice A:
EPM software integrates with other systems in order to gather and consolidate data for reporting
purposes.
Explanation for Choice B:
The primary output of EPM software is reporting so that the decision-makers in the organization can
make recommendations and improvements.
Explanation for Choice C:
EPM software by itself does not improve operational efficiency.
15. Question ID: HOCK CMA P1.F.1.d 01 (Topic: Information Systems)
Which of the following is not a disadvantage of implementing an ERP system?

 A. Employees will need to be trained on the new ERP system.

 B. Data has to be entered multiple times into each module of the ERP system.correct
 C. A poorly-implemented ERP system can result in significant disruptions and financial losses.
 D. Business re-engineering is usually required to implement an ERP system.
Question was not answered
Correct Answer Explanation:
This is not a disadvantage of an ERP system, but an advantage; one of the main purposes of the
ERP system is to centralize all of the company's data in one place to eliminate redundancies and
duplicate data.
Explanation for Choice A:
Employees will need to be trained for the new processes required to use the ERP system.
Explanation for Choice C:
An unsuccessful ERP transition can result in system-wide failures that disrupt production, inventory
management, and sales, leading to huge financial losses.
Explanation for Choice D:
Business re-engineering is usually required to implement an ERP system, and this can be both time-
consuming and costly.
16. Question ID: CISA, adapted H2 (Topic: Information Systems)
Which of the following is a false statement about a database management system application
environment?

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. A data mart contains only a subsection of the data in a data warehouse.correct

 B. Data marts always get their data from a data warehouse.
 C. A data mart is accessible enterprise-wide, while a data warehouse would only be accessed by
one department.
 D. A data mart contains confidential data that would not be stored in a data warehouse.
Question was not answered
Correct Answer Explanation:
This is the definition of a data mart. The data mart provides users with analytical capabilities for a
restricted subset of the data in the data warehouse.
Explanation for Choice B:
While data marts can get their data from a data warehouse, data marts can also be independent of a
data warehouse.
Explanation for Choice C:
This statement is backwards, it is the data warehouse that is enterprise-wide and a data mart that is
accessed only by one department.
Explanation for Choice D:
While a data mart may be used to restrict access to specific data and people, this is not an accurate
statement because confidential information certainly could also be stored in a data warehouse.
18. Question ID: HOCK CMA P1.F.1.b 02 (Topic: Information Systems)
After a system upgrade, there is some concern about whether or not recent sales were recorded
accurately with the correct quantities and dollar amounts. One of the staff accountants has received

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. Master files
 B. Chart of accounts
 C. Transaction filescorrect
 D. Accounting information system database
Question was not answered
Correct Answer Explanation:
Transaction files are used to update the information in the master files and serve as the audit trail.
The accountant could compare the receipts to the data in the transaction files to verify that sales are
being recorded correctly.
Explanation for Choice A:
Master files store only permanent information that is maintained over a long period of time and would
not contain details of individual sales.
Explanation for Choice B:
The chart of accounts includes only account names and numbers and would not include any
transaction information.
Explanation for Choice D:
Accountants would not directly access the AIS database because they would have neither the
knowledge nor the tools to query the database directly.
19. Question ID: CIA 592 III.32 (Topic: Information Systems)
An inventory clerk, using a computer, views the following on screen: part number, part description,
quantity on-hand, quantity on-order, order quantity, and reorder point for a particular inventory item.
Collectively, these data make up a

 A. Field.
 B. Record.correct
 C. Database.
 D. File.
Question was not answered
Correct Answer Explanation:
A record is a group of fields related to the same item.
Explanation for Choice A:
A field is an item within a record (such as address, phone number, or account number).
Explanation for Choice C:
A database is a collection of tables, records within those tables, and fields within the records.
Explanation for Choice D:

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. centralization of data.correct
 B. separate data updating for different functions.
 C. program-data dependence.
 D. data redundancy.
Question was not answered
Correct Answer Explanation:
An ERP system uses a centralized database. Data from the various areas of the organization flow
into the secure, centralized database. The centralized database is an advantage of an ERP system
because instead of having several separate databases in various locations, all users use the same
data that has been derived through common processes. All users have access to all the information
they need to do their jobs.
Explanation for Choice B:
Data in an ERP system is not updated separately. In an ERP system, a centralized database is
updated by all the areas of the organization and it is accessible to all users.
Explanation for Choice C:
Program-data dependence means that the data used by programs is program-specific, such that a
change in a program may require changes to the format of the data accessed by the program, and
vice versa. A change in data format requires a change in all the programs associated with the data
files. Program-data dependence is not a feature of an ERP system.
Explanation for Choice D:
Redundancy is the duplication of critical components or functions of a system in order to increase
the reliability of the system, because if one component fails, the duplicate component can take over
the processing. Data redundancy is not a feature or an advantage of an ERP system.
21. Question ID: ICMA 19.1F1a.01 (Topic: Information Systems)
A database management system can best be defined as a(n)

 A. Conceptual level schema that maps the relationships between all data elements.
 B. Program that manages a set of interrelated, centrally coordinated data files.correct
 C. Very large database that is used for analysis and not transactional processing.
 D. Management system that controls disconnected master files.
Question was not answered
Correct Answer Explanation:
A database management system is a software package that serves as an interface between users
and the database. A database management system manages a set of interrelated, centrally-
coordinated data files by standardizing the storage, manipulation, and retrieval of data. It is used to
create the database, maintain it, safeguard the data, and make the data available for applications
and inquiries.

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. Bank statements
 B. Interest rate forecasts
 C. Cash budgetscorrect
 D. Paper checks
Question was not answered
Correct Answer Explanation:
Cash budgets are an output of the financing cycle, not an input.
Explanation for Choice A:
Bank statements are used in the financing cycle to reconcile the bank account's cash balance with
the company's ledger.
Explanation for Choice B:
Interest rates forecasts are used when planning for financing.
Explanation for Choice D:
Paper checks are an input to the financing cycle that are used to apply payments to customers'
accounts.
23. Question ID: HOCK CMA P1.F.1.b 01 (Topic: Information Systems)
In an accounting information system, where is information such as ledger account numbers,
customer account numbers, and customer histories stored?

 A. Transaction files
 B. Chart of accounts
 C. Master filescorrect
 D. General ledger
Question was not answered

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. Magnetic cards require possession to use them.correct

 B. Magnetic cards do not allow keeping an access log.
 C. The process of using magnetic cards is complicated and easily misunderstood.
 D. The card may be easily copied.
Question was not answered
Correct Answer Explanation:
Requiring possession represents two weaknesses:

1. If an authorized user forgets or loses their card, they are unable to gain access.
2. Anyone who possesses the card can use the card to gain access, even if that person is not
authorized.
Explanation for Choice B:
This is not correct; it is very easy to keep a log of access granted (or denied) with a magnetic card.
Explanation for Choice C:
Magnetic cards are commonly used and universally understood.
Explanation for Choice D:
Magnetic cards are not easily copied.
25. Question ID: CIA 596 3.60 (Topic: Data Governance)
Appropriate elements of a policy on email usage would include all of the following except:

 A. Encrypting email messages.

 B. Directing that personnel do not send highly sensitive or confidential messages using email.
 C. Requiring users to change their password on a regular basis.

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. Phishing.
 B. Brute Force Attack.
 C. Dumpster diving.
 D. Social Engineering.correct
Question was not answered
Correct Answer Explanation:
Social engineering uses personal interactions and social skills to trick people into divulging
information. The most likely explanation is that the call was not from the IT department, but from
someone outside the organization pretending to be an IT staff member.
Explanation for Choice A:
Phishing is an attack that is made via email that tricks people into divulging information. This is not
the most likely explanation given the employee's statement.
Explanation for Choice B:
A brute force attack tries to login in repeatedly using guessed or randomly-generated passwords. If a
brute force attack was used, there would be many failed logins in the computer's log.
Explanation for Choice C:

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. A hand scan followed by a voice verification.

 B. Requiring the user to enter their password and date of birth.
 C. A combination of a magnetic card and a numeric code sent on a text message.
 D. A voice verification and a numeric code sent on a text message.correct
Question was not answered
Correct Answer Explanation:
This is the only combination that includes at least one element from "Something You Know,"
"Something You Are," and "Something You Have."
Explanation for Choice A:
This combination represents only two biometric access controls.
Explanation for Choice B:
This combination is two pieces of information known to the user.
Explanation for Choice C:
This is a combination of two items in possession of the user.
28. Question ID: HOCK CMA P1.F.2.d 02 (Topic: Data Governance)
The management accountant at Wolfe's Widgets is working on creating a records management
policy after one of the database servers crashed and the IT staff discovered that most of the
backups were also corrupted. In the end, Wolfe's Widgets lost over three years of personnel and tax
records. Which of the following would likely not be included in Wolfe's Widgets' new records
management policy?

 A. Creation of an index for the location of all of the company's records.

 B. A comprehensive list of what records need to be maintained.
 C. The statute of limitations for how long records legally must be maintained.
 D. A strategy for preserving all records indefinitely.correct
Question was not answered
Correct Answer Explanation:
All records do not need to be preserved indefinitely. Records that are no longer needed should be
destroyed at the appropriate time.
Explanation for Choice A:
The records management policy should establish the practice of maintaining an index of active and
inactive records and their locations and of maintaining logs containing records of all purged data.
Explanation for Choice B:

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. Evaluation of potential risks from railroad lines and highways.

 B. Design of authorization tables for operating system access.correct
 C. Inclusion of an uninterruptible power supply system and surge protection.
 D. Use of biometric access systems.
Question was not answered
Correct Answer Explanation:
The design of authorization tables for operating system access would not be appropriate to consider
in the physical design of a data center. Authorization tables for operating system access address
logical controls, not physical controls.
Explanation for Choice A:
Evaluating the potential risks from railroad lines and highways would be appropriate to consider in
the physical design of a data center.
Explanation for Choice C:
The inclusion of an uninterruptible power supply system and surge protection would be included in
the physical design of a data center.
Explanation for Choice D:
The use of biometric access systems control the physical access to the data center.
30. Question ID: CIA 596 3.48 (Topic: Data Governance)
A company with several hundred stores has a network for the stores to transmit sales data to
headquarters. The network is also used for:

 Vendors to submit reorders.

 Stores to transmit special orders to headquarters.
 Regional distribution centers to communicate delivery and out-of-stock information to the
stores.
 The national office to distribute training materials.
 Store, regional, and national personnel to share any information they think helpful.
In order to accommodate the large volume of transmissions, large stores have their own satellite
receiving/transmitting stations. Small stores use the Internet.

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. Require change control procedures for programs.

 B. Encourage employees to report suspicious activity.
 C. Enforce strong password control procedures for users.correct
 D. Encrypt outbound transmissions from the stores.
Question was not answered
Correct Answer Explanation:
Enforcing strong password control procedures would make it more difficult for an unauthorized
person, such as a competitor intending to disrupt the distribution patterns, to gain entry.
Explanation for Choice A:
Requiring change control for programs ensures that program changes are authorized, tested, and
documented, but would not deter someone from entering fictitious transactions.
Explanation for Choice B:
Encouraging store employees to report suspicious activity is a good practice, but it is not the best
control for minimizing the likelihood of someone entering fictitious orders from store computers.
Explanation for Choice D:
Encrypting transmissions from the stores would increase the difficulty of eavesdropping on the
transmissions, but would not deter someone from entering fictitious transactions.
31. Question ID: HOCK CMA P1.F.2.d 01 (Topic: Data Governance)
Which of the following is not considered a "record" in relation to records management?

 A. Recent tax legislation affecting the company's current fiscal year.correct

 B. Monthly bank statements mailed to the company headquarters.
 C. Employees' electronic timecards.
 D. Customer information in the company's CRM system.
Question was not answered
Correct Answer Explanation:
Tax legislation is generated by governmental authorities and is publicly accessible and does not
need to be retained as records subject to record management.
Explanation for Choice B:
Monthly bank statements are records subject to records management.
Explanation for Choice C:
Electronic timecards are records subject to records management.
Explanation for Choice D:
Customer information in a CRM system constitutes records subject to records management.

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. Spoken passphrase
 B. Security questioncorrect
 C. Fingerprint
 D. Retina scan
Question was not answered
Correct Answer Explanation:
While a security question may be useful in two-factor authentication, a security question is not a
physical characteristic.
Explanation for Choice A:
Biometrics use physical characteristics such as voice recognition.
Explanation for Choice C:
Biometrics use physical characteristics such as fingerprints.
Explanation for Choice D:
Biometrics use physical characteristics such a retina scan.
33. Question ID: HOCK CMA P1D3 04 (Topic: Data Governance)
Which of the following is a technical computer crime that requires sophisticated knowledge of
computers and/or networks?

 A. Social engineering.
 B. Phishing.
 C. Denial of service attack.correct
 D. Dumpster diving.
Question was not answered
Correct Answer Explanation:
A denial of service (DOS) attack involves overwhelming a server or cluster of servers to the point
that they are unable to respond to legitimate requests, thereby making them unavailable. A DOS
attack requires a reasonable amount of technical and network skills to successfully execute.
Explanation for Choice A:
Social engineering refers to using social tactics to gain information. For example, an employee from
one company may call a competitor and pretend to be a coworker who forgot how to access certain
files, hoping that the person who they are talking to will reveal that information. Social skills, rather
than technical skills, would be the most essential when attempting to gain information through social
engineering.
Explanation for Choice B:

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. Monitoring
 B. Risk assessment
 C. Information and communication
 D. Culture, ethics, and behaviorcorrect
Question was not answered
Correct Answer Explanation:
Culture, ethics, and behavior is part of COBIT, but is not a part of the framework outlined by COSO.
Explanation for Choice A:
Monitoring is part of the internal control system according to COSO. Monitoring is overseeing the
entire internal control system to assess the operation of existing internal controls to ensure that the
internal control system continues to operate effectively.
Explanation for Choice B:
Risk assessment is part of the internal control system according to COSO. Risk assessment is the
process of identifying, analyzing, and managing the risks that have the potential to prevent the
organization from achieving its objectives, relative to the organization’s established risk tolerance.
Explanation for Choice C:
Information and communication is part of the internal control system according to COSO. Information
and communications refers to obtaining, generating, using, and communicating relevant, quality
information necessary to support the functioning of internal control. Communication needs to be both
internal and external.
35. Question ID: HOCK CMA P1.F.2.a 02 (Topic: Data Governance)
Which of the following statements best describes data governance? Data governance:

 A. Is a process for choosing database systems.

 B. Is quality control for data.correct
 C. Is the same as corporate governance.
 D. Provides for reliable reporting of financial information.
Question was not answered
Correct Answer Explanation:
Data governance is a process that helps an organization better manage and control its data assets,
which in essence is quality control for data.

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. Data flows through each stage of the life cycle in a specific order.
 B. Data flows through some stages of the life cycle multiple times.correct
 C. Data flows through each stage of the life cycle at least once.
 D. Data flows through each stage of the life cycle exactly once.
Question was not answered
Correct Answer Explanation:
This is an accurate statement. Data may pass through some stages multiple times and may not pass
through other stages at all.
Explanation for Choice A:
Data may not flow through the stages of the life cycle in any particular order.
Explanation for Choice C:
Data may not flow through every stage of the life cycle.
Explanation for Choice D:
Data may not flow through every stage of the life cycle.
37. Question ID: HOCK IT-Phys 02 (Topic: Data Governance)
Which of the following is a physical security control?

 A. Proxy server
 B. Limiting access of certain functions to specific computers on the network.correct
 C. Encryption
 D. Requiring two-factor authentication for all devices.
Question was not answered
Correct Answer Explanation:
Adding limitations to access is a significant physical control by preventing unauthorized remote
access or access by unauthorized employees or vendors.
Explanation for Choice A:

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. A framework for the governance and management of enterprise information and technology.
correct
 B. A set of risks and responses to technology challenges.
 C. A control framework published by the Committee of Sponsoring Organizations.
 D. A set of guidelines intended to help shareholders understand the IT systems utilized by
management.
Question was not answered
Correct Answer Explanation:
COBIT® is an I & T (Information and Technology) framework for the governance and management of
enterprise information and technology.
The COBIT® Framework was first introduced for information systems in 1996 by ISACA, an
independent, nonprofit, global association dedicated to the development, adoption, and use of
globally-accepted knowledge and practices for information systems.
The early focus of COBIT® was on information systems audit and control, and COBIT® was an
acronym for Control OBjectives for Information and Related Technology. However, the focus of the
Framework has changed to IT governance and management in recognition of the needs of the wide
range of IT professionals that ISACA serves. In 2012, ISACA dropped the Framework’s full name
entirely and COBIT® is now known simply by its acronym.
ISACA also promulgates separate Information Systems auditing and Information Systems control
standards, so Information Systems audit and control have not been left behind.
Explanation for Choice B:
COBIT is not a set of risks and responses to technology challenges.
Explanation for Choice C:
COBIT is not a control framework and it is not published by the Committee of Sponsoring
Organizations. The Committee of Sponsoring Organizations publishes Internal Control - Integrated
Framework.
The sponsoring organizations consist of the AICPA (American Institute of Certified Public
Accountants), the AAA (American Accounting Association), the IIA (Institute of Internal Auditors), the
FEI (Financial Executives International), and the IMA (Institute of Management Accountants).
Explanation for Choice D:

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. Maximizing the availability of data and data systems.

 B. Interviewing and hiring practices for IT staff that oversee data systems.correct
 C. Data integration (the combining of data from different sources).
 D. Compliance with regulations regarding data and privacy.
Question was not answered
Correct Answer Explanation:
HR practices are not part of data governance.
Explanation for Choice A:
Maximizing the availability of data and data systems is part of data governance.
Explanation for Choice C:
Data integration is part of data governance.
Explanation for Choice D:
Compliance with regulations is part of data governance.
40. Question ID: HOCK CMA P1.F.2.c 02 (Topic: Data Governance)
Which of the following is not one of the stages of the data life cycle?

 A. Data synthesis
 B. Data maintenance
 C. Data monitoringcorrect
 D. Data purging
Question was not answered
Correct Answer Explanation:
Data monitoring is not a part of the data life cycle.
Explanation for Choice A:
Data synthesis is the creation of new data values using other data as input. To “synthesize”
something means to combine different things to make something new. Data synthesis is therefore
combining data from different sources to create new data. Governance issues include concerns
about data ownership and the need for citation, the quality and adequacy of the input data used, and
the validity of the synthesized data.
Explanation for Choice B:
Data maintenance is the processing of data before deriving any value from it, such as performing
data integration. A governance issue is determining how best to supply the data to the stages at
which data synthesis and data usage occur.
Explanation for Choice D:
‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬
https://t.me/CMA_part1 https://t.me/CMA_part2
Hock 2020 Part 1
Section F - Technology and Analytics.
Answers
Data purging occurs at the end of the data’s life cycle. Data purging is the removal of every copy of a
data item from all locations within the organization. Purging should generally be done only of data
that has been previously archived. Data governance considerations include development and
maintenance of data retention and destruction policies that comply with all laws and regulations
regarding record retention; conformance with established policies; confirmation that purging has
been done properly; and documentation of data purged.
41. Question ID: HOCK IT-Auth 02 (Topic: Data Governance)
Which of the following passwords would be considered the strongest?

 A. dGdvgPiDbJanmhVuzNFlbbrXdWrIk
 B. mnbvcxzlkjhgfdsapoiuytrewq0987654321
 C. twinkletwinklelittlestarhowiwonderwhatyouare
 D. Xn2y2R2T{I;nGb4K^Jcorrect
Question was not answered
Correct Answer Explanation:
Of the passwords listed here, this is the strongest because it contains a mix of letters, numbers, and
symbols.
Explanation for Choice A:
While this password is random and longer than some of the other choices, it is not the strongest
because it does not contain any numbers or symbols.
Explanation for Choice B:
This is a fairly long password but consists of only letters and numbers in the sequence of reading the
keyboard right to left and bottom to top.
Explanation for Choice C:
This is a very long password, but it contains only full words and a well-known phrase.
42. Question ID: CIA 598 3.50 (Topic: Data Governance)
Which control, when implemented, would best assist in meeting the control objective that a system
have the capability to hold users accountable for functions performed?

 A. Transaction error logging.

 B. Redundant hardware.
 C. Programmed cutoff.
 D. Activity logging.correct
Question was not answered
Correct Answer Explanation:
Activity logging provides an audit trail of user activity.
Explanation for Choice A:
Transaction error logging controls transactions rather than user activity on a computer.
Explanation for Choice B:

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. Having the computer center be protected from natural disasters as much as possible.
 B. Shredding confidential documents when they are no longer needed.correct
 C. Requiring scanning of magnetic ID cards to enter the computer center, with all access being
logged automatically.
 D. Having access to the computer center be controlled by a security guard who can open the locked
doors only by "buzzing in" authorized personnel.
Question was not answered
Correct Answer Explanation:
While shredding sensitive documents when they are no longer needed is a very important output
control, it does not pertain to the physical security of the computing equipment.
Explanation for Choice A:
This is an example of a physical control because it pertains to keeping the computer equipment safe
from damage or loss due to natural disasters.
Explanation for Choice C:
This is an example of a physical control because it pertains to controlling physical access to the
computer equipment.
Explanation for Choice D:
This is an example of a physical control because it pertains to controlling physical access to the
computer equipment.
44. Question ID: ICMA 19.1F2c.01 (Topic: Data Governance)
After a systems programmer was terminated and passwords were disabled, the company’s server
crashed and it erased all of its files and software. The terminated employee had installed a virus in
the operating system and executed it via a back door. Which one of the following measures
would most likely have prevented this occurrence?

 A. Daily backup of all data on the server.

 B. An intrusion detection system used to create logs of network traffic.
 C. A policy to encrypt all data and files maintained on its server.
 D. An advanced firewall used to detect and block intrusions.correct
Question was not answered
Correct Answer Explanation:
Advanced firewalls are able to block malware from entering a network, something that traditional
firewalls cannot do.

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. Ransomwarecorrect
 B. Denial of Service (DOS)
 C. Buffer overflows
 D. Malware
Question was not answered
Correct Answer Explanation:
Ransomware would not cause a computer to crash or behave erratically. Ransomware will hold the
computer's files hostage until a ransom is paid.
Explanation for Choice B:
A denial of service attack could very easily cause a computer to slow down because it is busy
processing an endless stream of data.
Explanation for Choice C:
A buffer overflow can cause crashes and other erratic behavior.
Explanation for Choice D:
Malware such as viruses can cause any number of erratic behaviors.
46. Question ID: HOCK CMA P1.F.2.c 03 (Topic: Data Governance)

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. Data maintenance, data usage, and data archival

 B. Data publication, data archival, and data purging
 C. Data capture, data maintenance, and data synthesis
 D. Data synthesis, data analytics, and data publicationcorrect
Question was not answered
Correct Answer Explanation:
Data is usable during all of these stages.
Explanation for Choice A:
Of these three stages, data is only usable in the data usage stage.
Explanation for Choice B:
Data is no longer usable in the archival or purging stages.
Explanation for Choice C:
Data is not usable during the capture and maintenance stages of the life cycle because the data is
still entering the system and being processed.
47. Question ID: HOCK IT-Cyber 03 (Topic: Data Governance)
Which of the following represents the least amount of risk with regards to cybersecurity?

 A. The company's servers are located in over a dozen different locations across the country.correct
 B. A competitor clicks on all of the search ads on popular industry search terms every minute.
 C. The company's password policy requires a minimum of 6 characters in all passwords.
 D. An employee brings a thumb drive to the office and installs a set of their favorite utility programs.
Question was not answered
Correct Answer Explanation:
By having servers in multiple locations, the company is protected from DOS and DDOS attacks,
power outages, and network outages. Assuming that each server is properly secured, having
servers in multiple locations would decrease cybersecurity risk.
Explanation for Choice B:
Pay-per-click abuse is a real cybersecurity threat that can drive up ad costs and result in reduced
advertising effectiveness.
Explanation for Choice C:
Such short passwords are a significant cybersecurity risk because they could be easily guessed or
hacked through a brute force attack.
Explanation for Choice D:
Installing software from home could bring the risk of viruses, malware, and/or copyright violations.
48. Question ID: HOCK CMA P1.F.3.d 01 (Topic: Technology-enabled Finance Transformation)

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. Strong AI is more common than weak AI.

 B. Robotic process automation is an example of weak AI.correct
 C. Weak AI systems do not require any rules or training.
 D. Industrial robots use strong AI to perform their tasks.
Question was not answered
Correct Answer Explanation:
This is a true statement. A weak AI follows a set of rules, which is exactly what robotic process
automation does.
Explanation for Choice A:
Strong AI, which would equal human intelligence, does not yet exist.
Explanation for Choice C:
This statement is false. Weak AI requires rules and algorithms to simulate intelligence.
Explanation for Choice D:
Industrial robots are programmed with a weak AI that can only follow a certain set of rules.
49. Question ID: ICMA 19.1F3c.01 (Topic: Technology-enabled Finance Transformation)
Software as a Service can best be defined as a(n)

 A. Type of database management system serviced by a third party for an annual fee.
 B. On-premise ERP system installed and serviced locally.
 C. Type of cloud computing in which applications are hosted by a third party for a monthly
fee.correct
 D. Infrastructure platform that replaces complex individual computers within a business.
Question was not answered
Correct Answer Explanation:
Software as a Service (SaaS) is software that has been developed by a cloud provider for use by
multiple businesses (called multi-tenant use), and all business customers use the same software.
Explanation for Choice A:
Software as a Service is not a type of database management system serviced by a third party. It is
software that has been developed by a cloud provider for use by multiple businesses, and all
business customers use the same software.
Explanation for Choice B:
Software as a Service is not an on-premise system installed and serviced locally. It is software that
has been developed by a cloud provider for use by multiple businesses, and all business customers
use the same software.
Explanation for Choice D:

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. SaaS is limited to basic functionality such as email and help desk platforms.
 B. SaaS platforms are developed for multiple businesses to all use the same software.correct
 C. Dedicated online storage servers are a common example of SaaS.
 D. In SaaS, a company deploys its own applications to the cloud.
Question was not answered
Correct Answer Explanation:
This is an accurate description of SaaS.
Explanation for Choice A:
This is not an accurate statement. SaaS can include complex software packages such as ERP,
CRM, payroll processing, and much more.
Explanation for Choice C:
Dedicated online storage servers would be an example of infrastructure in the cloud, not SaaS.
Explanation for Choice D:
This describes Platform as a Service (PaaS), not SaaS.
51. Question ID: HOCK CMA P1.F.3.c 01 (Topic: Technology-enabled Finance Transformation)
Which of the following statements about robotic process automation (RPA) is true?

 A. Industrial robots are a type of RPA.

 B. RPA requires extensive programming knowledge.
 C. RPA software can usually take the place of a person.
 D. RPA is designed for high volume, rules-driven, repeatable tasks.correct
Question was not answered
Correct Answer Explanation:
Robotic process automation software automates repetitive tasks by interacting with other IT
applications to execute business processes that would otherwise require a human. RPA software
can communicate with other systems to perform a vast number of repetitive jobs, and it can operate
around the clock with no human errors.
Explanation for Choice A:
RPA is a type of artificial intelligence, not a type of industrial robot.
Explanation for Choice B:
RPA can be used without any programming knowledge and usually offers an interface that allows
anyone to create automations.
Explanation for Choice C:
‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬
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Hock 2020 Part 1
Section F - Technology and Analytics.
Answers
RPA does not replace a person, but can make a person much more productive.
52. Question ID: HOCK CMA P1.F.3.g 04 (Topic: Technology-enabled Finance Transformation)
Which of the following statements about a smart contract is true? A smart contract:

 A. Put the terms and conditions of a contract into blockchain.correct

 B. Is limited to contracts for the purchase and sale of goods.
 C. Can schedule, but not execute, payments based on agreed conditions.
 D. Is a contract digitally signed with cryptography.
Question was not answered
Correct Answer Explanation:
This is a true statement. A smart contract is created by translating the terms and conditions of a
traditional agreement into a computational code written by blockchain developers in a programming
language. It is basically a set of coded computer functions with a set of rules. The computer code is
self-executing and performs an action at specified times or based on the occurrence or non-
occurrence of an action or event such as delivery of an asset or a change in a reference rate. A
simple example is a translation of “If X occurs, then Y makes a payment to Z.”
Explanation for Choice B:
Smart contracts can be used for many types of agreements and not only for the purchase and sale
of goods.
Explanation for Choice C:
A smart contract can automatically execute transactions according to the agreement.
Explanation for Choice D:
A contract that is digitally signed with cryptography is not a smart contract.
53. Question ID: HOCK CIA P3 C.13 (Topic: Technology-enabled Finance Transformation)
Business Process Analysis (BPA) is a system whereby business processes are analyzed so
improvements can be made. Which of the following are the elements of a successful BPA?
I. It involves those who are most familiar with the process.
II. It focuses on processes which are secondary to the business.
III. Bottlenecks and inefficiencies are identified.
IV. Plans to migrate to the revised business process are developed.

 A. I and II only
 B. All of the above are elements of a successful BPA.
 C. I, III and IV onlycorrect
 D. II and III only
Question was not answered
Correct Answer Explanation:

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. A blockchain is a continuously growing record secured using cryptography.

 B. A blockchain is maintained via a peer-to-peer network of computers without any centralized
server.
 C. Blocks in the chain are hard to solve but easy to verify once they are solved.
 D. Once a block is added to the chain, it is impossible to change it.correct
Question was not answered
Correct Answer Explanation:
It is not impossible to change a block, only very, very difficult, making it impractical to do so.
However, it is not impossible.
Explanation for Choice A:
This is a true statement.
Explanation for Choice B:
This is a true statement.
Explanation for Choice C:
This is a true statement.
55. Question ID: HOCK CMA P1.F.3.d 02 (Topic: Technology-enabled Finance Transformation)
Which of the following is not an example of machine vision?

 A. A surveillance system records 24/7 footage from 10 cameras around the office.correct
 B. Traffic signals can be automatically adjusted based on the traffic volume visible to traffic cameras.
 C. Incoming documents are digitized to eliminate data entry errors.
 D. Cameras on the assembly line can determine the efficiency rate of each cell based on their
output.

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. RPA can result in bad output, just like work done by a human.
 B. RPA cannot perform financial reporting tasks such as consolidating financial statements.
 C. Using RPA requires significant involvement from the IT department.correct
 D. RPA cannot replicate human reasoning.
Question was not answered
Correct Answer Explanation:
RPA can be used without changing the IT systems, and therefore does not require significant
involvement from the IT department. The IT department only needs to be aware of the RPA being
used so that they can help ensure that the deployment is stable.
Explanation for Choice A:
This is a disadvantage of RPA. If there is a flaw in the rules programmed into the RPA, then all of the
output from the RPA will be affected by the flaw.
Explanation for Choice B:
This is neither a disadvantage nor true. RPA is well-suited to these sorts of tasks.
Explanation for Choice D:
This is a disadvantage of RPA; RPA can only follow instructions and cannot "think" if it what it is
doing is reasonable or makes sense.
57. Question ID: HOCK CMA P1.F.3.e 02 (Topic: Technology-enabled Finance Transformation)
Gavin's Flower Shop sells fresh flowers to other small businesses such as funeral homes, local
supermarkets, restaurants, and conference centers. When Gavin's PC crashed, he decided to look
into cloud computing options for managing his inventory and sales as an alternative to buying,
setting up, and maintaining another PC. Gavin quickly discovered that he could use an inexpensive
tablet combined with cloud computing to simplify his business and reduce costs. When he asked a
friend in the accounting field about some possible downsides, which of the following would
likely not be among the concerns of switching to cloud computing?

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. Cloud computing can be quickly scaled up or down depending on the organization's needs.
 B. Cloud computing reduces control risk from weak internal controls.correct
 C. Cloud computing includes data storage, infrastructure, and software.
 D. Cloud computing can be used as a way to affordably create redundant IT systems.
Question was not answered
Correct Answer Explanation:
The cloud cannot overcome weak internal controls. People are the greatest area of weakness with
both internal IT and with cloud technologies. Security awareness training, proper hiring procedures,
good governance, and protection from malware continue to be necessary after a company moves to
the cloud, just as they are when the IT is on-site.
Explanation for Choice A:
This is a true statement. Users pay for only what they use, either on a periodic basis or on a usage
basis. Thus, cloud computing is scalable. A firm can quickly increase or decrease the scale of its IT
capability
Explanation for Choice C:
This is a true statement. Cloud computing refers to any IT functions that are outsourced over the
Internet.
Explanation for Choice D:

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. End-user computing efforts are outlined.

 B. Documentation standards and procedures are developed.correct
 C. Backup activities and requirements are put into place.
 D. Changes made to the system are monitored and evaluated.
Question was not answered
Correct Answer Explanation:
User documentation is a part of the system implementation and conversion phase of the system
development life cycle. User documentation contains all the information a user would need to use
the system. In accordance with system development life-cycle best practices, user documentation
would have prevented the problem of an employee's leaving and her replacement not being able to
understand how to use the system functionalities.
Explanation for Choice A:
End-user computing is a process that enables non-information systems professionals without
computer programming knowledge to create working applications. The outlining of end-user
computing efforts would not have prevented the problem of an employee's leaving and her
replacement not being able to understand how to use the system functionalities.
Explanation for Choice C:
Backup procedures are a hardware control within application controls for system security. They
would not have prevented the problem of an employee's leaving and her replacement not being able
to understand how to use the system functionalities.
Explanation for Choice D:
Continuous monitoring and evaluation and modification of the system as necessary are part of the
operations and maintenance phase of the system development life cycle. However, that would not
have prevented the problem of an employee's leaving and her replacement not being able to
understand how to use the system functionalities.
60. Question ID: HOCK CMA P1.F.3.g 03 (Topic: Technology-enabled Finance Transformation)
Which of the following statements about a distributed ledger is true?

 A. Each node will maintain a different portion of the ledger.

 B. A central server verifies the accuracy of each node.
 C. Every node will decide whether each transaction is authentic and valid.correct
 D. As long as one node approves a transaction, it will be added to the distributed ledger.
Question was not answered
Correct Answer Explanation:

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. Smart contracts eliminate the risk of mistakes being made executing the contract.correct
 B. The distributed nature of blockchain prevents unauthorized modifications.
 C. Smart contracts can access data from third-party sources to trigger specific actions.
 D. Smart contracts can take actions automatically.
Question was not answered
Correct Answer Explanation:
Smart contracts do not eliminate the risk of mistakes. Errors in the coding of a smart contract may
create errors in the execution. There could also be errors made if data is being used from third-party
sources and that data is not retrieved correctly, or is unavailable.
Explanation for Choice B:
The decentralized, distributed ledger on the blockchain prevents modifications not authorized or
agreed to by the parties.
Explanation for Choice C:
This is a true statement. Smart contracts can access outside information or data to trigger actions,
for example, commodity prices, weather data, interest rates, or an occurrence of an event.
Explanation for Choice D:
This is a true statement. Smart contracts can take an action such as transferring a payment without
any action required by the counter-parties. The automatic execution can reduce counter-party risk
and settlement risk.
62. Question ID: HOCK CMA P1.F.3.d 03 (Topic: Technology-enabled Finance Transformation)
Using machine learning, computers can perform the repetitious work required of accountants,
freeing their time to perform more detailed analytics and less time simply "crunching numbers."
Which of the following statements regarding accountants' use of machine learning is true?

 A. Once machine learning is implemented, it can run without any supervision or review.
 B. Machine learning is a fad that accountants can safely ignore.
 C. While machine learning is helpful for transaction processing, it cannot perform data analytics.
 D. Machine learning can review past transactions and flag erroneous or questionable entries.correct

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. A computer that groups outstanding transactions into blocks.

 B. A random string of characters appended to a transaction before it is hashed.
 C. Taking an input string of any length and converting it to an output of fixed length.
 D. A public record of transactions in chronological order.correct
Question was not answered
Correct Answer Explanation:
This is the basic definition of a blockchain.
Explanation for Choice A:
This is the definition of a miner, not a blockchain.
Explanation for Choice B:
This is the definition of a nonce, not a blockchain.
Explanation for Choice C:
This is the definition of a hash, not a blockchain.
64. Question ID: HOCK CMA P1.F.4.d 02 (Topic: Data Analytics)
Julia is making a presentation to upper management about the benefits and limitations of data
analytics and data science in an effort to convince them to set up a data science department. Julia
covered the basic challenges such as capturing data, organizing data, storing data, privacy,
searching data, and performing data analytics to derive useful information. After concluding her
presentation, the CFO had one additional concern. Which of the following would be the most likely
concern that the CFO would raise?

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. Changing the source of material to a low-cost foreign source.

 B. A significant change in labor productivity.correct
 C. A significant reduction in factory overhead.
 D. Renegotiation of the union contract resulting in a higher wage rate.
Question was not answered
Correct Answer Explanation:
The "a" in the regression equation is the coefficient of the independent variable, "labor rate per
hour." The "a" represents the amount by which the total cost of labor and thus the total cost of the
product changes when the independent variable, labor rate per hour, increases or decreases by one
unit. If labor productivity changes significantly, the total cost as calculated by the model will be
incorrect unless the regression equation is changed to reflect the change in labor productivity. Thus,

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

https://t.me/CMA_part1 https://t.me/CMA_part2
Hock 2020 Part 1
Section F - Technology and Analytics.
Answers
from among the answer choices given, a significant change in labor productivity is the one most
likely to have the greatest impact on invalidating the results of this model.
Explanation for Choice A:
The "M" in the regression equation is an independent variable in the model that represents the
material cost per pound used in the production of product. Each time the model is used to calculate
the total cost of the product, the current cost per unit of material is used in the model. Decreasing the
cost per unit of material used would cause the total cost of the product as calculated by the model to
decrease, and that would be an appropriate result. Thus, changing the source of material to a low-
cost foreign source would not invalidate the results of the model.
Explanation for Choice C:
The "F" in the regression equation is the constant coefficient in the model that represents fixed costs.
Each time the model is used to calculate the total cost of the product, the fixed cost used is adjusted
to the current fixed cost. A significant reduction in factory overhead would cause the total cost of the
product as calculated by the model to decrease, and that would be an appropriate result. Thus, a
significant reduction in factory overhead would not invalidate the results of the model.
Explanation for Choice D:
The "L" in the regression equation is an independent variable in the model that represents the labor
rate per hour of labor used in the production of product. Each time the model is used to calculate the
total cost of the product, the current labor rate per hour of labor is used in the model. Renegotiation
of the union contract resulting in a higher wage rate would cause the total cost of the product as
calculated by the model to increase, and that would be an appropriate result. Thus, renegotiation of
the union contract resulting in a higher wage rate would not invalidate the results of the model.
66. Question ID: HOCK CMA P1.F.4.k 02 (Topic: Data Analytics)
Aaron's Auto Sales is reviewing last year's sales data to determine how to create more targeted
advertisements based on the demographics of the individuals who purchase electric vehicles.
Aaron's wants to analyze key market segmentation variables such as age, marital status, family size,
gender, income, occupation, education, past vehicle purchases, accident history, and whether they
own or rent their home to determine what characteristics buyers of electric vehicles have in common.
However, to make the data simpler for analysis, Aaron's is limiting the number of factors to just
family size, income, and past vehicle purchases so that their ad campaign can be more targeted
based on only a few specific factors.
Which predictive analysis tool did Aaron's use?

 A. Data reduction
 B. Clustering
 C. Dimension reductioncorrect
 D. Association rules
Question was not answered
Correct Answer Explanation:
Dimension reduction entails reducing the number of variables in the data before using it for data
mining, in order to improve its manageability, interpretability, and predictive ability. This is exactly
what Aaron's is doing by removing some of the vehicle options from the analysis.
Explanation for Choice A:

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. Better decision-making.
 B. Reduction in the amount of data generated.correct
 C. Increased competitive advantage.
 D. Data can be used for actionable insights.
Question was not answered
Correct Answer Explanation:
Data science does not reduce the amount of data generated.
Explanation for Choice A:
This is one of the benefits of data science.
Explanation for Choice C:
This is one of the benefits of data science.
Explanation for Choice D:
This is one of the benefits of data science.
68. Question ID: HOCK CMA P1.F.4.q 01 (Topic: Data Analytics)
Which of the following statements about correlation analysis is true?

 A. Simple linear regression analysis is like to be useful if the coefficient of correlation is greater than
0.25.
 B. The closer the correlation coefficient (R) is to 0, the better the forecast using linear regression
should be.
 C. A coefficient of correlation (R) of 1 indicates a perfectly positive linear relationship.correct
 D. The correlation coefficient (R) is expressed as a number between 0 and 1.
Question was not answered
Correct Answer Explanation:
This is a true statement.
Explanation for Choice A:

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

1. Select the data mining techniques to use

2. Determine the data mining task
3. Explore, clean, and preprocess the data
4. Reduce the data dimension

 A. 3, 4, 1, 2
 B. 4, 3, 2, 1
 C. 3, 4, 2, 1correct
 D. 3, 2, 4, 1
Question was not answered
Correct Answer Explanation:
The typical steps in data mining are:

1. Understand the purpose of the project

2. Select the dataset to be used
3. Explore, clean, and preprocess the data
4. Reduce the data dimension if needed
5. Determine the data mining task
6. Partition the data
7. Select the data mining techniques to use
8. Use algorithms to perform the task
9. Interpret the results of the algorithm
10. Deploy the model.
Explanation for Choice A:
The data mining task should be determined before selecting which techniques to use.
Explanation for Choice B:
Reducing the data dimension happens after exploring, cleaning, and preprocessing the data.

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. Descriptive.
 B. Prescriptive.correct
 C. Diagnostic.
 D. Predictive.
Question was not answered
Correct Answer Explanation:
Prescriptive analytics is most likely to yield the most impact for an organization, but it is also the
most complex type of analytics.
Prescriptive analytics can make use of data that combines structured and unstructured data and
apply rules to predict what will happen and to prescribe how to take advantage of the predicted
events. For example, prescriptive analytics might generate a sales forecast and then use that
information to determine what additional production lines and employees are needed to meet the
sales forecast.
In addition to anticipating what will happen and determining what needs to happen, prescriptive
analytics can help determine why it will happen. Prescriptive analytics can incorporate new data and
re-predict and re-prescribe, as well.
Explanation for Choice A:
Descriptive analytics report past performance. Descriptive analytics is the simplest type of data
analytics. It is not the type of data analytics most likely to yield the most impact for an organization,
nor is it the most complex type of data analytics.
Explanation for Choice C:
Diagnostic analytics involves mining historical data to understand past performance and to look for
the reasons behind success or failure. For example, sales data might be broken down into segments
such as revenue by region or by product rather than revenue in total. Diagnostic data analytics is not
the type of data analytics most likely to yield the most impact for an organization, nor is it the most
complex type of data analytics.
Explanation for Choice D:
Predictive analytics focus on the future using correlative analysis and historical and other data.
Large quantities of data are processed to identify patterns and relationships between and among
known random variables or data sets in order to make predictions about what is likely to occur in the
future. A sales forecast made using past sales trends is a form of predictive analytics. Predictive
data analytics is not the type of data analytics most likely to yield the most impact for an
organization, nor is it the most complex type of data analytics.
71. Question ID: HOCK CMA P1.F.4.f 01 (Topic: Data Analytics)
Business intelligence gives managers and analysts the ability to conduct analysis for making
strategic decisions. Which of the following best describes the evolution of Data into Action?

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. A process of using algorithms that serve to facilitate efficient communication within a firm.
 B. A process of using statistical techniques to extract and analyze data from large databases to
discern patterns and trends.correct
 C. A system used to develop a firm’s performance metrics.
 D. A system used to organize and interpret complex data to ensure the data has been accurately
recorded in the database.
Question was not answered
Correct Answer Explanation:
Data mining is the use of statistical techniques to search large data sets to extract and analyze data
in order to discover previously unknown, useful patterns, trends, and relationships within the data
that go beyond simple analysis and that can be used to make decisions. Data mining uses
specialized computational methods derived from the fields of statistics, machine learning, and
artificial intelligence.
Explanation for Choice A:
Data mining is not a process of using algorithms that serve to facilitate efficient communication
within a firm. Data mining is the use of statistical techniques to search large data sets to extract and
analyze data in order to discover previously unknown, useful patterns, trends, and relationships
within the data.
Explanation for Choice C:
Data mining is not a system used to develop a firm's performance metrics. Data mining is the use of
statistical techniques to search large data sets to extract and analyze data in order to discover
previously unknown, useful patterns, trends, and relationships within the data.
Explanation for Choice D:

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. Highly structured data

 B. Semi-structured data
 C. Structured data
 D. Unstructured datacorrect
Question was not answered
Correct Answer Explanation:
Unstructured data has no defined format or structure. Any free-form written text is considered
unstructured data.
Explanation for Choice A:
This is a nonsense term.
Explanation for Choice B:
Semi-structured data has some format or structure but does not follow a defined model. Examples
include XML files, CSV files, and most server log files.
Explanation for Choice C:
Structured data is organized in a way that it can be entered into a relational database system.
74. Question ID: HOCK CMA P1.F.4.r 01 (Topic: Data Analytics)
Which of the following statements about time series analysis is not true?

 A. Trends can be linear, non-linear, or flat (no trend).

 B. An irregular pattern has predictive value.correct
 C. A time series may exhibit multiple patterns.
 D. Seasonality is identified by regularly spaced peaks and troughs.
Question was not answered
Correct Answer Explanation:
An irregular pattern provides no predictive value because there is no pattern or trend that can be
followed.
Explanation for Choice A:
This is a true statement. While the exams cover only linear regression, trends do not have to be only
linear.
Explanation for Choice C:
A time series can have multiple patterns. For example, sales may exhibit both seasonality and an
overall upward trend.

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. Confirmation bias
 B. Confusing correlation with causationcorrect
 C. Gender discrimination
 D. Generalization
Question was not answered
Correct Answer Explanation:
Analyzed data often displays correlations. However, correlation does not prove causation.
Establishing a causal relationship is necessary before using correlated data in decision-making.
It is reasonable that sales of men's summer clothing would increase beginning in April regardless of
any advertising, simply because those clothes are now in season. The increase in men's summer
clothing sales is likely coincidental with the advertising campaign for women's clothing.
Explanation for Choice A:
There was no pre-determined result that the accountant was looking to confirm.
Explanation for Choice C:
There is no evidence of discrimination based on the facts given.
Explanation for Choice D:
Generalization is the ability to predict or assign a label to a “new” observation based on a model built
from past experience. The accountant did not make any predictions.
76. Question ID: HOCK CMA P1.F.4.c 01 (Topic: Data Analytics)
Stephen has been working with a new business intelligence system and has been able to get a
better understanding of several complex issues that he had been struggling with. Which stage of the
business intelligence process has Stephen reached?

 A. Insightcorrect
 B. Information
‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬
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Hock 2020 Part 1
Section F - Technology and Analytics.
Answers
 C. Knowledge
 D. Strategic decisions
Question was not answered
Correct Answer Explanation:
By definition, insight is a deep and clear understanding of a complex situation.
Explanation for Choice B:
Stephen has moved well beyond information. Information is data that has been processed, analyzed,
interpreted, organized, and put into context such as in a report.
Explanation for Choice C:
Knowledge is the theoretical or practical understanding of something and is the step that precedes
where Stephen is with the new system.
Explanation for Choice D:
Stephen has not yet reached the point of making strategic decisions. The insights gained from the
use of business intelligence lead to recommendations for the best action to take.
77. Question ID: HOCK CMA P1.F.4.t 01 (Topic: Data Analytics)
The goodness of fit and confidence interval are useful tools in regression analysis. Which of the
following statements is true regarding goodness of fit and confidence intervals?

 A. The confidence interval describes how close the actual values used in the model are to the
expected values.
 B. Goodness of fit describes the amount of uncertainty caused by the sampling used when drawing
conclusions about the population.
 C. A confidence interval of 95% means that 95% of the observed values will be within the confidence
interval.
 D. High goodness of fit means that the variables used in the regression are highly correlated with the
observations of the dependent variable.correct
Question was not answered
Correct Answer Explanation:
This is an accurate description of high goodness of fit.
Explanation for Choice A:
This describes the goodness of fit, not the confidence interval.
Explanation for Choice B:
This describes the confidence internal, not goodness of fit.
Explanation for Choice C:
A confidence interval of 95% means that if several periods are sampled and analyzed using the
same 95% confidence interval, the proportion of those sample intervals that would contain the true
value in the population would be equal to 95%.
78. Question ID: HOCK CMA P1.F.4.k 01 (Topic: Data Analytics)

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. Clustering.correct
 B. Prediction
 C. Dimension Reduction
 D. Association Rules
Question was not answered
Correct Answer Explanation:
This is the definition of clustering.
Explanation for Choice B:
In prediction, the goal is to predict the numerical value of a variable such as the amount of a
purchase rather than (for example) simply classifying customers as predicted purchasers or
predicted non-purchasers.
Explanation for Choice C:
Dimension reduction entails reducing the number of variables in the data before using it for data
mining, in order to improve its manageability, interpretability, and predictive ability.
Explanation for Choice D:
Also called affinity analysis, association rules are used to find patterns of association between items
in large databases, such as associations among items purchased from a retail store, or “what goes
with what.”
79. Question ID: HOCK CMA P1.F.4.z 01 (Topic: Data Analytics)
Which of the following statements regarding sensitivity analysis and Monte Carlo simulation analysis
is true?

 A. Changing one of the variables in sensitivity analysis is reflective of real-world changes because
real-world variables are never interrelated.
 B. Monte Carlo simulation analysis is a subset of sensitivity analysis that involves changing only one
input variable at a time.
 C. The accuracy of the assumptions and relationships used in the model for sensitivity analysis are
quickly and easily confirmed.
 D. Sensitivity analysis involves running a prediction model multiple times changing exactly one
variable between each run.correct
Question was not answered
Correct Answer Explanation:
This is a true statement. Sensitivity analysis can be used to determine how much the prediction of a
model will change if one input to the model is changed. It can be used to determine which input
parameter is most important for achieving accurate predictions. Sensitivity analysis is known as
“what-if” analysis.
Explanation for Choice A:

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. It shows patterns and trends in data across the organization.correct

 B. It is designed to focus on metrics that have not been met.
 C. It can automatically generate reorders of important materials for production.
 D. It allows management to have as many different charts as possible.
Question was not answered
Correct Answer Explanation:
A dashboard is a screen in a software application, a browser-based application, or a desktop
application that displays in one place information relevant to a given objective or process, or for
senior management, it may show patterns and trends in data across the organization.
Explanation for Choice B:
A dashboard is a screen in a software application, a browser-based application, or a desktop
application that displays in one place information relevant to a given objective or process, or for
senior management, it may show patterns and trends in data across the organization. A dashboard
presents key metrics for the user. While it may include metrics that have not been met, its focus is
not limited to metrics that have not been met.
Explanation for Choice C:
A dashboard is a screen in a software application, a browser-based application, or a desktop
application that displays in one place information relevant to a given objective or process, or for
senior management, it may show patterns and trends in data across the organization. It does not
automatically generate reorders of important materials for production.
Explanation for Choice D:
A dashboard is a screen in a software application, a browser-based application, or a desktop
application that displays in one place information relevant to a given objective or process, or for
senior management, it may show patterns and trends in data across the organization. A dashboard
presents key metrics for the user. It does not present as many different charts as possible, as that

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. 85% of the variation of the dependent variable is explained by the regression line.correct
 B. the dependent and independent variables have a correlation coefficient of 0.85.
 C. 85% of the variation of the independent variable is explained by the regression line.
 D. the dependent variable does not have a strong correlation with the independent variable.
Question was not answered
Correct Answer Explanation:
The coefficient of determination, R2, is the percentage of the total variation in the dependent variable
(y) that can be explained by variations in the independent variable (x). Therefore, an R2 of 0.85
means that 85% of the variation in the dependent variable is explained by variations in the
independent variable as depicted by the regression line.
Explanation for Choice B:
An R2 of 0.85 does not mean that the dependent and independent variables have a correlation
coefficient of 0.85. The correlation coefficient is represented by R, not by R2.
Explanation for Choice C:
This statement is reversed. The coefficient of determination, R2, is the percentage of the total
variation in the dependent variable (y) that can be explained by variations in
the independent variable (x).
Explanation for Choice D:
The coefficient of determination, R2, is the percentage of the total variation in the dependent variable
(y) that can be explained by variations in the independent variable (x). Therefore, an R2 of 0.85
means that 85% of the variation in the dependent variable is explained by variations in the
independent variable. Therefore, it is not correct to say that an R2 of 0.85 means that the dependent
variable does not have a strong correlation with the independent variable.
82. Question ID: HOCK CMA P1.F.4.h 01 (Topic: Data Analytics)
Which of the following is not considered one of the challenges of data mining?

 A. Ethical issues
 B. Bias amplification
 C. Unstructured data
 D. Quantity of datacorrect
Question was not answered
Correct Answer Explanation:
The quantity of data is not one of the inherent challenges of data mining. The more data that there
is, the more likely it is that valuable information will result from data mining.
Explanation for Choice A:

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. tests that the independent variable has no correlation with the dependent variable.
 B. identifies the causal factor in a linear model.
 C. assesses how well a model can predict an outcome.correct
 D. is the proportion of the variance in the independent variable that is predictable from the
dependent variable.
Question was not answered
Correct Answer Explanation:
This is the best answer choice from among the answer choices given.
In regression analysis, correlation analysis is used to assess how well a model can predict an
outcome. The coefficient of determination, R2, is one of the most important statistical calculations for
determining correlation.
The coefficient of determination, R2, is the percentage of the total variation in the dependent variable
(y) that can be explained by variations in the independent variable (x), as depicted by the regression
line.
Thus, R2 is an indicator of the reliability of a regression analysis.
Explanation for Choice A:
The coefficient of determination, R2, is the percentage of the total variation in the dependent variable
(y) that can be explained by variations in the independent variable (x), as depicted by the regression
line. Thus, R2 is an indicator of the reliability of a regression analysis. Its purpose is not to test that
the independent variable has no correlation with the dependent variable.
Explanation for Choice B:
The coefficient of determination, R2, is the percentage of the total variation in the dependent variable
(y) that can be explained by variations in the independent variable (x), as depicted by the regression
line. Thus, R2 is an indicator of the reliability of a regression analysis. It does not identify the causal
factor in a linear model.
Explanation for Choice D:

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. Data science involves the transformation of data into action.

 B. Data science is the use of statistical techniques to analyze large sets of data.
 C. Data science answers the question, "What needs to happen?"
 D. Data science extracts hidden knowledge and insights from data.correct
Question was not answered
Correct Answer Explanation:
Data science is used to provide actionable insights into issues where the analyst or manager does
not know what he or she does not know ("unknown unknowns").
Explanation for Choice A:
This is the definition of business intelligence, not data science.
Explanation for Choice B:
This is the definition of data mining. Data mining is used in data science, but data mining is not the
same as data science.
Explanation for Choice C:
This is the definition of prescriptive analytics, not data science.
85. Question ID: ICMA 19.1F4d.01 (Topic: Data Analytics)
A hospital has observed an increase in the number of cases of a disease and has asked an analyst
to collect data on the cases over the last three years. The analyst noted that the disease appeared
three years ago during the second quarter of the year. Since then, the third and fourth quarters of
each year showed significant spikes in the number of cases when compared to the first two quarters.
What is the best way to present these findings?

 A. Bar graph, showing the number of cases in each quarter of the last three years.correct
 B. Scatter plot chart, showing the change in the number of cases for each quarter of the last three
years.
 C. Pie chart, showing the number of cases in each quarter of the last three years.
 D. Table, showing the number of cases in each month for the last three years.
Question was not answered
Correct Answer Explanation:
A bar graph would have the quarters on one axis with bars indicating the number of cases,
measured on the other axis. That type of chart would make the information the most clear and easy
to visualize because the quarters' bars would be next to each other and the higher numbers of cases
in the third and fourth quarters of each year would be apparent.
Explanation for Choice B:

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

1. _____ refers to the amount of data that exists.

2. _____ refers to the speed at which data is generated or changed.
3. _____ refers to the forms of data created and collected.
4. _____ refers to the accuracy of the data.

 A. 1) Volume 2) Velocity 3) Veracity 4) Variety

 B. 1) Variety 2) Velocity 3) Volume 4) Veracity
 C. 1) Variety 2) Veracity 3) Volume 4) Velocity
 D. 1) Volume 2) Velocity 3) Variety 4) Veracitycorrect
Question was not answered
Correct Answer Explanation:

1. Volume refers to the amount of data that exists.

2. Velocity refers to the speed at which data is generated or changed.
3. Variety refers to the forms of data created and collected.
4. Veracity refers to the accuracy of the data.
Explanation for Choice A:

1. Volume refers to the amount of data that exists.

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

1. Volume refers to the amount of data that exists.

2. Velocity refers to the speed at which data is generated or changed.
3. Variety refers to the forms of data created and collected.
4. Veracity refers to the accuracy of the data.
87. Question ID: HOCK CMA P1.F.4.i 02 (Topic: Data Analytics)
Rachel's company has recently set up a new system that offers data mining capabilities and is
training the management accountants how to use the various tools and processes. In the training,
Rachel and her colleagues learned about the process of testing different hypotheses and then
applying the results of one hypothesis as the data for another hypothesis. Which of the following
terms best identifies this process?

 A. Iterationcorrect
 B. Prediction
 C. Generalization
 D. Clustering
Question was not answered
Correct Answer Explanation:
Iteration is the repetition of a process in order to generate a sequence of outcomes. Each repetition
of the process is a single iteration, and the outcome of each iteration is the starting point of the next
iteration.
Explanation for Choice B:
In prediction, the goal is to predict the numerical value of a variable such as the amount of a
purchase rather than (for example) simply classifying customers as predicted purchasers or
predicted non-purchasers.
Explanation for Choice C:
Generalization is the ability to predict or assign a label to a “new” observation based on a model built
from past experience. In other words, the generalizations developed in data mining should be valid
not just for the data set used in observing the pattern but should also be valid for new, unknown
data.
Explanation for Choice D:
Clustering is discovering groups in data sets that have similar characteristics without using known
structures in the data. Clustering can be used in data reduction to reduce the number of groups to be
included in the data mining algorithm.
88. Question ID: HOCK CMA P1.F.4.r 02 (Topic: Data Analytics)
Patrick's Lawns & Walks is a small business with 10 employees that provides a combination of
landscaping services in the spring and summer and snow removal services in the winter. Over the
‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬
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Hock 2020 Part 1
Section F - Technology and Analytics.
Answers
last four years, Patrick had worse and worse cash shortages when paying his employees, and also
had to put off purchasing new equipment that he really needed. Furthermore, the local papers have
been reporting that the regional economy entered a mild recession in the last year due to the closing
of a nearby automobile manufacturing plant. Around the time of the closure, Patrick lost many long-
time customers who had to cancel their service.
Patrick has decided that he needs to sit down and carefully analyze his revenues over time so that
he can get a better sense of the health of his business and make some projections so that he can
plan how to keep his business going. When he graphs his monthly revenue over the last four years,
which time series patterns is Patrick likely to see?

1. Trend
2. Seasonal
3. Cyclical
4. Irregular

 A. 1 and 2correct
 B. 1, 2, and 3
 C. 1 and 3
 D. 1, 2, 3 and 4
Question was not answered
Correct Answer Explanation:
Patrick should expect to see:

1. A trend pattern of declining revenue.

2. A seasonal pattern due to the inherent seasonality of his business.
There is no indication of any irregular patterns in Patrick's revenue, and without longer-term data, a
single recession would not show a cyclical pattern.
Explanation for Choice B:
Patrick should expect to see:

1. A trend pattern of declining revenue.

2. A seasonal pattern due to the inherent seasonality of his business.
However, without longer-term data, a single recession would not show a cyclical pattern.
Explanation for Choice C:
Patrick should expect to see:

1. A trend pattern of declining revenue.

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

 A. Data mining is art, meaning that the output is often visual.

 B. Data mining is more science than art.
 C. Data mining is a science, meaning that it results in definite conclusions.
 D. Data mining is an art because it involves making thoughtful choices.correct
Question was not answered
Correct Answer Explanation:
In data mining, decisions must be made regarding what data to use, what tools to use, and what
algorithms to use. For example, one word can have many different meanings. In mining text, the
context of words must be considered. Therefore, instead of just looking for words in relation to other
words, the data scientist looks for whole phrases in relation to other phrases. The data scientist must
make thoughtful choices in order to get usable results.
Explanation for Choice A:
While the output from data mining can be visual, this is not what is meant by saying that data mining
is an art.
Explanation for Choice B:
This statement is simply not true.
Explanation for Choice C:
Data mining does not necessarily result in definite conclusions; often the results of data mining
require analysis and may not provide clear-cut answers.

‫ﻛﻝ ﺍﻟﻛﺗﺏ ﻭﺍﻻﺳﺋﻠﻪ ﺍﻟﻠﻲ ﺗﺣﺗﺎﺟﻭﻫﺎ ﺣﺗﻼﻗﻭﻫﺎ ﻋﻠﻰ ﺍﻟﻘﻧﺎﺗﻳﻥ ﺩﻭﻝ‬

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