When using data analytics to analyze revenue, what is typically the first task you would complete?

• A. Create visualizations of revenue trends
• B. Collect and clean the relevant revenue data
• C. Calculate the company's net income
• D. Prepare adjusting journal entries for unearned revenue

Answer: (B)

Verified step by step guidance

1. Understand the problem: The question is asking about the first task typically performed when using data analytics to analyze revenue. This involves identifying the logical sequence of tasks in a data analysis process.
2. Step 1: Recognize that before any analysis or calculations can be performed, the data must be collected and cleaned. This ensures that the data is accurate, complete, and free of errors or inconsistencies.
3. Step 2: Cleaning the data involves removing duplicates, handling missing values, and ensuring consistency in data formats. This step is crucial for reliable analysis.
4. Step 3: After the data is cleaned, subsequent tasks such as creating visualizations, calculating net income, or preparing journal entries can be performed. However, these steps rely on having clean and accurate data.
5. Step 4: Conclude that the first task in the process is to collect and clean the relevant revenue data, as it forms the foundation for all further analysis and decision-making.