Question

as big data increases we see a parallel growth in the need for small data to answer the questions it raises .

in your own words and with specific examples discuss the qoute above .

6 lines answer

Answer 1

As the volume of data is increasing in the ever growing world of finance and accounting, there is a growing need for small data (example ratio's and samples) which will help the finance personnel to draw more accurate and realistic conclusions on the overall data ("big data").

For example, we have ratio's in financial management like - profitability ratios, liquidity ratios, market ratios and so on.
Liquidity ratio, amongst other ratio consists of Acit-test ratio (Quick ratio). This ratio helps the user of the financial data, to conclude on the capability of the company/organisation to meet its current liabilities (example - creditors/trade payables and statutory liabilties) out of the liquid assets (assets which can be easily converted in to cash - example cash at bank, bank deposits).

Similarly, there is an increasing need for smaller data which represents the bigger picture, in order to make effective decisions, by the users of the data which include the vast varities of stakeholders such as the government, top management of the company, shareholders and so on.