WGU ACCOUNTING FOR DECISION MAKERS -
C213 PROPERLY STRUCTURED QUESTIONS
WITH 100% CORRECT ANSWERS GRADED A+
2026
Bookkeeping ANSWER >> is the preservation of a systematic, quantitative record of an
activity
Accounting ANSWER >> A system of providing "quantitative information, primarily
financial in nature, about economic entities that is intended to be useful in making
economic decisions."
The key features of this definition are the following:
Numbers: Accounting is quantitative. This is a strength because numbers can be easily
tabulated and summarized. It is a weakness because some important business events,
such as a toxic waste spill and the associated lawsuits and countersuits, cannot be
easily described by one or two numbers.
1
,A financial dimension: The status and performance of a business is affected by and
reflected in many dimensions—financial, personal relationships, community and
environmental impact, and public image. Accounting focuses on just the financial
dimension.
Usefulness: The practice of accounting is supported by a long tradition of theory; U.S.
accounting rules in fact have a theoretical conceptual framework, and some people
actually make a living as accounting theorists. However, in spite of its theoretical
beauty, accounting exists only because it is useful.
Future decisions based on past information: Although accounting is the structured
reporting of what has already occurred, this past information can only be useful if it
impacts decisions about the future.
financial accounting ANSWER >> which is the name given to accounting information
provided for and used by external users.
Managerial accounting ANSWER >> the name given to accounting systems designed
for internal users
financial statements ANSWER >> The three primary financial information documents:
the balance sheet, income statement, and statement of cash flows.
balance sheet ANSWER >> reports the resources of a company (the assets), the
company's obligations (the liabilities), and the owners' equity, which represents how
much money has been invested in the company by its owners.
income statement ANSWER >> This document reports the amount of net income
earned by a company during a period, with annual and quarterly income statements
being the most common.
statement of cash flows ANSWER >> This document reports the amount of cash
collected and paid out by a company in the following three types of activities: operating,
investing, and financing.
The emphasis in financial accounting is on which of the following external user groups?
ANSWER >> Investors and creditors
The primary internal group that uses accounting information is ANSWER >>
Management
Internal reports are generally used by ANSWER >> Management
Which of the following is NOT an external user of financial information? ANSWER >>
Management
2
,accounting standards are set by the? ANSWER >> Financial Accounting Standards
Board (FASB). The FASB is based in Norwalk, Connecticut; its seven full-time members
are selected from a variety of backgrounds—professional accounting, business,
government, and academia. FASB is not a government agency, it lacks the legal power
to enforce the accounting standards it sets.
Generally Accepted Accounting Principles (GAAP) ANSWER >> a set of accounting
standards that is used in the preparation of financial statements
Which of the following is NOT true of the Financial Accounting Standards Board
(FASB)? ANSWER >> It is a government agency
Generally accepted accounting principles are ANSWER >> Developed by accounting
rule makers
The initials GAAP stand for ANSWER >> Generally Accepted Accounting Principles
The current standard-setting board for accounting in the private sector is the ANSWER
>> Financial Accounting Standards Board (FASB)
Securities and Exchange Commission (SEC) ANSWER >> Congress created the
Securities and Exchange Commission (SEC) to regulate U.S. stock exchanges.The
SEC is not charged with protecting investors from losing money; instead, it seeks to
create a fair information environment in which investors can buy and sell stocks without
fear that companies are hiding or manipulating financial data.
What is corporate governance? ANSWER >> Corporate Governance is the set of
principles and practices that a corporation uses to regulate the relationship between the
shareholders and the professional managers hired by the board of directors.
The label "CPA" has two different uses ANSWER >> for individuals who are CPAs and
for CPA firms.CPA firms are also hired to perform independent audits of a company's
financial statements. The important role of an independent audit in ensuring the
reliability of financial statements is discussed in our "Overview of the Financial
Statements."not all CPAs work as accountants; they work in law firms or for the CIA and
as business consultants, corporate managers, and even accounting professors.
Certified Public Accountant (CPA) ANSWER >> A person who has taken a minimum
number of college-level accounting classes, has passed the dreaded CPA exam, and
has met other requirements set by his or her state.
American Institute of Certified Public Accountants (AICPA) ANSWER >> the
professional organizations of certified public accountants in the United States. Like
other professional organizations (e.g., the American Medical Association and the
3
, American Bar Association), the AICPA provides continuing educational service to its
members and also acts as a political voice to lobby on behalf of its membership. The
AICPA is responsible for preparing and grading the CPA examination in addition to
maintaining the integrity of the accounting profession through its Code of Professional
Conduct.
Section 101 of the Sarbanes-Oxley Act created the Public Company Accounting
Oversight Board (PCAOB). ANSWER >> Public Company Accounting Oversight Board
(PCAOB)a private, non-profit organization, but it effectively serves as an arm of the
SEC in registering, inspecting, and disciplining the auditors of all publicly traded
companies. The SEC appoints the chairperson and members of the PCAOB. Like the
FASB, the PCAOB is funded by registration fees paid by all publicly traded companies
in the United States.
Internal Revenue Service (IRS) ANSWER >> The branch of the U.S. Treasury
Department in charge of collecting taxes
International Accounting Standards Board (IASB) ANSWER >> An international
accounting standard-setting body responsible for the convergence of accounting
standards worldwide.was formed in 1973 to develop worldwide accounting standards.In
2001, the IASB restructured itself as an independent body with closer links to national
standard-setting bodies. At that time the IASB adopted its current name and dropped its
original name, the International Accounting Standards Committee (IASC).
International Accounting Standards Committee (IASC) ANSWER >> International
Accounting Standards Board (IASB)
International Financial Reporting Standards (IFRS) ANSWER >> Accounting standards,
issued by the IASB, that have been adopted by many countries outside of the United
States.
Which of the following is the government agency that stipulates the rules and
regulations that govern the collection of taxes in the United States? ANSWER >>
Internal Revenue Service
The organization that develops worldwide accounting standards is the ANSWER >>
International Accounting Standards Board (IASB)
Standards established by the International Accounting Standards Board are referred to
as ANSWER >> International Financial Reporting Standards
Which of the following is NOT a service typically provided by large public accounting
firms? ANSWER >> Making management decisions
4
C213 PROPERLY STRUCTURED QUESTIONS
WITH 100% CORRECT ANSWERS GRADED A+
2026
Bookkeeping ANSWER >> is the preservation of a systematic, quantitative record of an
activity
Accounting ANSWER >> A system of providing "quantitative information, primarily
financial in nature, about economic entities that is intended to be useful in making
economic decisions."
The key features of this definition are the following:
Numbers: Accounting is quantitative. This is a strength because numbers can be easily
tabulated and summarized. It is a weakness because some important business events,
such as a toxic waste spill and the associated lawsuits and countersuits, cannot be
easily described by one or two numbers.
1
,A financial dimension: The status and performance of a business is affected by and
reflected in many dimensions—financial, personal relationships, community and
environmental impact, and public image. Accounting focuses on just the financial
dimension.
Usefulness: The practice of accounting is supported by a long tradition of theory; U.S.
accounting rules in fact have a theoretical conceptual framework, and some people
actually make a living as accounting theorists. However, in spite of its theoretical
beauty, accounting exists only because it is useful.
Future decisions based on past information: Although accounting is the structured
reporting of what has already occurred, this past information can only be useful if it
impacts decisions about the future.
financial accounting ANSWER >> which is the name given to accounting information
provided for and used by external users.
Managerial accounting ANSWER >> the name given to accounting systems designed
for internal users
financial statements ANSWER >> The three primary financial information documents:
the balance sheet, income statement, and statement of cash flows.
balance sheet ANSWER >> reports the resources of a company (the assets), the
company's obligations (the liabilities), and the owners' equity, which represents how
much money has been invested in the company by its owners.
income statement ANSWER >> This document reports the amount of net income
earned by a company during a period, with annual and quarterly income statements
being the most common.
statement of cash flows ANSWER >> This document reports the amount of cash
collected and paid out by a company in the following three types of activities: operating,
investing, and financing.
The emphasis in financial accounting is on which of the following external user groups?
ANSWER >> Investors and creditors
The primary internal group that uses accounting information is ANSWER >>
Management
Internal reports are generally used by ANSWER >> Management
Which of the following is NOT an external user of financial information? ANSWER >>
Management
2
,accounting standards are set by the? ANSWER >> Financial Accounting Standards
Board (FASB). The FASB is based in Norwalk, Connecticut; its seven full-time members
are selected from a variety of backgrounds—professional accounting, business,
government, and academia. FASB is not a government agency, it lacks the legal power
to enforce the accounting standards it sets.
Generally Accepted Accounting Principles (GAAP) ANSWER >> a set of accounting
standards that is used in the preparation of financial statements
Which of the following is NOT true of the Financial Accounting Standards Board
(FASB)? ANSWER >> It is a government agency
Generally accepted accounting principles are ANSWER >> Developed by accounting
rule makers
The initials GAAP stand for ANSWER >> Generally Accepted Accounting Principles
The current standard-setting board for accounting in the private sector is the ANSWER
>> Financial Accounting Standards Board (FASB)
Securities and Exchange Commission (SEC) ANSWER >> Congress created the
Securities and Exchange Commission (SEC) to regulate U.S. stock exchanges.The
SEC is not charged with protecting investors from losing money; instead, it seeks to
create a fair information environment in which investors can buy and sell stocks without
fear that companies are hiding or manipulating financial data.
What is corporate governance? ANSWER >> Corporate Governance is the set of
principles and practices that a corporation uses to regulate the relationship between the
shareholders and the professional managers hired by the board of directors.
The label "CPA" has two different uses ANSWER >> for individuals who are CPAs and
for CPA firms.CPA firms are also hired to perform independent audits of a company's
financial statements. The important role of an independent audit in ensuring the
reliability of financial statements is discussed in our "Overview of the Financial
Statements."not all CPAs work as accountants; they work in law firms or for the CIA and
as business consultants, corporate managers, and even accounting professors.
Certified Public Accountant (CPA) ANSWER >> A person who has taken a minimum
number of college-level accounting classes, has passed the dreaded CPA exam, and
has met other requirements set by his or her state.
American Institute of Certified Public Accountants (AICPA) ANSWER >> the
professional organizations of certified public accountants in the United States. Like
other professional organizations (e.g., the American Medical Association and the
3
, American Bar Association), the AICPA provides continuing educational service to its
members and also acts as a political voice to lobby on behalf of its membership. The
AICPA is responsible for preparing and grading the CPA examination in addition to
maintaining the integrity of the accounting profession through its Code of Professional
Conduct.
Section 101 of the Sarbanes-Oxley Act created the Public Company Accounting
Oversight Board (PCAOB). ANSWER >> Public Company Accounting Oversight Board
(PCAOB)a private, non-profit organization, but it effectively serves as an arm of the
SEC in registering, inspecting, and disciplining the auditors of all publicly traded
companies. The SEC appoints the chairperson and members of the PCAOB. Like the
FASB, the PCAOB is funded by registration fees paid by all publicly traded companies
in the United States.
Internal Revenue Service (IRS) ANSWER >> The branch of the U.S. Treasury
Department in charge of collecting taxes
International Accounting Standards Board (IASB) ANSWER >> An international
accounting standard-setting body responsible for the convergence of accounting
standards worldwide.was formed in 1973 to develop worldwide accounting standards.In
2001, the IASB restructured itself as an independent body with closer links to national
standard-setting bodies. At that time the IASB adopted its current name and dropped its
original name, the International Accounting Standards Committee (IASC).
International Accounting Standards Committee (IASC) ANSWER >> International
Accounting Standards Board (IASB)
International Financial Reporting Standards (IFRS) ANSWER >> Accounting standards,
issued by the IASB, that have been adopted by many countries outside of the United
States.
Which of the following is the government agency that stipulates the rules and
regulations that govern the collection of taxes in the United States? ANSWER >>
Internal Revenue Service
The organization that develops worldwide accounting standards is the ANSWER >>
International Accounting Standards Board (IASB)
Standards established by the International Accounting Standards Board are referred to
as ANSWER >> International Financial Reporting Standards
Which of the following is NOT a service typically provided by large public accounting
firms? ANSWER >> Making management decisions
4
