WGU C213 ACCOUNTING FOR DECISION
MAKERS CONCEPT REVIEW GUIDE 2026
COST VOLUME PROFIT ANALYSIS AND
DECISION MAKING
◉ Inside, Internal
Answer: Managerial info is inside or outside the business?
◉ True. Financial accounting is only outside. Managerial accounting
can be inside AND outside.
Answer: True or false, managerial accounting uses BOTH managerial
and financial accounting?
◉ Outside, External, includes lenders and investors
Answer: Financial is inside or outside the business?
◉ Balance sheet, income statement, and statement of cash flows
Answer: The financial statement includes what 3 documents
◉ Balance Sheet
Answer: Point in time, Assets (resources) and liabilities (obligations)
,◉ Income Statement
Answer: Period of time (usually 1 year), amount of profit made
◉ Statement of Cash flows
Answer: Period of time, where money came from, and where it went.
Inflow and outflow of cash (Cash Flows). Change in money for the
period.
◉ Balance sheet equation
Answer: Assets= liabilities + equity
◉ Revenue equation
Answer: Net income=Revenue - Expenses
◉ Operating, investing, and financial activities
Answer: The statement of cash flows includes what three activities
◉ FASB: Financial accounting standards. Private, no government
involvement. It is a public process, includes individuals experienced
in business and accounting (7 members).
Answer: The decision makers in the U.S. (accounting rules)
,◉ GAAP: General accepted accounting principles
Answer: Developed by accounting rule makers. No Legal authority.
◉ comparability
Answer: We need accounting rules for...
◉ SEC: Security and exchange commission. Located in Article 1, Sec
8, Clause 3
Answer: U.S. gov agency responsible for ensuring that investors,
creditors, and other financial statement users are provided with
reliable information. It watches behavior in financial markets.
◉ Registration statements (prospectus), Form 10-K, Form 10-Q, and
schedule 14A (proxy statement). These are all publicly viewable.
Answer: What forms do the SEC regulate?
◉ Oversees stock exchanges, can suspend a company, investigate
and suspect violations of the SEC rules.
Answer: What does the SEC do?
◉ YES. The SEC has legal authority to establish accounting rules and
disclosure requirements.
Answer: Does the SEC have legal authority?
, ◉ USA congress->SEC->FASB
Answer: Financial accounting rule per the US constitution
◉ FASB: Financial accounting standards board
Answer: The SEC created the
◉ GAAP (has no legal authority)
Answer: FASB created
◉ AIPCA: American INSTITUTE of certified public accountants.
Answer: What sets auditory standards, continue education credits,
CPA exam, and is the code of professional conduct?
◉ Only CPA's: Certified public accountants.
Answer: Who is the only person who can sign audit reports?
◉ PCAOB: Public company accounting oversight board.
Answer: The Sarbanes-Oxley Act "SOX" created?
◉ Under supervision of the SEC.
Answer: PCAOB is under supervision of?
MAKERS CONCEPT REVIEW GUIDE 2026
COST VOLUME PROFIT ANALYSIS AND
DECISION MAKING
◉ Inside, Internal
Answer: Managerial info is inside or outside the business?
◉ True. Financial accounting is only outside. Managerial accounting
can be inside AND outside.
Answer: True or false, managerial accounting uses BOTH managerial
and financial accounting?
◉ Outside, External, includes lenders and investors
Answer: Financial is inside or outside the business?
◉ Balance sheet, income statement, and statement of cash flows
Answer: The financial statement includes what 3 documents
◉ Balance Sheet
Answer: Point in time, Assets (resources) and liabilities (obligations)
,◉ Income Statement
Answer: Period of time (usually 1 year), amount of profit made
◉ Statement of Cash flows
Answer: Period of time, where money came from, and where it went.
Inflow and outflow of cash (Cash Flows). Change in money for the
period.
◉ Balance sheet equation
Answer: Assets= liabilities + equity
◉ Revenue equation
Answer: Net income=Revenue - Expenses
◉ Operating, investing, and financial activities
Answer: The statement of cash flows includes what three activities
◉ FASB: Financial accounting standards. Private, no government
involvement. It is a public process, includes individuals experienced
in business and accounting (7 members).
Answer: The decision makers in the U.S. (accounting rules)
,◉ GAAP: General accepted accounting principles
Answer: Developed by accounting rule makers. No Legal authority.
◉ comparability
Answer: We need accounting rules for...
◉ SEC: Security and exchange commission. Located in Article 1, Sec
8, Clause 3
Answer: U.S. gov agency responsible for ensuring that investors,
creditors, and other financial statement users are provided with
reliable information. It watches behavior in financial markets.
◉ Registration statements (prospectus), Form 10-K, Form 10-Q, and
schedule 14A (proxy statement). These are all publicly viewable.
Answer: What forms do the SEC regulate?
◉ Oversees stock exchanges, can suspend a company, investigate
and suspect violations of the SEC rules.
Answer: What does the SEC do?
◉ YES. The SEC has legal authority to establish accounting rules and
disclosure requirements.
Answer: Does the SEC have legal authority?
, ◉ USA congress->SEC->FASB
Answer: Financial accounting rule per the US constitution
◉ FASB: Financial accounting standards board
Answer: The SEC created the
◉ GAAP (has no legal authority)
Answer: FASB created
◉ AIPCA: American INSTITUTE of certified public accountants.
Answer: What sets auditory standards, continue education credits,
CPA exam, and is the code of professional conduct?
◉ Only CPA's: Certified public accountants.
Answer: Who is the only person who can sign audit reports?
◉ PCAOB: Public company accounting oversight board.
Answer: The Sarbanes-Oxley Act "SOX" created?
◉ Under supervision of the SEC.
Answer: PCAOB is under supervision of?
