WGU C213 ACCOUNTING FOR DECISION
MAKERS EXAM PREPARATION PACK 2026 KEY
CONCEPTS AND REVISION NOTES
◉ The International Accounting Standards Board (IASB).
Answer: Organization that was formed to develop a common set of
worldwide accounting standards. Its standards are increasingly
accepted worldwide, but FASB rules are still the standard in the
United States.
◉ 1. Rapid Advancements in the IT field
2. the international integration of worldwide business
3. Increased scrutiny associated with large corporate accounting
scandals.
Answer: Which 3 factors have combined to make right now a time of
significant change in accounting?
◉ Sarbanes-Oxley Act.
Answer: A wave of accounting scandals starting in 2001 resulted in
this act, which increases U.S. federal government scrutiny of the
production of financial statements.
◉ Balance Sheet.
, Answer: reports a company's financial position at a specified point
in time and lists the company's resources (assets), obligations
(liabilities), and net ownership interest (owners' equity).
◉ Assets.
Answer: probable future economic benefits obtained or controlled
by a company as a result of past transactions or events
◉ Liabilities.
Answer: probable future sacrifices of economic benefits arising from
present obligations of a company to transfer assets or provide
services in the future as a result of past transactions or events
◉ Owners' equity.
Answer: the residual interest in the assets of a company that
remains after deducting its liabilities
◉ Assets = Liabilities + Owners' Equity.
Answer: What is the accounting equation?
◉ By order of liquidity.
Answer: In what order are assets typically listed on the balance
sheet?
MAKERS EXAM PREPARATION PACK 2026 KEY
CONCEPTS AND REVISION NOTES
◉ The International Accounting Standards Board (IASB).
Answer: Organization that was formed to develop a common set of
worldwide accounting standards. Its standards are increasingly
accepted worldwide, but FASB rules are still the standard in the
United States.
◉ 1. Rapid Advancements in the IT field
2. the international integration of worldwide business
3. Increased scrutiny associated with large corporate accounting
scandals.
Answer: Which 3 factors have combined to make right now a time of
significant change in accounting?
◉ Sarbanes-Oxley Act.
Answer: A wave of accounting scandals starting in 2001 resulted in
this act, which increases U.S. federal government scrutiny of the
production of financial statements.
◉ Balance Sheet.
, Answer: reports a company's financial position at a specified point
in time and lists the company's resources (assets), obligations
(liabilities), and net ownership interest (owners' equity).
◉ Assets.
Answer: probable future economic benefits obtained or controlled
by a company as a result of past transactions or events
◉ Liabilities.
Answer: probable future sacrifices of economic benefits arising from
present obligations of a company to transfer assets or provide
services in the future as a result of past transactions or events
◉ Owners' equity.
Answer: the residual interest in the assets of a company that
remains after deducting its liabilities
◉ Assets = Liabilities + Owners' Equity.
Answer: What is the accounting equation?
◉ By order of liquidity.
Answer: In what order are assets typically listed on the balance
sheet?
