WGU C213 Accounting for Decision Makers
Accounting - the recording of the day-to-day financial activities of a company and the organization of
that information into summary reports used to evaluate the company's financial status
Bookkeeping - the preservation of a systematic, quantitative record of an activity
accounting system - used by a business to handle routine bookkeeping tasks and to structure the
information so it can be used to evaluate the performance and financial status of the business
Accounting information - Info that is intended to be useful in making decisions about the future.
The balance sheet, the income statement, and the statement of cashflows - What are the three primary
financial statements?
External Users - Who is financial accounting information primarily prepared for and used by?
Managerial Accounting - the name given to accounting systems designed for internal users
Balance Sheet - Reports a company's assets, liabilities, and owners' equity
Income Statement - reports the amount of net income earned by a company during a period
Net income - the excess of a company's revenues over its expenses
, statement of cash flows - reports the amount of cash collected and paid out by a company in the
following three types of activities: operating, investing, and financing
FASB - Which private body establishes accounting rules in the U.S.?
Financial Accounting Standards Board (FASB) - a private body established and supported by the joint
efforts of the U.S. business community, financial analysts, and practicing accountants
The Securities and Exchange Commission (SEC) - the organization that regulates U.S. stock exchanges
and 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
American Institute of Certified Public Accountants (AICPA) - the professional organization of certified
public accountants (CPAs) in the United States
Public Company Accounting Oversight Board (PCAOB) - the organization that inspects the audit practices
of registered audit firms and has statutory authority to investigate questionable audit practices and to
impose sanctions such as barring an audit firm from auditing SEC-registered companies
Internal Revenue Service (IRS) - Gov't agency that establishes rules to define exactly when income
should be taxed. It has no role in setting financial accounting rules; and a company's financial statements
are not used in determining how much tax the company must pay
The International Accounting Standards Board (IASB) - 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
Accounting - the recording of the day-to-day financial activities of a company and the organization of
that information into summary reports used to evaluate the company's financial status
Bookkeeping - the preservation of a systematic, quantitative record of an activity
accounting system - used by a business to handle routine bookkeeping tasks and to structure the
information so it can be used to evaluate the performance and financial status of the business
Accounting information - Info that is intended to be useful in making decisions about the future.
The balance sheet, the income statement, and the statement of cashflows - What are the three primary
financial statements?
External Users - Who is financial accounting information primarily prepared for and used by?
Managerial Accounting - the name given to accounting systems designed for internal users
Balance Sheet - Reports a company's assets, liabilities, and owners' equity
Income Statement - reports the amount of net income earned by a company during a period
Net income - the excess of a company's revenues over its expenses
, statement of cash flows - reports the amount of cash collected and paid out by a company in the
following three types of activities: operating, investing, and financing
FASB - Which private body establishes accounting rules in the U.S.?
Financial Accounting Standards Board (FASB) - a private body established and supported by the joint
efforts of the U.S. business community, financial analysts, and practicing accountants
The Securities and Exchange Commission (SEC) - the organization that regulates U.S. stock exchanges
and 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
American Institute of Certified Public Accountants (AICPA) - the professional organization of certified
public accountants (CPAs) in the United States
Public Company Accounting Oversight Board (PCAOB) - the organization that inspects the audit practices
of registered audit firms and has statutory authority to investigate questionable audit practices and to
impose sanctions such as barring an audit firm from auditing SEC-registered companies
Internal Revenue Service (IRS) - Gov't agency that establishes rules to define exactly when income
should be taxed. It has no role in setting financial accounting rules; and a company's financial statements
are not used in determining how much tax the company must pay
The International Accounting Standards Board (IASB) - 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
