WGU C213 COMPLETE QUESTIONS AND VERIFIED
ANSWERS NEWEST UPDATE 2024 [GET IT RIGHT]
Financial Accounting
The name given to accounting information provided for and used by external users.
Financial Accounting Standards Board (FASB)
Private, non-profit body that sets accounting standards in the United States.
Financial Statements
The three primary financial information documents: the balance sheet, income
statement, and statement of cash flows.
Income Statement
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.
Internal Revenue Service (IRS)
The government agency responsible for tax collection and tax law enforcement.
International Accounting Standards Board (IASB)
An independent, international body formed to develop worldwide accounting standards.
International Financial Reporting Standards (IFRS)
The accounting standards produced by the IASB.
Managerial Accounting
The name given to accounting systems designed for internal users.
Public Company Accounting Oversight Board (PCAOB)
A private, non-profit organization that effectively serves as an arm of the SEC in
registering, inspecting, and disciplining the auditors of all publicly traded companies.
Accounting
A system of providing "quantitative information, primarily financial in nature, about
economic entities that is intended to be useful in making economic decisions."
Balance Sheet
Document which 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.
American Institute of Certified Public Accountants (AICPA)
The professional organization of certified public accountants in the United States.
Bookkeeping
The preservation of a systematic, quantitative record of an activity.
Certified Public Accountant
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.
Statement of Cash Flows
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.
Accounting Equation
Assets = Liabilities + Owners' Equity
Accumulated Other Comprehensive Income
, The source of these increased assets
Assets
Assets are the firm's economic resources, formally defined as "probable future
economic benefits obtained or controlled by a particular entity as a result of past
transactions or events
What does accounting focus on?
The impact a business's activities have on its overall financial performance
Which report summarizes cash collections and cash expenditures from
operating, investing, and financing activities over a period of time?
Statement of cash flows
Which users would have a primary concern with an organization's ability to
provide healthcare benefits?
Employees
Which benefit does a corporation gain by following Generally Accepted
Accounting Principles (GAAP)?
An increase in its comparability to other companies
Which body regulates a certified public accounting firm's audit practices when
the firm is auditing a large publicly traded company?
The Public Company Accounting Oversight Board (PCAOB)
What has had the most significant impact on accounting practices?
Information technology
What two items of information are revealed on the balance sheet?
Ownership, Debt
Which term is defined as the residual interest in the net assets of a company?
Owners' equity
A corporation has total liabilities of $300 million, total owners' equity of $100
million, and current assets of $50 million.
What is the value of the firm's long-term assets?
$350 million
Which situation should result in revenue recognition on the income statement for
the year ending 12/31/14 if the firm is using accrual-basis accounting?
In 2014, a company provides services to a customer for which cash will be collected the
next year (2015).
Which category on the statement of cash flows summarizes cash receipts and
payments to owners and creditors of the company?
Cash flows from financing activities
Where would an investor find a summary of a company's significant accounting
policies?
In the notes to financial statements
Which assurance does an external audit report provide for its readers?
The company's financial statements fairly reflect its financial position
Match each accounting term with its definition.
Reliable = Information that can be verified
Relevant = Information having to do with the matter at hand
ANSWERS NEWEST UPDATE 2024 [GET IT RIGHT]
Financial Accounting
The name given to accounting information provided for and used by external users.
Financial Accounting Standards Board (FASB)
Private, non-profit body that sets accounting standards in the United States.
Financial Statements
The three primary financial information documents: the balance sheet, income
statement, and statement of cash flows.
Income Statement
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.
Internal Revenue Service (IRS)
The government agency responsible for tax collection and tax law enforcement.
International Accounting Standards Board (IASB)
An independent, international body formed to develop worldwide accounting standards.
International Financial Reporting Standards (IFRS)
The accounting standards produced by the IASB.
Managerial Accounting
The name given to accounting systems designed for internal users.
Public Company Accounting Oversight Board (PCAOB)
A private, non-profit organization that effectively serves as an arm of the SEC in
registering, inspecting, and disciplining the auditors of all publicly traded companies.
Accounting
A system of providing "quantitative information, primarily financial in nature, about
economic entities that is intended to be useful in making economic decisions."
Balance Sheet
Document which 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.
American Institute of Certified Public Accountants (AICPA)
The professional organization of certified public accountants in the United States.
Bookkeeping
The preservation of a systematic, quantitative record of an activity.
Certified Public Accountant
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.
Statement of Cash Flows
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.
Accounting Equation
Assets = Liabilities + Owners' Equity
Accumulated Other Comprehensive Income
, The source of these increased assets
Assets
Assets are the firm's economic resources, formally defined as "probable future
economic benefits obtained or controlled by a particular entity as a result of past
transactions or events
What does accounting focus on?
The impact a business's activities have on its overall financial performance
Which report summarizes cash collections and cash expenditures from
operating, investing, and financing activities over a period of time?
Statement of cash flows
Which users would have a primary concern with an organization's ability to
provide healthcare benefits?
Employees
Which benefit does a corporation gain by following Generally Accepted
Accounting Principles (GAAP)?
An increase in its comparability to other companies
Which body regulates a certified public accounting firm's audit practices when
the firm is auditing a large publicly traded company?
The Public Company Accounting Oversight Board (PCAOB)
What has had the most significant impact on accounting practices?
Information technology
What two items of information are revealed on the balance sheet?
Ownership, Debt
Which term is defined as the residual interest in the net assets of a company?
Owners' equity
A corporation has total liabilities of $300 million, total owners' equity of $100
million, and current assets of $50 million.
What is the value of the firm's long-term assets?
$350 million
Which situation should result in revenue recognition on the income statement for
the year ending 12/31/14 if the firm is using accrual-basis accounting?
In 2014, a company provides services to a customer for which cash will be collected the
next year (2015).
Which category on the statement of cash flows summarizes cash receipts and
payments to owners and creditors of the company?
Cash flows from financing activities
Where would an investor find a summary of a company's significant accounting
policies?
In the notes to financial statements
Which assurance does an external audit report provide for its readers?
The company's financial statements fairly reflect its financial position
Match each accounting term with its definition.
Reliable = Information that can be verified
Relevant = Information having to do with the matter at hand
