WGU C213 Final Exam Accounting for Decision
Makers Questions and Answers ()
(Verified) UPDATE
Accounting
Recording financial activities and organizing into reports for evaluating financial status
Bookkeeping
Preserving systematic, quantitative records of an activity
Accounting System
Used for routine bookkeeping tasks and structuring information for evaluating business performance
Accounting Information
Info useful for making decisions about the future
Three Primary Financial Statements
Balance Sheet, Income Statement, Statement of Cash Flows
External Users
Primary users of financial accounting information
Managerial Accounting
Accounting systems for internal users
Balance Sheet
Reports company's financial position at a specific time, lists assets, liabilities, and owners' equity
Income Statement
Reports company's net income earned during a period
Net Income
Income from continuing operations plus or minus discontinued operations and extraordinary items,
net of income tax effects
Statement of Cash Flows
Reports cash activities: operating, investing, financing
FASB
Private body for U.S. accounting rules
Financial Accounting Standards Board (FASB)
Private body for U.S. accounting rules
, The Securities and Exchange Commission (SEC)
Regulates U.S. stock exchanges
American Institute of Certified Public Accountants (AICPA)
Professional org for CPAs in the U.S.
Public Company Accounting Oversight Board (PCAOB)
Inspects audit practices of firms
Internal Revenue Service (IRS)
Gov't agency for income tax rules
The International Accounting Standards Board (IASB)
Develops global accounting standards
Factors for Change in Accounting
IT advancements, global business, scandals
Sarbanes-Oxley Act
Resulted from 2001 accounting scandals
Assets
Probable future economic benefits obtained or controlled by a company
Liabilities
Probable future sacrifices of economic benefits arising from present obligations
Owners' Equity
Residual interest in the assets of a company after deducting its liabilities
Assets = Liabilities + Owners' Equity
What is the accounting equation?
By Order of Liquidity
In what order are assets typically listed on the balance sheet?
Current and Long-term
Categories in which liabilities are divided on the balance sheet
Entity Concept
Financial results of an entity reported separately from other entities
Net Income Calculation
Makers Questions and Answers ()
(Verified) UPDATE
Accounting
Recording financial activities and organizing into reports for evaluating financial status
Bookkeeping
Preserving systematic, quantitative records of an activity
Accounting System
Used for routine bookkeeping tasks and structuring information for evaluating business performance
Accounting Information
Info useful for making decisions about the future
Three Primary Financial Statements
Balance Sheet, Income Statement, Statement of Cash Flows
External Users
Primary users of financial accounting information
Managerial Accounting
Accounting systems for internal users
Balance Sheet
Reports company's financial position at a specific time, lists assets, liabilities, and owners' equity
Income Statement
Reports company's net income earned during a period
Net Income
Income from continuing operations plus or minus discontinued operations and extraordinary items,
net of income tax effects
Statement of Cash Flows
Reports cash activities: operating, investing, financing
FASB
Private body for U.S. accounting rules
Financial Accounting Standards Board (FASB)
Private body for U.S. accounting rules
, The Securities and Exchange Commission (SEC)
Regulates U.S. stock exchanges
American Institute of Certified Public Accountants (AICPA)
Professional org for CPAs in the U.S.
Public Company Accounting Oversight Board (PCAOB)
Inspects audit practices of firms
Internal Revenue Service (IRS)
Gov't agency for income tax rules
The International Accounting Standards Board (IASB)
Develops global accounting standards
Factors for Change in Accounting
IT advancements, global business, scandals
Sarbanes-Oxley Act
Resulted from 2001 accounting scandals
Assets
Probable future economic benefits obtained or controlled by a company
Liabilities
Probable future sacrifices of economic benefits arising from present obligations
Owners' Equity
Residual interest in the assets of a company after deducting its liabilities
Assets = Liabilities + Owners' Equity
What is the accounting equation?
By Order of Liquidity
In what order are assets typically listed on the balance sheet?
Current and Long-term
Categories in which liabilities are divided on the balance sheet
Entity Concept
Financial results of an entity reported separately from other entities
Net Income Calculation
