WGU C213 Final Exam Accounting for Decision
Makers (2023/2024) Newest Questions and
Answers
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
3. Increased scrutiny associated with large corporate accounting scandals
Which 3 factors have combined to make right now a time of significant change in accounting?
Sarbanes-Oxley Act
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
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
probable future economic benefits obtained or controlled by a company as a result of past
transactions or events
Liabilities
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
Makers (2023/2024) Newest Questions and
Answers
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
3. Increased scrutiny associated with large corporate accounting scandals
Which 3 factors have combined to make right now a time of significant change in accounting?
Sarbanes-Oxley Act
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
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
probable future economic benefits obtained or controlled by a company as a result of past
transactions or events
Liabilities
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
