WGU C213 Accounting for Decision Makers
Questions & Answers
Accounting z- zANS-the zrecording zof zthe zday-to-day zfinancial zactivities zof za zcompany
zand zthe zorganization zof zthat zinformation zinto zsummary zreports zused zto zevaluate
zthe zcompany's zfinancial zstatus
Bookkeeping z- zANS-the zpreservation zof za zsystematic, zquantitative zrecord zof zan
zactivity
accounting zsystem z- zANS-used zby za zbusiness zto zhandle zroutine zbookkeeping
ztasks zand zto zstructure zthe zinformation zso zit zcan zbe zused zto zevaluate zthe
zperformance zand zfinancial zstatus zof zthe zbusiness
Accounting zinformation z- zANS-Info zthat zis zintended zto zbe zuseful zin zmaking
zdecisions zabout zthe zfuture.
The zbalance zsheet, zthe zincome zstatement, zand zthe zstatement zof zcashflows z- zANS-
What zare zthe zthree zprimary zfinancial zstatements?
External zUsers z- zANS-Who zis zfinancial zaccounting zinformation zprimarily zprepared
zfor zand zused zby?
Managerial zAccounting z- zANS-the zname zgiven zto zaccounting zsystems zdesigned zfor
zinternal zusers
Balance zSheet z- zANS-Reports za zcompany's zassets, zliabilities, zand zowners' zequity
Income zStatement z- zANS-reports zthe zamount zof znet zincome zearned zby za zcompany
zduring za zperiod
Net zincome z- zANS-the zexcess zof za zcompany's zrevenues zover zits zexpenses
statement zof zcash zflows z- zANS-reports zthe zamount zof zcash zcollected zand zpaid zout
zby za zcompany zin zthe zfollowing zthree ztypes zof zactivities: zoperating, zinvesting, zand
zfinancing
FASB z- zANS-Which zprivate zbody zestablishes zaccounting zrules zin zthe zU.S.?
Financial zAccounting zStandards zBoard z(FASB) z- zANS-a zprivate zbody zestablished
zand zsupported zby zthe zjoint zefforts zof zthe zU.S. zbusiness zcommunity, zfinancial
zanalysts, zand zpracticing zaccountants
, The zSecurities zand zExchange zCommission z(SEC) z- zANS-the zorganization zthat
zregulates zU.S. zstock zexchanges zand zseeks zto zcreate za zfair zinformation
zenvironment zin zwhich zinvestors zcan zbuy zand zsell zstocks zwithout zfear zthat
zcompanies zare zhiding zor zmanipulating zfinancial zdata
American zInstitute zof zCertified zPublic zAccountants z(AICPA) z- zANS-the zprofessional
zorganization zof zcertified zpublic zaccountants z(CPAs) zin zthe zUnited zStates
Public zCompany zAccounting zOversight zBoard z(PCAOB) z- zANS-the zorganization zthat
zinspects zthe zaudit zpractices zof zregistered zaudit zfirms zand zhas zstatutory zauthority
zto zinvestigate zquestionable zaudit zpractices zand zto zimpose zsanctions zsuch zas
zbarring zan zaudit zfirm zfrom zauditing zSEC-registered zcompanies
Internal zRevenue zService z(IRS) z- zANS-Gov't zagency zthat zestablishes zrules zto
zdefine zexactly zwhen zincome zshould zbe ztaxed. zIt zhas zno zrole zin zsetting zfinancial
zaccounting zrules; zand za zcompany's zfinancial zstatements zare znot zused zin
zdetermining zhow zmuch ztax zthe zcompany zmust zpay
The zInternational zAccounting zStandards zBoard z(IASB) z- zANS-Organization zthat zwas
zformed zto zdevelop za zcommon zset zof zworldwide zaccounting zstandards. zIts
zstandards zare zincreasingly zaccepted zworldwide, zbut zFASB zrules zare zstill zthe
zstandard zin zthe zUnited zStates.
1. zRapid zAdvancements zin zthe zIT zfield
2. zthe zinternational zintegration zof zworldwide zbusiness
3. zIncreased zscrutiny zassociated zwith zlarge zcorporate zaccounting zscandals z- zANS-
Which z3 zfactors zhave zcombined zto zmake zright znow za ztime zof zsignificant zchange zin
zaccounting?
Sarbanes-Oxley zAct z- zANS-A zwave zof zaccounting zscandals zstarting zin z2001
zresulted zin zthis zact, zwhich zincreases zU.S. zfederal zgovernment zscrutiny zof zthe
zproduction zof zfinancial zstatements.
Balance zSheet z- zANS-reports za zcompany's zfinancial zposition zat za zspecified zpoint zin
ztime zand zlists zthe zcompany's zresources z(assets), zobligations z(liabilities), zand znet
zownership zinterest z(owners' zequity).
Assets z- zANS-probable zfuture zeconomic zbenefits zobtained zor zcontrolled zby za
zcompany zas za zresult zof zpast ztransactions zor zevents
Liabilities z- zANS-probable zfuture zsacrifices zof zeconomic zbenefits zarising zfrom
zpresent zobligations zof za zcompany zto ztransfer zassets zor zprovide zservices zin zthe
zfuture zas za zresult zof zpast ztransactions zor zevents
Questions & Answers
Accounting z- zANS-the zrecording zof zthe zday-to-day zfinancial zactivities zof za zcompany
zand zthe zorganization zof zthat zinformation zinto zsummary zreports zused zto zevaluate
zthe zcompany's zfinancial zstatus
Bookkeeping z- zANS-the zpreservation zof za zsystematic, zquantitative zrecord zof zan
zactivity
accounting zsystem z- zANS-used zby za zbusiness zto zhandle zroutine zbookkeeping
ztasks zand zto zstructure zthe zinformation zso zit zcan zbe zused zto zevaluate zthe
zperformance zand zfinancial zstatus zof zthe zbusiness
Accounting zinformation z- zANS-Info zthat zis zintended zto zbe zuseful zin zmaking
zdecisions zabout zthe zfuture.
The zbalance zsheet, zthe zincome zstatement, zand zthe zstatement zof zcashflows z- zANS-
What zare zthe zthree zprimary zfinancial zstatements?
External zUsers z- zANS-Who zis zfinancial zaccounting zinformation zprimarily zprepared
zfor zand zused zby?
Managerial zAccounting z- zANS-the zname zgiven zto zaccounting zsystems zdesigned zfor
zinternal zusers
Balance zSheet z- zANS-Reports za zcompany's zassets, zliabilities, zand zowners' zequity
Income zStatement z- zANS-reports zthe zamount zof znet zincome zearned zby za zcompany
zduring za zperiod
Net zincome z- zANS-the zexcess zof za zcompany's zrevenues zover zits zexpenses
statement zof zcash zflows z- zANS-reports zthe zamount zof zcash zcollected zand zpaid zout
zby za zcompany zin zthe zfollowing zthree ztypes zof zactivities: zoperating, zinvesting, zand
zfinancing
FASB z- zANS-Which zprivate zbody zestablishes zaccounting zrules zin zthe zU.S.?
Financial zAccounting zStandards zBoard z(FASB) z- zANS-a zprivate zbody zestablished
zand zsupported zby zthe zjoint zefforts zof zthe zU.S. zbusiness zcommunity, zfinancial
zanalysts, zand zpracticing zaccountants
, The zSecurities zand zExchange zCommission z(SEC) z- zANS-the zorganization zthat
zregulates zU.S. zstock zexchanges zand zseeks zto zcreate za zfair zinformation
zenvironment zin zwhich zinvestors zcan zbuy zand zsell zstocks zwithout zfear zthat
zcompanies zare zhiding zor zmanipulating zfinancial zdata
American zInstitute zof zCertified zPublic zAccountants z(AICPA) z- zANS-the zprofessional
zorganization zof zcertified zpublic zaccountants z(CPAs) zin zthe zUnited zStates
Public zCompany zAccounting zOversight zBoard z(PCAOB) z- zANS-the zorganization zthat
zinspects zthe zaudit zpractices zof zregistered zaudit zfirms zand zhas zstatutory zauthority
zto zinvestigate zquestionable zaudit zpractices zand zto zimpose zsanctions zsuch zas
zbarring zan zaudit zfirm zfrom zauditing zSEC-registered zcompanies
Internal zRevenue zService z(IRS) z- zANS-Gov't zagency zthat zestablishes zrules zto
zdefine zexactly zwhen zincome zshould zbe ztaxed. zIt zhas zno zrole zin zsetting zfinancial
zaccounting zrules; zand za zcompany's zfinancial zstatements zare znot zused zin
zdetermining zhow zmuch ztax zthe zcompany zmust zpay
The zInternational zAccounting zStandards zBoard z(IASB) z- zANS-Organization zthat zwas
zformed zto zdevelop za zcommon zset zof zworldwide zaccounting zstandards. zIts
zstandards zare zincreasingly zaccepted zworldwide, zbut zFASB zrules zare zstill zthe
zstandard zin zthe zUnited zStates.
1. zRapid zAdvancements zin zthe zIT zfield
2. zthe zinternational zintegration zof zworldwide zbusiness
3. zIncreased zscrutiny zassociated zwith zlarge zcorporate zaccounting zscandals z- zANS-
Which z3 zfactors zhave zcombined zto zmake zright znow za ztime zof zsignificant zchange zin
zaccounting?
Sarbanes-Oxley zAct z- zANS-A zwave zof zaccounting zscandals zstarting zin z2001
zresulted zin zthis zact, zwhich zincreases zU.S. zfederal zgovernment zscrutiny zof zthe
zproduction zof zfinancial zstatements.
Balance zSheet z- zANS-reports za zcompany's zfinancial zposition zat za zspecified zpoint zin
ztime zand zlists zthe zcompany's zresources z(assets), zobligations z(liabilities), zand znet
zownership zinterest z(owners' zequity).
Assets z- zANS-probable zfuture zeconomic zbenefits zobtained zor zcontrolled zby za
zcompany zas za zresult zof zpast ztransactions zor zevents
Liabilities z- zANS-probable zfuture zsacrifices zof zeconomic zbenefits zarising zfrom
zpresent zobligations zof za zcompany zto ztransfer zassets zor zprovide zservices zin zthe
zfuture zas za zresult zof zpast ztransactions zor zevents
