WGU C213 Accounting for Decision Makers 2025-2026 / Full Study
Pack + Exam Guide with Verified Answers
Western Governors University
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
Pack + Exam Guide with Verified Answers
Western Governors University
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
