WGU C213 Accounting for Decision Makers
Accounting - -the recording of the day-
to-day financial activities of a company and Income Statement - -reports the
the organization of that information into amount of net income earned by a company
summary reports used to evaluate the during a period
company's financial status
Net income - -the excess of a
Bookkeeping - -the preservation of a company's revenues over its expenses
systematic, quantitative record of an activity
statement of cash flows - -reports the
accounting system - -used by a amount of cash collected and paid out by a
business to handle routine bookkeeping company in the following three types of
tasks and to structure the information so it activities: operating, investing, and financing
can be used to evaluate the performance and
financial status of the business
FASB - -Which private body establishes
accounting rules in the U.S.?
Accounting information - -Info that is
intended to be useful in making decisions
about the future. Financial Accounting Standards Board (FASB)
- -a private body established and
supported by the joint efforts of the U.S.
The balance sheet, the income statement, business community, financial analysts, and
and the statement of cashflows - - practicing accountants
What are the three primary financial
statements?
The Securities and Exchange Commission
(SEC) - -the organization that regulates
External Users - -Who is financial U.S. stock exchanges and seeks to create a
accounting information primarily prepared fair information environment in which
for and used by? investors can buy and sell stocks without fear
that companies are hiding or manipulating
financial data
Managerial Accounting - -the name
given to accounting systems designed for
internal users American Institute of Certified Public
Accountants (AICPA) - -the
professional organization of certified public
Balance Sheet - -Reports a company's accountants (CPAs) in the United States
assets, liabilities, and owners' equity
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, WGU C213 Accounting for Decision Makers
Public Company Accounting Oversight Board
(PCAOB) - -the organization that
inspects the audit practices of registered Balance Sheet - -reports a company's
audit firms and has statutory authority to financial position at a specified point in time
investigate questionable audit practices and and lists the company's resources (assets),
to impose sanctions such as barring an audit obligations (liabilities), and net ownership
firm from auditing SEC-registered companies interest (owners' equity).
Internal Revenue Service (IRS) - -Gov't Assets - -probable future economic
agency that establishes rules to define benefits obtained or controlled by a company
exactly when income should be taxed. It has as a result of past transactions or events
no role in setting financial accounting rules;
and a company's financial statements are
not used in determining how much tax the Liabilities - -probable future sacrifices
company must pay of economic benefits arising from present
obligations of a company to transfer assets or
provide services in the future as a result of
The International Accounting Standards past transactions or events
Board (IASB) - -Organization that was
formed to develop a common set of
worldwide accounting standards. Its Owners' equity - -the residual interest
standards are increasingly accepted in the assets of a company that remains after
worldwide, but FASB rules are still the deducting its liabilities
standard in the United States.
Assets = Liabilities + Owners' Equity - -
1. Rapid Advancements in the IT field What is the accounting equation?
2. the international integration of worldwide
business
3. Increased scrutiny associated with large By order of liquidity - -In what order are
corporate accounting scandals - - assets typically listed on the balance sheet?
Which 3 factors have combined to make right
now a time of significant change in
accounting? Current and Long-term - -Liabilities are
divided into which 2 categories on the
balance sheet?
Sarbanes-Oxley Act - -A wave of
accounting scandals starting in 2001 resulted
in this act, which increases U.S. federal states that the financial results of an
government scrutiny of the production of economic entity should be reported
financial statements. separately from the financial results of other
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Accounting - -the recording of the day-
to-day financial activities of a company and Income Statement - -reports the
the organization of that information into amount of net income earned by a company
summary reports used to evaluate the during a period
company's financial status
Net income - -the excess of a
Bookkeeping - -the preservation of a company's revenues over its expenses
systematic, quantitative record of an activity
statement of cash flows - -reports the
accounting system - -used by a amount of cash collected and paid out by a
business to handle routine bookkeeping company in the following three types of
tasks and to structure the information so it activities: operating, investing, and financing
can be used to evaluate the performance and
financial status of the business
FASB - -Which private body establishes
accounting rules in the U.S.?
Accounting information - -Info that is
intended to be useful in making decisions
about the future. Financial Accounting Standards Board (FASB)
- -a private body established and
supported by the joint efforts of the U.S.
The balance sheet, the income statement, business community, financial analysts, and
and the statement of cashflows - - practicing accountants
What are the three primary financial
statements?
The Securities and Exchange Commission
(SEC) - -the organization that regulates
External Users - -Who is financial U.S. stock exchanges and seeks to create a
accounting information primarily prepared fair information environment in which
for and used by? investors can buy and sell stocks without fear
that companies are hiding or manipulating
financial data
Managerial Accounting - -the name
given to accounting systems designed for
internal users American Institute of Certified Public
Accountants (AICPA) - -the
professional organization of certified public
Balance Sheet - -Reports a company's accountants (CPAs) in the United States
assets, liabilities, and owners' equity
1/6
, WGU C213 Accounting for Decision Makers
Public Company Accounting Oversight Board
(PCAOB) - -the organization that
inspects the audit practices of registered Balance Sheet - -reports a company's
audit firms and has statutory authority to financial position at a specified point in time
investigate questionable audit practices and and lists the company's resources (assets),
to impose sanctions such as barring an audit obligations (liabilities), and net ownership
firm from auditing SEC-registered companies interest (owners' equity).
Internal Revenue Service (IRS) - -Gov't Assets - -probable future economic
agency that establishes rules to define benefits obtained or controlled by a company
exactly when income should be taxed. It has as a result of past transactions or events
no role in setting financial accounting rules;
and a company's financial statements are
not used in determining how much tax the Liabilities - -probable future sacrifices
company must pay of economic benefits arising from present
obligations of a company to transfer assets or
provide services in the future as a result of
The International Accounting Standards past transactions or events
Board (IASB) - -Organization that was
formed to develop a common set of
worldwide accounting standards. Its Owners' equity - -the residual interest
standards are increasingly accepted in the assets of a company that remains after
worldwide, but FASB rules are still the deducting its liabilities
standard in the United States.
Assets = Liabilities + Owners' Equity - -
1. Rapid Advancements in the IT field What is the accounting equation?
2. the international integration of worldwide
business
3. Increased scrutiny associated with large By order of liquidity - -In what order are
corporate accounting scandals - - assets typically listed on the balance sheet?
Which 3 factors have combined to make right
now a time of significant change in
accounting? Current and Long-term - -Liabilities are
divided into which 2 categories on the
balance sheet?
Sarbanes-Oxley Act - -A wave of
accounting scandals starting in 2001 resulted
in this act, which increases U.S. federal states that the financial results of an
government scrutiny of the production of economic entity should be reported
financial statements. separately from the financial results of other
2/6
