WGU C213 ACCOUNTING LATEST EXAM TEST QUESTIONS
AND ANSWERS SURE A+
✔✔ 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
✔✔Owners' equity - ✔✔the residual interest in the assets of a company that remains
after deducting its liabilities
✔✔Assets = Liabilities + Owners' Equity - ✔✔What is the accounting equation?
AND ANSWERS SURE A+
✔✔ 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
✔✔Owners' equity - ✔✔the residual interest in the assets of a company that remains
after deducting its liabilities
✔✔Assets = Liabilities + Owners' Equity - ✔✔What is the accounting equation?
