WGU C213 Accounting for Decision Makers
Questions and Guide Answers
100% Verified Graded A+
1. Accounting
Answer: A system for providing "quantitative information, primarily financial in nature, about economics
entities that is intended to be useful in making economic decisions".
2. American Institute of Certified Public Accountants (AICPA)
Answer: the professional organi- zation of certified public accountants
3. Balance Sheet
Answer: Document which reports the resources of a company (the assets), the company's obligations (the
liabilities), and the owners' equity, which represents how much money has been invested in the company by its
owners.
4. Bookkeeping
Answer: The preservation of a systematic, quantitative record of an activity.
5. Certified Public Accountant (CPA)
,Answer: A person who has taken a minimum number of college-level accounting classes, has passed
the dreaded CPA exam, and has met other requirements set by his or her state.
6. Financial Accounting
Answer: The name given to accounting information provided for and used by external users.
7. Financial Accounting Standards Board (FASB)
Answer: Private, non-profit body that sets accounting standards in the United States.
8. Financial Statements
Answer: The three primary financial information documents
Answer: the balance sheet, income statement, and statement of cash flows.
9. Internal Revenue Service (IRS)
Answer: The government agency responsible for tax collection and tax law enforcement.
10. Income Statement
Answer: This document reports the amount of net income earned by company during a period, annual
and quarterly income statement being the most common.
11. International Accounting Standards Board (IASB)
Answer: And independent, international body formed to develop worldwide accounting
12. International Financial Reporting Standards (IFRS)
Answer: The accounting standards produced by the IASB.
13. Managerial Accounting
, Answer: The name given to accounting systems designed for internal users.
14. Public Company Accounting Oversight Board (PCAOB)
Answer: A private, non-profit organiza- tion that ettectively serves as an arm of the SEC in registering,
inspecting, and disciplining the auditors of all publicly traded companies.
15. Statement of Cash Flows
Answer: This document reports the amount of cash collected and paid out by a company in the following
three types of activities: operating, investing, and financing.
16. Accounting Equation
Answer: Assets = Liabilities + Owner's Equity (A = L + OE)
17. Accumulated Other Comprehensive Income
Answer: The source of these increased assets
18. Assets
Answer: Assets are the firm's economic resources, formally defined as "probable future economic benefits
obtained or controlled by a particular entity as a result of past transactions or events.
19. Balance Sheet
Answer: A statement of financial position that shows the resources the company owns or controls and the
claims on those resources.
20. Book Value
Answer: The book value of an asset is the asset's cost minus the asset's accumulated depreciation
, 21. Comparability
Answer: Information that becomes much more useful when it can be related to a benchmark or standard
22. Owners Equity (Residual Interest)
Answer: The dollar value of the assets after deducting the dollar value of liabilities.
23. Residual interest equation
Answer: Assets- Liabilities = Owners Equity
24. Basic formula for Income Statement
Answer: Revenues /Gains- Expenses/ Losses = Net Income (positive amount) or Net Loss (if
negative amount)
25. Conservatism
Answer: a pervasive factor in accounting, can be summarized as follows: When in doubt, recognize all losses
but don't recognize any gains.
26. Consitency
Answer: The consistency principle states that, once you adopt an accounting principle or method, continue
to follow it consistently in future accounting periods
27. Earnings Per Share (EPS)
Answer: EPS tells the owner of one share of stock what he or she really wants to know
28. Entity
Answer: The idea that personal financial activity is kept separate from business financial activity
Questions and Guide Answers
100% Verified Graded A+
1. Accounting
Answer: A system for providing "quantitative information, primarily financial in nature, about economics
entities that is intended to be useful in making economic decisions".
2. American Institute of Certified Public Accountants (AICPA)
Answer: the professional organi- zation of certified public accountants
3. Balance Sheet
Answer: Document which reports the resources of a company (the assets), the company's obligations (the
liabilities), and the owners' equity, which represents how much money has been invested in the company by its
owners.
4. Bookkeeping
Answer: The preservation of a systematic, quantitative record of an activity.
5. Certified Public Accountant (CPA)
,Answer: A person who has taken a minimum number of college-level accounting classes, has passed
the dreaded CPA exam, and has met other requirements set by his or her state.
6. Financial Accounting
Answer: The name given to accounting information provided for and used by external users.
7. Financial Accounting Standards Board (FASB)
Answer: Private, non-profit body that sets accounting standards in the United States.
8. Financial Statements
Answer: The three primary financial information documents
Answer: the balance sheet, income statement, and statement of cash flows.
9. Internal Revenue Service (IRS)
Answer: The government agency responsible for tax collection and tax law enforcement.
10. Income Statement
Answer: This document reports the amount of net income earned by company during a period, annual
and quarterly income statement being the most common.
11. International Accounting Standards Board (IASB)
Answer: And independent, international body formed to develop worldwide accounting
12. International Financial Reporting Standards (IFRS)
Answer: The accounting standards produced by the IASB.
13. Managerial Accounting
, Answer: The name given to accounting systems designed for internal users.
14. Public Company Accounting Oversight Board (PCAOB)
Answer: A private, non-profit organiza- tion that ettectively serves as an arm of the SEC in registering,
inspecting, and disciplining the auditors of all publicly traded companies.
15. Statement of Cash Flows
Answer: This document reports the amount of cash collected and paid out by a company in the following
three types of activities: operating, investing, and financing.
16. Accounting Equation
Answer: Assets = Liabilities + Owner's Equity (A = L + OE)
17. Accumulated Other Comprehensive Income
Answer: The source of these increased assets
18. Assets
Answer: Assets are the firm's economic resources, formally defined as "probable future economic benefits
obtained or controlled by a particular entity as a result of past transactions or events.
19. Balance Sheet
Answer: A statement of financial position that shows the resources the company owns or controls and the
claims on those resources.
20. Book Value
Answer: The book value of an asset is the asset's cost minus the asset's accumulated depreciation
, 21. Comparability
Answer: Information that becomes much more useful when it can be related to a benchmark or standard
22. Owners Equity (Residual Interest)
Answer: The dollar value of the assets after deducting the dollar value of liabilities.
23. Residual interest equation
Answer: Assets- Liabilities = Owners Equity
24. Basic formula for Income Statement
Answer: Revenues /Gains- Expenses/ Losses = Net Income (positive amount) or Net Loss (if
negative amount)
25. Conservatism
Answer: a pervasive factor in accounting, can be summarized as follows: When in doubt, recognize all losses
but don't recognize any gains.
26. Consitency
Answer: The consistency principle states that, once you adopt an accounting principle or method, continue
to follow it consistently in future accounting periods
27. Earnings Per Share (EPS)
Answer: EPS tells the owner of one share of stock what he or she really wants to know
28. Entity
Answer: The idea that personal financial activity is kept separate from business financial activity
