1
WGU C213 PA & OA STUDY GUIDE LATEST UPDATE -
2025/2026- 100+ QUESTIONS AND VERIFIED ANSWERS ALL
THE BEST
What is not a function of accounting?
Executing sales transactions for organizations
What is NOT one of the three primary financial statements?
Statement of retained earnings
Generally accepted accounting principles are
Developed by accounting rule makers
The initials GAAP stand for
Generally Accepted Accounting Principles
The current standard-setting board for accounting in the private sector is the
Financial Accounting Standards Board (FASB)
Which of the following is the most correct definition of accounting?
A system for providing quantitative information, primarily financial in nature,
about economic entities that is intended to be useful in making economic
decisions
What is NOT typically true of accounting information?
The information relates to future time periods.
Which is NOT a key component of the definition of accounting?
Qualitative
, 2
What is true about the double-entry system of bookkeeping?
It was developed in the 1300s−1400s in Italy.
Businesses use accounting systems to
Analyze transactions; Handle routine bookkeeping tasks; Evaluate performance
and health of the business.
Which of the following organizations has specific legal authority to establish
accounting standards for publicly held companies?
Securities and Exchange Commission (SEC)
Which is NOT a service typically provided by large public accounting firms?
Making management decisions
The organization that develops worldwide accounting standards is the
International Accounting Standards Board (IASB)
The initials CPA stand for
Certified Public Accountant
Which of the following financial statements reports a company's resources,
obligations, and owner's equity?
Balance sheet
Which of the following financial statements reports the excess of a company's
revenues over its expenses?
Income statement
Which of the following financial statements reports the amount of cash collected
and paid out by a company?
Statement of cash flows
The emphasis in financial accounting is on which of the following external user
groups?
, 3
Investors and creditors
The primary internal group that uses accounting information is
Management
Internal reports are generally used by
Management
Which of the following is NOT an external user of financial information?
Management
Which of the following is NOT true of the Financial Accounting Standards Board
(FASB)?
It is a government agency
Generally accepted accounting principles are
Developed by accounting rule makers
The initials GAAP stand for
Generally Accepted Accounting Principles
The current standard-setting board for accounting in the private sector is the
Financial Accounting Standards Board (FASB)
Which of the following organizations has specific legal authority to establish
accounting standards for publicly held companies?
Securities and Exchange Commission (SEC)
Which of the following is NOT a service typically provided by large public
accounting firms?
Making management decisions
The organization that develops worldwide accounting standards is the
International Accounting Standards Board (IASB)
WGU C213 PA & OA STUDY GUIDE LATEST UPDATE -
2025/2026- 100+ QUESTIONS AND VERIFIED ANSWERS ALL
THE BEST
What is not a function of accounting?
Executing sales transactions for organizations
What is NOT one of the three primary financial statements?
Statement of retained earnings
Generally accepted accounting principles are
Developed by accounting rule makers
The initials GAAP stand for
Generally Accepted Accounting Principles
The current standard-setting board for accounting in the private sector is the
Financial Accounting Standards Board (FASB)
Which of the following is the most correct definition of accounting?
A system for providing quantitative information, primarily financial in nature,
about economic entities that is intended to be useful in making economic
decisions
What is NOT typically true of accounting information?
The information relates to future time periods.
Which is NOT a key component of the definition of accounting?
Qualitative
, 2
What is true about the double-entry system of bookkeeping?
It was developed in the 1300s−1400s in Italy.
Businesses use accounting systems to
Analyze transactions; Handle routine bookkeeping tasks; Evaluate performance
and health of the business.
Which of the following organizations has specific legal authority to establish
accounting standards for publicly held companies?
Securities and Exchange Commission (SEC)
Which is NOT a service typically provided by large public accounting firms?
Making management decisions
The organization that develops worldwide accounting standards is the
International Accounting Standards Board (IASB)
The initials CPA stand for
Certified Public Accountant
Which of the following financial statements reports a company's resources,
obligations, and owner's equity?
Balance sheet
Which of the following financial statements reports the excess of a company's
revenues over its expenses?
Income statement
Which of the following financial statements reports the amount of cash collected
and paid out by a company?
Statement of cash flows
The emphasis in financial accounting is on which of the following external user
groups?
, 3
Investors and creditors
The primary internal group that uses accounting information is
Management
Internal reports are generally used by
Management
Which of the following is NOT an external user of financial information?
Management
Which of the following is NOT true of the Financial Accounting Standards Board
(FASB)?
It is a government agency
Generally accepted accounting principles are
Developed by accounting rule makers
The initials GAAP stand for
Generally Accepted Accounting Principles
The current standard-setting board for accounting in the private sector is the
Financial Accounting Standards Board (FASB)
Which of the following organizations has specific legal authority to establish
accounting standards for publicly held companies?
Securities and Exchange Commission (SEC)
Which of the following is NOT a service typically provided by large public
accounting firms?
Making management decisions
The organization that develops worldwide accounting standards is the
International Accounting Standards Board (IASB)
