WGU C213 - Accounting for Decision
Makers questions with actual answers
Accounting ANS - A system of providing "quantitative information, primarily financial in nature, about
economic entities that is intended to be useful in making economic
decisions."
-NUMBER : quantitative
*STRENGTH because numbers can be easily tabulated and summarized. * WEAKNESS because some
important business events, such as a toxic waste spill & the associated lawsuits and countersuits, cannot
be easily described by one or two numbers.
- A financial dimension: The status & performance of a business is affected by & reflected in many
dimensions—financial, personal relationships, community & environmental impact, & public image.
Accounting focuses on just the financial dimension.
- Usefulness: However, in spite of its theoretical beauty, accounting exists only because it is useful.
- Future decisions based on past information
American Institute of Certified Public Accountants (AICPA) ANS - = professional organization of certified
public accountants in the United .
-provides continuing educational service to its members and also acts as a political voice to lobby on
behalf of its membership
- responsible for preparing and grading the CPA examination in addition to maintaining the integrity of
the accounting profession through its Code of Professional Conduct.
- CPA firms are also hired to perform independent audits of a company's financial statements.
, Balance Sheet ANS - 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
Bookkeeping ANS - The preservation of a systematic, quantitative record of an activity
Double entry system of bookkeeping ANS - It was developed in the 1300s-1400s in Italy
Certified Public Accountant ANS - 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
Financial Accounting ANS - The name given to accounting information provided for and used by
EXTERNAL USERS
external users ANS - such as potential lenders and investors
typically must rely on general purpose financial information provided by the company
Financial Accounting Standards Board (FASB) ANS - - A private body established & supported by the join
efforts of the U.S. Business community, financial analysts & practicing accountants.
- set accounting standards.
- 7 board members
- not a government agency, it lacks the legal power to enforce the accounting standards it sets.
GAAP ANS - generally accepted accounting principles
Financial Statements ANS - The three primary financial information documents: the balance sheet,
income statement, and statement of cash flows
Makers questions with actual answers
Accounting ANS - A system of providing "quantitative information, primarily financial in nature, about
economic entities that is intended to be useful in making economic
decisions."
-NUMBER : quantitative
*STRENGTH because numbers can be easily tabulated and summarized. * WEAKNESS because some
important business events, such as a toxic waste spill & the associated lawsuits and countersuits, cannot
be easily described by one or two numbers.
- A financial dimension: The status & performance of a business is affected by & reflected in many
dimensions—financial, personal relationships, community & environmental impact, & public image.
Accounting focuses on just the financial dimension.
- Usefulness: However, in spite of its theoretical beauty, accounting exists only because it is useful.
- Future decisions based on past information
American Institute of Certified Public Accountants (AICPA) ANS - = professional organization of certified
public accountants in the United .
-provides continuing educational service to its members and also acts as a political voice to lobby on
behalf of its membership
- responsible for preparing and grading the CPA examination in addition to maintaining the integrity of
the accounting profession through its Code of Professional Conduct.
- CPA firms are also hired to perform independent audits of a company's financial statements.
, Balance Sheet ANS - 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
Bookkeeping ANS - The preservation of a systematic, quantitative record of an activity
Double entry system of bookkeeping ANS - It was developed in the 1300s-1400s in Italy
Certified Public Accountant ANS - 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
Financial Accounting ANS - The name given to accounting information provided for and used by
EXTERNAL USERS
external users ANS - such as potential lenders and investors
typically must rely on general purpose financial information provided by the company
Financial Accounting Standards Board (FASB) ANS - - A private body established & supported by the join
efforts of the U.S. Business community, financial analysts & practicing accountants.
- set accounting standards.
- 7 board members
- not a government agency, it lacks the legal power to enforce the accounting standards it sets.
GAAP ANS - generally accepted accounting principles
Financial Statements ANS - The three primary financial information documents: the balance sheet,
income statement, and statement of cash flows
