WGU C213 Accounting for Decision Makers
Updated 2026 Questions with Answers
1. Accounting - ANSWER-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
2. Bookkeeping - ANSWER-the preservation of a systematic, quantitative
record of an activity
3. Accounting system - ANSWER-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
4. Accounting information - ANSWER-Info that is intended to be useful in
making decisions about the future.
5. The balance sheet, the income statement, and the statement of cashflows -
ANSWER-What are the three primary financial statements?
6. External Users - ANSWER-Who is financial accounting information
primarily prepared for and used by?
7. Managerial Accounting - ANSWER-the name given to accounting systems
designed for internal users
8. Balance Sheet - ANSWER-Reports a company's assets, liabilities, and
owners' equity
9. Income Statement - ANSWER-reports the amount of net income earned by a
company during a period
10.Net income - ANSWER-the excess of a company's revenues over its
expenses
, 11.Statement of cash flows - ANSWER-reports the amount of cash collected
and paid out by a company in the following three types of activities:
operating, investing, and financing
12.FASB - ANSWER-Which private body establishes accounting rules in the
U.S.?
13.Financial Accounting Standards Board (FASB) - ANSWER-a private body
established and supported by the joint efforts of the U.S. business
community, financial analysts, and practicing accountants
14.The Securities and Exchange Commission (SEC) - ANSWER-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
15.American Institute of Certified Public Accountants (AICPA) - ANSWER-
the professional organization of certified public accountants (cpas) in the
United States
16.Public Company Accounting Oversight Board (PCAOB) - ANSWER-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
17.Internal Revenue Service (IRS) - ANSWER-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
18.The International Accounting Standards Board (IASB) - ANSWER-
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.
Rapid Advancements in the IT field
The international integration of worldwide business
Updated 2026 Questions with Answers
1. Accounting - ANSWER-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
2. Bookkeeping - ANSWER-the preservation of a systematic, quantitative
record of an activity
3. Accounting system - ANSWER-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
4. Accounting information - ANSWER-Info that is intended to be useful in
making decisions about the future.
5. The balance sheet, the income statement, and the statement of cashflows -
ANSWER-What are the three primary financial statements?
6. External Users - ANSWER-Who is financial accounting information
primarily prepared for and used by?
7. Managerial Accounting - ANSWER-the name given to accounting systems
designed for internal users
8. Balance Sheet - ANSWER-Reports a company's assets, liabilities, and
owners' equity
9. Income Statement - ANSWER-reports the amount of net income earned by a
company during a period
10.Net income - ANSWER-the excess of a company's revenues over its
expenses
, 11.Statement of cash flows - ANSWER-reports the amount of cash collected
and paid out by a company in the following three types of activities:
operating, investing, and financing
12.FASB - ANSWER-Which private body establishes accounting rules in the
U.S.?
13.Financial Accounting Standards Board (FASB) - ANSWER-a private body
established and supported by the joint efforts of the U.S. business
community, financial analysts, and practicing accountants
14.The Securities and Exchange Commission (SEC) - ANSWER-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
15.American Institute of Certified Public Accountants (AICPA) - ANSWER-
the professional organization of certified public accountants (cpas) in the
United States
16.Public Company Accounting Oversight Board (PCAOB) - ANSWER-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
17.Internal Revenue Service (IRS) - ANSWER-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
18.The International Accounting Standards Board (IASB) - ANSWER-
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.
Rapid Advancements in the IT field
The international integration of worldwide business
