Wgu C213 Accounting For Decision Makers Quiz Questions With Right Solutions } Latest Update

WGU C213 ACCOUNTING FOR DECISION
MAKERS QUIZ QUESTIONS WITH RIGHT
SOLUTIONS } LATEST UPDATE


The organization with specific legal authority to establish accounting standards
for publicly held companies. - Correct Answer -Securities and Exchange
Commission (SEC)


Standards established by the International Accounting Standards Board are
referred to as: - Correct Answer -International Financial Reporting Standards


NOT a service typically provided by large public accounting firms. - Correct
Answer -Making management decisions


The initials CPA stand for Certified Public Accountant. - Correct Answer -
Certified Public Accountant


The organization that develops worldwide accounting standards. - Correct
Answer -International Accounting Standards Board (IASB)


NOT a reason for the integration of worldwide accounting standards. - Correct
Answer -The theoretical necessity of a common set of accounting standards


The International Accounting Standards Board (IASB) is charged with
developing worldwide accounting practices. - Correct Answer -True


Investors outside a company are not allowed access to a company's internal
database of financial information. - Correct Answer -False




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,The act of Congress that resulted in increased federal oversight of the audit
process. - Correct Answer -Sarbanes-Oxley Act


The emphasis in financial accounting is on this external user group. - Correct
Answer -Investors and creditors


The primary internal group that uses accounting information. - Correct Answer
-Management


Internal reports are generally used by Management. - Correct Answer -
Management


NOT an external user of financial information. - Correct Answer -Management


A borrower benefits from providing financial information regarding income and
expenses in the form of a lower interest rate on the loan. - Correct Answer -
True


A financial statement that summarizes the changes in retained earnings for a
specific period. - Correct Answer -The Statement of Retained Earnings


A financial statement that reports a company's assets, liabilities, and
shareholders' equity at a specific point in time. - Correct Answer -The Balance
Sheet


A financial statement that provides aggregate data regarding all cash inflows
and outflows a company receives. - Correct Answer -The Statement of Cash
Flows


A financial statement that shows the company's revenues and expenses during a
specific period. - Correct Answer -The Income Statement

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,The idea that transactions are recorded at their exchange prices at the
transaction date. - Correct Answer -Cost principle


The most liquid asset, readily available for spending. - Correct Answer -Cash


An organization that establishes financial accounting and reporting standards in
the United States. - Correct Answer -Financial Accounting Standards Board
(FASB)


Standards and guidelines developed by accounting rule makers for financial
reporting. - Correct Answer -Generally accepted accounting principles (GAAP)


A long-term liability representing a loan secured by real estate. - Correct
Answer -Mortgage payable


Economic resources that are owned or controlled by an enterprise. - Correct
Answer -Assets


A financial statement that distinguishes between current and long-term assets. -
Correct Answer -Classified balance sheet


The sources that fund the purchase of assets, making the accounting equation
true by definition. - Correct Answer -Liabilities and owner's equity


The effect that expenses generally cause on a company's financial position. -
Correct Answer -A decrease in net assets


A statement indicating that providing financial statements reduces uncertainty
for investors. - Correct Answer -True


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, A false statement regarding the Financial Accounting Standards Board (FASB).
- Correct Answer -It is a government agency


The correct expansion of the initials GAAP. - Correct Answer -Generally
Accepted Accounting Principles


The current standard-setting board for accounting in the private sector. -
Correct Answer -Financial Accounting Standards Board (FASB)


The financial statement that reports resources owned, obligations to transfer
resources, and claims by the entity's owners. - Correct Answer -Balance sheet


The result of expenses on a company's financial position. - Correct Answer -A
decrease in net assets


Resources owned by a business that have economic value. - Correct Answer -
Assets


Income generated from normal business operations. - Correct Answer -
Revenues


The total profit of a company after all expenses have been deducted from
revenues. - Correct Answer -Net income


Increases in equity from peripheral or incidental transactions. - Correct Answer
-Gains


The financial statement that presents a summary of the revenues and expenses
of a business for a specific period of time. - Correct Answer -Income Statement




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