WGU C213 ACCOUNTING FOR
DECISION MAKERS EXAM
QUESTIONS & UPDATED CORRECT
ANSWERS PASSED 100%
Accounting - Correct 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
Bookkeeping - Correct Answer ✔✔ the preservation of a systematic, quantitative record
of an activity
accounting system - Correct 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
Accounting information - Correct Answer ✔✔ Info that is intended to be useful in making
decisions about the future.
The balance sheet, the income statement, and the statement of cashflows - Correct
Answer ✔✔ What are the three primary financial statements?
External Users - Correct Answer ✔✔ Who is financial accounting information primarily
prepared for and used by?
Managerial Accounting - Correct Answer ✔✔ the name given to accounting systems
designed for internal users
Balance Sheet - Correct Answer ✔✔ Reports a company's assets, liabilities, and
owners' equity
Income Statement - Correct Answer ✔✔ reports the amount of net income earned by a
company during a period
Net income - Correct Answer ✔✔ the excess of a company's revenues over its
expenses
statement of cash flows - Correct Answer ✔✔ reports the amount of cash collected and
paid out by a company in the following three types of activities: operating, investing, and
financing
, FASB - Correct Answer ✔✔ Which private body establishes accounting rules in the
U.S.?
Financial Accounting Standards Board (FASB) - Correct Answer ✔✔ a private body
established and supported by the joint efforts of the U.S. business community, financial
analysts, and practicing accountants
The Securities and Exchange Commission (SEC) - Correct 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
American Institute of Certified Public Accountants (AICPA) - Correct Answer ✔✔ the
professional organization of certified public accountants (CPAs) in the United States
Public Company Accounting Oversight Board (PCAOB) - Correct 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
Internal Revenue Service (IRS) - Correct 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
The International Accounting Standards Board (IASB) - Correct 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.
1. Rapid Advancements in the IT field
2. the international integration of worldwide business
3. Increased scrutiny associated with large corporate accounting scandals - Correct
Answer ✔✔ Which 3 factors have combined to make right now a time of significant
change in accounting?
Sarbanes-Oxley Act - Correct Answer ✔✔ A wave of accounting scandals starting in
2001 resulted in this act, which increases U.S. federal government scrutiny of the
production of financial statements.
Balance Sheet - Correct Answer ✔✔ reports a company's financial position at a
specified point in time and lists the company's resources (assets), obligations
(liabilities), and net ownership interest (owners' equity).
Assets - Correct Answer ✔✔ probable future economic benefits obtained or controlled
by a company as a result of past transactions or events
DECISION MAKERS EXAM
QUESTIONS & UPDATED CORRECT
ANSWERS PASSED 100%
Accounting - Correct 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
Bookkeeping - Correct Answer ✔✔ the preservation of a systematic, quantitative record
of an activity
accounting system - Correct 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
Accounting information - Correct Answer ✔✔ Info that is intended to be useful in making
decisions about the future.
The balance sheet, the income statement, and the statement of cashflows - Correct
Answer ✔✔ What are the three primary financial statements?
External Users - Correct Answer ✔✔ Who is financial accounting information primarily
prepared for and used by?
Managerial Accounting - Correct Answer ✔✔ the name given to accounting systems
designed for internal users
Balance Sheet - Correct Answer ✔✔ Reports a company's assets, liabilities, and
owners' equity
Income Statement - Correct Answer ✔✔ reports the amount of net income earned by a
company during a period
Net income - Correct Answer ✔✔ the excess of a company's revenues over its
expenses
statement of cash flows - Correct Answer ✔✔ reports the amount of cash collected and
paid out by a company in the following three types of activities: operating, investing, and
financing
, FASB - Correct Answer ✔✔ Which private body establishes accounting rules in the
U.S.?
Financial Accounting Standards Board (FASB) - Correct Answer ✔✔ a private body
established and supported by the joint efforts of the U.S. business community, financial
analysts, and practicing accountants
The Securities and Exchange Commission (SEC) - Correct 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
American Institute of Certified Public Accountants (AICPA) - Correct Answer ✔✔ the
professional organization of certified public accountants (CPAs) in the United States
Public Company Accounting Oversight Board (PCAOB) - Correct 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
Internal Revenue Service (IRS) - Correct 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
The International Accounting Standards Board (IASB) - Correct 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.
1. Rapid Advancements in the IT field
2. the international integration of worldwide business
3. Increased scrutiny associated with large corporate accounting scandals - Correct
Answer ✔✔ Which 3 factors have combined to make right now a time of significant
change in accounting?
Sarbanes-Oxley Act - Correct Answer ✔✔ A wave of accounting scandals starting in
2001 resulted in this act, which increases U.S. federal government scrutiny of the
production of financial statements.
Balance Sheet - Correct Answer ✔✔ reports a company's financial position at a
specified point in time and lists the company's resources (assets), obligations
(liabilities), and net ownership interest (owners' equity).
Assets - Correct Answer ✔✔ probable future economic benefits obtained or controlled
by a company as a result of past transactions or events
