WGU C213 ACCOUNTING FOR DECISION
MAKERS ABCD
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
Bookkeeping - ANSWER -the preservation of a systematic, quantitative
record of an activity
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
Accounting information - 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 - ANSWER -What are the three primary financial statements?
External Users - ANSWER -Who is financial accounting information
primarily prepared for and used by?
,Managerial Accounting - ANSWER -the name given to accounting
systems designed for internal users
Balance Sheet - ANSWER -Reports a company's assets, liabilities, and
owners' equity
Income Statement - ANSWER -reports the amount of net income
earned by a company during a period
Net income - ANSWER -the excess of a company's revenues over its
expenses
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
FASB - ANSWER -Which private body establishes accounting rules in the
U.S.?
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
,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
American Institute of Certified Public Accountants (AICPA) - ANSWER -
the professional organization of certified public accountants (CPAs) in
the United States
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
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
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.
, 1. Rapid Advancements in the IT field
2. the international integration of worldwide business
3. Increased scrutiny associated with large corporate accounting
scandals - ANSWER -Which 3 factors have combined to make right now
a time of significant change in accounting?
Sarbanes-Oxley Act - 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 - 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 - ANSWER -probable future economic benefits obtained or
controlled by a company as a result of past transactions or events
Liabilities - ANSWER -probable future sacrifices of economic benefits
arising from present obligations of a company to transfer assets or
provide services in the future as a result of past transactions or events
Owners' equity - ANSWER -the residual interest in the assets of a
company that remains after deducting its liabilities
MAKERS ABCD
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
Bookkeeping - ANSWER -the preservation of a systematic, quantitative
record of an activity
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
Accounting information - 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 - ANSWER -What are the three primary financial statements?
External Users - ANSWER -Who is financial accounting information
primarily prepared for and used by?
,Managerial Accounting - ANSWER -the name given to accounting
systems designed for internal users
Balance Sheet - ANSWER -Reports a company's assets, liabilities, and
owners' equity
Income Statement - ANSWER -reports the amount of net income
earned by a company during a period
Net income - ANSWER -the excess of a company's revenues over its
expenses
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
FASB - ANSWER -Which private body establishes accounting rules in the
U.S.?
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
,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
American Institute of Certified Public Accountants (AICPA) - ANSWER -
the professional organization of certified public accountants (CPAs) in
the United States
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
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
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.
, 1. Rapid Advancements in the IT field
2. the international integration of worldwide business
3. Increased scrutiny associated with large corporate accounting
scandals - ANSWER -Which 3 factors have combined to make right now
a time of significant change in accounting?
Sarbanes-Oxley Act - 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 - 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 - ANSWER -probable future economic benefits obtained or
controlled by a company as a result of past transactions or events
Liabilities - ANSWER -probable future sacrifices of economic benefits
arising from present obligations of a company to transfer assets or
provide services in the future as a result of past transactions or events
Owners' equity - ANSWER -the residual interest in the assets of a
company that remains after deducting its liabilities
