WGU C213 OBJECTIVE ASSESSMENT
ACCOUNTING FOR DECISION MAKERS 2 FINAL
◉ 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
◉ Assets = Liabilities + Owners' Equity. Answer: What is the
accounting equation?
ACCOUNTING FOR DECISION MAKERS 2 FINAL
◉ 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
◉ Assets = Liabilities + Owners' Equity. Answer: What is the
accounting equation?
