C213 WGU OBJECTIVE ASSESSMENT UPDATED ACTUAL Exam Questions and CORRECT Answers | Final Revision Notes and Verified Answers | Grade A+

C213 WGU OBJECTIVE ASSESSMENT UPDATED ACTUAL Exam
Questions and CORRECT Answers | Final Revision Notes and
Verified Answers | Grade A+

Question 1.
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


Question 2.
Bookkeeping

Correct Answer: the preservation of a systematic, quantitative record of an
activity


Question 3.
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


Question 4.
Accounting information

Correct Answer: Info that is intended to be useful in making decisions about
the future.


Question 5.
The balance sheet, the income statement, and the statement of cashflows

Correct Answer: What are the three primary financial statements?


Question 6.
External Users

Correct Answer: Who is financial accounting information primarily prepared
for and used by?


Question 7.
Managerial Accounting

,Correct Answer: the name given to accounting systems designed for internal
users


Question 8.
Balance Sheet

Correct Answer: Reports a company's assets, liabilities, and owners' equity


Question 9.
Income Statement

Correct Answer: reports the amount of net income earned by a company
during a period


Question 10.
Net income

Correct Answer: the excess of a company's revenues over its expenses
• statement of cash flows -✓✓reports the amount of cash collected and paid
out by a company in the following three types of activities: operating,
investing, and financing


Question 11.
FASB

Correct Answer: Which private body establishes accounting rules in the U.S.?


Question 12.
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


Question 13.
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


Question 14.
American Institute of Certified Public Accountants (AICPA)

, Correct Answer: the professional organization of certified public accountants
(CPAs) in the United States


Question 15.
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


Question 16.
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


Question 17.
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.


Question 18.
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?


Question 19.
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.


Question 20.
Balance Sheet