Accounting for decision makers C213 WGU

Accounting steps. - correct answere---1. Prepare 2. Analyze 3. Gather 4. Make decisions 5. Implement 6. Observe. Managerial info is inside or outside the business? - correct answere---Inside, Internal True or false, managerial accounting uses BOTH managerial and financial accounting? - correct answere---True. Financial accounting is only outside. Managerial accounting can be inside AND outside. Financial is inside or outside the business? - correct answere---Outside, External, includes lenders and investors The financial statement includes what 3 documents - correct answere---Balance sheet, income statement, and statement of cash flows Point in time, Assets (resources) and liabilities (obligations) - correct answere---Balance Sheet Period of time (usually 1 year), amount of profit made - correct answere---Income Statement Period of time, where money came from, and where it went. Inflow and outflow of cash (Cash Flows). Change in money for the period. - correct answere---Statement of Cash flows Assets= liabilities + equity - correct answere---Balance sheet equation Net income=Revenue - Expenses - correct answere---Revenue equation The statement of cash flows includes what three activities - correct answere--- Operating, investing, and financial activities The decision makers in the U.S. (accounting rules) - correct answere---FASB: Financial accounting standards. Private, no government involvement. It is a public process, includes individuals experienced in business and accounting (7 members). Developed by accounting rule makers. No Legal authority. - correct answere---GAAP: General accepted accounting principlesWe need accounting rules for... - correct answere--