WGU C213 Accounting for Decision Makers | 82 Questions and Answers with complete solution

Accounting - 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 - the preservation of a systematic, quantitative record of an activity accounting system - 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 - Info that is intended to be useful in making decisions about the future. The balance sheet, the income statement, and the statement of cashflows - What are the three primary financial statements? External Users - Who is financial accounting information primarily prepared for and used by? Managerial Accounting - the name given to accounting systems designed for internal users Balance Sheet - Reports a company's assets, liabilities, and owners' equity Income Statement - reports the amount of net income earned by a company during a period Net income - 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