WGU c213 study guide Questions And Answers Latest Updated 2024 With Complete Solution.

purpose of accounting - CORRECT ANSWER-Accounting is 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 is a part of accounting. Bookkeeping refers to the process of recording transactions into various accounts, which is the first step in accounting. The next step is to analyze the accounts and organize them into financial statements and other useful reports. (Reference topic 1.1) The balance sheet - CORRECT ANSWER-reports a company's assets, liabilities, and owners' equity. It reports the financial position of a firm at a point in time. income statement - CORRECT ANSWER-reports the amount of net income earned by a company during a period. Net income is the excess of a company's revenues over its expenses. It reports the financial performance of a firm over a period of time. statement of cash flows - CORRECT ANSWER-reports the amount of cash collected and paid out by a company in the following three types of activities: operating, investing, and financing over a period of time. (Reference topic 1.2) Fin Statement Users: Lenders - CORRECT ANSWER-Banks use companies' financial statements in making decisions about commercial loans. The financial statements are us