WGU c213 test Questions and Answers
(Verified Answers).
Accounting - 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
Bookkeeping - ANSWER-the preservation of a systematic, quantitative record of an
activity
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?
(Verified Answers).
Accounting - 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
Bookkeeping - ANSWER-the preservation of a systematic, quantitative record of an
activity
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?
