WGU C213 ACCOUNTING FOR DECISION
MAKERS QUIZZES WITH ACCURATE
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.
MAKERS QUIZZES WITH ACCURATE
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.
