WGU C213 TOPICS 1-6 QUIZZES 2025-
2026 (51% OF EXAM COMPETENCIES)
The emphasis in financial accounting is on which of the following external user groups ANSWER :-
Investors and creditors
The primary internal group that uses accounting information is ANSWER :-Management
Internal reports are generally used by ANSWER :-Management
Which of the following is NOT an external user of financial informationANSWER :-Management
Which of the following is NOT true of the Financial Accounting Standards Board (FASB) ANSWER :-It is a
government agency
Generally accepted accounting principles are ANSWER :-Developed by accounting rule makers
The initials GAAP stand forANSWER :-Generally Accepted Accounting Principles
The current standard-setting board for accounting in the private sector is the ANSWER :-Financial
Accounting Standards Board (FASB)
Which of the following is the government agency that stipulates the rules and regulations that govern
the collection of taxes in the United States ANSWER :-Internal Revenue Service
The organization that develops worldwide accounting standards is the ANSWER :-International
Accounting Standards Board (IASB)
Standards established by the International Accounting Standards Board are referred to as ANSWER :-
International Financial Accounting Standards
,Which of the following is NOT a service typically provided by large public accounting firms ANSWER :-
Making management decisions
Which of the following organizations has specific legal authority to establish accounting standards for
publicly held companiesANSWER :-Securities and Exchange Commission (SEC)
Which of the following is NOT a reason for the integration of worldwide accounting standards ANSWER
:-The theoretical necessity of a common set of accounting standards
The International Accounting Standards Board (IASB) is charged with developing worldwide accounting
practices? True or False ANSWER :-True
With the current state of information technology, investors outside a company are now allowed access
to a company's internal database of financial information and do their own customized analysis of a
firm's performance. True or False ANSWER :-False
While the technology may be available, companies are still not allowing outsiders access to their internal
accounting records. True or False ANSWER :-True
Increased federal oversight of the audit process resulted from the passage of the following act of
Congress - ANS - Sarbanes-Oxley Act
A borrower benefits from providing financial information regarding income and expenses in the form of
a lower interest rate on the loan because of reduced uncertainty for the lender with regard to
repayment. True or False ANSWER :-True
Which of the following is NOT one of the three primary financial statements ANSWER :-The Statement
of Retained Earnings
One reason for a company's preparing and providing financial statements is to reduce uncertainty for an
investor regarding the firm's future financial performance. True or False ANSWER :-True
, Which of the following distinguishes between current and long-term assetsANSWER :-Classified balance
sheet
Which of the following financial statements provides a picture of the enterprise at a particular point in
time ANSWER :-Balance sheet
Which of the following is the reason that the accounting equation is true by definition ANSWER :-
Liabilities and owner's equity are the sources that fund the purchase of assets
The idea that businesses must be accounted for as though they will exist at least for the forseeable
future is the ANSWER :-Going concern concept
Revenues cause ANSWER :-An increase in net assets
Which of the following is an overall measure of the performance of a business entity's
activitiesANSWER :-Net income (or net loss)
The financial statement that presents a summary of the revenues and expenses of a business for a
specific period of time, such as a month or a year, is called a(n) ANSWER :-Income Statement
Which of the following would be included on an income statement ANSWER :-Rent expense
Another name for the income statement is ANSWER :-Statement of earnings
Which of the following classification does NOT appear on the Statement of Cash Flows ANSWER :-
Borrowing
Which of the following classifications refers to those activities whereby cash is obtained or repaid to
owners and creditors ANSWER :-Financing
2026 (51% OF EXAM COMPETENCIES)
The emphasis in financial accounting is on which of the following external user groups ANSWER :-
Investors and creditors
The primary internal group that uses accounting information is ANSWER :-Management
Internal reports are generally used by ANSWER :-Management
Which of the following is NOT an external user of financial informationANSWER :-Management
Which of the following is NOT true of the Financial Accounting Standards Board (FASB) ANSWER :-It is a
government agency
Generally accepted accounting principles are ANSWER :-Developed by accounting rule makers
The initials GAAP stand forANSWER :-Generally Accepted Accounting Principles
The current standard-setting board for accounting in the private sector is the ANSWER :-Financial
Accounting Standards Board (FASB)
Which of the following is the government agency that stipulates the rules and regulations that govern
the collection of taxes in the United States ANSWER :-Internal Revenue Service
The organization that develops worldwide accounting standards is the ANSWER :-International
Accounting Standards Board (IASB)
Standards established by the International Accounting Standards Board are referred to as ANSWER :-
International Financial Accounting Standards
,Which of the following is NOT a service typically provided by large public accounting firms ANSWER :-
Making management decisions
Which of the following organizations has specific legal authority to establish accounting standards for
publicly held companiesANSWER :-Securities and Exchange Commission (SEC)
Which of the following is NOT a reason for the integration of worldwide accounting standards ANSWER
:-The theoretical necessity of a common set of accounting standards
The International Accounting Standards Board (IASB) is charged with developing worldwide accounting
practices? True or False ANSWER :-True
With the current state of information technology, investors outside a company are now allowed access
to a company's internal database of financial information and do their own customized analysis of a
firm's performance. True or False ANSWER :-False
While the technology may be available, companies are still not allowing outsiders access to their internal
accounting records. True or False ANSWER :-True
Increased federal oversight of the audit process resulted from the passage of the following act of
Congress - ANS - Sarbanes-Oxley Act
A borrower benefits from providing financial information regarding income and expenses in the form of
a lower interest rate on the loan because of reduced uncertainty for the lender with regard to
repayment. True or False ANSWER :-True
Which of the following is NOT one of the three primary financial statements ANSWER :-The Statement
of Retained Earnings
One reason for a company's preparing and providing financial statements is to reduce uncertainty for an
investor regarding the firm's future financial performance. True or False ANSWER :-True
, Which of the following distinguishes between current and long-term assetsANSWER :-Classified balance
sheet
Which of the following financial statements provides a picture of the enterprise at a particular point in
time ANSWER :-Balance sheet
Which of the following is the reason that the accounting equation is true by definition ANSWER :-
Liabilities and owner's equity are the sources that fund the purchase of assets
The idea that businesses must be accounted for as though they will exist at least for the forseeable
future is the ANSWER :-Going concern concept
Revenues cause ANSWER :-An increase in net assets
Which of the following is an overall measure of the performance of a business entity's
activitiesANSWER :-Net income (or net loss)
The financial statement that presents a summary of the revenues and expenses of a business for a
specific period of time, such as a month or a year, is called a(n) ANSWER :-Income Statement
Which of the following would be included on an income statement ANSWER :-Rent expense
Another name for the income statement is ANSWER :-Statement of earnings
Which of the following classification does NOT appear on the Statement of Cash Flows ANSWER :-
Borrowing
Which of the following classifications refers to those activities whereby cash is obtained or repaid to
owners and creditors ANSWER :-Financing
