WGU C213 – Accounting for Decision Makers
(2025/2026 Latest Update) | Exam Q&A PDF |
Accurate & Verified Study Material
Accounting - correct answerthe 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 - correct answerthe preservation of a systematic, quantitative record of an
activity
accounting system - correct answerused 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 - correct answerInfo that is intended to be useful in making
decisions about the future.
The balance sheet, the income statement, and the statement of cashflows - correct
answerWhat are the three primary financial statements?
External Users - correct answerWho is financial accounting information primarily
prepared for and used by?
Managerial Accounting - correct answerthe name given to accounting systems designed
for internal users
Balance Sheet - correct answerReports a company's assets, liabilities, and owners'
equity
Income Statement - correct answerreports the amount of net income earned by a
company during a period
Net income - correct answerthe excess of a company's revenues over its expenses
statement of cash flows - correct answerreports the amount of cash collected and paid
out by a company in the following three types of activities: operating, investing, and
financing
FASB - correct answerWhich private body establishes accounting rules in the U.S.?
,Financial Accounting Standards Board (FASB) - correct answera 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) - correct answerthe 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) - correct answerthe
professional organization of certified public accountants (CPAs) in the United States
Public Company Accounting Oversight Board (PCAOB) - correct answerthe
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) - correct answerGov'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) - correct answerOrganization 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 - correct
answerWhich 3 factors have combined to make right now a time of significant change in
accounting?
Sarbanes-Oxley Act - correct answerA 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 - correct answerreports 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 - correct answerprobable future economic benefits obtained or controlled by a
company as a result of past transactions or events
, Liabilities - correct answerprobable 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 - correct answerthe residual interest in the assets of a company that
remains after deducting its liabilities
Assets = Liabilities + Owners' Equity - correct answerWhat is the accounting equation?
By order of liquidity - correct answerIn what order are assets typically listed on the
balance sheet?
Current and Long-term - correct answerLiabilities are divided into which 2 categories on
the balance sheet?
states that the financial results of an economic entity should be reported separately from
the financial results of other entities, even though all those entities may be controlled by
the same person - correct answerWhat is the entity concept?
(revenues-expense= net income) - correct answerEquation to calculate net income
When work has been done and collectability of cash can be reasonably assured -
correct answerAccording to accounting rules, when should revenue be recognized?
Operating activities - correct answerthose activities that comprise the day-to-day
operations of a business.
Investing activities - correct answerThe purchase and sale of long-term assets such as
land and equipment are known as _______________.
Financing activities - correct answerthose activities through which cash is obtained
from, or repaid to, creditors and investors
information on the accounting assumptions used in preparing the statements and
supplemental information not included in the statements themselves - correct
answerWhat information do the notes to accounting statements provide?
1. Summary of accounting policy
2. Additional info about summary totals
3. Disclosure of info not included in summary
4. Supplemental disclosure required by FASB or SEC - correct answerWhat are the 4
general types of accounting notes?
Conservatism - correct answerthe practice of recognizing all losses but not recognizing
gains until they are certain
(2025/2026 Latest Update) | Exam Q&A PDF |
Accurate & Verified Study Material
Accounting - correct answerthe 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 - correct answerthe preservation of a systematic, quantitative record of an
activity
accounting system - correct answerused 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 - correct answerInfo that is intended to be useful in making
decisions about the future.
The balance sheet, the income statement, and the statement of cashflows - correct
answerWhat are the three primary financial statements?
External Users - correct answerWho is financial accounting information primarily
prepared for and used by?
Managerial Accounting - correct answerthe name given to accounting systems designed
for internal users
Balance Sheet - correct answerReports a company's assets, liabilities, and owners'
equity
Income Statement - correct answerreports the amount of net income earned by a
company during a period
Net income - correct answerthe excess of a company's revenues over its expenses
statement of cash flows - correct answerreports the amount of cash collected and paid
out by a company in the following three types of activities: operating, investing, and
financing
FASB - correct answerWhich private body establishes accounting rules in the U.S.?
,Financial Accounting Standards Board (FASB) - correct answera 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) - correct answerthe 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) - correct answerthe
professional organization of certified public accountants (CPAs) in the United States
Public Company Accounting Oversight Board (PCAOB) - correct answerthe
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) - correct answerGov'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) - correct answerOrganization 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 - correct
answerWhich 3 factors have combined to make right now a time of significant change in
accounting?
Sarbanes-Oxley Act - correct answerA 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 - correct answerreports 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 - correct answerprobable future economic benefits obtained or controlled by a
company as a result of past transactions or events
, Liabilities - correct answerprobable 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 - correct answerthe residual interest in the assets of a company that
remains after deducting its liabilities
Assets = Liabilities + Owners' Equity - correct answerWhat is the accounting equation?
By order of liquidity - correct answerIn what order are assets typically listed on the
balance sheet?
Current and Long-term - correct answerLiabilities are divided into which 2 categories on
the balance sheet?
states that the financial results of an economic entity should be reported separately from
the financial results of other entities, even though all those entities may be controlled by
the same person - correct answerWhat is the entity concept?
(revenues-expense= net income) - correct answerEquation to calculate net income
When work has been done and collectability of cash can be reasonably assured -
correct answerAccording to accounting rules, when should revenue be recognized?
Operating activities - correct answerthose activities that comprise the day-to-day
operations of a business.
Investing activities - correct answerThe purchase and sale of long-term assets such as
land and equipment are known as _______________.
Financing activities - correct answerthose activities through which cash is obtained
from, or repaid to, creditors and investors
information on the accounting assumptions used in preparing the statements and
supplemental information not included in the statements themselves - correct
answerWhat information do the notes to accounting statements provide?
1. Summary of accounting policy
2. Additional info about summary totals
3. Disclosure of info not included in summary
4. Supplemental disclosure required by FASB or SEC - correct answerWhat are the 4
general types of accounting notes?
Conservatism - correct answerthe practice of recognizing all losses but not recognizing
gains until they are certain
