WGU C201 CH15 UNDERSTANDING
ACCOUNTING AND FINANCIAL
STATEMENTS QUESTIONS AND
ANSWERS WITH COMPLETE
SOLUTIONS 100% CORRECT!!!
Accounting Professionalism & Core Terms
Concept: Certified Public Accountant (CPA) Answer: An accounting expert who
has successfully completed rigorous academic and professional requirements,
including passing a standardized national exam focused on advanced accounting
principles and practices. ✔️✔️
Concept: Certified Management Accountant (CMA) Answer: A credentialed
accounting professional who works specifically within a corporate setting or
private organization rather than providing services through an external public
accounting firm. ✔️✔️
Concept: Asset Answer: Any resource of value that a company either owns
outright or holds a legal right to use (via lease) to produce future economic
benefits. ✔️✔️
Concept: Accounting Answer: The systematic process of quantifying, analyzing,
and reporting financial data to help both internal management and external
stakeholders make informed business decisions. ✔️✔️
double entry bookkeeping -ANSWER ✔️✔️(_____) is the practice of recording each
transaction with an offsetting transaction.
, liability -ANSWER ✔️✔️(_____) is the term that describes any creditor's claims
against the business.
balance sheet -ANSWER ✔️✔️Like a ""photograph in time"", the (_____) shows the
financial position of an organization as of a given date and makes explicit the basic
accounting equation.
management accountant -ANSWER ✔️✔️A professional accountant employed by a
firm to develop financial information used by the firm's own management is called
a(n)(_____).
budget -ANSWER ✔️✔️A (_____) is a planning and control tool that reflects
projected revenues, operating expenses, cash receipts, and outlays for a future time
period.
accounting cycle -ANSWER ✔️✔️The (_____) is the method of converting
information about individual transactions into financial statements.
public accountant -ANSWER ✔️✔️An independent professional who provides
accounting services for both business and individuals is a(n) (_____).
income statement -ANSWER ✔️✔️The (_____) is the financial statement that
reflects the income, expenses, and profits of a business over a period of time, like a
"video in time". It is also known as a profit and loss statement, and contains the
entry "net income after taxes" (a.k.a. "the bottom line").
cash budget -ANSWER ✔️✔️An important statement that tracks the firm's inflows
and outflows of money, indicating when loans may be needed or when there will
be excess funds to invest, is the (_____).
ACCOUNTING AND FINANCIAL
STATEMENTS QUESTIONS AND
ANSWERS WITH COMPLETE
SOLUTIONS 100% CORRECT!!!
Accounting Professionalism & Core Terms
Concept: Certified Public Accountant (CPA) Answer: An accounting expert who
has successfully completed rigorous academic and professional requirements,
including passing a standardized national exam focused on advanced accounting
principles and practices. ✔️✔️
Concept: Certified Management Accountant (CMA) Answer: A credentialed
accounting professional who works specifically within a corporate setting or
private organization rather than providing services through an external public
accounting firm. ✔️✔️
Concept: Asset Answer: Any resource of value that a company either owns
outright or holds a legal right to use (via lease) to produce future economic
benefits. ✔️✔️
Concept: Accounting Answer: The systematic process of quantifying, analyzing,
and reporting financial data to help both internal management and external
stakeholders make informed business decisions. ✔️✔️
double entry bookkeeping -ANSWER ✔️✔️(_____) is the practice of recording each
transaction with an offsetting transaction.
, liability -ANSWER ✔️✔️(_____) is the term that describes any creditor's claims
against the business.
balance sheet -ANSWER ✔️✔️Like a ""photograph in time"", the (_____) shows the
financial position of an organization as of a given date and makes explicit the basic
accounting equation.
management accountant -ANSWER ✔️✔️A professional accountant employed by a
firm to develop financial information used by the firm's own management is called
a(n)(_____).
budget -ANSWER ✔️✔️A (_____) is a planning and control tool that reflects
projected revenues, operating expenses, cash receipts, and outlays for a future time
period.
accounting cycle -ANSWER ✔️✔️The (_____) is the method of converting
information about individual transactions into financial statements.
public accountant -ANSWER ✔️✔️An independent professional who provides
accounting services for both business and individuals is a(n) (_____).
income statement -ANSWER ✔️✔️The (_____) is the financial statement that
reflects the income, expenses, and profits of a business over a period of time, like a
"video in time". It is also known as a profit and loss statement, and contains the
entry "net income after taxes" (a.k.a. "the bottom line").
cash budget -ANSWER ✔️✔️An important statement that tracks the firm's inflows
and outflows of money, indicating when loans may be needed or when there will
be excess funds to invest, is the (_____).
