WGU C213 PA 2026 COMPREHENSIVE SET
SOLVED QUESTIONS AND SOLUTION
◉What is NOT typically true of accounting information? Answer:
The information relates to future time periods.
◉Which is NOT a key component of the definition of accounting?
Answer: Qualitative
◉What is true about the double-entry system of bookkeeping?
Answer: It was developed in the 1300s−1400s in Italy.
◉Businesses use accounting systems to Answer: Analyze
transactions; Handle routine bookkeeping tasks; Evaluate
performance and health of the business.
◉What is not a function of accounting? Answer: Executing sales
transactions for organizations
◉What is NOT one of the three primary financial statements?
Answer: Statement of retained earnings
,◉Generally accepted accounting principles are Answer: Developed
by accounting rule makers
◉The initials GAAP stand for Answer: 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 organizations has specific legal authority to
establish accounting standards for publicly held companies?
Answer: Securities and Exchange Commission (SEC)
◉Which is NOT a service typically provided by large public
accounting firms? Answer: Making management decisions
◉The organization that develops worldwide accounting standards is
the Answer: International Accounting Standards Board (IASB)
◉The initials CPA stand for Answer: Certified Public Accountant
◉Which of the following financial statements reports a company's
resources, obligations, and owner's equity? Answer: Balance sheet
,◉Which of the following financial statements reports the excess of a
company's revenues over its expenses? Answer: Income statement
◉Which of the following financial statements reports the amount of
cash collected and paid out by a company? Answer: Statement of
cash flows
◉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
information? Answer: 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 for Answer: 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 organizations has specific legal authority to
establish accounting standards for publicly held companies?
Answer: Securities and Exchange Commission (SEC)
◉Which of the following is NOT a service typically provided by large
public accounting firms? Answer: Making management decisions
◉The organization that develops worldwide accounting standards is
the Answer: International Accounting Standards Board (IASB)
◉The initials CPA stand for Answer: Certified Public Accountant
◉Standards established by the International Accounting Standards
Board are referred to as Answer: International Financial Accounting
Standards
SOLVED QUESTIONS AND SOLUTION
◉What is NOT typically true of accounting information? Answer:
The information relates to future time periods.
◉Which is NOT a key component of the definition of accounting?
Answer: Qualitative
◉What is true about the double-entry system of bookkeeping?
Answer: It was developed in the 1300s−1400s in Italy.
◉Businesses use accounting systems to Answer: Analyze
transactions; Handle routine bookkeeping tasks; Evaluate
performance and health of the business.
◉What is not a function of accounting? Answer: Executing sales
transactions for organizations
◉What is NOT one of the three primary financial statements?
Answer: Statement of retained earnings
,◉Generally accepted accounting principles are Answer: Developed
by accounting rule makers
◉The initials GAAP stand for Answer: 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 organizations has specific legal authority to
establish accounting standards for publicly held companies?
Answer: Securities and Exchange Commission (SEC)
◉Which is NOT a service typically provided by large public
accounting firms? Answer: Making management decisions
◉The organization that develops worldwide accounting standards is
the Answer: International Accounting Standards Board (IASB)
◉The initials CPA stand for Answer: Certified Public Accountant
◉Which of the following financial statements reports a company's
resources, obligations, and owner's equity? Answer: Balance sheet
,◉Which of the following financial statements reports the excess of a
company's revenues over its expenses? Answer: Income statement
◉Which of the following financial statements reports the amount of
cash collected and paid out by a company? Answer: Statement of
cash flows
◉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
information? Answer: 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 for Answer: 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 organizations has specific legal authority to
establish accounting standards for publicly held companies?
Answer: Securities and Exchange Commission (SEC)
◉Which of the following is NOT a service typically provided by large
public accounting firms? Answer: Making management decisions
◉The organization that develops worldwide accounting standards is
the Answer: International Accounting Standards Board (IASB)
◉The initials CPA stand for Answer: Certified Public Accountant
◉Standards established by the International Accounting Standards
Board are referred to as Answer: International Financial Accounting
Standards
