C213 Accounting WGU
Accounting - CORRECT ANSWER-a system of providing "quantitative
information, primarily financial in nature, about economic entities that is intended
to be useful in making economic decisions"
AICPA - CORRECT ANSWER-American Institute of Certified Public
Accountants-the professional organization of certified public accountants in the
united states
Balance Sheet - CORRECT ANSWER-document which reports the resources of
a company (assets), the company's obligations (liabilities), and the owner's
equity, which represents how much money has been invested in the company by
its owners.
Bookkeeping - CORRECT ANSWER-The preservation of a systematic,
quantitative record of an activity
CPA - CORRECT ANSWER-Certified Public Accountant-a person who has taken
a minimum number of college level accounting classes, has passed the dreaded
CPA exam, and has met other requirements set by his or her state.
Financial Accounting - CORRECT ANSWER-the name given to accounting
information provided for and used by external users
FASB - CORRECT ANSWER-Financial Accounting Standards Board -
governmental body that sets accounting standards in the United States
Financial Statements - CORRECT ANSWER-the three primary financial
information documents: the balance sheet, income statement, and statement of
cash flows
Income Statement - CORRECT ANSWER-this document reports the amount of
net income earned by a company during a period, with annual and quarterly
income statements being the most common
,IRS - CORRECT ANSWER-Internal Revenue Service m- the government agency
responsible for tax collection and tax law enforcement
IASB - CORRECT ANSWER-International Accounting Standards Board - an
independent, international body formed to develop worldwide accounting
standards
IFRS - CORRECT ANSWER-International Financial Reporting Standards - the
accounting standards produced by the IASB
Managerial Accounting - CORRECT ANSWER-the name given to accounting
systems designed for internal users
PCAOB - CORRECT ANSWER-Public Company Accounting Oversight Board - a
private, non-profit organization that effectively serves as an arm of the SEC in
registering, inspecting, and disciplining the auditors of all publicly traded
companies.
Statement of Cash Flows - CORRECT ANSWER-a document that reports the
amount of cash collected and paid out by a company in the following three types
of activities: operating, investing, and financing.
Accounting Equation - CORRECT ANSWER-assets = liabilities + owner's equity
Accumulated Other Comprehensive Income - CORRECT ANSWER-the source
of theses increased assets
Assets - CORRECT ANSWER-the firm's economic resources, formally defined
as "probable future economic benefits obtained or controlled by a particular entity
as a result of past transactions or events"
Balance Sheet - CORRECT ANSWER-a statement of financial position - shows
the financial resources the company owns or controls and the claims on those
resources
Book Value - CORRECT ANSWER-the book value of an asset is the asset's cost
minus the asset's accumulated depreciation
, Comparability - CORRECT ANSWER-information that becomes much more
useful when it can be related to a benchmark or standard
Conservatism - CORRECT ANSWER-a pervasive factor in accounting
summarized as, when in doubt, recognize all losses but don't recognize any
gains
Consistency - CORRECT ANSWER-the principle that, once you adopt an
accounting principle or method, continue to follow it consistently in future
accounting periods
Disclosure - CORRECT ANSWER-Disclosure in the notes that accompany the
financial statements is the accepted way to convey information to users when the
information is too uncertain to be able to be boiled down into one concrete
number
EPS - CORRECT ANSWER-Earnings per Share = tells the owner of one share of
stock what she or she really wanted to know
Entity Concept - CORRECT ANSWER-the idea that personal financial activity is
kept separate from business financial activity
Expenses - CORRECT ANSWER-the amount of assets consumed from the
performance of business operations and thus are the opposite of revenues
External Audit - CORRECT ANSWER-audit conducted by external (independent)
qualified accountants
Financing Activities - CORRECT ANSWER-those activities whereby cash is
obtained from, or repaid to, owners and creditors
Gains - CORRECT ANSWER-refers to money made on activities outside the
normal business of a company
Accounting - CORRECT ANSWER-a system of providing "quantitative
information, primarily financial in nature, about economic entities that is intended
to be useful in making economic decisions"
AICPA - CORRECT ANSWER-American Institute of Certified Public
Accountants-the professional organization of certified public accountants in the
united states
Balance Sheet - CORRECT ANSWER-document which reports the resources of
a company (assets), the company's obligations (liabilities), and the owner's
equity, which represents how much money has been invested in the company by
its owners.
Bookkeeping - CORRECT ANSWER-The preservation of a systematic,
quantitative record of an activity
CPA - CORRECT ANSWER-Certified Public Accountant-a person who has taken
a minimum number of college level accounting classes, has passed the dreaded
CPA exam, and has met other requirements set by his or her state.
Financial Accounting - CORRECT ANSWER-the name given to accounting
information provided for and used by external users
FASB - CORRECT ANSWER-Financial Accounting Standards Board -
governmental body that sets accounting standards in the United States
Financial Statements - CORRECT ANSWER-the three primary financial
information documents: the balance sheet, income statement, and statement of
cash flows
Income Statement - CORRECT ANSWER-this document reports the amount of
net income earned by a company during a period, with annual and quarterly
income statements being the most common
,IRS - CORRECT ANSWER-Internal Revenue Service m- the government agency
responsible for tax collection and tax law enforcement
IASB - CORRECT ANSWER-International Accounting Standards Board - an
independent, international body formed to develop worldwide accounting
standards
IFRS - CORRECT ANSWER-International Financial Reporting Standards - the
accounting standards produced by the IASB
Managerial Accounting - CORRECT ANSWER-the name given to accounting
systems designed for internal users
PCAOB - CORRECT ANSWER-Public Company Accounting Oversight Board - a
private, non-profit organization that effectively serves as an arm of the SEC in
registering, inspecting, and disciplining the auditors of all publicly traded
companies.
Statement of Cash Flows - CORRECT ANSWER-a document that reports the
amount of cash collected and paid out by a company in the following three types
of activities: operating, investing, and financing.
Accounting Equation - CORRECT ANSWER-assets = liabilities + owner's equity
Accumulated Other Comprehensive Income - CORRECT ANSWER-the source
of theses increased assets
Assets - CORRECT ANSWER-the firm's economic resources, formally defined
as "probable future economic benefits obtained or controlled by a particular entity
as a result of past transactions or events"
Balance Sheet - CORRECT ANSWER-a statement of financial position - shows
the financial resources the company owns or controls and the claims on those
resources
Book Value - CORRECT ANSWER-the book value of an asset is the asset's cost
minus the asset's accumulated depreciation
, Comparability - CORRECT ANSWER-information that becomes much more
useful when it can be related to a benchmark or standard
Conservatism - CORRECT ANSWER-a pervasive factor in accounting
summarized as, when in doubt, recognize all losses but don't recognize any
gains
Consistency - CORRECT ANSWER-the principle that, once you adopt an
accounting principle or method, continue to follow it consistently in future
accounting periods
Disclosure - CORRECT ANSWER-Disclosure in the notes that accompany the
financial statements is the accepted way to convey information to users when the
information is too uncertain to be able to be boiled down into one concrete
number
EPS - CORRECT ANSWER-Earnings per Share = tells the owner of one share of
stock what she or she really wanted to know
Entity Concept - CORRECT ANSWER-the idea that personal financial activity is
kept separate from business financial activity
Expenses - CORRECT ANSWER-the amount of assets consumed from the
performance of business operations and thus are the opposite of revenues
External Audit - CORRECT ANSWER-audit conducted by external (independent)
qualified accountants
Financing Activities - CORRECT ANSWER-those activities whereby cash is
obtained from, or repaid to, owners and creditors
Gains - CORRECT ANSWER-refers to money made on activities outside the
normal business of a company
