ACCOUNTING FOR DECISION MAKERS (WGU C213) STUDY GUIDE WITH ANSWERS GRADED A+

WGU C213 Accounting for Decision Makers
study guide With Answers Graded A+ Latest
2025/2026

1. Accounting: the recording of the day-to-day financial activities of a company
g g g g g g g g g g




and the organization of that information into summary reports used to evaluate the c
g g g g g g g g g g g g g




ompany's financial status g g




2. Bookkeeping: the preservation of a systematic, quantitative record of an activity 3.
g g g g g g g g g g




accounting system: used by a business to handle routine bookkeeping tasks an
g g g g g g g g g g g




d to structure the information so it can be used to evaluate the performance and finan
g g g g g g g g g g g g g g g




cial status of the business
g g g g




4. Accounting information: Info that is intended to be useful in making decisions a
g g g g g g g g g g g g




bout the future.
g g




5. The balance sheet, the income statement, and the statement of cashflows-
g g g g g g g g g g




: What are the three primary financial statements?
g g g g g g g




6. External Users: Who is financial accounting information primarily prepared for a
g g g g g g g g g g




nd used by?
g g




7. Managerial Accounting: the name given to accounting systems designed for i
g g g g g g g g g g




nternal users g




8. Balance Sheet: Reports a company's assets, liabilities, and owners' equity 9.
g g g g g g g g g




Income Statement: reports the amount of net income earned by a company d
g g g g g g g g g g g g




uring a period g g




10. Net income: the excess of a company's revenues over its expenses
g g g g g g g g g g




1

, 11. statement of cash flows: reports the amount of cash collected and paid out by a co
g g g g g g g g g g g g g g g




mpany in the following three types of activities: operating, investing, and financing 12.
g g g g g g g g g g g




FASB: Which private body establishes accounting rules in the U.S.?
g g g g g g g g g




13. Financial Accounting Standards Board (FASB): a private body established an g g g g g g g g g




d supported by the joint efforts of the U.S. business community, financial analysts, and
g g g g g g g g g g g g g g




practicing accountants g




14. The Securities and Exchange Commission (SEC): the organization that reg-
g g g g g g g g g




g ulates U.S. stock exchanges and seeks to create a fair information environment in w
g g g g g g g g g g g g g




hich investors can buy and sell stocks without fear that companies are hiding or mani
g g g g g g g g g g g g g g




pulating financial data g g




15. American Institute of Certified Public Accountants (AICPA): the professional o g g g g g g g g g




rganization of certified public accountants (CPAs) in the United States
g g g g g g g g g




16. Public Company Accounting Oversight Board (PCAOB): the organization tha
g g g g g g g g




t inspects the audit practices of registered audit firms and has statutory authority to inv
g g g g g g g g g g g g g g




estigate questionable audit practices and to impose sanctions such as barring an audi
g g g g g g g g g g g g




t firm from auditing SEC-registered companies
g g g g g




17. Internal Revenue Service (IRS): Gov't agency that establishes rules to define e
g g g g g g g g g g g




xactly when income should be taxed. It has no role in setting financial accounting rule
g g g g g g g g g g g g g g




s; and a company's financial statements are not used in determining how much tax th
g g g g g g g g g g g g g g




e company must pay
g g g




2