WGU C213 Accounting for Decision Makers For
Year 2026/2027
Accounting - Correct Answers the 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 Answers the preservation of a systematic, quantitative record of an
activity
accounting system - Correct Answers used 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 Answers Info that is intended to be useful in making
decisions about the future.
The balance sheet, the income statement, and the statement of cashflows - Correct
Answers What are the three primary financial statements?
External Users - Correct Answers Who is financial accounting information primarily prepared
for and used by?
Managerial Accounting - Correct Answers the name given to accounting systems designed for
internal users
Balance Sheet - Correct Answers Reports a company's assets, liabilities, and owners' equity
Income Statement - Correct Answers reports the amount of net income earned by a company
during a period
Net income - Correct Answers the excess of a company's revenues over its expenses
, statement of cash flows - Correct Answers reports the amount of cash collected and paid out
by a company in the following three types of activities: operating, investing, and financing
FASB - Correct Answers Which private body establishes accounting rules in the U.S.?
Financial Accounting Standards Board (FASB) - Correct Answers a 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 Answers the 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 Answers the professional
organization of certified public accountants (CPAs) in the United States
Public Company Accounting Oversight Board (PCAOB) - Correct Answers the 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 Answers Gov'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 Answers Organization 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
Answers Which 3 factors have combined to make right now a time of significant change in
accounting?
Year 2026/2027
Accounting - Correct Answers the 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 Answers the preservation of a systematic, quantitative record of an
activity
accounting system - Correct Answers used 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 Answers Info that is intended to be useful in making
decisions about the future.
The balance sheet, the income statement, and the statement of cashflows - Correct
Answers What are the three primary financial statements?
External Users - Correct Answers Who is financial accounting information primarily prepared
for and used by?
Managerial Accounting - Correct Answers the name given to accounting systems designed for
internal users
Balance Sheet - Correct Answers Reports a company's assets, liabilities, and owners' equity
Income Statement - Correct Answers reports the amount of net income earned by a company
during a period
Net income - Correct Answers the excess of a company's revenues over its expenses
, statement of cash flows - Correct Answers reports the amount of cash collected and paid out
by a company in the following three types of activities: operating, investing, and financing
FASB - Correct Answers Which private body establishes accounting rules in the U.S.?
Financial Accounting Standards Board (FASB) - Correct Answers a 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 Answers the 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 Answers the professional
organization of certified public accountants (CPAs) in the United States
Public Company Accounting Oversight Board (PCAOB) - Correct Answers the 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 Answers Gov'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 Answers Organization 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
Answers Which 3 factors have combined to make right now a time of significant change in
accounting?
