WGU C213 Accounting for Decision Makers Exam #1 Questions
with Correct Answers
Accounting - ✔✔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 - ✔✔the preservation of a systematic, quantitative record of an
activity
accounting system - ✔✔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 - ✔✔Info that is intended to be useful in making decisions
about the future.
The balance sheet, the income statement, and the statement of cashflows -
✔✔What are the three primary financial statements?
External Users - ✔✔Who is financial accounting information primarily prepared
for and used by?
Managerial Accounting - ✔✔the name given to accounting systems designed for
internal users
Balance Sheet - ✔✔Reports a company's assets, liabilities, and owners' equity
, Income Statement - ✔✔reports the amount of net income earned by a company
during a period
Net income - ✔✔the excess of a company's revenues over its expenses
statement of cash flows - ✔✔reports the amount of cash collected and paid out
by a company in the following three types of activities: operating, investing, and
financing
FASB - ✔✔Which private body establishes accounting rules in the U.S.?
Financial Accounting Standards Board (FASB) - ✔✔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) - ✔✔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) - ✔✔the professional
organization of certified public accountants (CPAs) in the United States
Public Company Accounting Oversight Board (PCAOB) - ✔✔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
with Correct Answers
Accounting - ✔✔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 - ✔✔the preservation of a systematic, quantitative record of an
activity
accounting system - ✔✔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 - ✔✔Info that is intended to be useful in making decisions
about the future.
The balance sheet, the income statement, and the statement of cashflows -
✔✔What are the three primary financial statements?
External Users - ✔✔Who is financial accounting information primarily prepared
for and used by?
Managerial Accounting - ✔✔the name given to accounting systems designed for
internal users
Balance Sheet - ✔✔Reports a company's assets, liabilities, and owners' equity
, Income Statement - ✔✔reports the amount of net income earned by a company
during a period
Net income - ✔✔the excess of a company's revenues over its expenses
statement of cash flows - ✔✔reports the amount of cash collected and paid out
by a company in the following three types of activities: operating, investing, and
financing
FASB - ✔✔Which private body establishes accounting rules in the U.S.?
Financial Accounting Standards Board (FASB) - ✔✔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) - ✔✔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) - ✔✔the professional
organization of certified public accountants (CPAs) in the United States
Public Company Accounting Oversight Board (PCAOB) - ✔✔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
